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Pop Milano approves rights issue for up to 500 mln euros
March 19, 2013 / 7:07 PM / 5 years ago

Pop Milano approves rights issue for up to 500 mln euros

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)

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