Unicredit returns to Q3 profit after cost-cutting

Associated Press + More

MILAN (AP) — Unicredit SpA, Italy's largest bank by assets, says it has returned to third-quarter profits a year after launching a cost-cutting program.

Unicredit reported net profit of €335 million ($424 million) compared with a huge €10.6 billion net loss last year that included writedowns on Greek debt and several subsidiaries.

The bank said revenues were up 2 percent to €6.1 billion, while its loan loss provisions were down 5 percent to €1.8 billion.

CEO Federico Ghizzoni said the revenues remained "resilient" despite the ongoing debt crisis due to the bank's geographical diversity.

Unicredit has reduced staff and refocused on Central European operations under a strategic plan launched last year.

The bank's Core Tier 1 ratio, a measure of health, was 10.7 percent, above European requirements.

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