Monte Paschi to Reduce 5,500 Jobs, Assets in Rescue Plan
- Bank targets net income of 1.2 billion euros from 2021
- Italian Treasury will own 70% of Paschi when process complete
Monte Paschi Sees Branch Cut From 2000 to 1400 by 2021
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Italian lender Banca Monte dei Paschi di Siena SpA laid out a five-year restructuring plan that includes cutting thousands of jobs and selling assets as part of an agreement with the European Union that lets the bank receive 5.4 billion euros ($6.1 billion) in state aid.
The company plans to cut 5,500 jobs, about a fifth of its workforce, reduce branches to 1,400 from 2,000, and dispose of 28.6 billion euros of bad loans by 2021, the Siena-based bank said in a statement Wednesday. Monte Paschi targets net income of more than 1.2 billion euros by then, with a return on equity at 10.7 percent.