Italy’s biggest bank cuts outlook amid economic weakness

MILAN (AP) — Italian bank UniCredit is cutting its full-year revenue targets, citing low interest rates and economic weakness.

The bank, Italy’s biggest by assets, on Wednesday lowered its revenue guidance to 18.7 billion euros, from 19 billion euros, after reporting an 81% increase in second-quarter earnings due mostly to gains from one-off sales and cost-cutting.

Net profit rose to 1.8 billion euros ($2 billion) in the period, from 1.02 billion euros in the same period of 2018.

Second-quarter revenues declined 4.6% to just under 4.5 billion euros on lower commissions and higher loan impairments. The bank, meanwhile, cashed in 1.2 billion euros for the sale of a 17% stake in online bank Fineco.

Advertisement

UniCredit also deepened cost-cutting by 4.4%.

Shares dropped 3.3% to 9.93 euros in Milan trading.

Copyright © 2019 The Associated Press. All rights reserved. This website is not intended for users located within the European Economic Area.