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By Valentina Za Italy's biggest bank Intesa Sanpaolo ISP on Friday reiterated its full-year profit forecast after rising fee income failed to offset weaker third-quarter trading gains and a falling contribution from its lending business. Net income dropped slightly from a year earlier to 2.37 billion euros in the July-September period, slightly ahead of a Visible Alpha analyst consensus, and was also down from the previous quarter. Intesa, the second Italian bank to report after UniCredit UCG, confirmed its 2025 income would be well above 9 billion euros ($10.5 billion), including restructuring charges it will book this quarter. Shares extended losses to stand 2.8% lower at 1153 GMT. Intesa, which has stayed out of the M&A wave sweeping Italian finance having acquired domestic rival UBI in 2020, will present its new multi-year strategy in February. A 6% year-on-year rise in net fees and stronger quarterly insurance income failed to fully compensate for a 7% drop in the bank's net interest margin - the gap between loan and deposit rates - which has been narrowing as interest rates decline. Revenue totalled 6.6 billion euros in the quarter, broadly in line with a Visible Alpha forecast of 6.7 billion. UniCredit last week posted a yearly profit rise helped by trading gains and forecast 2025 income of 10.5 billion euros, excluding fourth-quarter charges. ($1 = 0.8575 euros)
