Nov. 10 (Bloomberg) -- Intesa Sanpaolo SpA, Italy’s second- biggest bank, said third-quarter profit was unchanged from last year, beating analysts’ estimates, as trading income surged.

Net income was 674 million euros ($1 billion) in the period, the company said in a statement today. That exceeded the 418 million-euro median estimate of 16 analysts surveyed by Bloomberg. Trading income jumped, helped by 114 million euros in gains from selling stakes in Banca Generali SpA and Natixis, and loan-loss provisions fell 3.6 percent to 823 million euros.

“Lower-than-expected loan-loss charges were an encouraging sign of improving asset quality,” Nomura analyst Paola Biraschi wrote in a note today. Intesa’s results were healthier than expected, she said.

Chief Executive Officer Corrado Passera, who rejected government aid during the credit crunch, is boosting capital by shedding assets and plans further sales, including those of the Banca Fideuram SpA and Findomestic units. Intesa, which forecast that net income this year will be higher than in 2008, also said it expects to pay a dividend on 2009 earnings.

“In light of the results for the first nine months and the contribution of approximately 260 million euros from the Findomestic sale expected to take place in the fourth quarter of the year, it seems reasonable that consolidated net income for 2009 could be higher than that recorded in 2008,” Intesa said.

Fee, Interest Income

Net fees and commissions dropped 3 percent to 1.37 billion euros in the quarter, while net interest income fell 14 percent to 2.6 billion euros. The government’s elimination of overdraft fees from July had a 90 million-euro impact on net interest income, the company said.

Interest income in the fourth quarter is seen “in a flattish situation,” Passera said on a conference call today.

The bank aims to complete the asset disposals and listings by April, and “some announcements” may be made by the end of the year, the CEO said, without giving further details.

“Considering just half of Intesa’s potential disposals, we calculate that the bank could add 109 basis points to its core tier 1 ratio,” Deutsche Bank AG analyst Paola Sabbione wrote in an Oct. 14 report. A basis point is 0.01 of a percentage point.

The core tier 1 ratio, a measure of a bank’s ability to absorb losses, rose to 7.2 percent at the end of September from 6.9 percent on June 30.

Possible Acquisition

Intesa is still interested in buying Gruppo Delta, Passera said. Due diligence is under way, and the bank is only interested in the “performing area of the group,” he added.

Intesa rose 1.6 percent to 2.95 euros in Milan, giving the company a market value of 37 billion euros. The Bloomberg Banks and Financial Services Index, which was unchanged today, has risen 23 percent in the past six months, compared with Intesa’s 15 percent increase.

To contact the reporter on this story: Sonia Sirletti in Milan at ssirletti@bloomberg.net

Last Updated: November 10, 2009 13:21 EST