Italy's Monte dei Paschi forecasts losses through 2022

Market trading boards are seen at the Australian Securities Exchange in Sydney, Friday, February 9, 2018. ( AAP Image/Ben Rushton) NO ARCHIVING

MILAN, Aug 13 (Reuters) – Italian state-owned bank Monte dei Paschi di Siena expects to remain loss-making through 2022 after the COVID-19 crisis further derailed its restructuring plan, it said in its fist-half financial statement.

The bank earlier this month said it had posted a first-half loss of 1.1 billion euros ($1.3 billion), hit by provisions for legal risks and loan losses amid the economic slump caused by the pandemic.

In a financial statement posted on its website late on Wednesday, the Tuscan bank said in it would present a new business plan in the second half of the year as it assessed strategic options.

Italy must sell its 68% stake in Monte dei Paschi by the end of next year and the bank has recently hired Mediobanca as financial adviser.

The bank, which mismanagement and risky derivatives trades brought to the brink of collapse before an 8 billion euro state bailout in 2017, faces 10 billion euros in legal claims.

That figure includes 3.8 billion euros in out-of-court damage claims filed on July 31 by its former controlling shareholder, a local charitable banking foundation dubbed Fondazione Monte dei Paschi Siena.

The bank said in the half-year document it thought most of those claims were likely to be dismissed. ($1 = 0.8451 euros) (Reporting by Valentina Za, editing by Silvia Aloisi)

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