INTESA SANPAOLO S.P.A. European Union regulators are scrutinising the treatment of banks' deferred tax assets in Italy, Spain, Portugal and Greece to see if these constitute state aid, the European Commission said this week.
Pop Milano CEO Giuseppe Castagna said that if the bank was not allowed to count the DTA as core capital, its CET 1 ratio would fall to 10 percent -- from 11.6 percent now -- but would still be above the minimum requirement of 9 percent set by the European Central Bank for the lender.
He said removing the DTA from the core capital would have a major impact for all Italian banks with the exception Pop Milano and Intesa Sanpaolo (>> Intesa Sanpaolo SpA).
(Reporting by Silvia Aloisi, editing by Steve Scherer)
Stocks treated in this article : Intesa Sanpaolo SpA, Banca Popolare di Milano
