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FACTBOX-Bad debts Italian banks' Achilles heel in ECB review

MILAN, Feb 20 (Reuters) - Italian banks, burdened by 156 billion euros ($214.55 billion) in gross bad debts and twice that amount in doubtful loans, are under the spotlight in an asset review of euro zone lenders conducted by the European Central Bank this year. The banks have seen a 45 percent increase in bad loans during the country's longest post-war recession. At end-2013 they stood at 8.1 percent of total loans, the highest since May 1999, according to banking association ABI. ABI forecasts a 13 percent rise in non-performing loans this year, after a 20 percent jump in 2013. It sees bad debts rising another 9 percent in 2015 towards 200 billion euros. The ECB review targets the top 15 among Italy's 690 banks.

UNICREDIT - Italy's biggest bank by assets has recently sold a total of 1.65 billion euros in non-performing loans in two separate deals. Loan-loss provisions totalled 4.4 billion euros in Jan-Sept, down 8.7 percent year-on-year.

Basel 3 Coverage Coverage Gross Gross NPLs CET1 Ratio NPLs doubtful end-Sept doubtful

Loans

9.83 44.6 pct 55.5 pct 83.9 bln 47.0 bln INTESA SANPAOLO - It is working on a project to

create an "internal" bad bank. Loan-loss provisions totalled 4 billion euros in Jan.-Sept. up 23.9 percent year-on-year.

Basel 3 Coverage Coverage Gross Gross NPLs CET1 Ratio NPLs doubtful end-Sept doubtful

Loans

11.5 44.5 pct 61 pct 55.5 bln 32.9 bln MONTE DEI PASCHI DI SIENA - The bailed-out bank is

planning a 3 billion euro cash call that got delayed to mid-May due to opposition from its key shareholder. It needs to repay 4.1 billion euros in state-aid to stave off nationalisation. Monte Paschi set aside 1.5 billion euros in Jan.-Sept. to cover loan losses, an annual increase of 18.5 percent.

Core Tier Coverage Coverage Gross Gross NPLs 1 Ratio NPLs doubtful

end-Sept(i doubtful

ncluding Loans

state-aid)

11.1 40.8 pct 58.0 pct 33.9 bln 19.98 bln BANCO POPOLARE - The cooperative bank expects a

planned 1.5 billion euro rights issue to bring its Basel 3 common equity ratio to around 10 percent. The bank expects a 2013 loss of 600 million euros with loan loss charges totalling 1.7 billion euros in the year.

Core Tier Coverage Coverage Gross Gross NPLs 1 end-Dec Ratio NPLs doubtful

doubtful Loans end-Sept

9.3 36.7 pct 53.8 pct 17.4 bln 8.4 bln UBI BANCA - It set aside 577 million euros in the

first nine months of 2013 to cover loan losses, a 17 percent increase from the previous year.

Basel 3 Coverage Coverage Gross Gross NPLs CET1 Ratio NPLs doubtful end-Sept doubtful

Loans

> 10 pct 25.9 pct 41.3 pct 12.4 bln 5.7 bln

BANCA POPOLARE DI MILANO - The cooperative bank

plans to launch a 500 million euro rights issue by April. Loan write-downs totalled 261 million euros in the first nine months, up 25 percent year-on-year.

Core Tier Coverage Coverage Gross Gross NPLs 1 Ratio NPLs doubtful

end-Sept(i doubtful

ncl. Loans

add-ons)

7.25 33.5 pct 53.5 pct 4.99 bln 2.35 bln MEDIOBANCA - Loan loss provisions at the Milanese

merchant bank rose 30 percent in the second half of last year to 302 million euros.

