Monte Paschi bank cuts net loss to €380m

Banca Monte dei Paschi di Siena, the world's oldest surviving bank and Italy's third biggest, said Wednesday that it cut its net loss to 380 million euros ($507 million) in the first half of the year.

Monte Paschi bank cuts net loss to €380m
Banca Monte dei Paschi di Siena's headquarters. Photo: Stefano Costantini/Flickr

The result was an improvement for the bank which was bailed out by the Italian state in February to the tune of €4 billion, as it lost €1.5 billion in the first half of 2012.

It fell short of analysts' expectations. Analysts had forecasted a smaller loss of €249 million.

BMPS said its performance was hurt by the "particularly negative macro-economic cycle" in Italy, which has been stuck in recession for nearly two years.

The bank has also had plenty of negative media attention with authorities probing deals entered into by its previous managers that may have caused hundreds of millions in losses.

Net income from banking and insurance, a key measure showing return from lending operations, fell by 22 percent to €2.2 billion in the first half of the year.

The bank suffered a net loss of €3.17 billion in 2012.

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