UBI profit un­changed

The Pak Banker - - FRONT PAGE -

Unione di Banche Ital­iane SCPA's sec­ond-quar­ter profit lit­tle changed as lower pro­vi­sions for bad loans at Italy's fifth­largest bank were off­set by its con­tri­bu­tions to a Euro­pean bank res­cue fund.

Net in­come was at 48.5 mil­lion eu­ros ($53 mil­lion) from 48.1 mil­lion eu­ros a year be­fore, the Mi­lan-based len­der said in a state­ment Fri­day. That com­pares with the 42.3 mil­lion-euro av­er­age es­ti­mate of 10 an­a­lysts sur­veyed by Bloomberg.

Chief Ex­ec­u­tive Of­fi­cer Vic­tor Mas­siah is re­view­ing strate­gic op­tions amid merg­ers that will prob­a­bly in­volve Italy's co­op­er­a­tive lenders, or popo­lari. The bank has started a process to turn into a joint stock com­pany by Oc­to­ber to com­ply with an Ital­ian law forc­ing the 10 big­gest popo­lari to change their gov­er­nance within two years. The bank will only con­sider com­bi­na­tions that would be adding value, Mas­siah said in a state­ment.

Rev­enue fell about 4.5 per­cent from a year ear­lier to 842.8 mil­lion eu­ros, while loan-loss pro­vi­sions de­clined to 199 mil­lion eu­ros from 230 mil­lion eu­ros. The bank posted 22.8 mil­lion eu­ros of ex­tra­or­di­nary costs for the Euro­pean Res­o­lu­tion Fund.

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