Trading name Nuova Banca Etruria Headquarters Arezzo, Italy Parent organization UBI Banca | Industry Financial services Founded 5 January 1882 | |
 | ||
Formerly called Banca Popolare Aretina
Banca Popolare dell'Etruria
Banca Popolare dell'Etruria e del Lazio Type subsidiary of a listed company Key people Roberto Nicastro (chairman) Net income (€37.980 million) (2016 First Half) Total assets 7.05 billion EUR (June 2016) Total equity 415.1 million EUR (June 2016) Subsidiaries Oro Italia Trading S.p.A Profiles | ||
Nuova Banca dell'Etruria e del Lazio S.p.A. known as Nuova Banca Etruria is an Italian bank based in Arezzo, Tuscany. The bank was re-established on 22 November 2015 as a good bank of the original Banca Popolare dell'Etruria e del Lazio (BPEL). The bank was bought by UBI Banca on 18 January 2017 for a nominal fee.
Contents
Banca Popolare dell'Etruria
Banca Mutua Popolare Aretina was found on 16 April 1881 in Arezzo. On 18 December 1971 the bank absorbed two fellow Tuscan "People's Bank": Banca Popolare Senese (found 1865 in Siena) and Banca Popolare della Provincia di Livorno, as well as renamed into Banca Popolare dell'Etruria.
In 1972 Banca Popolare di Montepulciano was absorbed, followed by Banca Popolare di Pontevalleceppi (a Perugia frazione) in 1982, Banca Popolare di Cagli in 1985 and Banca Popolare di Gualdo Tadino in 1987.
Banca Popolare dell'Etruria e del Lazio
On 31 December 1988 Banca Popolare dell'Alto Lazio (found 1974) was merged into the bank, forming Banca Popolare dell'Etruria e del Lazio. In 1990 Banca Cooperativa di Capraia Montelupo e Vitolini was absorbed. In 2001 the bank was listed in Borsa Italiana (PEL).
In 2006 the bank acquired a majority interests in Banca Federico Del Vecchio, reaching 100% in 2008. In 2008 Banca Popolare Lecchese joined the banking group (sold in 2015). In mid-2014 the bank was changed from a co-operative partnership (Italian: Società Cooperativa) to a company limited by shares (Italian: Società per Azioni).
Insolvency
The bank was administrated by the Ministry of Economy and Finance in early 2015. The last annual report of the old bank shown the bank had a shareholders equity of €632.060 million, and Tier 1 capital ratio of just 6.6% as at 31 December 2013 (Basel II basis). The ratio fell to just 6.1% as at 30 June 2014 on Basel III basis. (which Basel III required above 6%, as well as Banca d'Italia required above 7%)
On 17 November 2015, a gross book value of €302 million of bad debts (Italian: sofferenze) were sold to Credito Fondiario without recourse.
A capital injection of more than €2 billion to Banca Etruria, Banca Marche, Carife, and CariChieti by Fondo Interbancario di Tutela dei Depositi was planned in late 2015, (€426 million for Banca Etruria) subject to the permission of the Banca d'Italia and European Central Bank.
Eventually they were bail-out by Italian National Resolution Fund on 22 November instead, for about €2 billion recapitalization. The rescue of the four banks were in line with EU Bank Recovery and Resolution Directive, which was in force in Italy in late 2015. Banca d'Italia was the assigned "national resolution authority" of this mechanism. As the plans were following the directive, they were approved by the European Commission. Banca Etruria assets and liabilities would split into good and bad bank, while the old bank would be liquidated, which the shareholders and subordinated bond holders would receive nothing due to bail-in.
The fund had also injected an additional €1.7 billion to the 4 banks to cover the losses.
On 3 May 2016, Decree-Law N°59/2016 was announced, which the retail investors of the bond of the 4 banks would be refunded (up to €100,000, same as deposit insurance) if they purchased the bond on or before 12 June 2014, the date of Bank Recovery and Resolution Directive was passed in the European Parliament. The decree-law was a response to criticism of the bail-in of all investor of the bank, which Italian bank often sold risky bond to their depositors. The refund scheme: Fondo di solidarietà, would be managed by FITD.
Nuova Banca Etruria
On 22 November 2015 a good bank was spin off from the original bank as Nuova Banca dell'Etruria e del Lazio S.p.A.. At that time the good bank had a Tier 1 capital ratio of 9%, and a share capital of €442 million. While the bad debts was transferred to a single "bad bank" REV - Gestione Crediti, which was shared with Carichieti, Carife and Banca delle Marche.
On 18 December 2015 Nuova Banca Etruria sold 54.212% stake in Banca Popolare Lecchese to a private equity fund managed by Oaktree Capital Management, via BPL Holdco. The fund immediately recapitalised the bank, making the fund became the new majority owners of Popolare Lecchese for 84.9%. At 31 December 2015, the audited CET1 ratio was 11.1% on a consolidated basis.
On 12 January 2017, UBI Banca made a biding bid of a nominal €1 for Nuova Banca Etruria, Nuova CariChieti and Nuova Banca Marche. The banking group also requested conditions that the balance sheets of the three banks would be cleaned up before the completion of the deal (which was done by selling NPLs to Atlante II) as well as recapitalized for another €450 million. On 18 January the bid was accepted.