PARIS, July 4 (Reuters) - France’s state-owned postal bank said on Thursday it had raised 1 billion euros ($1.3 billion) in fresh capital from its parent group to help it expand and issue more loans amid recession in its home market.
The figure is made up of 200 million euros in capital and 800 million in hybrid debt instruments that count towards core, loss-absorbing Tier 1 capital, the bank said in a statement.
Banque Postale, primarily a deposit-rich retail bank, has grown its balance sheet over the past two years by taking over the municipal lending business of Dexia and agreeing to recover some of mortgage lender Credit Immobilier de France’s home finance activities after it was broken up.
Banque Postale is targeting a 2013 capital ratio of 9.5 percent under tougher Basel III rules, more or less in line with larger rival Societe Generale, while BNP Paribas hit 10 percent earlier this year.
Unlike BNP and SocGen, Banque Postale has a surplus of deposits that could be used to expand its loan book. At the end of 2012, Banque Postale had a loan-to-deposit ratio of 59 percent, while BNP and SocGen’s ratios are both above 100 percent. ($1 = 0.7709 euros) (Reporting by Lionel Laurent; editing by Tom Pfeiffer)