Italian banking group Intesa Sanpaolo has reported a net loss of E1.22 billion in the fourth quarter of 2008, compared to a net income of E504m in the corresponding quarter of 2007. It has also said that it will seek E4 billion in government aid.
Net interest income for the fourth quarter of 2008 was E2.89 billion, compared to E2.8 billion in the corresponding quarter of 2007. Operating income for the fourth quarter of 2008 was E3.97 billion, compared to E4.6 billion in the same period of 2007.
Net income of the company for 2008 was E2.55 billion, a decrease of 64.8% compared to E7.25 billion in 2007. Net interest income for 2008 was E11.63 billion, an increase of 12.2% compared to E10.37 billion in 2007. Operating income for 2008 was E18.16 billion, a decrease of 5.7% compared to E19.25 billion in 2007.
The company has also said that its management board has resolved to start procedures for the issue of E4 billion of subordinated debt instruments to be subscribed by the Ministry for Economy and Finance and qualifying as core tier one capital.
The objective of this decision is to insure the group against uncertain market conditions, and protecting it from competitive distortions which may arise from different levels of government support provided to the main international banking groups.
