September 14, 2017 / 8:24 AM / a year ago

Carige sees return to profit in 2018 under new business plan

MILAN, Sept 14 (Reuters) - Italy’s Banca Carige plans to shed assets, including bad debts, and cut staff in an effort to meet European Central Bank’s requirements and return to profit from next year.

Genoa-based Carige has come to the fore as the last remaining problem child among large Italian lenders after the Rome government rescued Monte dei Paschi di Siena and liquidated two regional lenders.

Italy’s ninth-largest bank unveiled a new business plan on Thursday ahead of embarking on a capital strengthening which includes a 500 million euro new share issue and a potential debt conversion offer for up to 60 million euros.

Carige said it would close 120 branches and cut around 1,000 staff while revamping its business model to return to profit from next year, lifting its return on tangible equity to 1.2 percent in 2018 from a negative 12.2 percent in 2016. (Reporting by Valentina Za; editing by Francesca Landini)

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