Intesa Sanpaolo Q3 Profit Falls - Update

(RTTNews) - Italian lender Intesa Sanpaolo S.p.A. (IITSF.PK, ISNPY.PK) Wednesday reported a sharp decline in third-quarter profit, as net interest income and profit on trading declined amid a challenging economic environment. Looking ahead to the fourth quarter, the Group said it will continue to prioritize the delivery of sustainable results.

For the recent third quarter, the company posted net income of 218 million euros, sharply down from 414 million euros in the prior year.

Excluding main non-recurring items, adjusted net income totaled 194 million euros in the recent quarter, compared with 277 million euro in the third quarter of last year.

Adjusted net income for Q3 2013 - excluding the main non-recurring items - was 194 million euro, compared with 268 million euro in Q2 2013 and 277 million euro in Q3 2012.

Operating income was 4.15 billion euros, down 6.7 percent from 4.44 billion euros last year.

Net interest income slid 12.3 percent to 2.03 billion euros from 2.32 billion euros reported a year ago. Net fee and commission income was 1.48 billion euros, higher than 1.33 billion euros reported last year.

Commissions on commercial banking activities increased 4.6 percent, and those on management, dealing and consultancy activities were up 22.8 percent from last year.

Profit on trading declined to 401 million euros from 623 million euros in the preceding year. The prior-year quarter included a capital gain of 327 million euro on the buy-back of subordinated and senior notes.

In Milan, the shares closed Tuesday's regular trading at 1.77 euros.