Prometeia sees Italian banks recovering over 2014-16

MILAN Wed May 21, 2014 11:47am EDT

MILAN May 21 (Reuters) - Italian banks should post collective net profit of 2.8 billion euros ($3.83 billion) in 2014, bouncing back from total net losses for the sector worth just below 16 billion euros last year, economic think-thank Prometeia forecast on Wednesday.

According to Prometeia, Italian banks should collectively turn in net profit worth 23 billion euros over 2014-2016, leaving behind the deep losses suffered between 2011 and 2013, but still just a third of the net profit posted over 2005-07.

Despite the expected recovery, domestic lenders are expected to continue to put aside provisions for losses on bad loans. These should reach a total of 53 billion between now and 2016, with nearly half of these in 2014. ($1 = 0.7318 Euros) (Reporting by Andrea Mandala, writing by Lisa Jucca; editing by Agnieszka Flak)