CALM BEFORE THE STORM. Intesa Sanpaolo (ISP.MI) has bolstered its bad credit defences. Italy’s largest lender on Wednesday reported better-than-expected first-quarter net profit of 1.5 billion euros . It’s the bank’s best quarter since 2008, delivering an annualised return on tangible equity of 12%, according to Deutsche Bank analysts. The performance owes much to lower bad debt provisions. Intesa set aside some 400 million euros, equivalent to 0.35% of total loans on an annualised basis. That’s less than some European rivals. Boss Carlo Messina and investors know the lull won’t last. Intesa shares trade at around 0.8 times its tangible book value, implying an 8% return on tangible equity this year. Once Italy lifts a ban on layoffs, many private clients will default. Yet, as consumer credit accounts for just 6% of its loans, less than half the equivalent share for BNP Paribas (BNPP.PA) and Banco Santander (SAN.MC), Intesa is better placed to weather an increase in defaults. (By Lisa Jucca) On Twitter http://twitter.com/breakingviews Earlier in Capital Calls: GM is a wannabe speedy that is stuck in slow lane read more Stellantis maiden voyage enters stormier waters read more Nestlé plant-based push is pea in Danone’s shoe read more UK bank suffers unfamiliar altitude sickness read more Aussie bank’s green coal-port loan burns lukewarm read more