August 27, 2013 / 6:18 AM / 4 years ago

CORRECTED-UBI Banca Q2 net profit falls as loan losses mount

(Corrects net profit percentage fall in first paragraph)

MILAN, Aug 27 (Reuters) - Italy’s UBI Banca said on Tuesday its second-quarter net profit fell 51 percent to 26.5 million euros ($35.4 million) from the same period a year ago as impairment losses on bad loans continued to rise.

In a statement, UBI said writedowns on loans in the second quarter rose to 226.2 million euros from 157.7 million euros in the first quarter, reflecting deteriorating economic conditions in Italy and seasonal changes.

In the first half loan writedowns totaled 383.9 million euros from 334.4 million euros a year earlier.

But the Bank said it expected loan loss provisions for the current year to be lower than in the previous year in absolute terms.

Italy’s fifth-largest bank by branches said its Core Tier 1 ratio, a key measure of capital adequacy, was more than 10 percent on a Basel III compliance basis. ($1 = 0.7477 euros) (Reporting by Stephen Jewkes; editing by Jane Baird)

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