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Intesa Sanpaolo Q1 result drops YOY as NII declines

IntesaSanpaolo SpA reported a reclassified consolidated net income of€806 million for the first quarter, compared to €1.06 billion in the sameperiod in 2015.

Net income for the period would have been €902 million excludingthe estimated ordinary full-year contribution to the resolution fund booked inthe quarter, compared with €1.12 billion in the first quarter of 2015.

The bank noted that the first-quarter result improved from the€13 million earned in the fourth quarter of 2015 despite sharper negativeimpacts of market volatility in January and February, adding that the €1.06billion year-ago profit benefited from a particularly positive trend infinancial markets.

First-quarter net interest income came in at €1.88 billion,compared to €1.97 billion in the first quarter of 2015. Net fee and commissionincome declined on a yearly basis to €1.71 billion from €1.81 billion.

Profits on trading fell year over year to €228 million from€596 million, while income from insurance business stood at €332 million,compared to the year-ago €343 million.

Net provisions for risks and charges came in at €16 millionin the quarter, compared to €54 million a year earlier, while loan lossprovisions fell year over year to €694 million from €767 million.

At March-end, the bank's common equity ratios after accrueddividends were 13.1% on a pro forma fully loaded basis, in line with that in2015-end, and 12.9% on a phased-in basis, compared to 13% at 2015-end. On aphased-in basis, the Tier 1 ratio was 14.1% at the end of March, compared to13.8% at Dec. 31, 2015, while the total capital ratio was 17.4% at March-end,compared to 16.6% at the end of 2015.

The group's leverage ratio at March 31 was 6.7% on aphased-in basis and 6.4% on a fully loaded basis.

Intesa Sanpaolo confirmed its plan to distribute €3 billionof cash dividends for 2016.