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May 12, 2015

Monte Paschi says Nomura exposure rose to 4.7 bln euros at end-March

MILAN, May 12 (Reuters) – Italian bank Monte dei Paschi di
Siena had a 4.7 billion euro ($5.3 billion) net
exposure to Japanese bank Nomura at the end of March,
the lender said on Tuesday, nearly half its total capital and
way above regulatory limits.

The increase from 4 billion euros three months earlier was
revealed in an interim report posted on Monte dei Paschi’s
website on Tuesday, after which the lender’s shares extended
losses to close down 5.8 percent.

May 12, 2015

Capital worries weigh on UniCredit after in-line profit

MILAN, May 12 (Reuters) – The CEO of UniCredit
said disposals were one option for Italy’s biggest bank by
assets to boost its financial strength, after core capital
increased slightly in the first quarter of 2015 but not enough
to quell investors’ jitters.

The bank’s net profit in the three months to March fell 28
percent year-on-year to 512 million euros ($575 million), in
line with an analyst forecast distributed by the bank.

May 11, 2015

Intesa Sanpaolo profit beats forecast, sees lending pick up

MILAN, May 11 (Reuters) – Italy’s biggest retail bank,
Intesa Sanpaolo, beat analyst forecasts with its
first-quarter net profit and said lending to business was
picking up in a sign the euro zone’s third-biggest economy is
slowly emerging from recession.

Intesa said its net profit for the period stood at 1.064
billion euros, thanks to around 602 million euros in trading
income and compared with a Thomson Reuters analyst consensus of
658 million euros.

May 11, 2015

Monte Paschi sees return to profit, shaping up for M&A

MILAN, May 11 (Reuters) – Monte dei Paschi di Siena
, expects to return to profit in 2015 for the time in
four years and expects to launch a 3 billion euro rights issue
this month as Italy’s third largest lender shapes up for a

The bank, which has lost 14.6 billion euros ($16.3 billion)
since 2011 and emerged as the weakest lender in a Europe-wide
review of banks last year, said it was starting to see the first
positive signs from a painful restructuring plan.

May 8, 2015

Monte dei Paschi returns to profit, delays business plan targets

MILAN (Reuters) – Banca Monte dei Paschi di Siena (BMPS.MI: Quote, Profile, Research, Stock Buzz) posted its first quarterly net profit in three years but delayed its business plan targets by a year, underscoring the challenges Italy’s third-biggest lender faces to make money.

Monte dei Paschi must carry out a 3-billion-euro ($3.4 billion) capital increase by late July to plug a shortfall exposed by a European review of lenders, and has been told by the European Central Bank (ECB) to find a merger partner quickly to fix its problems.

Apr 30, 2015

Monte Paschi, Nomura in informal talks to end derivative row -sources

MILAN/ROME, April 30 (Reuters) – Monte dei Paschi di Siena
and Japanese broker Nomura are sounding each
other out over a possible settlement to close a derivative trade
that is bleeding money at the Italian bank, two sources with
knowledge of the matter said.

The 2009 trade, known as Alexandria, is at the heart of a
scandal that rocked Monte dei Paschi in 2012 just as it was
being hit hard by the euro zone debt crisis. The trade is also
at the centre of legal proceedings in Italy and Britain.

Apr 25, 2015

UBI doesn’t rule out Monte Paschi tie-up but won’t be pushed into bad deal: CEO

BERGAMO, Italy (Reuters) – UBI (UBI.MI: Quote, Profile, Research, Stock Buzz), Italy’s fifth-biggest bank, does not rule out a tie-up with troubled Monte dei Paschi di Siena (BMPS.MI: Quote, Profile, Research, Stock Buzz) but will not be pushed into an unwanted deal, its chief executive said on Saturday.

UBI is one of 10 cooperative banks that the government is forcing to convert into joint-stock companies within 18 months.

Apr 24, 2015

Italian prosecutors seek trial for Monte Paschi, Nomura over derivative trade

MILAN, April 24 (Reuters) – Milan prosecutors are requesting
that troubled lender Monte dei Paschi di Siena and
Japanese bank Nomura be sent to trial in Italy over a
2009 derivative trade, judicial sources said.

The trade, known as Alexandria, is at the heart of a scandal
that rocked Monte dei Paschi in 2012 just as it was being hit
hard by the euro zone debt crisis.

Apr 16, 2015

Closure of ‘Alexandria’ trade would cost Monte Paschi 1 billion euros

SIENA, April 16 (Reuters) – The European Central Bank (ECB)
has told Monte dei Paschi di Siena to close a
loss-making derivatives trade with Nomura by late July,
a move that would generate a pre-tax loss of 1 billion euros ($1
billion), according to a letter sent by the bank to prosecutors.

The letter, dated Feb. 18 and seen by Reuters, adds to
pressure on Monte Paschi to settle the trade, known as
Alexandria, as the bank pursues a related civil lawsuit in which
it is seeking 750 million euros in damages from Nomura and
former Monte dei Paschi executives.

Apr 11, 2015

Popolare Milano CEO says open to looking at tie-ups

MILAN, April 11 (Reuters) – Banca Popolare di Milano
is ready to start looking at possible tie-ups and
would like to seal a merger before its planned conversion into
joint-stock company in the next 18 months, the chief executive
of the Italian cooperative bank said.

Italy has passed a landmark reform of the ownership
structure of large cooperative lenders which forces them to drop
their cooperative status and become joint-stock companies.