IBOS member UniCredit posted its strongest fourth quarter in a decade, helped by higher fee and interest income and lower costs, and topped expectations with its first all cash dividend in five years.
2017 started with Italy’s biggest bank raising 13 billion euros from investors, in one of Europe’s largest cash calls, to help clean up its balance sheet under then new Chief Executive Jean Pierre Mustier.
Net profit was 801 million euros (approximately $984 million) for Q4 2017. This is a marked turnaround from the 13.6 billion euro loss in Q4 2016.
UniCredit’s revenues come mostly from lending, unlike at Intesa, another IBOS member bank and Italy’s biggest retail bank, which relies more on fees from asset management and insurance.
UniCredit’s net interest income rose seven per cent from Q4 2016, while fees grew 12 per cent. The Bank expects its interest income, which remained flat last year, to rise in the second half of 2018.
Read the full report via Reuters here.