MPS set for 5-bn capital increase (3)

(ANSA) - Milan, October 25 - Monte dei Paschi di Siena said Tuesday that its board has called an extraordinary shareholders' meeting on November 24 to approve a capital increase of up to five billion euros as part of a new business plan.
    The plan to save the troubled bank also features the shedding of 2,600 jobs and the closure of 500 branches. Monte dei Paschi di Siena sees itself generating net income of 1.1 billion euros at the end of the 2016-2019 plan.
    New MPS CEO arco Morelli told analysts that he was confident the capital increase, the latest in a series of cash calls in recent years, will be a success. "We feel relaxed that this operation will end up well," Morelli said.
    The capital increase is linked to the disposal of 28.5 billion euros in non-performing loans, most which will be put into a separate fund and priced at 33% of their current value.
    Monte dei Paschi di Siena, which came out worst in recent European bank stress tests, also said Tuesday that it made a net loss of 849 million euros in the first nine months of 2016.
    It said this was largely down to extraordinary loan loss provisions for 750 million euros, booked in the third quarter.