MILAN, Nov 7 (Reuters) - Italy’s biggest retail bank Intesa Sanpaolo expects a higher 2017 net profit even excluding a contribution it received from the state for agreeing to take on two failing rivals.
Intesa reported on Tuesday a third-quarter profit of 650 million euros ($751 million), slightly ahead of an average estimate of 636 million euros in a poll of seven analysts.
Intesa agreed in June to take on for 1 euros the healthy assets of two regional lenders Italy is liquidating on condition the deal did not harm its capital ratios and dividend policy. To offset the impact of the purchase it received a 3.5 billion euro capital injection from the state.
The net income in July-September stood at 713 million euros when excluding the state’s cash contribution and the operations acquired.
The bank confirmed its pledge to pay 10 billion euros in cash dividend in 2014-2017. (Reporting by Valentina Za)