Nov 9 (Reuters) - Italy's Banca Ifis on Thursday reported an 18% rise in net profit for the first nine months of the year, and said it will pay an interim dividend of 63 million euros in November.

Net profit in the period rose to 124.7 million euros ($133.3 million), helped by higher interest income and strength in corporate banking.

Group net banking income came in at 512.4 million euros, up 5% from the same period last year, lifted by higher net interest income and the performance of the commercial and corporate banking unit.

The lender also said it will propose putting aside a non-distributable reserve of an undisclosed amount instead of paying a one-off tax on net interest income, making use of an opt-out clause in the law.

At 1215 GMT its shares were up 0.2%, paring earlier losses of as much as 2.6%.

($1 = 0.9357 euros) (Reporting by Alberto Chiumento; Editing by David Goodman and Jan Harvey)