MILAN, March 19 Italian mid-sized bank Banca
Popolare di Milano has approved a rights issue of up
to 500 million euros ($644 million) to repay bonds subscribed by
the state in 2009 for an equal amount, it said on Tuesday.
The announcement accompanied its 2012 results which showed a
net loss of 429.7 million euros due to one-off losses including
a goodwill write-down of 360 million euros and a rise in loan
loss provisions following an audit by the Bank of Italy. In 2011
its net loss was 614 million euros.
In a statement, the Milan-based cooperative lender said it
would launch the cash call by October and ask the Bank of Italy
to give its authorization to fully repay the so-called Tremonti
state bonds by end-June this year.
The bank also approved the outline of a plan to become a
joint stock company and reshape its corporate governance.
Total revenues rose 14.6 percent to 1.55 billion euros in
2012, underpinned by a rise in net interest income and by a
positive net financial result.
Its core tier 1 capital adequacy ratio was 8.38 percent at
the end of 2012, against 8.02 percent at the end of 2011.
($1 = 0.7760 euros)
(Reporting By Danilo Masoni; editing by Naomi O'Leary)