UPDATE 1-Carige of Italy says he could miss exercise target after first half loss
MILANO, Aug.5 (Reuters) – Italy’s Carige said on Thursday he may not be able to meet his target for the full year after recording a net loss of € 49.9m (59 million dollars) in the first half of the year.
Carige had said earlier this year that he expected a net loss of € 84million in 2021.
The bailed out regional lender, who is struggling to find a buyer, warned in July that it would need an additional € 400 million in capital next year.
Carige, based in Genoa, was rescued by other banks in 2019 at a cost of 700 million euros after being placed under special administration by the European Central Bank (ECB). Last week it emerged as one of the worst performers in the ECB’s health record of euro area second-tier lenders.
Carige has confirmed its goal of returning to profit in 2023 after a 9% increase in revenue in the second quarter compared to the previous one.
Carige said he had “a reasonable expectation” of being able to comply with minimum regulatory requirements for electronic capital liquidity over the next 12 months despite “significant risks and uncertainties.”
Tier 1 capital stood at 11.7% of risk-weighted assets at the end of June.
Carige shares resumed trading on July 27 after a two-and-a-half-year suspension following the ECB’s decision to place the bank under special administration. (Reporting by Andrea Mandalà; editing by Valentina Za)