UniCredit Confirms $1.7 Billion Buyback Despite Russia Hit; Shares Climb
May 05 2022 - 4:51AM
Dow Jones News
By Cristina Roca
Shares in UniCredit SpA rose on Thursday after the bank reported
higher-than-expected revenue and confirmed a 1.6 billion-euro ($1.7
billion) buyback tranche despite booking hefty provisions on its
Russia business.
At 0820 GMT, UniCredit shares traded 6.3% higher at EUR8.94.
The Italian bank posted a net profit of 247 million euros
($262.4 million), down from EUR829 million a year earlier, dragged
by loan-loss provisions of EUR1.28 billion, the bulk of which was
related to Russia.
UniCredit took a conservative approach on its Russia exposure,
which led to higher provisions than the market had expected, Chief
Executive Andrea Orcel told journalists during an earnings call.
The bank is reviewing a possible exit from the country.
Revenue rose 7.3% to EUR5.02 billion, beating analyst views of
EUR4.44 billion, according to a company-compiled consensus.
Underlying trends in the quarter looked strong, Jefferies analysts
Benjie Creelan-Sandford and Marco Nicolai said in a research
note.
UniCredit said the first tranche of its EUR2.6 billion buyback
would begin as soon as possible, which was a positive surprise,
according to Jefferies.
The bank in March cautioned that its buyback could be curtailed
depending on the extent of the Russia hit. It said the second
buyback tranche remains subject to its performance in the country,
but that it is confident it can deliver.
UniCredit also backed its plan to return at least EUR16 billion
to shareholders by 2024 through a mix of dividends and
buybacks.
Write to Cristina Roca at cristina.roca@wsj.com
(END) Dow Jones Newswires
May 05, 2022 04:36 ET (08:36 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Unicredit (BIT:UCG)
Historical Stock Chart
From Aug 2024 to Sep 2024
Unicredit (BIT:UCG)
Historical Stock Chart
From Sep 2023 to Sep 2024