Mon­tepaschi Group Q3 re­sults down

The Pak Banker - - Front Page -

SIENA

The Board of Direc­tors of Banca Monte dei Paschi di Siena Spa to­day re­viewed and ap­proved the third quar­ter re­sults for 2012.

Against the back­drop of a strongly re­ces­sive econ­omy, fi­nan­cial mar­ket ten­sions and the sov­er­eign debt cri­sis lost some of their grip in the third quar­ter of 2012. Fol­low­ing the an­nounce­ment of a pos­si­ble government bond buy­ing pro­gramme by the ECB, the Ital­ian BTP vs. Ger­man Bund spread nar­rowed to be­low 315 bps. At the same time, stock mar­kets showed a trend re­ver­sal, with core Euro­pean coun­tries re­cov­er­ing sig­nif­i­cantly, while Italy's FTSE MIB re­mained at the lev­els reg­is­tered at the be­gin­ning of the pe­riod. Af­ter the ECB cut the bench­mark by 25 bps, an ad­di­tional abrupt drop was seen in in­ter­est rates (1-month Euri­bor reached its low at around 11 bps), and the grad­ual flat­ten­ing of ma­tu­ri­ties curve con­tin­ued.

Data from the real econ­omy con­firms re­ces­sion for Italy with av­er­age GDP for the year es­ti­mated to fall by over two per­cent­age points ac­cord­ing to con­sen­sus fore­casts.

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