ROME (dpa-AFX) - Italian lender Intesa Sanpaolo S.p.A. (IITSF, ISNPY) reported Tuesday a profit for the third quarter that more than doubled from last year, despite the continued challenging environment, reflecting higher net interest income, increase in net fees and commissions as well as lower loan-loss provisions.
The group noted that it achieved a strong improvement in profitability, fully in line with the 2014-2017 business plan targets, despite prolonged market challenges. Its balance sheet remains solid, as highlighted by the Asset Quality Review or AQR, and the Stress Test, carried out by the European Central Bank and the European Banking Authority, from which Intesa Sanpaolo has clearly emerged as one of the best European banks.
Thanks to the strategic decisions taken, Intesa Sanpaolo has confirmed its position as one of the most solid international banking Groups.
The pro-forma Basel 3 Common Equity ratio on a fully loaded basis increased to 13.0 percent from 12.3 percent at year-end 2013. The ratio is one of the highest levels of major European banks, equivalent to an excess capital of about 10.1 billion euros and a capital buffer of about 12.7 billion euros after the AQR and 10.9 billion euros after the Stress Test.
The Turin, Milan-based company reported net income of 483 million euros for the third quarter, sharply higher than 218 million euros in the prior-year quarter.
Pre-tax income from continuing operations surged to 888 million euros from 573 million euros last year.
Net interest income for the quarter grew 4.1 percent to 2.11 billion euros from 2.03 billion euros in the prior-year quarter. Net fees and commissions improved 11.5 percent to 1.65 billion euros from last year.
Operating income for the quarter grew 1.7 percent to 4.21 billion euros from 4.14 billion in the year-ago quarter.
Operating costs for the quarter was up 1.9 percent from the year-ago quarter to 2.07 billion euros, reflecting higher personnel expenses. As a result, operating margin grew 1.6 percent to 2.14 billion euros.
The company's loan-loss provision for the quarter was 1.32 billion euros, down from 1.50 billion euros in the prior-year quarter.
Assets under management at quarter-end totaled 291 billion euros, up 12.5 percent from year-end 2013 and up 16.3 percent from the end of the prior-year quarter.
Looking ahead to fiscal 2014, Intesa Sanpaolo said it will continue to prioritize the delivery of sustainable results, remaining focused on profitability targets as well as the profile of risk and liquidity and the solidity of its capital position.
The company added that it will look to partially limit the impact of an expected negative environment on market rates through repricing actions, while also constantly addressing the efficiency, productivity and asset quality of the group.
In Milan, Intesa Sanpaolo shares are currently trading at 2.26 euros, up 0.02 euros or 0.89% on a volume of 124.71 million shares.
Copyright RTT News/dpa-AFX