UniCredit's Strong Trading, Low Provisions Fuel 1Q Beat
May 06 2021 - 2:00AM
Dow Jones News
By Pietro Lombardi
UniCredit SpA on Thursday posted better-than-expected results
for the first quarter as strong trading and falling provisions
offset a decline in net interest income.
The Italian bank posted quarterly net profit of 887 million
euros ($1.06 billion) compared with a loss of EUR2.71 billion a
year earlier, when results were dragged by soaring bad-loan
provisions.
Revenue rose 7.1% to EUR4.69 billion. Trading income rose to
EUR639 million from EUR173 million. This, coupled with a 4.3%
increase in fees, offset a nearly 13% decline in net interest
income.
Analysts had forecast a quarterly profit of EUR413 million on
revenue of EUR4.28 billion, according to a consensus provided by
the bank.
Provisions fell roughly 87%, better than analysts had
expected.
Looking at the year ahead, the bank expects underlying net
profit in line with previous guidance, while costs should be around
the levels seen in 2019. For revenue, the bank said it will be in
line with consensus, which currently sees revenue of about EUR17.1
billion.
Write to Pietro Lombardi at pietro.lombardi@wsj.com;
@pietrolombard10
(END) Dow Jones Newswires
May 06, 2021 01:45 ET (05:45 GMT)
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