Italy' Credem H1 net rises 39 pct, loan writedowns fall

MILAN Thu Aug 7, 2014 10:26am EDT

MILAN Aug 7 (Reuters) - Italy's Credito Emiliano posted on Thursday a 39 pecent rise in first-half net profit to 99 million euros helped by higher interest and trading income, rising fees and the fact it put aside less money against loan losses than a year earlier.

Credem, one of 15 Italian banks under scrutiny in a pan-European banking review, said its best-quality Common Equity Tier 1 ratio stood at around 11.2 percent of risk-weighted assets - above an 8 percent threshold for banks in the review.

Loans to clients in the period rose 2.8 percent, bucking a trend of shrinking credit in Italy, whose economy slid back into recession in the second quarter.

The bank said in a statement credit risk could have a larger impact on profitability in the future due to the protracted weakness of the domestic economy.

Loan writedowns in the period fell 35 percent to 31 million euros. (Reporting by Valentina Za)

FILED UNDER: