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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
