Italian bank shares slump on surprise windfall tax
By Steve Goldstein
Shares of Italian banks slumped on Tuesday after the country's government agreed to impose a windfall tax, as part of a broader measure of reforms.
Terms call for a 40% tax on what is called excess net interest income. Analysts at Citi say the tax will hurt earnings on average by 19%.
BPER Banca , FinecoBank , Intesa Sanpaolo , Banco BPM and UniCredit each lost between 7% and 10% in midday trade.
As in many countries, banks in Italy have been criticized for not passing on higher interest rates to depositors. According to Il Sole 24, the main six banks have seen profits climb by more than 60% this year.
-Steve Goldstein
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08-08-23 0756ET
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