Troubled Italian bank BMPS reports 2016 net loss of $3.6 bn

The venerable Italian bank BMPS, which is due to be bailed out by the state, today announced a net loss of 3.38 billion euros (USD 3.6 billion) for 2016, far worse than analysts had expected.

Market forecasters had expected a loss of around two billion euros, according to a consensus of analysts compiled by Factset Estimates.

As of December 31, BMPS had only seven billion euros in liquidities, a decline of 17 billion euros compared with a year earlier, the bank added.

Founded in Siena in 1472, BMPS -- Monte dei Paschi di Siena -- is due to be temporarily taken over by the state after years of problems.

It said the 2016 loss was due to a writedown in the value of its loan portfolio.

Income in 2016 fell back 18.4 percent to 4.25 billion euros, against 4.4 billion expected by analysts.

For 2015, BMPS recorded a profit of 390 million euros, its first in five years.