Industry Financial services Number of locations 550 | Total assets 33.35 billion EUR (2015) | |
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Formerly called Banca Popolare di MontebellunaBanca Popolare di Asolo e Montebelluna Type unlisted public Società per Azioni Services Retail and corporate banking Net income (€881.902 million) (2015) Total equity €2,007,931 thousands (2015) CEO Cristiano Carrus (30 Jul 2015–) Profiles | ||
Vis vis private banking gruppo veneto banca
Veneto Banca S.p.A. is an Italian bank headquartered in Montebelluna, Italy. The bank changed from cooperative society to limited company in December 2015. Following a failed stock market listing in June 2016 it was taken over by the bail-out fund, Atlante.
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According to a research by Ricerche e Studi, the bank was ranked 16th by total assets, using 2014 data. The banks was one of the fourteen largest banks of Italy, which were supervised by European Central Bank directly.
History
Established in 1877 as Banca Popolare di Montebelluna, in the 1960s the bank started its expansion acquiring some local cooperative banks and savings banks, such as Banca Popolare di Intra. An intense development stage starts in 2000, with the expansion in North-West and Southern Italy and the acquiring of banks in Eastern Europe.
In 2001–2002 Veneto Banca acquired 29 branches of Nuova Banca Mediterranea from Banca di Roma, which were immediately injected to Banca Meridiana (ex-Banca Popolare del Levante). Banca Meridiana was merged with Banca Apulia, another subsidiary of Veneto Banca in 2010.
The banks was one of the fourteen largest banks of Italy, which were supervised by European Central Bank directly. The bank passed the stress test by recapitalization in 2014.
Due to Decree-Law N°3/2015, the bank changed from a cooperative limited partnership (Italian: Società cooperativa per Azioni) to Società per Azioni (company limited by shares) in December 2015, affecting the calculation of voting rights (every shareholders had one vote regardless how many shares he had in cooperative society). The Decree-Law required People's Bank with more than €8 billion total assets, had to registered as limited company instead. Veneto also bought back €14,725,910.40 shares (€7.3 per share) as part of the demutualization.
The bank also planned to recapitalize €1 billion in early 2016 (due to CET1 ratio was below ECB requirement, set at 10.25%% after Supervisory Review and Evaluation Process (SREP)), as well as planning to list in Borsa Italiana in mid-2016. As at 31 March 2016 the bank had a net assets per share of about €15.5, or €3 in nominal value. However, due to low demand of the new shares, the bank priced the new share at €0.5 to €0.1 per share. The stock market listing failed to generate interest, with only one institutional investor taking up the offer and existing shareholders buying just 2.2% (some of them excised rights of withdrew at a later time). As a result, the newly created bail-out fund (created by banking sector in voluntary basis), Atlante, which had underwritten the share issue, became the majority shareholder, which subscribed €988,582,329.50 out of €1 billion new shares of the bank, making the private sector led bail out fund owned 97.64% stake of the bank. The bank's CET1 ratio was increased to over 11% (decreased to 10.74% on 30 June 2016).
However, the bank capital base was deteriorated further due to more write-down on non-performing loans (NPLs), as well as 2016 SREP maintained the requirement on Tier 1 capital ratio for 10.25%, plus unpublished capital recommendation (pillar II guidance). According to the bank, the bank's Tier 1 ratio on 30 June 2016 was 10.74%, just 0.49% higher than requirement. In January 2017, Atlante deposited €628 million as future capital increase. On 2 February 2017 the bank issued €3.5 billion bond with state-guarantee, which would matured in 2019 and 2020 respectively, in order to improve its capital base.
On 9 January 2017 Veneto Banca offered to buy back the shares that were sold from 2007 to 2016 for 15% of the original price, despite the net asset value per unit of those shares had already diluted significantly due to 2016 capital increase. The bank wanted to buy back the shares in order to avoid high legal cost on settlement on accused mis-selling of shares to retail investors and savers.