Unicredit’ s profits beat expectations in second quarter 2017

Unicredit, Italy's largest bank by assets, posted a stronger-than-expected net profit in the second quarter of the year thanks to lower costs and a drop in loan-loss charges.
Net profit came in at 945 million euros, well above a consensus forecast of 676 million euros distributed by the bank and also helped by a positive one-off item in Germany. Revenues for the second quarter fell 7.8 percent year-on-year to 4.85 billion euros. Net Interest Income (NII) totaled €2.7 billion.

“UniCredit’s good 2017 second quarter results confirm the early positive impact of Transform 2019 already seen in Q1. All our teams remain focused on the execution and the successful delivery of the plan,” CEO Jean Pierre Mustier said.

The lender, which earlier this year completed a €13 billion capital increase, further boosted its core capital ratio to 12.8 percent at the end of June through the sale of Polish unit Pekao, up from 11.45 percent three months earlier.