Connect to share and comment

Intesa Sanpaolo second-quarter profit almost doubles

PlacardEnlarge
(Globalpost/GlobalPost)

Italy's second-largest bank Intesa Sanpaolo on Friday said its net profit in the second quarter surged 87 percent from a year ago, helped by its asset management business.

Net profit in the three months to the end of June rose to 217 million euros ($291 million), up from 116 million euros a year ago, the bank said in a statement.

In the first half, net profit rose more than 70 percent to 720 million euros.

The bank said its operating result and pre-tax profit for the period was the best in the last nine quarters, helped by higher revenues from its asset management division and cost cutting.

Assets under management rose by 22 billion euros in the first six months of the year, while net fees and commissions rose 9 percent to 3.3 million euros.

"Intesa Sanpaolo is very well positioned to emerge from the asset quality review and stress test exercise as a winner amongst European banks," it added in a statement.

The result marks a huge turnaround from 2013, when Intesa Sanpaolo reported a net loss of 4.55 billion euros after huge asset writedowns.

In March, Intesa launched a three-year strategic plan to turn around its business, including selling off its non-core assets ahead of a checkup by the European Central Bank this year.

The bank surged back into profit in the first quarter of 2014 by reducing its load of bad debts as Italy returned to growth after the worst recession since World War II.

lrb/ob/cah/pg

INTESA SANPAOLO

http://www.globalpost.com/dispatch/news/afp/140801/intesa-sanpaolo-second-quarter-profit-almost-doubles