EARNINGS RECOVER, UNICREDIT FLYES +2,8%. YEAR IN THE RED (-9,2 BILLION) AFTER CLEANING
Unicredit leap forward on the Stock Exchange after the publication of the balance sheet data. The share quickly exceeds the 4 euro mark (4,082 euro, +2,8%) after having closed the fourth quarter with a profit of 114 million, significantly higher than the consensus of analysts (30 million). 2011 closed with a net loss of 9,2 billion, conditioned by write-downs of 10,3 billion euro. Therefore, net of extraordinary items, the net profit for 2011 amounted to 1,1 billion euro. The bank has confirmed that it will not distribute dividends for 2011.
Core Tier I slips just below 10% to 9,97%, below the level recorded at the end of September but still above the 9% required by the EBA, the European banking authority. Without the January capital increase, Tier 1 would have stood at 8,40%: Common Equity Tier 1 (CET1) according to the new Basel 3 rules is in line to achieve the target of exceeding 9% announced in the Strategic Plan for 2012.
“The Group's performance in 2011 confirmed its resilience in a very difficult scenario”. As the CEO Federico Ghizzoni, who added: “Together with the significant rebound in the results of our Italian business this demonstrates to us the adequacy of our actions and our focused strategic approach”. The banker now promises “continuity in the execution of the strategic plan, focused on the development of “business on our core customers and the cross selling of our products together with the rigorous management of our resources and risks”. A policy that "will allow us to achieve higher profitability for our shareholders".
