Intesa SanPaolo, Italy’s second-largest bank assets-wise, posted on Friday its highest mid-year profit in the last seven years, against the backdrop in which the costs of covering the losses related to bad credits have been the lowest since 2011, a sign that the third-largest economy of the Euro Area is recovering, AP and Reuters inform.
In the first six months of this year the Italian bank’s profit reached EUR 2.004 bln, of which EUR 940 M in Q2 of 2015, far beyond the analysts’ expectations which stood at EUR 755 M for that quarter. In the first six months of 2014 Intesa’s profit stood at EUR 720 M, Agerpres informs.
After the financial results were posted, Intesa’s stocks climbed 2.08 per cent to EUR 3.53 on the Milan Stock Exchange.
The revenue from fees and commissions climbed by 15 per cent to EUR 1.9 bln in Q2 of 2015, while the revenue from interest dropped by 6 per cent to EUR 1.9 bln.
The capital adequacy ratio climbed to 13.3 per cent on June 30, up from 13.2 per cent on March 30, being one of the highest in Italy.
The bank has upheld its commitment to pay dividends of EUR 2 bln this year.
The provisions for bad credits stood at EUR 1.6 bln in H1 this year, down by 29 per cent year-on-year. It is the lowest level in the last four years.