Italian lender Intesa Sanpaolo S.p.A. (IITSF.PK) Tuesday reported 61.9 percent decline in first-quarter profit, reflecting mainly lower net interest income amid a challenging environment.
In the first quarter, the company's net income declined to 306 million euros or 0.02 euros per share from 804 million euros or 0.05 euros per share in the prior year.
Adjusted net income, excluding main non-recurring items, was 392 million euro, compared to 708 million euros in the first quarter of last year. Operating income was 4.12 billion euro, down 14.4 percent from last year.
Net interest income fell 19.2 percent to 2.02 billion euros. Meanwhile, net fee and commission income climbed 11.3 percent to 1.47 billion euros.
Commissions on commercial banking activities were up 10.9 percent and management, dealing and consultancy activities improved 11.1 percent. Commissions on distribution of insurance products climbed 30.5 percent and commission on portfolio management was up 9.1 percent from last year.
Commissions on dealing and placement of securities declined 2.1 percent from the prior year.
Operating costs were 2.10 billion euros, down 5 percent from the first quarter of 2012.
The bank's Core Tier 1 ratio increased to 11.3 percent from 11.2 percent at the end of 2012.
Looking ahead to full-year 2013, the company said its strict cost containment actions will counteract the effects of automatic pay increases and inflation.
In Milan, the shares closed Monday's regular trading at 1.39 euros.
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