Italy's Intesa suspends dividend payments, says committed to UBI deal

Reuters

Published Mar 31, 2020 • < 1 minute read

MILAN — Italy’s biggest retail bank Intesa Sanpaolo said on Tuesday it would suspend a proposal to pay out to shareholders 3.4 billion euros ($3.7 billion) in dividends to boost capital reserves as demanded by regulators.

The bank said a proposed takeover of smaller rival UBI Banca had become even more important in the current coronavirus crisis because it would support cost cuts and make it easier to cover potentially higher loan losses.

($1 = 0.9110 euros) (Reporting by Valentina Za, editing by Giulia Segreti)

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