Intesa’s RWAs bloat on UBI merger
Credit risk-weighted assets increased 16% post-takeover
Intesa Sanpaolo’s takeover of Italian peer UBI Banca saddled the bank with additional credit and operational risks, regulatory filings show. These dragged on its capital ratio over the third quarter, offsetting gains achieved elsewhere in the business.
The strongest headwind from the merger was the addition of €30.6 billion ($37.1 billion) of credit risk-weighted assets (RWAs). Around €5 billion of these were offset by management actions, meaning the net effect was a quarter-on-quarter increase
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