* Sees 4.2 bln euro net profit in 2013; 3,000 jobs to go
* Capital hike to boost ratios by 150 bps
* Bank of Italy had urged lenders to raise capital
* Shares up 1.4 percent, sector lower
(Adds analyst comments, background, shares)
By Ian Simpson
MILAN, April 6 (Reuters) - Intesa Sanpaolo, Italy's top retail lender, approved a business plan that sees a 55 percent rise in net profit by 2013 and a 5 billion euro ($7.09 billion) rights issue as it joins other banks in boosting capital.
Intesa Sanpaolo aims to cut costs by about 770 million euros by 2013 through greater efficiency, including trimming 3,000 jobs, it said in a statement on Wednesday.
Net profit would rise to 4.2 billion euros in 2013, up from 2.7 billion euros last year.
"The net income figure is a bit higher than we had expected but not much. They are reasonable numbers," said a Milan analyst who spoke on condition of anonymity.
Following the capital increase, Intesa Sanpaolo also targeted dividends totalling 5.3 billion euros through 2013 and 13.5 billion euros through 2015.
Christoph Bossmann, a WestLB analyst, said the payout target was above his forecasts.
"For yield-seeking investors looking forward, the stock may become interesting again. With the additional capital, it can afford to do that," he said.
Intesa Sanpaolo follows other banks in boosting lagging capital ratios in the face of Basel III regulations after Bank of Italy Governor Mario Draghi had urged such moves.
Its capital increase will boost the Core Tier 1 ratio -- a standard of high-quality capital held against risky assets -- to around 10 percent immediately, the bank said. Core Tier 1 was 7.9 percent at the end of December.
The bank's common equity ratio also will reach around 10 percent this year, it said. The rights issue is expected to be completed by July.
The analyst said: "Intesa Sanpaolo is a 'system' bank and has reacted to Draghi's urging. This makes them stronger in comparison with other European banks."
He added that the next in line for a capital increase is likely to be Banca Monte dei Paschi di Siena SpA, which barely cleared a European banks health check last year.
SHARES UP
The shares were 1.4 percent higher at 2.156 euros at 0745 GMT. The STOXX Europe 600 banking index was 0.7 percent lower.
In the rush to meet Basel III capital requirements, Banco Popolare completed a 2 billion euro capital increase in February. UBI Banca, the country's fifth-biggest lender, said last week it would tap the market for 1 billion euros.
Italian banks weathered the global financial crisis better than many European rivals given their limited exposure to subprime mortgages and other toxic assets.
But poor earnings and rising refinancing costs due to perceived sovereign debt risks prompted Draghi to ask the banks to improve their core capital, on average more than 2 percentage points weaker than foreign peers.
(Reporting by Ian Simpson; editing by Ben Hirschler)