By Mauro Orru
UniCredit SpA posted profit and revenue well ahead of analysts' estimates for the second quarter, with loan loss provisions down from the high levels seen last year.
The Italian bank said Friday that net profit surged to 1.03 billion euros ($1.22 billion) from EUR420 million a year earlier, above analysts' median estimate of EUR720 million based on company-provided consensus.
Provisions for credit losses fell to EUR360 million from EUR937 million last year, when banks were bracing for potentially huge losses on loans to consumers and businesses due to the coronavirus pandemic.
Analysts had expected provisions of EUR632 million.
Quarterly revenue climbed to EUR4.40 billion from EUR4.17 billion, above analysts' forecast of EUR4.26 billion.
UniCredit's net interest income--the difference between what lenders earn from loans and pay for deposits, and a key profit driver for retail banks--slipped to EUR2.20 billion from EUR2.39 billion.
Net fees and commissions rose to EUR1.67 billion from EUR1.38 billion, with net trading income up 19.1% on year to EUR425 million.
For 2021, UniCredit continues to expect revenue of about EUR17.1 billion and costs of EUR9.9 billion. However, it improved guidance for underlying cost of risk to below 40 basis points, equivalent to underlying loan loss provisions of less than EUR1.8 billion. Underlying net profit should be above EUR3 billion.
Write to Mauro Orru at email@example.com; @MauroOrru94
(END) Dow Jones Newswires