Banif Bank Malta reacted positively yesterday to an announcement by its major shareholder that it had submitted a recapitalisation plan amounting to more than €1.5 billion.
“With this recapitalisation, Banif will become one of the most capitalised banks in Europe,” the bank said.
It added that the Malta bank was not affected by the restructuring programme since it operates independently within the Maltese financial services framework.
“The recapitalisation plan is part of a wider strategy put in place by the Portugese State to ensure that the banks in Portugal have adequate capital,” Banif Bank said, pointing out that the plan was approved by the Portuguese regulators and authorities.
The plan must now be approved by the General Meeting of Shareholders on January 16.
“The fact that the Portuguese State has recapitalised Banif reflects the systemic relevance and importance of the group in the context of the Portuguese financial system,” said Joaquim F. Silva Pinto, CEO of Banif Bank Malta.
“This importance is highlighted by the fact that Banif’s supervision will be transferred from Banco de Portugal to the European Central Bank.”
The bank said it was consistently meeting its targets and growth plans and would continue to invest and create job opportunities.
“The impact of Banif’s recapitalisation plans on Malta is very positive as the group has strengthened its position in the global market and will remain very focused in developing its strategy, including its growth and expansion plans for the Maltese market.”
In a statement on its website, the group said that, once approved, the plan would be implemented in two stages.
The first will be an initial public investment of €1.1 billion. This will be followed by an additional share capital increase, to be made by the end of June, to the tune of €450 million, with subscription through a public offer on conditions yet to be defined.
The recapitalisation process is based on interim support of the state for a maximum of five years and involves an aggressive process of restructuring of the business model and enhancement of its core segments of activity.
The recapitalisation of Banif is also subject to a European Commission decision that this is in compliance with state aid rules.