The Slovenia Times

Unicredit's Half-Year Profit Dips by 85% to EUR 300,000


The increase in the amount of impairments and provisions is primarily a consequence of the declining credit rating of certain borrowers, the member of Italy's Unicredit Group said in a press release on Tuesday.

Impairments also effected the volume of loans, which dropped by EUR 14m to EUR 1.88bn, while deposits were up by EUR 170m to EUR 1.45bn.

Net revenues from interest were down by 2.5% to EUR 24.2m owing to the financial environment characterised by low interest rates and slow growth of new loans, the bank said.

Net earnings from commissions and fees were up by 3.9% to EUR 12.7m, mostly because of new clients and issuing of securities. The value of bonds available for sale was up by EUR 89m.

Operating costs and depreciation were down by 5.7% to EUR 18.8m due to an increased operational efficiency and better management of resources.

The bank's capital structure also improved, with the capital adequacy ratio increasing from 16.9% at the end of 2013 to 18.3%. Total assets in the period were up by 6.8% to EUR 2.66bn.


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