Italian Intesa Sanpaolo returns to profit in 2012

Italy's second largest bank, Intesa Sanpaolo, on Tuesday reported a 2012 consolidated net profit of 1.61 billion euros ($2.09 billion), returning into the black after a previous net loss of 8.19 billion euros a year earlier when the results were heavily weighed down by one-time costs. Adjusted income for the full year came to 1.47 billion euros, slightly higher than the 1.45 billion euros earned in 2011. For the fourth quarter, Intesa recorded a consolidated loss of 83 million euros, compared with a profit of 414 million euros in the third quarter. Analysts polled by Dow Jones had expected a loss of around 109 million euros. "In 2012, the group delivered strong and solid results in spite of a challenging environment thanks to a strategy focused on the continuous strengthening of the balance sheet, on sustainable profitability and best-in-class performance," the bank said in a statement. Intesa added that due to what it called a "deteriorating credit environment" it was applying a "rigorous and conservative provisioning policy", making loan loss provisions of around 4.7 billion euros in 2012, up 11 percent from 2011. Although Intesa did not provide a detailed outlook for this year, it said it "will continue to prioritise the delivery of sustainable results", focusing on profitability targets and ways to strengthen its capital base in addition to improving "the profile of risk and liquidity."