Banca Popolare di Vicenza

History

Banca Popolare di Vicenza was the first cooperative bank in Veneto region. The bank was also known as Banca Popolare Vicentina.

Acquisitions

In 1985 the bank acquired Banca Popolare Agricola di Lonigo, in 1988, Banca Popolare di Thiene, in 1991, Banca Popolare dei Sette Comuni-Asiago, in 1994, Banca Popolare di Venezia, in 1996, Banca Popolare di Castelfranco Veneto (became BP Treiviso in 1999) and Banca Popolare di Trieste, in 1997 Banca Popolare della Provincia di Belluno, in 1998 Banca Popolare "C. Piva" di Valdobbiadene and Banca Popolare Udinese. In 2000 the group acquired Banca Nuova di Palermo and Banca del Popolo di Trapani, which became Banca Nuova in 2002. In 2002 the group acquired Cassa di Risparmio di Prato (Cariprato) from Banca Monte dei Paschi di Siena, which had 60 branches mainly in Tuscany region. In 2010 Cariprato was absorbed into the bank.

BPVi was the 9th largest shareholder of Banca Nazionale del Lavoro (BNL) for 3.63682% ordinary shares. (at the end of year 2004). BNL was privatized by BNP Paribas after Bancopoli.

In 2007 61 branches were acquired from UBI Banca, mainly based in the Provinces of Brescia and Bergamo, Lombardy. In 2014, 16 branches were acquired from Cassa di Risparmio di Ferrara as well as one branch in Turin was acquired from Banca Popolare di Spoleto.

Alliances

The bank was a member of an alliance "North East Group" in the 1980s, which consist of Banca Agricola Mantovana (BAM), Banca Popolare di Bergamo, Banca Popolare dell'Emilia, Banca Popolare di Sondrio (BPSO), Banca Popolare di Verona and Banca Popolare Vicentina. The group joined with ARCA, which consist of Banca Antoniana, Banca Popolare Commercio e Industria, Banca Popolare di Crema, Banca Popolare di Cremona, Banca Popolare di Lodi and Banca Popolare Veneta in 1989. As at 31 December 2015 BPVi still owned 19.99% stake in ARCA SGR.

The banks of the alliance merged within and outside the alliance to form Banca Antonveneta (1996, acquired by ABN AMRO in 2005), BPU Banca (2003, merged with Banca Lombarda in 2007), Banca Popolare Italiana (BPI), Banco Popolare di Verona e Novara (2002; merged with BPI in 2007), Banca Popolare dell'Emilia Romagna (BPER; 1992), or acquired by other banking group (BAM). After many years of merger and acquisitions, BPVi, BPER, UBI Banca, Banco Popolare and BPSO were the 5 surviving banking group, plus Banca Monte dei Paschi di Siena which acquired and absorbed BAM and Antonveneta.

BPVi also signed an agreement with Banca Popolare Veneta (from Padua), Banca Popolare di Asolo e Montebelluna (from the Province of Treviso) and Banca Popolare di Castelfranco Veneto (from the Province of Treviso) on dividing the market of the Province of Padua, Treviso and Vicenza in 1992. However, Banca d'Italia ruled that the agreement was anti-competitive in 1996. After the ruling BPVi acquired Treviso based Banca Popolare di Castelfranco Veneto in 1996 and Banca Popolare "C. Piva" di Valdobbiadene in 1998. The competitors of BPVi in Veneto also became UniCredit (ex-Cariverona Banca), Intesa Sanpaolo (ex-Ambroveneto), Banca Monte dei Paschi di Siena (ex-Antonveneta), Banco Popolare (ex-BP Verona), Veneto Banca (ex-BP Asolo e Montebelluna) and Volksbank – Banca Popolare (ex-Banca Popolare di Marostica) after many merger and acquisitions.

The bank also partnered with Banca di Roma in 2000, however, BPVi breakup with Banca di Roma and did not involved in the birth of Capitalia, which was absorbed by UniCredit in 2007.

BPVi was alliances with insurer Cattolica Assicurazioni until 2016, which the bank still owned 15.07% stake as of 31 December 2015.

Recent history

The bank was one of the 14 banks that were supervised by European Central Bank (ECB) directly since 2014 due to their size. The bank was among the four Italian banks (Banca Popolare di Milano (BPM), Banca Carige and Banca Monte dei Paschi di Siena (BMPS) ) that failed the stress tests in 2014. BPVi and BPM passed the tests after recapitalization.

Due to Decree-Law N°3/2015, in 2016 the bank became a limited company with demutualization. The bank also planned another capital increase of €1.5 billion (the CET1 capital ratio was just 6%, below ECB requirements of 10.25% following 2015 Supervisory Review and Evaluation Process (SREP)), as well as floats the shares in Borsa Italiana. The bank wrote down €1.333 billion worth of customer loans in the 2015 financial year. As part of the demutualization, the bank bought back 271,339 shares for €6.3, a fraction of net equity per shares (about €25 at 31 December 2015) and the offer price of the new shares in 2014 and 2015. However, on the same day, the bank also announced that due to low demand, the new shares would be sold at €3 to €0.1 per share, in order to raise a minimum of €1.510 billion to a maximum of €1.800 billion. The prospects of the initial public offering also exposed that the bank lent money to customers in order to buy the bank own shares back to 2014 and 2015. With the collapse of the price of the shares, the loan would become non-preforming.

Due to low demand on IPO, entire capital increase of €1.5 billion was subscribed by Atlante, it also due to some subscription were automatically canceled due to the bank fail to float in the borsa.

On 13 July 2016 Gianni Mion became the new chairman, as well as confirming Francesco Iorio as CEO.

On 4 August 2016 Cattolica terminated the partnership with BPVi and excised the put option to sell the three joint ventures to the bank.

On 6 December 2016, former BMPS CEO Fabrizio Viola was appointed as new CEO of the bank.

Followed by the announcement of 2016 SREP, which BPVi required to keep a CET1 and Tier 1 ratio of 8.75% and 10.25% respectively (however, the bank did not have additional Tier 1 capital instruments, thus the bank have to keep a de facto 10.25% CET1 capital ratio, same as last year) as well as an undisclosed Pillar 2 guidance, Atlante deposited €310 million for future capital increase, as the bank was just 0.5% higher than the requirement (Tier 1 ratio of 10.75% at 30 June 2016 according to 2016 half yearly report). On 3 February 2017, BPVi issued 3-years €3 billion face value bond (ISIN: IT0005238859) with state-guarantee in order to strength its capital base.

On 9 January 2017 the bank offered to buy back the share from retail investor as a part of the settlement of mis-selling (for investor from 2007 to 2016), for €9 per share. As at 30 June 2016 the bank had a net assets of €3,211,437 thousands or about €0.2 in terms of net assets per share due to huge dilute in 2016 capital increase.

Equity interests

Sponsorship

The bank was the main sponsor of Vicenza Calcio (since 2001, shirt sponsor circa 2010) as well as city rival Real Vicenza. The bank also sponsored Udinese Calcio and U.S. Città di Palermo (through Banca Nuova).