August 8, 2019 / 2:59 PM / 4 months ago

Italy's Popolare di Sondrio to sell 1 billion euros in bad loans

MILAN (Reuters) - Italian regional bank Popolare di Sondrio (BPSI.MI) said on Thursday it would sell 1 billion euros’ ($1.1 billion) worth of bad loans to lower their share of total lending to around 8% by 2022.

The bank said it had booked 106 million euros in loan writedowns between January and June, raising its provisions on defaulted loans to 68.4% of their value, meaning the latest sale was not expected to have any further negative impact.

Popolare di Sondrio held impaired loans equivalent to 13.65% of total lending at the end of June.

Italian banks have been working in the past three years to shed loans that turned sour during a deep recession. They have so far shifted some 170 billion euros in such debts off their balance sheets and disposals are continuing, albeit at a slower pace.

Popolare di Sondrio reported a first-half net profit of 47 million euros.

Reporting by Valentina Za; Editing Kirsten Donovan

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