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Italy's Intesa Sanpaolo bank reports profit plunge

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(Globalpost/GlobalPost)

Italian bank Intesa Sanpaolo on Friday reported its net profits plunged 75.3 percent to 116 million euros ($154 million) compared to the second quarter in 2012 and were down 62 percent from the first quarter.

The results show choppy economic waters are having a negative effect on Italy's banking system.

Analysts quoted by Dow Jones before the results had predicted profits of 178 million euros.

Operating net income fell 1.1 percent on a 12-month comparison to 4.086 billion euros.

Provisions for risks increased to 1.583 billion euros from 1.155 billion euros in 2012, as the number of bad loans rise sharply in Italy due to the crisis.

The bank's core capital Tier 1 ratio strengthened however to 11.7 percent in June from 11.2 percent at the end of last year.

The group said it had adopted a particularly "conservative" approach ahead of stress tests carried out to monitor the stability of European banks.

ahe/dt/rl

INTESA SANPAOLO

http://www.globalpost.com/dispatch/news/afp/130802/italys-intesa-sanpaolo-bank-reports-profit-plunge