Net profits almost doubled for the Unicredit group, which closed the first half earning 1,321 billion euros, 97,5% more than in the same period last year, when it stopped at 669 million. The result was achieved "thanks to geographical and business diversification", explain the institute. In the wake of these numbers, Unicredit shares fly to Piazza Affari, reversing the negative trend of recent weeks. Around 15 pm, the stock gained about 4%, to 1,172 euros.
In the April-June period alone, the profit of the leading Italian bank reached 511 million, against 148 million in the second quarter of 2010. The figure is even higher than the analysts' consensus estimates, which predicted a profit of 471 million. This year's figure is also negatively impacted by a €105m weakening of Greek government bonds (after-tax impact). Without considering this item, the half-year result would amount to 1,426 billion and the quarterly result to 616 million.
In addition, the intermediation margin and costs remained substantially stable. The former reached 13,383 billion in the six months, up 1,6% compared to 2010. Over the three months, however, the figure reached 6,455 billion, down 6,8% compared to the January-March period. Numbers linked "to the decline in trading, hedging and fair value results, which in the first quarter of 2011 had shown exceptionally high levels". Revenues for the quarter were expected by analysts at $6,487 billion.
The Core Tier 1 stood at 9,12%, the Tier 1 ratio was 9,92% and the Total Capital Ratio at 13,49%. As for the operating result, in the six months it reached 5,6 billion (+3,1%), while between April and June it fell to 2,53 billion (-17,6% compared to the first quarter). Net write-downs on loans and provisions for guarantees and commitments fell sharply in the first half-year, going from 3,507 to 2,685 billion. In the second quarter alone they fell to 1,181 billion, against 1,504 billion in the first three months of 2011. Finally, at the end of June, gross impaired loans amounted to 69,908 billion (+1,4% between the two quarters).
Looking at the geographical distribution on an international scale, we note a decrease in non-performing loans in Germany and Austria and a deceleration in the deterioration of the Italian portfolio. Gross non-performing loans grew by 2,7% in the quarter, while the other categories of problem loans show a decrease of 0,5%. In the second quarter, loans reached 561,8 billion, against 558,8 billion in March 2011. The greatest contribution to growth came from Eastern Europe (+3,2%), while Western countries recorded minimal variations . Due to customers in June amounted to 406,7 billion (401,9 in March 2011).
The growth came from Western Europe (+1,5%), while the central area and Poland remained stable (+0,6%). The managing director Federico Ghizzoni also announced that the Bank had completed 85% of the annual funding plan at the end of July. Of the 27,2 billion issues, 9,3 were of retail bonds and 63,7% were made in Italy, where 90% of the funding was also obtained. In the second half of the year there will therefore be “financing opportunities, not only with the aim of supporting potential growth but also with a view to pre-funding” for 2012. “We are quite confident”, concluded Ghizzoni.
