November 6, 2018 / 12:26 PM / 12 days ago

Intesa's Q3 net beats forecasts, fees suffer

MILAN, Nov 6 (Reuters) - Italy’s top retail bank Intesa Sanpaolo posted on Tuesday a better-than-expected third-quarter net profit and kept its core capital intact despite Italy’s sovereign travails which hurt fees.

Italy’s populist government has locked horns with the EU Commission over an expansionary 2019 draft budget, sparking a sell-off of Italian assets and driving up Rome’s debt costs.

Italian banks have seen their capital hurt by the falling value of their large sovereign holdings.

Intesa said its pro-forma fully-phased core capital ratio stood at 13.7 percent at the end of September from 13.6 percent three months earlier.

Fees, which are key to Intesa’s business model built around its wealth management operations, dropped 3.4 percent quarter-on-quarter.

Net profit came in at 833 million euros ($951 million), compared with 785 million euros in a consensus of six analysts compiled by Reuters. ($1 = 0.8763 euros) (Reporting by Valentina Za)

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