Unicredit closed the first quarter of 2016 with a net profit of 406 million, down by 20,8% compared to the same period of 2015. Excluding the "non-recurring items related to restructuring charges in Austria and Italy", the profit would state of 640 million. The result is higher than the estimate consensus, equal to 379 million.
Il total revenue it fell by 4,7% to 5,48 billion, with net interest at 2,9 billion (-2,9%) and net commissions at 1,9 billion (-3,4%). Operating costs decreased by 3,7% to 3,3 billion, for a cost/income ratio that rose to 60,1%. As for capital solidity, at the end of the quarter the fully loaded Cet1 ratio was 10,85%, down by 9 basis points compared to the end of 2015 but improving by 75 basis points compared to March 2015. In the quarter they decreased by 22,9, 755% annual writedowns on loans, to XNUMX million.
Immediate acceleration of Unicredit on the Stock Exchange, after the publication of higher-than-expected quarterly numbers: the share went up to +4% at 3,124 euros and then slowed down to +2,5%, just above the threshold of 3 euros per share.
The implementation of Unicredit's strategic plan "proceeds at the expected pace: both the results linked to the reduction of costs and those linked to the digital transformation of the bank are already tangible": thus the CEO of Unicredit, Federico Ghizzoni, comments on the accounts recorded by the group in the first quarter of 2016. "Our capital ratios - Ghizzoni further notes - confirm the solidity of the group, while the quality of assets continues to improve: impaired loans are down significantly, net non-performing loans appear to have stabilized with a coverage ratio of over 61%, the highest among Italian banks”.
Furthermore, according to Ghizzoni, “the commercial activity is more than satisfactory, as shown by the trend of deposits and credits”. On the latter front, in particular, "new credit disbursed in the first three months of 2016 reached 15 billion". “For Unicredit – concludes Ghizzoni – the European dimension continues to represent a strength capable of giving stability to its growth”.
“It's not expected no increase of capital”, the CEO then reiterated during the conference call. Ghizzoni underlined that, as envisaged in the industrial plan, to raise the level of capitalization the institute may consider "sale of assets or M&A activities and that there are also other options that we are considering for the next few months".
Ghizzoni then noted that "the regulator is looking at capital, at the progress of capital, he is talking to the bank, I believe not only Unicredit, about what actions to take to support capital". Unicredit is therefore “continuing to monitor your financial position and to analyze possibilities and options not only to bridge” the negative impact of participation in Atlante, “but to improve the capital position with respect to the objectives of our multi-year plan”.
