By Pietro Lombardi

UniCredit SpA vowed to save more than previously expected, and plans to restart dividends and buybacks next year after third-quarter results beat expectations.

The Italian bank said Thursday that net profit for the period fell 42% to 680 million euros ($797.1 million), much better than expected.

Provisions for credit losses grew 32% to EUR741 million. However, this is less than analysts expected and 21% less than the lender had set aside in the second quarter.

Revenue fell 7.4% to EUR4.35 billion.

Analysts had forecast a quarterly profit of EUR300 million on revenue of EUR4.21 billion, and provisions for bad loans of EUR1.11 billion, according to a consensus provided by the bank.

"We continue to benefit from the successful execution of 'Transform 2019' as well as our 'Team 23' initiatives, and thanks to the acceleration of business model changes, we have improved our gross savings target for 'Team 23' by 25% to EUR1.25 billion," Chief Executive Jean Pierre Mustier said.

The bank confirmed its profit targets for this year and the next.

Mr. Mustier also said the bank remain committed to its capital distribution policy, which is based on a mix of dividends and buybacks, as well as a gradual distribution of excess capital, starting next year and subject to regulatory approval.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com; @pietrolombard10

(END) Dow Jones Newswires

November 05, 2020 01:45 ET (06:45 GMT)

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