Italian commercial bank UniCredit reported a 66% YoY increase in net profit to €1.5bn ($1.5bn) excluding Russia for the quarter ended June. Total revenues rose 4.9% YoY to €4.5bn ($4.6bn), led by a 11% growth in net interest income thanks to the interest rate environment and strong commercial activity. Loan loss provisions were 71.7% lower YoY to €108mn ($110mn). The lender’s asset quality improved, with gross NPE (non-performing exposure) ratio at 2.8%, down 290bp YoY and the net NPE ratio at 1.5%, down 60bp YoY. Its exposure to Russia was trimmed by €2.7bn ($2.8bn). UniCredit upped its 2022 guidance, with net revenue expected at €16.7bn ($17bn) and a net profit of over €4bn ($4.1bn). The bank completed the first tranche of its 2021 share buyback program of €1.6bn ($1.6bn), which is 7.4% of share capital. The remaining €1bn ($1bn) buyback proposal is submitted for approval to the ECB. The bank’s CET1 ratio stood at 15.7%, up 23bp QoQ and up 173bp YoY.

UniCredit’s dollar bonds were trading higher with its 3.875% Perp up 0.63 points to 74.56, yielding 6.89%.

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