Italy’s second largest bank Intesa Sanpaolo yesterday reported better-than-expected net profits of €503mn in the first quarter, up nearly two thirds from a year earlier.
Analysts polled by Dow Jones Newswires had predicted a profit well below the 64.4% increase of €363mn ($496mn).
Income before tax from continuing operations rose 22.5% to €953mn despite the lender’s “rigorous and conservative” provisioning policy.
The result markets a huge turnaround from 2013, when Intesa Sanpaolo reported a net loss of €4.55bn after huge asset write-downs.
In 2014 “profitability targets will be combined with close attention to the profile of risk and liquidity, as well as with the group’s excellent capital position,” the bank said in its earnings statement.
Net interest income for the quarter came to €2.1bn, a 4.1% increase from 2.02bn before.
The bank operating margin was down slightly at €2.02bn — 0.1% lower than in 2013.
