UniCredit Falls to Net Loss on Provisions for Bad Loans
February 09 2017 - 9:36AM
Dow Jones News
By Giovanni Legorano
ROME-Italy's UniCredit SpA posted a multibillion fourth-quarter
net loss, as expected, while a EUR13 billion share ($13.87 billion)
sale launched on Monday to shore up the Italian lender's finances
continues.
The bank said it swung to a net loss of EUR13.56 billion in the
three months to end-December compared with a net profit of EUR153
million in the same period the previous year, reflecting a clean-up
of its balance sheet designed ultimately to strengthen its capital
base and increase profitability.
Unicredit said at the end of last month that it expected a net
loss of EUR11.8 billion for the whole year, a figure which it
confirmed on Thursday.
The bank said the annual loss was mainly the result of EUR12.2
billion in one-time charges for bad-loan provisions and other items
that it announced at the end of last year, as part of a strategic
plan put together by new Chief Executive Jean-Pierre Mustier.
Provisions for bad loans stood at EUR9.59 billion at Dec.
31.
-Write to Giovanni Legorano at giovanni.legorano@wsj.com
(END) Dow Jones Newswires
February 09, 2017 10:21 ET (15:21 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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