Intesa SanPaolo earnings slide on weaker trading, charges

AP News
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Posted: May 06, 2016 9:06 AM

MILAN (AP) — Intesa SanPaolo says first-quarter net income slid by 25 percent due to a softer trading performance and contributions it made to a fund to support weaker Italian banks.

Italy's second-largest bank on Friday reported net income of 806 million euros ($923 million) in the three months ending March 31, down from 1.064 billion euros in 2015.

Profits on trading dropped 60 percent to 228 million euros, while net fees and commissions fell 5.5 percent to 1.71 billion euros. The bank booked a 136 million euro charge to fund the restructuring of four small lenders.

Provisions for bad loans dropped to 694 million euros, the lowest since 2011, reflecting an improved credit trend. The bank said it had loaned 10 billion euros during the quarter, mostly to families and businesses.