UPDATE 2-Intesa SP hikes profit outlook, Q3 net tops f'cast

* Q3 net 674 mln euros, tops analysts' forecast

* Return to dividend on 2009 results

* Shares end up 1.55 pct, outpacing sector

(Adds CEO comments, share price, forecast)

By Ian Simpson

MILAN, Nov 10 (Reuters) - Italy's biggest retail bank Intesa Sanpaolo SpA (ISP.MI) on Tuesday raised its forecast for full-year net profit and said it planned to sell or list billions of euros in assets by spring to boost capital.

Intesa Sanpaolo posted third-quarter net profits of 674 million euros ($1.01 billion), unchanged from last year, helped by trading profits.

The results blew past an average estimate of 461.5 million euros by analysts in a Thomson Reuters I/B/E/S forecast.

Chief Executive Corrado Passera said the bank's net profit could be about 2.5 billion euros this year even before a capital gain of about 260 million euros from the sale of a stake in its Findomestic consumer lending unit.

"It seems reasonable to expect ... that the consolidated net income for the whole year, for 2009, could be higher than what we recorded in 2008," he said in a conference call with analysts. Net profit was 2.55 billion euros last year.

Net profit also will get a boost from improving loan loss provisions, cost-cutting and a 13.1 percent quarter-on-quarter rise in commissions.

ASSET SALES

Intesa Sanpaolo expects to complete the sale or listing of a first batch of non-strategic assets in a move aimed at boosting capital ratios by its springtime shareholder meeting, Corrado Passera said.

They include asset manager Banca Fideuram, which analysts have valued at between 2.5 billion and 3.5 billion euros. Italy's Exor SpA (EXOR.MI), the main shareholder for Fiat SpA (FIA.MI), has expressed interest in Fideuram.

"Hopefully, we will make some announcements before the end of the year," Corrado Passera said.