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UniCredit Q3 profit more than triples

Staff writer |
UniCredit SpA reported a profit for the third quarter that more than tripled from last year, as lower revenues were more than offset by a decline in loan loss provision and operating costs.

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UniCredit said that its group asset quality was holding up well with gross impaired loans flat with the year-ago period. Gross impaired loans declined 1.3 percent from the preceding second quarter.

Federico Ghizzoni, CEO of of UniCredit said, "Third quarter and the nine months' Group results bring us very close to our target of €2 billion net profit for 2014 which is now very close. We are pleased with this positive trend, despite a still difficult macroeconomic context."

UniCredit's net income for the third quarter was 722 million euros or $897.1 million, up from 204 million euros in the year-ago period. The company had recorded net income of 403 million euros in the preceding second quarter.

However, total revenues for the latest quarter declined 2 percent from the year-ago period to 5.55 billion euros from 5.66 billion euros in the year-ago period.

Net interest income for the quarter rose 3 percent from the year-ago period to 3.12 billion euros. Net fees and commissions also increased 3 percent to 1.85 billion euros from 1.79 billion euros in the year-ago quarter. Net trading, hedging and fair value income grew 4 percent from the year-ago period to 386 million euros.

Operating costs for the quarter declined 1 percent from the year-ago period to 3.41 billion euros, reflecting lower staff expenses as well as narrower amortization, depreciation and impairment losses.

Loan loss provision for the quarter declined 49 percent from the year-ago period to 754 million euros.

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