November 9, 2018 / 11:25 AM / 8 months ago

Monte dei Paschi posts 91 mln euro Q3 net profit, loses deposits

MILAN, Nov 9 (Reuters) - Italian state-owned lender Monte dei Paschi di Siena posted a third-quarter net profit of 91 million euros ($103 million)with lower costs helping to counter a revenue drop.

The bank said its direct funding from clients decreased in the July-September period mostly due to a 1.4 billion euro drop in current account deposits.

Monte dei Paschi, which is restructuring after last year’s state bailout, was for years at the forefront of Italy’s banking crisis and suffered massive deposit losses at times of stress.

The Italian banking sector, which is recovering after heavy loan losses following a recession, has again come under pressure due to a spike in Italy’s debt costs which erode lenders’ capital buffers by hurting the value of their large sovereign holdings.

Monte dei Paschi said its core capital stood at 12.8 percent on a transitional basis at the end of September only slightly down from 13 percent three months earlier. ($1 = 0.8814 euros) (Reporting by Valentina Za)

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