UniCredit Falls to Net Loss on Provisions for Bad Loans

By Giovanni Legorano

ROME-Italy's UniCredit SpA posted a multibillion fourth-quarter net loss, as expected, while a EUR13 billion share ($13.87 billion) sale launched on Monday to shore up the Italian lender's finances continues.

The bank said it swung to a net loss of EUR13.56 billion in the three months to end-December compared with a net profit of EUR153 million in the same period the previous year, reflecting a clean-up of its balance sheet designed ultimately to strengthen its capital base and increase profitability.

Unicredit said at the end of last month that it expected a net loss of EUR11.8 billion for the whole year, a figure which it confirmed on Thursday.

The bank said the annual loss was mainly the result of EUR12.2 billion in one-time charges for bad-loan provisions and other items that it announced at the end of last year, as part of a strategic plan put together by new Chief Executive Jean-Pierre Mustier.

Provisions for bad loans stood at EUR9.59 billion at Dec. 31.

-Write to Giovanni Legorano at [e-mail]

(END) Dow Jones Newswires

February 09, 2017 10:21 ET (15:21 GMT)

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