How Italy's top banks brushed off debt shock

Milan

FOR a change, vast holdings of government bonds didn't hurt Italy's biggest banks during the worst market selloff since 2012.

Against the predictions of some analysts that UniCredit SpA, Intesa Sanpaolo SpA and Banca Monte dei Paschi di Siena SpA would suffer a capital hit in the second quarter because of a plunge in Italian debt, buffers grew. Lower loan losses, declines in risky assets and hedging helped strengthen finances.