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CORRECTED-Veneto Banca share price seen lower, targets 2016 profit
April 9, 2014 / 3:21 PM / 4 years ago

CORRECTED-Veneto Banca share price seen lower, targets 2016 profit

(Corrects to clarify that the new share valuation has yet to be set)

MILAN, April 8 (Reuters) - Unlisted Italian lender Veneto Banca proposed to lower the value of its shares in an annual review after posting a 96 million euro ($132 million) net loss in 2013.

Veneto Banca said on Tuesday it would ask shareholders to approve a price of 39.5 euros per share for 2014, down about 3 percent from 40.75 euros last year.

Each year the board recommends a per share value to shareholders, based on a number of factors including past and expected profitability.

The bank, one of 15 Italian lenders under review by the European Central Bank in a check-up of banking assets across the euro zone this year, plans to raise 500 million euros from investors in a share sale in coming months.

A spokeswoman for the company said on Wednesday the bank had yet to decide at what price to offer the new shares.

Veneto Banca is also set to convert a 350 million euro bond into equity to bring its highest quality Common Equity Tier 1 capital above a minimum threshold set by the ECB in the review.

Eight of the 15 Italian banks under ECB’s scrutiny are planning to raise a total of more than 8 billion euros in capital from investors in coming months.

Veneto Banca is targeting an attributable net profit of 222 million euros in 2016 with a return on tangible equity of 7.4 percent, it said in a statement.

The bank posted a 96 million euro net loss last year after 459 million euros in writedowns.

It expects an operating income of 1.15 billion euros in 2016 against 1.1 billion euros in 2013.

$1 = 0.7249 Euros Reporting by Valentina Za; Editing by Lisa Jucca and Elaine Hardcastle

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