UniCredit Cut Revenue Outlook as 2Q Net Profit Soars on Sale of Fineco Stake

   By Pietro Lombardi 
 

UniCredit SpA (UCG.MI) cut its revenue guidance for the year and said its second-quarter net profit rose sharply, boosted by the sale of the bank's stake in FinecoBank SpA (FBK.MI).

Net profit for the period was 1.85 billion euros ($2.07 billion) compared with EUR1.02 billion a year earlier, the Italian bank said Wednesday.

On an adjusted basis, which excludes one-offs, net profit grew 0.4% to EUR1.03 billion.

Revenue fell 4.6% on year to EUR4.52 billion.

These results compare with analysts' expectation of a net profit of EUR2.23 billion on revenue of EUR4.62 billion, according to a consensus forecast provided by the bank.

Net interest income--the difference between what lenders earn from loans and pay for deposits, and a key profit driver for retail banks--fell 2.1%. Net fees and commissions were down 3% while trading income plunged 19%.

The low interest rates environment led the bank to cut its revenue guidance for the year. It now sees revenue at EUR18.7 billion, down from a previous target of EUR19 billion.

"We delivered another solid set of results in the first half of 2019 in what was a tough macroeconomic environment," Chief Executive Jean Pierre Mustier said.

Write to Pietro Lombardi at [e-mail]

(END) Dow Jones Newswires

August 07, 2019 01:34 ET (05:34 GMT)

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