* Muenchener Hyp raises 400 million in capital
* Step bumps capital ratio to 11.1 from 6.3 percent
* Banks have bolstered capital by 97bln euros since 2013-ECB
(Adds ECB comment, background)
FRANKFURT, July 15 German cooperative mortgage
lender Muenchener Hypothekenbank has raised 400
million euros ($545.6 million) from its owners to meet capital
levels required by the European Central Bank.
The money, which Muenchener raised in the first six months
of the year, will increase the bank's capital ratio to 11.1
percent from 6.3 percent at the end of 2013, it said on Tuesday.
The ECB is carrying out a detailed review of the euro zone's
128 largest banks before it becomes the region's financial
supervisor in November. It has asked banks to have a capital
ratio of at least 8 percent as of December 2013.
Muenchener Hyp is the first German bank to report an
end-2013 capital shortfall, but a number of other banks also
raised capital when it became clear that they would not meet the
8 percent threshold for the ECB review.
In Italy, for example, Monte Paschi, Popolare
Milano, Carige, Popolare Sondrio
and Veneto Banca have taken such steps.
The new capital for Muenchener Hyp stems mostly from other
banks and companies of the cooperative sector, a spokesman for
the Munich-based lender said. He added that the capital raising
had been launched immediately after it became clear in October
2013 that the bank would be supervised by the ECB.
"Further capital commitments are there, but have not yet
been booked. By the end of August we will show a capital ratio
of about 12 percent," he said.
Muenchener Hypothekenbank, which has a balance sheet total
of 35 billion euros, making it one of the smallest lenders to be
supervised by the ECB, this year expects to at least repeat its
2013 net profit of 7 million euros and is aiming to pay a
dividend, the spokesman said.
Chief Executive Louis Hagen said: "We view the upcoming
results of the stress test and the Asset Quality Review with
confidence. I am certain that we are now well prepared to fully
meet future supervisory requirements."
The ECB said that since July 2013 banks have increased their
capital buffers by 97 billion euros, including 46 billion in
equity issuance, one-off provisions of 19 billion, issuance of
so-called CoCo bonds worth 18 billion and capital gains from
asset disposals of 13 billion since July 2013.
"Banks have done a lot to repair and boost their balance
sheets ever since we announced the comprehensive assessment.
This is encouraging and going in the right direction," an ECB
($1 = 0.7331 Euros)
(Reporting by Arno Schuetze; additional reporting by Andreas
Kröner and Silvia Aloisi. Editing by Jane Merriman)