Skip to Content
Global News Select

UniCredit 2Q Profit, Revenue Beat Estimates

   By Mauro Orru 
 

UniCredit SpA posted profit and revenue well ahead of analysts' estimates for the second quarter, with loan loss provisions down from the high levels seen last year.

The Italian bank said Friday that net profit surged to 1.03 billion euros ($1.22 billion) from EUR420 million a year earlier, above analysts' median estimate of EUR720 million based on company-provided consensus.

Provisions for credit losses fell to EUR360 million from EUR937 million last year, when banks were bracing for potentially huge losses on loans to consumers and businesses due to the coronavirus pandemic.

Analysts had expected provisions of EUR632 million.

Quarterly revenue climbed to EUR4.40 billion from EUR4.17 billion, above analysts' forecast of EUR4.26 billion.

UniCredit's net interest income--the difference between what lenders earn from loans and pay for deposits, and a key profit driver for retail banks--slipped to EUR2.20 billion from EUR2.39 billion.

Net fees and commissions rose to EUR1.67 billion from EUR1.38 billion, with net trading income up 19.1% on year to EUR425 million.

For 2021, UniCredit continues to expect revenue of about EUR17.1 billion and costs of EUR9.9 billion. However, it improved guidance for underlying cost of risk to below 40 basis points, equivalent to underlying loan loss provisions of less than EUR1.8 billion. Underlying net profit should be above EUR3 billion.

 

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

 

(END) Dow Jones Newswires

July 30, 2021 01:40 ET (05:40 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.