Core Tier Coverage Coverage Gross Gross NPLs 1 end-Dec Ratio ratio NPLs doubtful

doubtful Loans

11.9 46 pct 67 pct 1.81 bln 0.68 bln BANCA POPOLARE EMILIA ROMAGNA - The bank hopes

that the adoption of an internal rating model this year will boost its core capital to around 10 percent, plugging a shortfall that could be arise from the ECB's review. Loan-loss charges stood at 591 million euros in January-September, up 41 percent year-on-year. Analysts say the bank will need a capital increase.

CET 1 Coverage Coverage Gross Gross NPLs end-2013 Ratio ratio NPLs doubtful

doubtful Loans end-Sept

> 8 pct 35.7 pct 54.6 pct 10.2 bln 5.3 bln

CREDITO EMILIANO - Loan losses rose 31 percent to

69 million euros in January-September.

Core Tier Coverage Coverage Gross Gross NPLs 1 ratio Ratio ratio NPLs doubtful end-Sept doubtful

Loans

10 pct 36.1 pct 55.3 pct 1.25 bln 0.70 bln BANCA CARIGE - The bank must fill an 800 million

euro capital gap and aims to approve a capital increase by end-March. It has raised only 100 million euros from assets sales. It set aside 394 million euros in the first nine months of 2013 to cover loan losses.

Core Tier Coverage Coverage Gross Gross NPLs 1 ratio Ratio ratio NPLs doubtful end-Sept doubtful

Loans

5.8 pct 30.0 49.8 pct 5.1 bln 2.3 bln CREDITO VALTELLINESE - Analysts include Creval

among banks that may need to raise capital. Loan-loss provisions totalled 183 million euros in the first nine months, up nearly 33 percent from 2012.

Core Tier Coverage Coverage Gross Gross NPLs 1 ratio Ratio ratio NPLs doubtful end-Sept doubtful

Loans

8.2 pct 32.5 57.9 pct 4.1 bln 1.9 bln BANCA POPOLARE DI SONDRIO - Loan writedowns

totalled 1 billion euros in Jan-Sept, up 36 pct year-on-year.

Core Tier Coverage Coverage Gross Gross NPLs 1 ratio Ratio ratio NPLs doubtful end-Sept doubtful

Loans

7.73 pct 36.4 pct 59.2 pct 2.8 bln 1.1 bln

VENETO BANCA - The bank is planning to convert a 350 million euro bond into shares and is also trying to sell a 71 percent

stake in listed unit Banca Intermobiliare to meet a 9.5

percent core capital target at end-June. A top executive told Reuters the bank is ready to tap shareholders for cash should the sale fall through. The bank set aside 370 million euros in 2013 to cover loan losses and has hired adviser Goldman Sachs to look at possible merger options.

CET 1 Coverage Coverage Gross Gross NPLs ratio Ratio ratio NPLs doubtful end-Dec doubtful

Loans

7.2 pct 30 pct 45 pct NA NA

BANCA POPOLARE DI VICENZA - The unlisted mid-tier lender plans a 1 billion euro cash call with a view to buy another bank. It last tapped investors for cash in August. The cash call will boost its core capital to 12.5 percent. 2013 loan write-downs were 370 million euros, up 71 percent from 2012.

Core Tier Coverage Coverage Gross Gross NPLs 1 Ratio ratio NPLs doubtful including doubtful rights Loans issue in end-June

Aug 2013

8.99 pct 30.2 pct 48.0 pct 4.75 bln 2.24 bln

ICCREA HOLDING - The holding company is controlled by more than 400 small cooperative banks. It set aside 761 million euros in the Jan-Sept 2013 for loan losses, up 11 percent.

CET1 Coverage Coverage Gross Gross NPLs end-Sept Ratio ratio NPLs doubtful

doubtful Loans

9.58 pct 31.62 pct 52.12 pct 2.2 bln 1.0 bln

CET1/Core Tier 1: A measurement of a bank's core equity capital compared with its total risk-weighted assets and a key indicator of its financial strength. For more on Italian banks please click on: ($1 = 0.7271 euros)

(Reporting by Valentina Za. Editing by Jane Merriman)