Italian bank Monte Paschi di Siena (BMPS) announced on Tuesday plans to cut 2,600 jobs and close around 500 branches in an effort to turnaround the troubled lender.
BMPS, the world's oldest bank still operating today, unveiled the overhaul as it posted a net loss of 1.15 billion euros ($1.3 billion) in the third quarter.
Losses linked to loans led to the result, which compared to a net profit of 255.8 million euros in the same period a year earlier, the bank said.
But under new chief executive Marco Morelli, the bank now aims to cut costs by closing about a quarter of its 2,000 branches and slashing personnel costs by nine percent over three years.
It targets net profit above 1.1 billion euros in 2019 under the vast three-year overhaul, it said.
Italy's third-biggest lender will also seek improvements of its loans and risk reduction.
The bank was found to be Europe's weakest major bank in tests undertaken by the European Banking Authority and its finances have raised concerns for the broader Italian banking sector.
It announced a rescue plan in late July that entailed offloading gross non-performing loans worth 27.6 billion euros into a separate entity, while seeking investors to inject new capital of up to 5.0 billion euros into the bank.
Shares in the bank have collapsed since the start of the year but have firmed in recent days on the Milan stock exchange.
GMT 14:02 2018 Sunday ,02 December
RDIF says $2 billion will be invested in Russian economy from joint Russian-Saudi fundGMT 12:03 2018 Friday ,30 November
Canada on track to sign new free trade deal with US and MexicoGMT 07:59 2018 Wednesday ,21 November
Merkel policies in focus in final debate on draft German budgetGMT 16:57 2018 Wednesday ,31 October
Putin to discuss relations development prospectsGMT 16:04 2018 Monday ,29 October
Russian, Cuban presidents to discuss strategic partnershipGMT 12:57 2018 Saturday ,27 October
"Undeclared war" forces Russia to boost defense spendingGMT 15:45 2018 Friday ,26 October
Medvedev to represent Russia at upcoming APEC summitGMT 14:12 2018 Thursday ,25 October
Saudi Arabia plans to invest in Russian-Chinese Fund soonMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor