The Board of Directors of UniCredit approved the consolidated results for the first nine months of 2010 which show the Group’s portion of net profit at €1,003 million (€1,165 million net of goodwill impairment posted by the Kazakhstan subsidiary in second quarter 2010), €334 of which in the third quarter. The Group’s quarterly results stand out for the stability of the operating income (unchanged QoQ), cost control (-0.7% QoQ) and the drop in loan loss provisions (-4.8% QoQ).

Operating income reaches €19,793 million in the first nine months of 2010, a drop of 7.9% YoY on a constant currency and perimeter basis), and €6,494 million in third quarter 2010, in line with the €6,493 million recorded in the prior quarter. The evolution QoQ reflects the recovery in net trading, hedging and fair value income, which offsets the seasonality of net commissions and dividends, as well as a slight drop in net interest income.

Net interest amounts to €11,814 million in the first nine months of 2010 (-12.1% YoY on a constant currency and perimeter basis), reflecting an unquestionably less favourable interest rate environment. In the third quarter net interest reaches €3,919 million, down with respect to the €3,977 million recorded in the second quarter, attributable above all to a lower contribution from trading related interests and a greater cost of funding due to the issue of subordinated notes in the third quarter.

Net commissions amount to €6,417 million in the first nine months of 2010, a noticeable increase (+11.2% on a constant currency and perimeter basis) with respect to the €5,666 million reported in the same period of the prior year, confirming the good recovery of the asset management activities, as well as the satisfactory performance of the other commission items. Net commissions in third quarter 2010 amount to €2,038 million, a decrease with respect to the €2,209 million recorded in the prior quarter explained, above all, by the seasonal slowdown in commissions from investment management services which, typically, decline in the summer months. At September 30th 2010, the volume of the assets managed by the Group’s Asset Management Division amounts to €185.0 billion.

FIRST NINE MONTHS OF 2010:
  • Group's portion of net profit reaches €1,003 million, €1,165 million net of goodwill impairment in 2Q10 of €162 million, a slight drop YoY (-€166 million YoY) despite a higher tax rate.
  • Profit before tax, which is not impacted by the higher taxes, rises, net of goodwill impairment, by 1.2% YoY to €2,713 million.
  • Operating income at €19,793 million, -7.9% YoY on a constant currency and perimeter basis, with trading income down by 39.5%.
  • Good trend in operating costs (+0.7% YoY on a constant currency and perimeter basis) and loan loss provisions (-18.6% YoY on a constant currency and perimeter basis).
  • Noticeable strengthening of the balance sheet and the regulatory capital: Core Tier 1 at 8.61% and Tier 1 at 9.67%.
THIRD QUARTER 2010:
    Group's portion of net profit reaches €334 million, an increase QoQ (2Q10: €148 million, €310 million net of goodwill impairment).
  • Operating income at €6,494 million, in line with the €6,493 million recorded in 2Q10, with trading income offsetting the seasonality of other revenue items.
  • Operating costs total €3,911 million, down 0.7% QoQ.
  • Loan loss provisions decline further to €1,634 million, with the cost of risk dropping with respect to the 122 bp reported in 2Q10 to 117 bp.
  • The solid structure of the balance sheet, the high level of liquidity (the internal liquidity ratio reaches 0.99) and the capacity to generate capital confirmed in the quarter (Core Tier 1 +20 bp QoQ).

Third Quarter 2010 Results (PDF, 110 Kb).


Date: 10.11.2010