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Net profit at Italian state lender CDP jumps 86 pct in 2016
March 31, 2017 / 12:38 PM / in 9 months

Net profit at Italian state lender CDP jumps 86 pct in 2016

MILAN, March 31 (Reuters) - Italian state fund Cassa Depositi e Prestiti (CDP) said on Friday 2016 net profit rose 86 percent to 1.7 billion euros ($1.8 billion) pushed by a higher net interest income.

The result comes as good news for the Italian Treasury which owns 83 percent of the state lender and pockets generous dividends from it.

According to a source with knowledge of the matter, CDP booked writedowns on its real estate portfolio and its investment in banking industry rescue fund Atlante.

CDP’s role in Italy’s industrial policy has grown rapidly since the appointment of top bankers Claudio Costamagna and Fabio Gallia at its helm in 2015.

Under the new managers, CDP supported the creation of Atlante with a 500 million euro investment. The rescue fund was hastily set up a year ago with money from Italian banks and insurers to support troubled banks.

The state agency has also spent 900 million euros to buy a stake in oil service group Saipem. ($1 = 0.9363 euros) (Reporting by Francesca Landini, editing by Valentina Za)

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