Shares in Italy’s UniCredit dropped 5.5% on Monday after the bank made a abrupt U-turn at the weekend and said it would need to boost its capital by 6.6% billion euros.
It also slashed its earnings expectations for this year.
Blaming the deteriorating markets, Alessandro Profumo, the Chief Executive of Italy’s second biggest bank by market value, insisted there had been no surprises.
Profumo told analysts. “UniCredit is and continues to be a very strong bank.”