UBI profit unchanged
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.