UniCredit third quarter profits fall

11 November 2009

UniCredit, the largest bank in Italy, has reported that its third quarter net profit dropped in comparison with the preceding three months.

Figures showed that it made $590 million net profit, while in the second quarter of the year it made $735 million.

The third quarter results are better than analysts had predicted as UniCredit increased its provisions for bad debt and the company's earnings from fees dropped, reports Bloomberg.

Shareholders are due to meet later this month in order to vote on whether to approve a $6 billion capital increase as chief executive officer Alessandro Profumo attempts to boost the bank's reserves.

In the first nine months of 2009, UniCredit made just under $2 billion, which the bank said confirmed its ability to operate successfully in a difficult economic climate.

Operating profit has gone up 25 per cent compared to this stage last year, with operating income increasing by seven per cent.

By Gary Archer

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development