posted a first-quarter loss of €313.6 million, comparedto the €208.8 million adjusted profit a year earlier.

The bank'snet interest income, net fee and commission income, and total income alldecreased year over year, while operating costs and net adjustments on loans tocustomers rose.

Netinterest income fell to €351.5 million from €387.1 million, net fee and commissionincome declined to €316.8 million from €420.9 million and total income droppedto €786.2 million from €954.2 million.

Operatingcosts rose year over year to €560.5 million from €537.9 million and netadjustments on loans to customers increased to €684.4 million from €181.4million. Netprovisions for risks and charges declined to €3.4 million from €43.2 millionover the same period.

BancoPopolare's nonperforming loan coverage ratio rose to 59.7% at the end of Marchfrom 56.3% at Dec. 31, 2015.

Thebank's phased-in common equity Tier 1 ratio at the end of the first quarter was12.5%, down from 13.2% at the end of 2015. Banco Popolare said the decline was"fully due" to the loss posted in the first quarter of 2016.