MILAN, March 19 (Reuters) - 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)