UniCredit Did Better Than Expected in 3Q -- Earnings Review
05 Novembro 2020 - 8:12AM
Dow Jones News
By Pietro Lombardi
UniCredit SpA on Thursday reported consensus-beating results for
the third quarter. Here is what we watched:
NET PROFIT: The Italian bank's net profit for the period fell
42% to 680 million euros ($797.1 million), but beat analysts'
expectations of EUR300 million, according to a consensus forecast
provided by the bank.
REVENUE: The bank's top line dropped 7.4% to EUR4.35 billion,
beating expectations of EUR4.21 billion.
WHAT WE WATCHED:
-TARGETS: The bank improved its cost savings target and
confirmed the profits targets for this year and the next. "We have
improved our gross savings target for 'Team 23' by 25% to EUR1.25
billion," Chief Executive Jean Pierre Mustier said.
-PROVISIONS: Provisions for credit losses rose 32% to EUR741
million. However, they came below analysts' expectations of EUR1.11
billion, and were 21% lower than what the lender had set aside in
the second quarter. UniCredit expects its cost of risk to rise in
the last three months of the year compared with the third
quarter.
-REVENUE STREAMS: Net interest income fell 8.6% on year, while
fees were down 6.4%. Trading income rose more than 10%. "Revenues
were [roughly ] 3% better vs. consensus, mainly driven by higher
trading income," Citi said.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com;
@pietrolombard10
(END) Dow Jones Newswires
November 05, 2020 05:57 ET (10:57 GMT)
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