Find a list of your saved stories here

Italian bank Intesa SanPaolo sees Q2 profits dip


Save Story

Save stories to read later


Estimated read time: 1-2 minutes

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

MILAN (AP) — Italian bank Intesa SanPaolo says its second-quarter profit dipped as it moved ahead with integrating two local banks it had helped rescue.

Italy's second-largest bank by assets said Tuesday that net income dropped 7 percent to 837 million euros ($988 million) in the three months through June, compared with 901 million euros a year earlier.

Net fees and commission income and interest income were flat at around 1.8 billion euros. The impact of lower interest rates, which tend to weigh on a bank's earnings, was offset by higher business volumes and spreads. Trading profit dipped 22 percent to 365 million euros.

The bank's core Tier 1 capital ratio, a key measure of the bank's strength, was 13 percent.

The net profit figure excludes a 3.5 billion euro cash injection from a government fund for taking over the good assets of two failing banks in the northeast Veneto region, aimed at protecting Intesa San Paolo's capital ratio.

"Intesa Sanpaolo's intervention ensures the security of about 50 billion euros in savings held by the two banks," CEO Carlo Messina said.

Since the two banks, Banca Popolare di Vicenza and Veneto Banca, joined the Intesa group, Messina said they have reached a deal to cut 4,000 jobs on a voluntary basis. Intesa also intends to reduce the number of branches with other cost-cutting measures.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Most recent Business stories

Related topics

Business
The Associated Press

    STAY IN THE KNOW

    Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the KSL.com Trending 5.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast