UniCredit Reports First-Quarter Profit of EUR907 Million
May 11 2017 - 12:55AM
Dow Jones News
By Manuela Mesco and Giovanni Legorano
UniCredit SPA (UCG.MI) posted a first-quarter net profit after
reporting a large fourth-quarter loss, which reflected a clean-up
of its balance sheet designed to strengthen its capital base and
increase profitability.
The bank said its first-quarter profit was EUR907 million,
compared with a year-earlier profit of EUR406 million. In the
fourth quarter, the bank reported a loss of EUR13.56 billion.
The fourth-quarter loss was mainly the result of EUR12.2 billion
in one-time charges for bad-loan provisions and other items.
In February, the bank successfully completed a EUR13 billion
rights issue, one of the biggest-ever transactions of its kind in
Europe.
For the first quarter, provisions for bad loans stood at EUR670
million compared with EUR760 million in the year-earlier
period.
Net interest income dropped by 2.5% to EUR2.56 billion, while
fees and commissions were up to EUR1.48 billion.
The bank is pushing to generate higher fees and commissions to
compensate for dropping proceeds from its lending activity, which
has been severely hit by low and negative interest rates.
(END) Dow Jones Newswires
May 11, 2017 01:40 ET (05:40 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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