Italian bank Intesa SanPaolo has returned to a full-year profit thanks to higher earnings from trading and cost cuts.
Italy's second-largest bank by assets reported profits of €1.6 billion in 2012.
This compared with a 2011 loss of €8 billion that was due to heavy writedowns on the value of investments.
The bank lost €83m in the fourth quarter, an improvement over the €10 billion loss booked on writedowns in the same time a year earlier.
The bank said its Core Tier 1 ratio, a key indicator of a bank's health where capital is measured against riskier assets, had been strengthened to 11.2%.
Its management has proposed a dividend of 0.05 a share.
