Delayed payoff

6 May 2020 By Lisa Jucca Follow @LJucca

Covid-19 provisions and restructuring costs risk erasing the $16 bln Italian bank’s profit this year. CEO Jean Pierre Mustier is being more prudent than his peers, but that is not reflected in a lowly stock price. At least investors stand to gain more when the recovery comes.

This content is for Subscribers only

Context News

UniCredit reported on May 6 a first-quarter net loss of 2.7 billion euros, worse than analysts’ expectations of a loss of 1.5 billion euros and a net profit of 1.2 billion euros a year earlier.

Italy’s biggest bank by assets said the loss was chiefly attributable to non-operating items including charges for planned layoffs in Italy and the sale of a stake in Turkish lender Yapi Kredi, the last of a string of asset sales.

Revenue fell 8% year-on-year to 4.4 billion euros, hit by a drop in trading income.

Email a friend

Please complete the form below.

Required fields *