* Q3 net 95.8 million euros vs I/B/E/S forecast 99.1 million
* Tier 1 ratio at 8.4 percent end-Sept
* Various ops to offset Basel III impact
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ROME, Nov 11 (Reuters) - Italy's No. 3 retail bank Banca Monte dei Paschi di Siena reported quarterly profit rose 38 percent thanks to cost-cutting and said cash generation and deals would easily offset a pinch from new banking rules.
Monte Paschi, which claims to be the world's oldest bank, is under market scrutiny after narrowly squeezing past a European test of capital strength in July.
The bank, which has denied any plans for a capital increase, said its Tier 1 ratio stood at 8.4 percent at the end of September against 7.8 percent at the end of June.
The bank said planned new rules on bank capital known as Basel III would lower its Tier 1 ratio by 70 basis points in 2013, but real estate deals and the company's cash generation would more than offset that impact.
The bank reported net income of 95.8 million euros in the third quarter, compared with 69.3 million in the year earlier period. That was just below the Thomson Reuters I/B/E/S average forecast of 99.1 million.
Italy's top bank UniCredit on Wednesday reported profit that fell below forecasts due to sluggish volumes and high taxes, but promised to keep investing in eastern Europe.
Italian banks have weathered the worst of the economic downturn better than most European peers, but are being hampered by weak economic growth and high levels of bad debt as they look to spur growth. (Reporting by Stefano Bernabei and Deepa Babington; Editing by David Holmes)