Italian bank shares slump on surprise windfall tax

UniCredit
UCG,
-5.59%
and Intesa Sanpaolo
ISP,
-7.40%
shares slumped on Tuesday after a surprise windfall tax was agreed by the Italian government on Monday night. Terms call for a 40% tax on what is called excess net interest income, for both 2022 and 2023. Analysts at Citi say the tax will hurt earnings on average by 19%.