Italian bank Intesa Sanpaolo reveals deal to buy good assets of Banca Popolare di Vicenza and Veneto Banca could result in 3,900 job cuts and 600 branch closures

William Turvill
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Intesa Sanpaolo is to buy the two banks' good assets (Source: Getty)

Italian bank Intesa Sanpaolo has revealed its deal to buy the good assets of two failed regional banks may result in 3,900 voluntary redundancies and 600 branch closures.

Italy decided on Sunday to cut its losses and wind down Banca Popolare di Vicenza and Veneto Banca, costing the government up to €17bn (£15bn).

Intesa Sanpaolo, the nation’s largest retail bank, confirmed it has agreed to acquire “certain assets and liabilities and certain legal relationships of the two banks, for a token price of €1”.

Read more: Italian bank shares surge after state wind-down of failed regional banks

It said in a statement: “This intervention will safeguard the jobs at the banks involved, the savings of around two million households, the activities of around 200,000 businesses financially supported and, therefore, the jobs of three million people in the areas which record the country’s highest economic growth rate.”

However, the lender also said that the deal would lead to the closure of around 600 branches and the departure, on a voluntary basis, of around 3,900 employees.

Read more: Italy faces €17bn bill in deal to wind down two failed banks

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