In­tesa posts 16% rise in Q2 profit

The Star Malaysia - StarBiz - - Foreign News -

MILAN: Italy’s In­tesa San­paolo, which has just sealed a deal to buy smaller ri­val UBI, yes­ter­day beat ex­pec­ta­tions with a 16% yearly rise in sec­ond-quar­ter profit de­spite €1.4bil

in pro­vi­sions against loan losses. Net profit for the three months through

€1.4bil

June came in at (Us$1.7bil) against

€1.1bil an av­er­age forecast in a Reuters sur­vey of six an­a­lysts.

€1.1bil Earn­ings were helped by a cap­i­tal gain In­tesa booked in the quar­ter from the sale of its re­tail­ers’ pay­ments busi­ness to Nexi, which it used to in­crease pro­vi­sions against loan losses in an econ­omy rav­aged by the fall­out of the coro­n­avirus pan­demic.

In­tesa said its net in­ter­est in­come, a mea­sure of how much money a bank makes from its tra­di­tional lend­ing busi­ness, de­clined only frac­tion­ally in the quar­ter ver­sus the pre­vi­ous year. Fees how­ever dropped 11% in a quar­ter im­pacted by a pro­longed lockdown.

€4.1bil, Rev­enues to­talled in line with an­a­lyst fore­casts.

In­tesa last week won a tor­tu­ous takeover bat­tle for ri­val UBI, snap­ping up Italy’s health­i­est sec­ond-tier peer to cre­ate the eu­ro­zone’s sev­enth-largest bank and drive prof­its through cost cuts and a fo­cus on wealth man­age­ment and in­sur­ance. — Reuters

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