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Italy's Carige expects positive result in 2021 after H1 loss of €428.5M

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Italy's Carige expects positive result in 2021 after H1 loss of €428.5M

Beleaguered Italian bank Banca Carige SpA expects to swing to a positive result in 2021 after posting a first half loss of €428.5 million due to one-off losses from restructuring measures and risk reduction.

Carige expects to post a net result of €74 million in 2023, with a return on equity of 6.2%, under a €900 million rescue plan comprising a €700 million capital increase, the issuance of €200 million of new subordinated bonds and a full-scale disposal of €3.1 billion of nonperforming loans. The bank will seek shareholders' approval for the €700 million capital increase Sept. 20.

Moreover, Carige said it would surpass its common equity Tier 1 ratio and overall capital requirement targets, which were set by the European Central Bank over the period to 2023, Reuters reported Aug. 30.

In addition, the bank said it received a binding offer for €3 billion of its soured loans from Italy's state-owned vehicle Società Per La Gestione Di Attività - SGA SpA, the newswire said Sept. 2.