November 8, 2019 / 2:05 PM / 3 months ago

UBI Q3 net profits hit by higher loan loss charges

MILAN, Nov 8(Reuters) - UBI Banca reported third quarter net profits on Friday that came in below analysts' forecast due to a drop in interest income and higher bad loan provisions.

Italy's fifth-biggest bank posted a net profit of 60.1 million euros ($66.30 million) for the three months through September compared with an analyst consensus distributed by the bank of 65 million euros.

Net interest income - a measure of how much money a bank makes from its core retail business - was down 5.7% from a year earlier amid lower rates.

Revenues were up to 5.9 at 860.4 million euros, compared with a consensus forecast of 865 million euros, helped by higher fees.

The bank, which said it had cut holdings of non-performing assets substantially, said was it studying a sale of an 800 million-euro portfolio of non-performing residential mortgages backed by the GACS state guarantee scheme.

As a conseguence of this deal - which is expected to be completed by the end of the year - Ubi's gross non-performing exposure ratio would come down to around 8% from 9.34% at the end of September, it said. ($1 = 0.9065 euros) (Reporting by Andrea Mandalà; editing by James Mackenzie)

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