Banco BPM CEO rules out tie-ups at present given mar­ket uncer­tainty

Oman Daily Observer - - BUSINESS -

MI­LAN: Banco BPM rules out any tieups for the mo­ment given un­cer­tain mar­ket con­di­tions, CEO Giuseppe Castagna said when asked about the bank’s in­ter­est in ri­vals Carige, UBI Banca or Monte dei Paschi.

“The macro-eco­nomic uncer­tainty and the sit­u­a­tion in the bank­ing sec­tor are such that make us ex­clude any fur­ther tie-ups for the mo­ment, even though we be­lieve there is still space for fur­ther con­sol­i­da­tion in the sec­tor in fu­ture,” Castagna told Il Mes­sag­gero daily in an in­ter­view, in com­ments con­firmed by a spokes­woman.

Banco BPM, which is Italy’s third largest bank, has been men­tioned in the press in re­cent days as a po­ten­tial buyer of trou­bled Carige, which was put un­der tem­po­rary ad­min­is­tra­tion by the Euro­pean Cen­tral Bank this month after it failed to raise cap­i­tal from in­vestors. The ECB has pushed Carige to seek a merger with a stronger ri­val and find­ing a buyer is now one of the tasks of the three com­mis­sion­ers ap­pointed to run Italy’s tenth-largest bank.

In the past a three-way merger in­volv­ing Banco BPM, which was cre­ated in 2017 from the merger of Popo­lare di Mi­lano and Banco Popo­lare, UBI and Monte dei Paschi has been mooted as a pos­si­ble so­lu­tion to help Tus­cany-based Monte dei Paschi which was bailed out by the state in 2016.

BPM CEO Giuseppe Castagna is seen dur­ing busi­ness plan meet­ing in Mi­lan, Italy. — Reuters

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