Britain's Co-operative Group has agreed a plan to plug a 1.5 billion pound ($2.4 billion) capital hole at its bank which forces bondholders to pay part of the bill, avoiding a repeat of the taxpayer-funded bailouts staged during the financial crisis.
Alpha is the first of the country's biggest banks to successfully recapitalise without falling under the full control of a bank rescue fund, which is financed from the country's international bailout package.
The bank, the first of Italy's retail banks to release results for the quarter, said inflows of new bad loans had fallen in its home market for the second quarter in a row.
Net profit at UniCredit's Bank Austria unit fell 29 percent in the first quarter as loan writedowns in central and eastern Europe (CEE) jumped by almost a third, emerging Europe's biggest lender said on Monday.
Metro Bank, the first new high street lender in Britain in more than a century, has seen losses reach more than £100m nearly three years since its launch.