POST Online Media Lite Edition


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.

Article continues below

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.

What to read next

UniCredit Q1 net profit climbed 40 percent
UniCredit Q3 profit more than triples
UniCredit to cut 18,200 jobs, expects lower net profit