(AOF) – Gathered at an extraordinary general meeting, the shareholders of Banca MPS approved a capital increase of 2.5 billion euros. This operation was unveiled last June during the presentation of its strategic plan, which it will finance. The Italian State, which owns 64% of the capital of the bank since its rescue for 5.4 billion euros in 2017, will participate in the capital increase to the extent of its participation, which represents an amount of 1, 6 billion euros.
The bank then signed a pre-subscription agreement.
Among the other resolutions approved is the consolidation of ordinary shares on the basis of one new ordinary share for every 100 existing ordinary shares.
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The negative effects of rising interest rates
The rise in interest rates normally causes an increase in bank income through the loans granted. In Europe, according to a survey conducted by S&P among 85 banking establishments, the sector expects an average increase of 18% in its net interest income. However, this new inflationary context also has undesirable effects, in particular an increase in refinancing costs. It is also accompanied by the fear of a new recession, which would then affect all the bank’s businesses, ranging from loans to asset management, whose income is correlated to market valuations. Reassuring element: the banks of the euro zone are sufficiently solid to face a deterioration of their environment.