Intesa Sanpaolo Loss In Romania Doubles To EUR2M In 1Q

05.13.2011 By Florentina Dragu

Italy’s Intesa Sanpaolo Friday said its net loss in Romania doubled to EUR2 million in the first quarter, due to higher bad loans.

In January-March 2010, Intesa Sanpaolo's units in Romania posted combined losses of EUR1 million.

The Italian group said Romanian doubtful loans rose nearly 74% to EUR66 million in the first quarter, from EUR38 million in the same period a year earlier.

The group's operating income fell 10.4% to EUR12 million, while operating costs were down 13% to EUR9 million. Pretax loss widened to EUR3 million in the first quarter, from EUR1 million in the same period last year.

Intesa Sanpaolo reported total assets of EUR1.1 billion in Romania at the end of March, up 10% from EUR1 billion in December last year.

Worldwide, Intesa Sanpaolo reported a 4% drop in its net profit to EUR661 million in the first three months.