August 1, 2019 / 10:33 AM / 10 months ago

Italy's Monte Paschi speeds up bad loan sales

MILAN, Aug 1 (Reuters) - Italian bank Monte dei Paschi di Siena, which is majority owned by the state after a 2017 bailout, said on Thursday it was speeding up sales of bad loans to clean up its balance sheet.

The Tuscan bank, the world’s oldest lender, said it aims to sell 4 billion euros in soured loans this year to lower their weight over total lending to 12.7% at the end of 2019, two years earlier than planned but still lagging its Italian peers.

The bank said it had booked a 248 million euro hit in the second quarter to ease disposals of soured debt but foresaw no further impact this year.

Intesa Sanpaolo on Wednesday announced a deal over 10 billion euros of unlikely-to-pay loans that will help it to cut gross problematic loans to 7.7 percent of total lending.

Monte dei Paschi’s net profit came in at 93 million euros and its CET 1 ratio, a measure of financial strength, stood at 14 percent. (Reporting by Silvia Aloisi, editing by Valentina Za)

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