MILAN May 13 Italian mid-sized lender Credito
Valtellinese posted on Tuesday a higher first-quarter
net profit and also strengthened its capital base, even before
an upcoming 400-million euro rights issue.
Creval, one of 15 Italian banks under scrutiny in a check up
of lenders across the euro zone, said its net profit for the
first three months of the year stood at 0.8 million euros, up
from 0.3 million euros a year ago.
Revenues rose to 233 million euros from 190 million euros in
the same period a year ago, and the net operating income was up
70 percent to 107 million euros.
The bank said its best-quality Common Equity Tier 1 capital
was 9.2 percent at the end of March and would rise to 11.5
percent after the completion of the capital increase, scheduled
for the first half of this year.
The bank had previously estimated a pro-forma Common Equity
ratio of 10.9 percent after the share sale.
On a less positive note, net doubtful loans continued to
rise, totalling 2.9 billion euros compared with 2.7 billion
euros at the end of last year, as a two-year recession in Italy
keeps taking its toll on banks' balance sheets even as the
economy slowly improves.
Writedowns on problematic loans and other financial
activities nearly doubled from a year earlier to 102 million
(Reporting by Silvia Aloisi, editing by Valentina Za)