The Milanese bank, which has agreed to merge with rival Banco Popolare to create Italy's third-biggest banking group, said net profit stood at 48 million euros ($55 million) in January-March. That compares with an analyst consensus provided by the company of 45 million euros.

Popolare di Milano said net interest income rose 5 percent from a year earlier and fees by 2 percent. But its trading income shrank 77 percent.

Its fully-loaded Common Equity Tier 1 ratio, a key measure of capital strength, stood at 12.3 percent at the end of March, compared to 12.2 percent three months earlier.

(Reporting by Valentina Za)