Banco Popolare SC and Banca Popolare di Milano Scarl, the two Italian banks merging to create the country’s third-biggest lender, plan to cut jobs and costs as they target 1.1 billion euros ($1.2 billion) in profit for 2019.
The net income estimate excludes some one-time items and compares with 600 million euros in 2015, the banks said in a joint statement on Monday. They will seek to achieve a return on tangible equity of 9 percent by 2019, up from 5.5 percent last year, as well as a dividend payout of 40 percent, the companies said.
