Milan - AFP
Italy\'s second biggest bank Intesa Sanpaolo on Thursday posted a loss for 2011 of 8.19 billion euros ($10.7 billion), down sharply from a 2.7 billion euro profit posted a year earlier.
The bank said the hefty loss came from a \"highly prudent\" 10.2-billion-euro writedown in the the fourth quarter based on market evolutions and the outlook for the foreseeable future.
The exceptional item would have no impact on cash-flow, liquidity, solidity, capital ratios and future profitability, the bank said.
The company also posted a 400-million-euro loss on its Greek debt holdings and another 120-million-euro writedown on its stake in Telco, the holding that controls Telecom Italia.
Without the measures, the bank said it \"delivered solid financials in 2011 despite a difficult market environment\" and said that it is \"well positioned to tackle challenges and exploit opportunities\".
Shares on Thursday in Intesa Sanpaolo gained 0.67 percent on a Milan stock market down by 0.28 percent.