MILAN (Reuters) – Italian banks are cutting their lending to businesses to fend off rising bad loans and reduce their funding needs, crimping profits and exacerbating a credit crunch in the euro zone’s third largest economy.
With Italy’s top five lenders due to report third-quarter results next week, analysts say operating results will remain weak and that this is unlikely to change soon, as lower loan volumes against a backdrop of low interest rates eat into banks’ margins.
MILAN, Nov 5 (Reuters) – Italy’s biggest bank denied on
Monday there were any plans for a tie up with rival Intesa
Sanpaolo after reports that UniCredit chief
executive Federico Ghizzoni had been sounded out on the issue.
A source close to a UniCredit shareholder told Reuters the
chairman of Intesa’s supervisory board, Giovanni Bazoli, had
sent a friendly banker to discuss a tie-up with Ghizzoni but
that he had rejected the idea.
MILAN, Oct 25 (Reuters) – Italy’s Luxottica, the
world’s biggest premium eyewear maker, expects a positive 2013
after reporting a healthy rise in profits thanks to strong sales
in North America, its main market, and the first signs of
recovery in southern Europe.
The Italian company, which makes Ray-Bans and also
sunglasses for luxury brands such as Prada and Gucci,
said third-quarter net profit reached 138.6 million euros
($179.62 million), up 30.6 percent on a year earlier.
MILAN, Oct 18 (Reuters) – Italian banks have not suffered
from a property collapse like the one crippling their Spanish
peers but they are still at risk of large writedowns from the
declining real estate market.
Italy’s property prices have fallen 16 percent since 2008 in
real terms and 44 percent of bank loans are tied to the sector.
MILAN, Oct 18 (Reuters) – Moody’s cut the rating of Italy’s
third largest lender, Banca Monte dei Paschi di Siena,
to junk and said it may need more state aid, triggering a 6
percent selloff in the bank’s shares on Thursday.
Monte Paschi, the world’s oldest surviving bank, was the
only Italian lender to fail the European Banking Authority’s
stress tests and is the first of the five systemically important
Italian banks to fall below investment grade.
SIENA, Italy, Oct 9 (Reuters) – Banca Monte dei Paschi di
Siena (MPS), Italy’s No.3 lender, won shareholder
approval for a 1 billion euro ($1.3 billion) share issue that
would help it to fix a balance sheet ravaged by the euro zone
The world’s oldest bank, which also plans to close 400
branches and cut 4,600 jobs, is allowed to launch the cash call
through the next three years, giving it the firepower to pay
back state loans it was forced to request in June.
MILAN, Oct 9 (Reuters) – Banca Monte dei Paschi di Siena
, Italy’s No.3 lender, was set to win approval for a
capital increase of up to 1 billion euros ($1.3 billion) on
Tuesday, part of a restructuring plan laid out in June.
The world’s oldest bank, which plans to close 400 branches
and cut 4,600 job cuts, will also seek changes to its
MILAN, Oct 8 (Reuters) – Italian banks are parking their
money in domestic government bonds rather than lending it to
businesses, central bank data showed on Monday, signalling a
worsening credit crunch in the euro zone’s third largest
Lending to non-financial companies fell by 1.9 percent in
August from a year earlier, the fourth consecutive monthly
decline and the worst fall since the data turned negative in
MILAN (Reuters) – Building strategic agricultural stocks to curb market volatility, as proposed by France, would not be the most effective way to tame food prices, EU Development Commissioner Andris Piebalgs said on Monday.
He said what was needed instead was an increase in food production in the world’s poorest countries, which remain vulnerable to the threat of a new food crisis despite the recent easing in grain prices from record highs hit this summer.
MILAN (Reuters) – The editor of an Italian gossip magazine that ran pictures of Prince William’s wife sunbathing topless defended his decision on Monday, saying they were harmless and that the terrace where she was relaxing was visible from a street.
In an interview with Reuters, Alfonso Signorini, editor of Chi, also accused the British media of double standards for not publishing the photographs.