Italian bank Unicredit in big Q2 profit spike

AP News
Posted: Aug 06, 2013 8:58 AM

MILAN (AP) — Italian bank UniCredit SpA says its second-quarter profit more than doubled on higher interest income and cost-cutting.

UniCredit reported net profit of 361 million euros ($478 million), against 169 million euros in the same period of 2012. Revenue also rose 5.5 percent to 6.4 billion euros.

CEO Federico Ghizzoni said Tuesday the results show an increase in new loans to businesses and households, "the first positive signs of turnaround in Italy."

Provisions for bad loans dropped for the third straight quarter, down 9 percent to 1.7 billion euros from 2012. The bank's Core Tier 1 ratio, a key measure of health, stands at 11.4 percent, above European regulatory requirements.

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UniCredit shares rose 0.5 percent to 4.186 euros, slightly more than the 0.4 percent rise in the benchmark FTSE MIB index.