UniCredit 1Q Net Profit Fell; Says Buyback Depends on Russia Performance
05 Mai 2022 - 8:13AM
Dow Jones News
By Cristina Roca
UniCredit SpA reported a drop in first-quarter earnings
Thursday, dragged by rising provisions related to its Russian
business, and cautioned that a planned buyback will depend on its
performance in the country.
The Italian bank posted a net profit of 247 million euros
($262.4 million), compared with EUR829 million a year earlier and
consensus expectations of EUR455 million.
Excluding UniCredit's Russian business, which swung to a loss,
net profit was EUR1.16 billion, the bank said.
The bank booked loan-loss provisions of EUR1.28 billion, the
bulk of which related to Russia. It said it is confident it can
deliver a EUR1 billion buyback, though that remains subject to its
performance in Russia.
UniCredit, Italy's second-largest bank by assets, said in March
that it was considering pulling out of Russia in light the war in
Ukraine. It didn't provide an update on its review of its Russian
activities.
Revenue rose 7.3% to EUR5.02 billion, compared with analyst
views of EUR4.44 billion, according to a company-compiled
consensus.
Common equity Tier 1 ratio, a measure of banks' capital
strength, stood at 14% at the end of the quarter, down from 15% at
the end of 2021.
The company reiterated its 2022 goals, including revenue of
about EUR16 billion, though it said they apply to its performance
excluding Russia. The bank is also committed to its goal to return
at least EUR16 billion to shareholders by 2024, it said.
Write to Cristina Roca at cristina.roca@wsj.com
(END) Dow Jones Newswires
May 05, 2022 01:58 ET (05:58 GMT)
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