UniCredit Cut Revenue Outlook as 2Q Net Profit Soars on Sale of Fineco Stake
August 07 2019 - 1:49AM
Dow Jones News
By Pietro Lombardi
UniCredit SpA (UCG.MI) cut its revenue guidance for the year and
said its second-quarter net profit rose sharply, boosted by the
sale of the bank's stake in FinecoBank SpA (FBK.MI).
Net profit for the period was 1.85 billion euros ($2.07 billion)
compared with EUR1.02 billion a year earlier, the Italian bank said
Wednesday.
On an adjusted basis, which excludes one-offs, net profit grew
0.4% to EUR1.03 billion.
Revenue fell 4.6% on year to EUR4.52 billion.
These results compare with analysts' expectation of a net profit
of EUR2.23 billion on revenue of EUR4.62 billion, according to a
consensus forecast provided by the bank.
Net interest income--the difference between what lenders earn
from loans and pay for deposits, and a key profit driver for retail
banks--fell 2.1%. Net fees and commissions were down 3% while
trading income plunged 19%.
The low interest rates environment led the bank to cut its
revenue guidance for the year. It now sees revenue at EUR18.7
billion, down from a previous target of EUR19 billion.
"We delivered another solid set of results in the first half of
2019 in what was a tough macroeconomic environment," Chief
Executive Jean Pierre Mustier said.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
August 07, 2019 01:34 ET (05:34 GMT)
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