Banca Monte dei Paschi di Siena records fifth straight loss

8 August 2013

Banca Monte dei Paschi di Siena has reported a fifth straight loss in the second quarter of 2013.

The Italian bank, recorded a net loss that fell to €279.3 million ($372 million) from €1.64 billion in the previous year due to the costs associated with state aid and making more provisions for bad loans.

It recently wrote down goodwill and intangible assets by more than €1.5 billion, which has been a factor, and is currently seeking to persuade European regulators it deserves a bailout.

Revenue in the second quarter dropped by 22 per cent to €1.02 billion from the same time in 2012 as a result of reduced incomes from lending and state aid costs. Meanwhile, net-interest income fell by 38 per cent to €486.5 million.

Banca Monte dei Paschi di Siena has lost nearly €8 billion in the last two years and is expected to close 2013 with a loss as well.

By Claire Archer

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