Paschi Posts Second Straight Loss, Eroding Capital Level

  • Monte Paschi direct funding decreased 28 billion euros in 2016
  • Bank posted 2.53 billion-euro net loss in fourth quarter
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Banca Monte dei Paschi di Siena SpA reported a second straight quarterly loss on higher bad-loan provisions as the bank’s liquidity dropped and capital buffers eroded.

The net loss of 2.53 billion euros ($2.7 billion) in the three months through December compares with a loss of 196.6 million euros a year earlier and brings its 2016 loss to 3.38 billion euros, the Siena-based lender said in a statement on Thursday.