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Italian bank Intesa weathers EU budget storm, profits up

MILAN (AP) — Italian bank Intesa SanPaolo says its third-quarter profits rose 28 percent, mostly due to accounting changes to reflect the acquisition last year of two failing regional banks.

The bank said Tuesday that its net income was 833 million euros ($952 million) in the three months ending Sept. 30. That compared with 650 million euros in the same period last year, a figure that was lowered to reflect liabilities from the purchase of Banca Popolare di Vicenza and Veneto Banca.

The bank said net fees and commissions dropped slightly to 1.92 billion euros while interest income rose 2 percent to 1.84 billion euros.

Its Tier 1 ratio, a key measure of capital strength, rose to 13.7 percent, despite pressure on its sovereign debt holdings because of Italy’s budget confrontation with the EU.

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