The Italian lender has booked €1.3bn in Loan Loss Provisions (LLPs) primarily impacted by the geopolitical tensions between Russian Federation and Ukraine
UniCredit in Vilnius, Lithuania. (Credit: Bearas/Wikipedia)
UniCredit has reported a net profit of €247m for the first quarter ended 31 March 2022, a 72% decline compared to €888m for the same quarter the previous year.
The company has reported a profit before tax of €603m for the first quarter (Q1) of 2022, a 50% decrease compared to €1.2bn for the same period in 2021.
The Italian lender has reported total revenue of €5bn for Q1 2022, a 7.3% rise compared to €4.7bn for the corresponding period of the previous year.
The company has booked €1.3bn in Loan Loss Provisions (LLPs), primarily impacted by the geopolitical tensions between Russian Federation and Ukraine.
UniCredit chief executive officer Andrea Orcel said: “UniCredit delivered another excellent quarter of high-quality financial results across all our businesses, setting records across a number of key metrics, demonstrating the inherent value and commercial dynamism of our franchise and people.
“Healthy organic capital generation means we have maintained a very strong CET1 ratio of 14.0 per cent, which includes €1.6 billion for the 2021 share buyback, dividend accrual and the negative impact of our exposure to Russia.
“The first months of 2022 have been marked by extreme geopolitical and macroeconomic uncertainty. Whilst challenges undoubtedly lie ahead for the global economy due to the war in Ukraine and its broader impact, UniCredit is entering this period with a resilient and profitable model, and prudent capital and existing provisions.”
UniCredit has reported a net operating profit of €1.4bn for Q1 2022, a 33% decrease compared to €2.1bn for the same quarter of the previous year.
The bank has reported a gross operating profit of €2.7bn for Q1 2022, a 17.7% rise compared to €2.3bn for the corresponding period of the last year.
The company’s operating expenses for the reported period were €2.3bn, which declined by 2.6% compared to €2.4bn for the same period the prior year.
The bank reported a CET1 ratio of 14% for Q1 2022, which declined by 2p.p. compared to 15.9% for the corresponding quarter last year.