...The ratings of Banca Popolare di Vicenza (BPVi) reflect its good franchise in north Italy, particularly in its home region of the Veneto, fragmented loan book and reduced appetite for market risk. The ratings also take into account the bank s inefficient group structure, weaker than average corporate governance, mediocre profitability, just adequate asset quality and tight capital. BPVi s #### operating profitability was just adequate and reflects the bank s expansion and the group s federal structure, which continues to weigh on costs. Operating revenue improved by #.#% yoy, sustained by good net interest income, but costs weigh down the positive result , leading to declining y ear\##end operating pr ofit of EUR###.#m (####: EUR###.#m). BPVi s appetite for credit risk is moderate and mainly derives from its lending activity. The loan book is well fragmented, reflecting the bank s decision to avoid unnecessary concentrations....
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