Unicredit archives the second quarter of 2017 with a net profit of 945 million euros, an increase of 3,3% compared to the same period of 2016. The result is decidedly better than the 676 million expected by consensus of analysts.
Excluding the negative impact of 310 million related to the sale of Bank pecao, second-quarter profit amounted to 1,3 billion. Overall, in the first half of the year, profit was 1,85 billion (2,2 excluding the Pekao effect), up 40,2% on the first six months of 2016.
I revenues totals fell by 7,8% on an annual basis, to 4,86 billion, with interest margin at 2,65 billion (-0,7%) and net commissions at 1,51 billion (+7,6%). Operating costs decreased by 4,2% to 2,86 billion, for a cost/income ratio that rose to 58,9%. The fully loaded common equity tier 1 ratio is 12,8%.
“UniCredit's positive results achieved in the second quarter of 2017 confirm the significant impact of Transform 2019 already observed in the first quarter of the year. All of our teams remained focused on executing and achieving the plan's objectives", commented the CEO of Unicredit, Jean Pierre Mustier.
“In the second quarter, as scheduled – he added – we concluded the sale of Pekao and in July finalized the first phase of Fino vendendo a majority share of the non-performing loan portfolio which amounts to a total of 17,7 billion euros. In particular, the Pekao disposal, together with our organic earnings generation, had a positive impact of 72 basis points on our fully loaded Cet1 ratio, which reached 12,8% in the second quarter”.
Also, “thank you to the implementation of the plan – Mustier went on to say – we have also recorded some promising signs throughout the group, with a strengthening of commercial activity in all the main business areas, confirmed by the interest margin which reached 2,7 billion euros, up by 3,4% quarter over quarter. Then, thanks to solid fee generation up 1,8% on a quarterly basis, cost containment and careful risk management, we achieved a net profit of €1,3 billion, excluding Pekao, equivalent to a positive 38,4% quarter on quarter”.
Mustier also confirmed that Unicredit will pay a cash dividend on 2017: “We have said that we will pay a cash dividend in 2017 and 2018 and that we will propose the distribution to shareholders of 20% of the Bank's net profit. In line with Transform 2019, the basis for calculating the dividend payout ratio is net income excluding the effects of Bank Pekao and Pioneer."
I customer credits they reached 420,7 billion in the second quarter (+0,3% on the previous quarter, -1,8% on an annual basis). Excluding the reduction in the Non-Core portfolio, customer loans increased by 0,8% quarter over quarter and 1,6% year over year. There collection from customers it totaled 394,9 billion in the second quarter (+0,8% and +3,8%).
Fees stood at €1,5 billion in Q1,8 (+7,6% Q/Q, +XNUMX% Y/Y).
Il gross operating margin it reached €2 billion in Q2017 2,6 (+12,4% Q/Q, -3,9% Y/Y) and €0,9 billion in H564 (-2017% H/H). Loan loss provisions decreased to €15,8 million in Q36,1 1,2 (-24,9% Q/Q, -XNUMX% Y/Y) and to €XNUMX billion in HXNUMX (-XNUMX% H/H) .
Finally, in the second quarter of 2017 the branch reduction program of the UniCredit group has progressed, with the overall closure of 464 branches since December 2015, corresponding to 49% of the 944 scheduled closure, target for 2019. of 186, ahead of schedule in Western Europe”. In Italy, 2017 closures have already been implemented in July.
The quarter saw a further headcount reduction of 1.135 employees, leading to a total of 6.000 fewer employees since December 2015, corresponding to 42% of the planned reduction of 14.000 by 2019.
SECURITY UPDATE TRAINING
In the wake of the publication of the six-monthly, one hour after the opening the stock on the Unicredit Stock Exchange gains 4,75%, achieving the best performance of the Ftse Mib.
