UniCredit: profit stumbles on impairments, provisions
(CercleFinance.com) - Italian lender UniCredit posted "strong" underlying performance in the third quarter, although the group's results were impacted by impairment and additional provisions.
The bank's net profit stood at just 29 million euros in the past quarter, a far cry from the 2.8 billion euros posted for the same period a year ago.
However, the headline figure included an 846 million euro impairment of its stake in Turkish bank Yapi and additional provisions relating to the upcoming settlement of alleged US sanctions violations, UniCredit said.
Adjusted net profit rose by 5% to 875 million euros.
The bank said its Core Tier 1 ratio — a measure of financial strength — stood at 12.1%, down from 13.8% a year ago.
The bank's shares, which have fallen by 28% in the past year, were down 1.7% at 11.6 euros, underperforming the STOXX Europe 600 Optimised Banks index, which itself is down 1%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The bank's net profit stood at just 29 million euros in the past quarter, a far cry from the 2.8 billion euros posted for the same period a year ago.
However, the headline figure included an 846 million euro impairment of its stake in Turkish bank Yapi and additional provisions relating to the upcoming settlement of alleged US sanctions violations, UniCredit said.
Adjusted net profit rose by 5% to 875 million euros.
The bank said its Core Tier 1 ratio — a measure of financial strength — stood at 12.1%, down from 13.8% a year ago.
The bank's shares, which have fallen by 28% in the past year, were down 1.7% at 11.6 euros, underperforming the STOXX Europe 600 Optimised Banks index, which itself is down 1%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.