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Italian bailout candidate Pop Vicenza posts 1.9 bln euro loss
March 28, 2017 / 5:37 PM / 8 months ago

Italian bailout candidate Pop Vicenza posts 1.9 bln euro loss

MILAN, March 28 (Reuters) - Italy’s Banca Popolare di Vicenza posted a 1.9 billion euro ($2 billion) loss for 2016 and said it had suffered severe deposit outflows, raising questions over whether it will be deemed viable by regulators that must approve its request for state aid.

The regional bank and local rival Veneto Banca this month asked to be bailed out by the Italian government, following in the steps of Italy’s fourth-largest lender Monte dei Paschi di Siena.

The two Veneto-based banks were rescued from bankruptcy less than a year ago by state-sponsored, privately-funded banking industry bailout fund Atlante, which has pumped 3.5 billion euros in the two lenders.

Popolare di Vicenza said losses stemming mainly from 1.1 billion euros in problematic loan writedowns had pushed its core capital to 8.21 percent, well below a 10.25 percent minimum threshold set by European Central Bank supervisors.

It said its liquidity coverage ratio had fallen to 37.9 percent compared with a minimum requirement of 90 percent.

The bank warned changes to loan loss provisions demanded by the ECB would have a significant impact also in 2017. ($1 = 0.9230 euros) (Reporting by Valentina Za, editing by Silvia Aloisi)

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