Carige: returns to profit in the half year with a result of 16.7 mln -2- – Italian Stock Exchange

Gross impaired loans to 27.4% of the total (Il Sole 24 Ore Thomson Financial) – Milan, Aug. 4 – Strengthening capital of Banca Carige, passed through a capital increase of 850 million, now allows the bank to meet the ECB requirements on schedule. The bank, then, having already ‘completed the sale of insurance and have approved the merger of certain subsidiaries, continues negotiations with Apollo for the sale of the company’ consumer credit Creditis Financial Services and has definitely taken off Bank Cesare Ponti from the activities’ held for sale. The institute Ligurian also highlights how it was further strengthened the liquidity profile of ’3.3 billion of activity’ free at the end of June and a Liquidity cover ratio which measures the liquidity ‘of the brief period of 145%. The bank’s management has worked for a review of the loan portfolio that allowed the stabilization of credit deteriorated on the level of the first quarter, as well as’ the safety of the non-performing portfolio, through the definition of restructuring agreements for 813 million positions previously stranded; That figure rises to 1.6 billion considering the agreements after June 30. However, gross impaired loans for cash amounted to 6.8 billion and accounted for 27.4% of the total. Also during the first half of the year the figure has continued to grow with an increase of 4.6%, but the trend still shows a deceleration compared to previous periods and a substantial stability ‘in the second quarter. The coverage of non-performing loans stood at 40% (58.5% for the suffering). As for the provision of credit, loans in the first half decreased by 6.9% to 24.7 billion because of the collapse (-43.9% to 2.5 billion) in the institutional component. Not taking into account the variation of this component and ‘positive 0.6% with encouraging signs in terms of the corporate sector manufacturing. Direct funding does mark a decline of 8.9% to 24.4 billion, but rose by 3.2% to 15.4 billion deposits and current accounts.

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(RADIOCOR) 15/08/04 19:01:31 (0519) 5 NNNN