MILAN Nov 14 Banca Monte dei Paschi di Siena
, Italy's third biggest lender, posted an unexpected
net loss in the third quarter of the year as writedowns on bad
loans more than offset trading gains.
In contrast to larger peers UniCredit and Intesa
Sanpaolo, which reported better-than-expected
third-quarter profits on Tuesday, Monte dei Paschi posted a net
loss of 47.4 million euros ($60.25 million).
Net writedowns on bad loans reached 1.3 billion euros in the
first nine months of the year, up 56 percent from a year
earlier, weighed for 461 million euros on third quarter results.
The Tuscan lender, the world's oldest bank, had posted a net
profit of 42.2 million euros a year ago but ended the first half
of 2012 with a big loss of 1.6 billion euros because of hefty
writedowns on its costly acquisition of smaller peer Antonveneta
Monte dei Paschi is the only Italian bank - and only one of
four lenders in Europe - that failed to meet tougher capital
requirements set by the European Banking Authority. It requested
3.4 billion euros in state aid in June and is still awaiting
approval by the European Commisison for the scheme to go ahead.
The bank was downgraded to junk by rating agency Moody's in
October on the back of concerns that it may need more state
Seeking to turn around its fortunes, Monte dei Paschi has
announced 4,600 job cuts and the closure of 400 branches.