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Intesa Lifts Profit Outlook after Above-Forecast Quarter

MILAN, July 28 (Reuters) - Intesa Sanpaolo, Italy's biggest bank, on Friday lifted its profit outlook for 2023 and beyond after second quarter earnings strongly surpassed expectations thanks mainly to the boost from higher rates.

Intesa posted a 2.27 billion euro net profit for April-June, compared with a Reuters analyst consensus of 1.82 billion euros ($2.00 billion), despite technology investments driving costs higher.

It now sees its full year profit "well above" a previous forecast of 7 billion euros, with further growth projected in 2024 and 2025.

Under the strategy unveiled in February last year Intesa had originally aimed for a 6.5 billion euro 2025 net profit.

Revenues jumped 19% annually to 6.34 billion euros, ahead of an average 6.14 billion in analyst forecasts, with income deriving form the gap between lending rates and interests paid on deposits up 71% year-on-year.

Core capital was steady at 13.7% of risk-weighted assets.

($1 = 0.9115 euros)

Reporting by Valentina Za Editing by Keith Weir

Source: Reuters

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