UniCredit reports six-fold increase in Q3 net profit

Bloomberg

UniCredit SpA, Italy’s biggest bank, reported a six-fold jump in third-quarter profit, driven by the sale of its Pioneer Global Asset Management unit.
Net income rose to 2.82 billion euros in the three months through September from 447 million euros a year earlier,
the Milan-based bank said
in statement on Tuesday.
Revenue fell 3.9 percent to 4.65 billion euros on lower income from trading and lending, partly offset by higher revenue from fees and
commissions.
UniCredit published earnings two weeks ahead of schedule after some financial results for the quarter were erroneously sent to investors and analysts and uploaded on its website.
Chief Executive Officer Jean Pierre Mustier, the French investment banker who took over the helm last year, wants to lift annual net income to 4.7 billion euros within the next two years by creating a leaner business and boosting fees. Last month he proposed to scrap a cap on voting rights to make the stock more attractive for large investors as the bank weighs an expansion in Germany, including a potential tie-up with Commerzbank AG.
“Third-quarter results look overall aligned to our expectations with revenues bang in line and costs better than expected,” Fabrizio Bernardi, an analyst at Fidentiis Equities, wrote in a note Tuesday.“The revenue mix seems slightly poorer than expected with lower net fees offset by higher trading.” UniCredit fell 0.1 percent to 17.10 euros in Milan. Before today, the stock had gained 25 percent this year and was up almost 80 percent since Mustier was appointed to the CEO role last year.
Loan loss provisions in the quarter declined to 598 million euros from 977 million euros a year earlier. UniCredit, which sold a big slice of its bad loans last year, plans to dispose of more bad debt in coming months, the CEO has said. The bank has started a process to sell non-performing loans with a face value of about 1 billion euros, people familiar with the matter have said.
The bank reported an adjusted net income of 838 million euros. Operating costs declined 4% to 2.81 billion euros. UniCredit’s CET1 ratio is expected above 13.5% at the end of September.