Unicredit does better than analysts' expectations and is approaching 2 billion in profit in the six-month period. Piazza Cordusio closed the first half with profits of 1,1 billion euros, up 37,8%. In the second quarter alone the bank recorded profits of 403 million. "These results bring us closer to the target of approximately 2 billion euros of net profit for 2014, which has become more challenging in the light of the change in the tax on the valuation of the stake in the Bank of Italy, which was not included in our forecasts," he commented. in the note on the accounts the CEO Federico Ghizzoni. Before the change in the substitute tax on the valuation of the stake in the Bank of Italy, net profit for the second quarter reached 618 million euro and 1,3 billion in the first half. However, the share in Boprsa closed down by 1% (-1,62% for the Ftse Mib).
The Italian economic scenario is not frightening for now.“There is no need, nor reason to review the industrial plan in the light of the data that will be released” tomorrow on Italian GDP, said Ghizzoni. “We expect – he added – an Istat figure that is flat between -0,1% and +0,1% and this means closing the year with a +0,2-0,3% growth. In our industrial plan we have a +0,5% for the first year but the five-year estimate of the Italian growth plan is very conservative, less than 1% every year" while "still today the market consensus is + 0,8% average. Even if slowing down compared to the forecasts at the beginning of the year, market consensus still forecasts +1% in 2015 and above 1% in 2016”. "We - he concluded - have remained much lower than the consensus of the time, to rest assured, also by gaining experience of what happened in the past".
Regulatory capital ratios are strengthening with the CET1 ratio fully loaded2 rising to 10,4% and CET1 ratio transitional to 10,8% thanks to the reduction of RWAs (risk-weighted assets), capitalized earnings and the scrip dividend. The total capital ratio transitional stands at 15,0%.
Speaking to analysts Ghizzoni confirmed his intention to maintain a strong stake in Pioneer. “I can only repeat what I have already said on other occasions, which is that it is a truly strategic asset for UniCredit. We are not under pressure and we are looking for a way to accelerate organic growth perhaps alongside a partner, with a view to maintaining a strong share”, Ghizzoni replied to analysts who asked for a comment on the press rumors which indicate three potential candidates, namely Santander, CVC and Advent Capital. As for the sale of UniCredit Credit Management Bank (UCCMB), a subsidiary of the UniCredit Group, leader in the non-performing loan management sector, the CEO explained that "we are in the process of receiving binding offers" with a decision on the sale “towards the end of the year”. The examination of the offers “will take some time – he added – it is a fairly complex decision as it concerns the service platform on the one hand and the sale of the portfolio on the other. It's an ongoing construction site."
Ghizzoni also reassured on the Alitalia case. "I think the deal is proceeding in the right direction and that we are close to signing the agreement" he said, saying he was "relatively optimistic" and adding that he did not register "critical issues". As for the fact that Poste Italiane will raise its investment in the company from 70 to 75 million, Ghizzoni noted that Poste "had already made progress. With a view to a deal, irrelevant differences can be settled, whether it is the Post Office or someone else”.
Returning to the Unicredit accounts, gross non-performing loans fell to 82,4 billion euros and a coverage ratio of over 51% despite the reduction of 65 basis points due to the sale of bad loan portfolios with a high vintage for over 1,3 .1 billion euros. The Core Bank recorded a net profit of 1 billion euros 2 billion euros also in the second quarter totaling XNUMX billion in the six-month period. Commercial Bank Italy remains the top contributor to Core Bank's profit, followed by CEE & Poland and CIB.
And the new medium-long term loans disbursed in Italy are growing. They are 3,1 billion in the second quarter (+13,3% quarter on quarter) and for a total of approximately 6 billion euro (+52,3%) disbursed in the half year mainly thanks to the growth in mortgages (+146,2% semester on semester) and loans to companies (+62,5% semester on semester).
At the same time, UniCredit repaid 17,1 billion Ltro loans to the ECB, of which 10 billion in the second quarter of 2014. The remaining 9 billion will be repaid progressively.
Finally, there is a turnover at the top of the group. Jean Pierre Mustier will resign as of January 2015, 2015 from the position of deputy general manager in charge of the Corporate and Investment Banking (CIB) division and the supervision of the group's German activities. In his place, Gianni Franco Papa, currently head of the group's Central & Eastern Europe (CEE) division. Mustier will continue to be involved in the group's activities, and will join the UniCredit international advisory board as early as the beginning of XNUMX with the role of non-executive director.
