Credito Valtellinese returns to profit in 2013, scraps dividend

MILAN, March 4 Tue Mar 4, 2014 11:31am EST

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MILAN, March 4 (Reuters) - Credito Valtellinese, one of 15 Italian lenders being scrutinised by the European Central Bank, said on Tuesday it had returned to profit in 2013 despite a nearly 30 percent rise in problematic loans.

Net profit came in at 11.7 million euros ($16 million) compared with a loss of 322 million euros in 2012. Net impaired debts stood at 2.7 billion euros, compared with 2.1 billion euros a year earlier.

The bank said it would propose scrapping a dividend for the second consecutive year to an annual shareholder meeting scheduled for April 12.

It said its core tier 1 ratio, a measure of financial strength, stood at 8.6 percent, up from 8.2 percent at the end of September and compared with an 8 percent minimum requirement set by the ECB. Analysts have said the bank may need to join a growing list of Italian lenders planning to raise cash on the market to boost their capital. ($1 = 0.7260 euros) (Reporting by Silvia Aloisi, editing by Valentina Za)

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