BPER Banca SpA reported second-quarter consolidated net profit pertaining to the parent company of €56.9 million, down from €104.5 million a year earlier.

Net interest income, reclassified for effects related to IFRS 9 to improve comparability, amounted to €280.3 million, compared to €282.0 million in the second quarter of 2017. Net commission income rose to €190.9 million from €181.9 million in the same period.

Net impairments to financial assets at amortized cost decreased on a yearly basis to €58.8 million from €189.7 million, while net provisions for risks and charges increased year over year to €25.4 million from €4.2 million.

BPER reported first-half profit pertaining to the parent company of €307.9 million, up from €119.1 million in the first six months of 2017. The bank had booked first-quarter net trading income on a reclassified basis of €153.6 million, up year over year from €24.7 million, along with sharply reduced net impairments to financial assets at amortized cost.

The Italian bank's fully phased common equity Tier 1 ratio stood at 11.63% as of June 30, compared to 11.71% at the end of March and 13.68% as of Dec. 31, 2017. The fully phased-in leverage ratio was 4.9% at June-end, compared to 6.0% as of Dec. 31, 2017, before the application of new accounting standards known as IFRS 9.

The bank said its nonperforming exposures, which include bad loans as well as recently restructured loans and those at risk of turning sour, amounted to 8.4% of gross loans net of provisions, and 17.4% on a gross basis, down from 9.2% and 19.9%, respectively, at the start of the year.