Veneto Banca to sell Banca Intermobiliare

Italy’s Veneto Banca is planning to sell its controlling stake in Banca Intermobiliare (BIM) as part of measures to strengthen its capital base.

Veneto Banca said it expected the sale to add around 100 basis points to its common equity tier 1 capital ratio (CET 1).

Rotschild obtained the mandate to sell Veneto Banca’s 71.4% stake . Banca Intermobiliare is currently worth some €480m on the market.

The move follows pressures coming from the Bank of Italy on Italian lenders to clean up their balance sheets in view of the ECB review which was recebntly announced.

A common equity tier 1 ratio of 8% is the minimum threshold set by the ECB to comply with Basel III rules.

“Our target is to go beyond that: the board has set a target of 9.5% to be reached by June 30 2014,” the bank’s CEO Vincenzo Consoli said.

Veneto Banca also said it had started procedures to convert a €350m bond into shares, a move that would add about 135 basis points to its CET 1 ratio.


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