Italian bank Intesa SanPaolo reports Q1 profits up

Italian bank Intesa SanPaolo says first-quarter earnings rose 22 percent due to higher trading profits and cost-cutting.

The bank said Tuesday that net income of €804 million ($1.03 billion), up from €661 million in the first quarter of 2011, was the highest in seven quarters.

Trading profit more than doubled to €716 million from €280 million in the same period last year.

The bank said its Core Tier 1 ratio, a key measure of a bank's health, had risen to 10.5 percent, above the 9 percent minimum set by the European Banking Authority. The capital ratio was 10.1 percent at the end of 2011.

Intesa was one of 26 Italian banks that saw its ratings downgraded by Moody's, which cited Italy's weak economy and austerity measures hitting loan demand.