MILAN, March 31 Banca Etruria, a small
Italian lender which is seeking a merger with a stronger peer
following advice from the Bank of Italy, said on Monday it
posted a 70.3 million euro ($96.89 million) loss in 2013 due to
loan and goodwill writedowns.
The Tuscan bank said its Tier 1 capital, a measure of
financial strength, stood at 6.6 percent of risk-weighted assets
at the end of last year.
"The 2013 result mirrors the still significant effects of
the crisis and of a lack of economic recovery in the areas where
the bank operates, with a direct impact on loan writedowns
following Bank of Italy's requests to boost the coverage ratio,"
the bank said.
The bank said in a statement it had put aside 308.7 million
euros to cover possible loan losses and had written down
goodwill and other intangible assets for 5.2 million euros.
Banca Etruria said it continued to look at possible mergers
with a banking group "of high standing."
($1 = 0.7256 Euros)
(Reporting by Valentina Za)