Intesa Sanpaolo, Italy's second-biggest bank, posted a €5.19 billion fourth-quarter loss, following UniCredit in a balance-sheet clean-up before the ECB's asset review. Provisions for doubtful loans jumped to €3.1 billion from €1.46 billion a year earlier, while impairments, including those on goodwill, amounted to €5.8 billion, Intesa said today.

The shares rose to the highest intraday level in more than three years as investors looked past the charges.

“This is the the right time for a clean-up as the market sentiment has improved,” said Jacopo Ceccatelli, a partner at JCI Capital in London. “This looks like the last move before a credible turnaround, and investors are betting on the future.”

Chief executive Carlo Messina presented a strategic plan that included closing 800 branches. – (Bloomberg)