Monte dei Paschi di Siena: World’s oldest bank reports heavy loss

Monte dei Paschi di Siena is known as the world's oldest surviving bank

Italian bank Monte dei Paschi di Siena (MPS) – known as the world’s oldest surviving bank – has reported a bigger-than-expected loss.

MPS, which has been in business since 1472, reported a second quarter loss of 179 million euros, three times the loss analysts had been expecting.

Monte dei Paschi di Siena is known as the world’s oldest surviving bank (photo Getty Images)

It was the bank’s ninth consecutive quarterly loss.

MPS, which was bailed out by the state last year, blamed the rising costs of bad loans.

The bank has been through some turbulent years since buying rival bank, Antonveneta for more than 10 billion euros at the height of the financial boom in 2007.

That deal stretched the finances of MPS and the subsequent global financial crisis almost caused the bank to collapse.

The Italian government had to step in and bailout the company.

In June, MPS raised 5 billion euros on the stock market which it used to pay back state aid and boost its financial situation.

Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.