MILAN, July 28 Reuters Italy39;s biggest bank Intesa Sanpaolo on Friday posted a biggerthanexpected profit for the second quarter, helped by higher interest rates and trading gains, which offset the hit to net fees from rough markets.
Intesa confirmed its financial targets for the year after net profit for AprilJune came in at 1.33 billion euros 1.36 billion, down 12 from a year ago but well ahead of analysts39; consensus forecast of 1.03 billion euros in a Reuters poll.
Rival UniCredit also beat expectations this week, thanks to stronger revenues and plummeting loan writedowns, doubling its net profit from the previous year and raising its 2022 earnings outlook.
Revenues at Intesa reached 5.35 billion euros, surpassing analysts39; average estimate of 5.09 billion.
Rising interest rates drove income from lending up 5 from a year earlier despite large impaired loan disposals, which had led analysts to anticipate no major boost from monetary policy tightening.
Under a multiyear strategy unveiled in February, Intesa aims to keep its impaired loans at the near zero levels typical of Nordic rather than Mediterranean banks.
Overall, a decent quarter from Intesa with surprisingly good net interest income, broker Autonomous said, adding the decision to approve a 1.1 billion euro interim dividend in November was positive.
Intesa, which has made a trademark of its generous payouts, deducted in full from capital in the quarter a proposed 3.4 billion euro share buyback,…