Bank of Italy doles out write-down medicine

By Owen Sanderson
03 Apr 2014

The Bank of Italy’s efforts to get Italian banks ready for supervision by the ECB has crushed Intesa’s 2013 P&L, as the bank follows the same strategy as peer UniCredit in taking a huge impairment in the final quarter to clean its balance sheet for the impending asset quality review and stress test double-whammy.

Intesa Sanpaolo took a €6.8bn impairment in its fourth quarter results, mostly writing down goodwill (€4.7bn, with €1.13bn in the investment bank) plus charges to the brand name (€500m) and core deposit items (€1.6bn). This writedown takes full year profits for 2013 to -€4.55bn, or -€5.19bn for the ...

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