Italy has just concluded the takeover of rival UBI Banca in a deal that will turn it into the country's biggest bank and the euro zone's eighth-largest group.

Speaking after Intesa posted stronger-than-expected second-quarter results, CEO Carlo Messina said he would ask the government to consider an extension to prevent an immediate flood of problem loans hitting banks.

"And not a two-month extension, I'm talking about a one-year extension that could help ... the banking system, we're the ones that would draw the least benefits from it, but for the system as a whole it'd be important," he said.

"At the end of the moratorium, we'll definitely see an increase, even if not a dramatic one, [in impaired loans] especially so-called past-due loans."

(Reporting by Valentina Za and Andrea Mandala; editing by James Mackenzie)