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Unicredit Group net profit jumped 201% quarter over quarter

Staff writer |
Unicredit Group net profit went up to €512 million in 1Q15 (+201% Q/Q), despite the contribution related to new Single Resolution Fund (SRF) equal to €91 million.

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Main contributors are Commercial Bank Italy with €564 m (+35.1% Q/Q), CIB and CEE divisions with a total amount of €611 m (+15.6% Q/Q). RoTE increased to 4.8% (+3.2p.p. Q/Q).

Strong performance of Group net operating profit at €1.4 bn (+184% Q/Q), thanks to higher revenues at €5.7 bn (+2.6% Q/Q) mainly attributable to Commercial Bank Italy at €2.2 bn (+6.8% Q/Q), CIB at €1.1 bn (+2.0% Q/Q) and CEE at €976 m (+5.8% Q/Q); lower costs at €3.4 bn (-0.4% Q/Q) mostly related to other administrative expenses (-2.8% Q/Q); and lower LLP at €980 m (-42.2% Q/Q) translating into an improved cost of risk of 82bps (-62bps Q/Q).

Subdued net interest income is offset by outstanding fees and commissions at €2.0 bn (+6.9% Q/Q), registering a strong growth in investment service income at €958 m (+21.4% Q/Q) in Commercial Banks (Italy and Germany). Trading income up to €619 m (+82.8% Q/Q) benefiting from strong performance in treasury and client driven activities.

AuM hits an all-time record level at c. €300 bn (+10.4% Q/Q) fostered by €10 bn of net sales (c. +151% Q/Q). Total Core financial assets set at c. €920 bn in 1Q15, leveraging on clients asset reallocation while keeping a focused marketing intensity.

Including Pioneer deal, CET1 ratio transitional stands at 10.50%, well above the minimum requirement set by ECB at 9.5%, following the application of phase-in rules at 40% and CET1 ratio fully loaded at 10.35%.

Including Pioneer deal, Tier 1 ratio transitional at 11.32% and Total Capital ratio transitional at 14.07%4. Basel 3 Leverage ratio transitional at 4.71% and fully loaded at 4.49%.

Group asset quality continues to improve with gross impaired loans down at €83.2 bn (-1.4% Q/Q) due to the reduction both in gross bad loans (-1.4% Q/Q) supported by the ongoing UCCMB disposal and in other gross impaired loans (-1.2% Q/Q) thanks to lower inflows from performing.

UniCredit displays a very healthy coverage ratio on impaired loans exceeding 50%, the highest level among Italian banks and in line with the best European peers.


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