UniCredit 2Q Profits Surpass Expectations
06 August 2020 - 03:52PM
Dow Jones News
By Pietro Lombardi
UniCredit SpA's provisions for bad loans rose by almost a third
in the second quarter while revenue declined, but net profit
surpassed analysts' expectations.
In the second quarter, the bank set aside 937 million euros
($1.11 billion) for credit losses, up from the EUR707 million it
had stowed away a year earlier.
Net profit for the period was EUR420 million, down from EUR1.85
billion in the same period last year, when they included the sale
of the bank's stake in FinecoBank SpA (FBK.MI), the Italian bank
said Thursday.
On an underlying basis, net profit fell 49%.
Revenue dropped 7.7% on year, hit by lower net interest income
and fees and commissions.
Analysts had forecast a net profit of EUR335 million on revenue
of EUR4.12 billion, according to a consensus forecast provided by
the bank.
The bank confirmed its profits guidance for next year. It also
confirmed its guidance for a cost of risk of between 100 basis
points and 120 basis points for this year.
"We saw the first signs of a commercial recovery at the end of
2Q20 as economies began to open up across most of our core
markets," Chief Executive Jean Pierre Mustier said.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com;
@pietrolombard10
(END) Dow Jones Newswires
August 06, 2020 01:37 ET (05:37 GMT)
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