Mediobanca of Italy reported a loss in the first quarter of 2013 as it was dragged down by the large stake in insurer Generali as well as the shrinking margins due to the Italian economic recession.
Mediobanca, despite such grim first quarter numbers, has improved its capital ratios and remains as one of the strongest financial institutions in the Italian banking industry. It is also continuing on its process of cutting costs and maximizing profits.
The bank reported a fiscal third quarter net loss worth Eur86.6 million or US$114.1 million. This is better than the forecasted Eur95 million loss many analysts said after being polled by the bank.
The Tier 1 ratio of the bank increased to 11.8% by the end of December 2012. The bank's largest hit was the Eur140 million drawn from losses of Generali by the end of 2012. These losses are now burdening Mediobanca, one of its largest shareholders with a 13% stake in the insurer.
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