By Pietro Lombardi

UniCredit SpA's (UCG.MI) net profit for the first three months of the year rose as the bank released provisions after reaching a settlement with U.S. authorities and reported lower costs.

Net profit for the period rose 25% to 1.39 billion euros ($1.56 billion), the Italian bank said Thursday.

Revenue decreased 3% to EUR4.95 billion.

Analysts had expected a net profit of EUR1.29 billion for the period on revenue of EUR4.88 billion, according to a consensus forecast provided by the bank.

The results benefited from one-offs. UniCredit released provisions in the quarter after it reached in April a $1.3 billion settlement with U.S. authorities related to U.S. government-sanctions programs. The positive net impact of this release was EUR320 million.

Net interest income--the difference between what lenders earn from loans and pay for deposits, and a key profit driver for retail banks--rose 0.7% on year to EUR2.65 billion. Net fees and commissions fell 5.3%.

Operating costs declined 4.2%.

"This was the best first quarter results in a decade for the second time in a row, underpinning the success of our current strategic plan, and confirming we are well on track to achieve our Transform 2019 objectives by the end of this year, that are all confirmed," Chief Executive Jean Pierre Mustier said.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

May 09, 2019 01:35 ET (05:35 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
Unicredit (BIT:UCG)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Unicredit Charts.
Unicredit (BIT:UCG)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Unicredit Charts.