UPDATE 1-Italy's Carige says it could miss FY target after H1 loss

  • 8/5/2021
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(Adds details) MILANO, Aug 5 (Reuters) - Italy’s Carige said on Thursday it may not be able to meet its goal for the full year after posting a 49.9 million euro ($59 million) net loss in the first half. Carige had said earlier this year it expected a 2021 net loss of 84 million euros. The bailed-out regional lender, which is struggling to find a buyer, warned in July it would need a further 400 million euros in capital next year. Genoa-based Carige was rescued by other banks in 2019 at a cost of 700 million euros after being placed under special administration by the European Central Bank (ECB). Last week it emerged as one of the worst performers in the ECB’s health check of second-tier euro zone lenders. Carige confirmed its goal of returning to a profit in 2023 after revenues rose by 9% in the second quarter versus the previous one. Carige said it had “a reasonable expectation” to be able to comply with minimum regulatory requirements for capital e liquidity over the next 12 months despite “significant uncertainty and risks.” Core capital stood at 11.7% of risk-weighted assets at the end of June. Shares in Carige returned to trade on July 27 after a two-and-a-half year suspension following the ECB’ decision to place the bank under special administration. (Reporting by Andrea Mandalà; editing by Valentina Za) Our Standards: The Thomson Reuters Trust Principles.

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