Italy’s second-largest bank, Intesa Sanpaolo,
has posted first quarter net profits of €688 million ($856.7
million), down 36 percent from the corresponding period last year,
on lower net interest income (down 9.5 percent year-on-year to
€2.66 billion).

Intesa’s first quarter results were also hit
by net provisions of €845 million, up 4 percent from the year-ago

Highlights included a 15.4 percent increase
year-on-year in net fees and commission to €1.49 billion. The
bank’s 5,921-strong domestic retail unit, the largest in Italy,
recorded net profits of €277 million, up 3 percent from the first
quarter of 2009 while the division’s cost-income ratio improved by
130 basis points to 57.1 percent from a year ago.