Historical Stock Chart
6 Months : From Apr 2019 to Oct 2019
By Pietro Lombardi
UniCredit SpA (UCG.MI) reported first-quarter results on Thursday. Here's what you need to know:
NET PROFIT: Net profit for the period rose 25% to 1.39 billion euros ($1.56 billion). This compares with analysts' expectations of EUR1.29 billion, according to a consensus forecast provided by the bank.
REVENUE: Revenue decreased 3% to EUR4.95 billion. Analysts had expected revenue of EUR4.88 billion.
WHAT WE WATCHED:
-REVENUE STREAM: Net interest income rose 0.7% on year. Fees and commissions declined 5.3% and trading income was down 6.4%.
-CAPITAL: The bank's core tier 1 ratio, a key measure of capital strength, rose to 12.25% at the end of March from 12.07% in December.
"Market should be relieved by the progress on capital (a concern in following Fineco Bank news), and better level of CET1 trough in 2Q (above 12% now vs 11.7% in 4Q), improving asset quality and commitment to noncore run down (accelerating 2019 disposals)," Citi said.
-ONE-OFFS: Exceptional items boosted the results. 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. It also posted a gain of EUR258 million from real-estate sale.
Write to Pietro Lombardi at firstname.lastname@example.org
(END) Dow Jones Newswires
May 09, 2019 04:14 ET (08:14 GMT)
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