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)