Italy’s Monte dei Paschi di Siena (Mps), the world’s oldest bank, posted a significant loss of €353m in the first half of 2014.
Mps, which is Italy’s third biggest bank and received €4.1bn in state aid last year, said net losses in Q2 stood at €179m. According to a Reuters poll of eight analysts, the loss was three times larger than the €57.5m average expectation.
Bad loans, one of Italian banks major problems, were up 34% y-o-y, while shares were suspended after the news on Italy’s FTSE MIB.
Earlier this week, the Italian National Institute of Statistics (Istat) showed that Italy slid back into recession, with the GDP shrinking 0.2% in Q2.
However, the bank’s report showed positive results as far as the asset management activities are concerned. The asset management arm’s AUM stood at €48.5bn, 4% up from Q1 2014 and 7.6% compared with the end of 2013.