Italy's second biggest bank Intesa Sanpaolo today posted a loss for 2011 of €8.19 billion, down sharply from a €2.7 billion profit posted a year earlier.
The bank said the hefty loss came from a "highly prudent" €10.2 billion 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 €400m loss on its Greek debt holdings and another €120m 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".
