Intesa Sanpaolo 2Q Net Profit Jumps, Boosted by Public Funds
August 01 2017 - 6:55AM
Dow Jones News
By Giovanni Legorano
ROME-Italian bank Intesa Sanpaolo SpA said Tuesday its
second-quarter net profit jumped to 4.34 billion euros ($5.11
billion), largely because of a EUR3.5 billion government
contribution aimed at shielding its capital base from the hit from
rescuing two smaller banks.
Without the injection of public funds, Intesa said its net
profit for the quarter stood at EUR837 million, compared with
EUR901 million in the same quarter a year earlier.
In June, midsize lenders Banca Popolare di Vicenza SpA and
Veneto Banca SpA went bust, requiring a government rescue. Rome
liquidated the lenders' bad assets and sold the good ones to Intesa
for one euro.
The deal included a public contribution to Intesa to digest and
restructure the two banks and another EUR12 billion in guarantees
covering the potential cost of disposing of the bad loans and some
legal risks related to the two banks' previous activity.
-Write to Giovanni Legorano at giovanni.legorano@wsj.com
(END) Dow Jones Newswires
August 01, 2017 07:40 ET (11:40 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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