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Popolare di Vicenza, Veneto Banca complete settlement offer to shareholders

The settlement offers by Banca Popolare di Vicenza SpA and Veneto Banca SpA to compensate shareholders in exchange for dropping legal action regarding the losses they incurred on their investments over the past decade were completed March 28, following an extension to the deadlines.

Popolare di Vicenza said 66,712 from approximately 94,000 shareholders accepted the offer, totaling 68.7% of in-scope shares. Veneto Banca received applications from 54,359 shareholders, or about 73% of its shareholder base, corresponding to 67.6% of the shares included within the perimeter of the settlement offer.

The boards of Popolare di Vicenza and Veneto Banca will meet April 13 and April 11, respectively, to decide whether to scrap the previously announced minimum take-up threshold of 80% of total shares and proceed with repayments for shareholders who have accepted the offer or applied for it.

Meanwhile, Popolare di Vicenza reported a reclassified consolidated net loss of €1.9 billion for full year 2016, compared to a net loss of €1.41 billion a year earlier.

Net interest income for full year 2016 fell on a yearly basis to €380.1 million from €503.9 million, while net fee and commissions also decreased year over year to €230.3 million from €322.4 million.

Banca Popolare di Vicenza booked net impairment adjustments of €1.45 billion for the year, down from €1.83 billion in 2015. Net provisions for risks and charges amounted to €265.4 million, compared to €513.1 million in 2015.

The Italian bank's common equity Tier 1 ratio stood at 7.47% as of Dec. 31, 2016, up from 6.65% at 2015-end. The total capital ratio increased to 8.88% from 8.13% over the period. The lender's CET1 and total capital ratios are well below the ECB's SREP target for 2017 of 8.75% and 12.25%, respectively.