Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Italian Stock Exchange  >  UniCredit SpA    UCG   IT0005239360

UNICREDIT SPA

(UCG)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

UniCredit : lowers 2019 revenue forecast, sticks to profit goal

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/07/2019 | 07:09am EDT
Unicredit bank logo is seen on a banner downtown Milan

MILAN (Reuters) - Italy's biggest bank by assets UniCredit on Wednesday cut its revenue target for 2019, citing expectations that interest rates will remain low for some time due to an economic slowdown in Europe.

UniCredit reported net profit of 1.9 billion euros (1.7 billion pounds) in the second quarter of the year, thanks to a capital gain from the sale of its stake in online broker Fineco, which it executed in two stages in May and July.

But the figure missed the average analyst forecast of 2.1 billion euros, due mainly to lower fees and higher loan loss charges. Shares fell 3.2% by 1034 GMT.

The revenue target for the year was lowered to 18.7 billion euros from 19 billion euros due to the "prevailing environment with rates expected to be lower for much longer," Chief Executive Jean Pierre Mustier said.

The comparison figure of 19 billion euros was restated from 19.8 billion euros previously to take into account the sale of Fineco.

Mustier confirmed a full-year net profit goal of 4.7 billion euros, saying that while the second half of the year was expected to be in line with the first six months, the bank would benefit from a lower tax rate.

Highlighting the challenges banks like UniCredit face to grow revenues, UniCredit said net interest income -- a measure of how much money a retail bank makes from its core business -- fell 2.1% in the second quarter to 2.6 billion euros. Fees were down 3%.

Germany's Commerzbank also gave a cautious outlook for the year, saying on Wednesday that its own target for a slight increase in full-year net profit had become "significantly more ambitious."

To prop up earnings, UniCredit is focussing on cutting costs and bolstering its balance sheet - together with the Fineco sale, the bank announced in May it would cut its Italian government bond portfolio and accelerate bad loan disposals.

Having cut 14,000 jobs since he took over three years ago, Mustier is expected to announce as many as 10,000 job cuts when he unveils his new plan in December, according to sources close to the matter. The bank has said any reduction in the work force would be made through early retirements.

Mustier is also looking to reduce the group's exposure to Italy. Sources have said he is working to ring-fence its foreign operations - which include units in Germany, Austria, eastern Europe, Turkey and Russia - from its home market by pooling them in a German holding to improve the group's cost of funding.

Asked about the plan, Mustier told reporters on a post-results conference call: "We can work on the group structure in order to have a strong balance sheet to finance our clients, corporate and retail, in a very effective way and we can take action in order to limit the impact of any potential macro economic shock on the cost of funding."

He added UniCredit would remain headquartered and listed in Italy.

(editing by Silvia Aloisi, Alexandra Hudson and Deepa Babington)

By Gianluca Semeraro

Stocks mentioned in the article
ChangeLast1st jan.
FINECOBANK SPA 3.02% 9.684 End-of-day quote.6.63%
UNICREDIT SPA 2.27% 11.152 End-of-day quote.12.71%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on UNICREDIT SPA
09/19Czech development fund, backed by banks, will have $300 million in initial fu..
RE
09/19EUROPEAN PRESS ROUNDUP : German Labor Minister Plans Tax Advantage for Employees..
DJ
09/18UNICREDIT OKTOBERFEST ANALYSIS : Despite price increase, new record for beer con..
PU
09/13UNICREDIT : Bank Austria presents "Social Impact Banking" in Austria
PU
09/13UNICREDIT : has won across several categories in the 2019 Euromoney Real Estate ..
PU
09/12UNICREDIT : Wealth Management strengthens in Italy with the arrival of Stefano V..
PU
09/10Bankers step up rate rant ahead of crunch ECB meeting
RE
09/04UNICREDIT : scoops The Banker's Best Transaction Services Provider in Western Eu..
AQ
09/02UNICREDIT : scoops The Banker's Best Transaction Services Provider in Western Eu..
AQ
09/02Global Stocks Rise on Manufacturing Data
DJ
More news
Financials (EUR)
Sales 2019 18 567 M
EBIT 2019 8 536 M
Net income 2019 5 272 M
Debt 2019 -
Yield 2019 5,34%
P/E ratio 2019 4,48x
P/E ratio 2020 6,51x
Capi. / Sales2019 1,34x
Capi. / Sales2020 1,31x
Capitalization 24 799 M
Chart UNICREDIT SPA
Duration : Period :
UniCredit SpA Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends UNICREDIT SPA
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 27
Average target price 14,03  €
Last Close Price 11,15  €
Spread / Highest target 52,2%
Spread / Average Target 25,8%
Spread / Lowest Target -46,1%
EPS Revisions
Managers
NameTitle
Jean-Pierre Mustier Chief Executive Officer & Director
Fabrizio Saccomanni Chairman
Ranieri de Marchis Co-Chief Operating Officer
Carlo Vivaldi Co-Chief Operating Officer
Mirko Davide Georg Bianchi Group Chief Financial Officer
Sector and Competitors
1st jan.Capitalization (M$)
UNICREDIT SPA12.71%27 405
JP MORGAN CHASE & COMPANY22.68%381 659
BANK OF AMERICA21.02%277 574
INDUSTRIAL AND COMMERCIAL BANK OF CHINA4.16%266 941
WELLS FARGO & COMPANY6.18%215 503
CHINA CONSTRUCTION BANK CORPORATION10.68%192 480