UniCredit SpA update
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UniCredit reported a quarterly profit increase of 16.5% after the Milan-based bank announced that it had entered into exclusive negotiations to acquire Monte dei Pas Kidiciena from the Italian government.
The Group benefited from a surge in fees, backed by strong asset management and strong sales of insurance products, up 21.4% year-on-year.
Andrea Orcel, Chief Executive Officer, said:
Banks generated € 1.1 billion in profits in the second quarter, comfortably surpassing analysts’ estimates. Operating costs fell 1.2% in the first half.
UniCredit late Thursday, Get part of MPSThe oldest bank in the world, rescued by the Italian government in 2016.
In the first major transaction under Orcel, UniCredit’s acquisition of MPS has long been discussed and encouraged by Italian politicians as part of a wave of integration between Italian banks.
Both sides have agreed on a possible trading framework. The terms have not yet been agreed, as negotiations are still in the early stages, but Mr. Olsel said a summary of the deal could be confirmed by early September.
Since assuming the post of Chief Executive Officer three months ago, Orcel has embarked on a reorganization of the group’s management team, simplification of structure and reduction of overlapping roles. The executive committee has been reduced from 27 to 15, and the bank’s geographic structure has been redesigned to improve efficiency and reduce complexity.
He has stopped selling UniCredit’s art collection, which started in 2019.
BNP Paribas, on the other hand, relied on the power of its domestic operations in the second quarter as investment banks lag behind the fierce performance of the same period last year.
BNP’s investment banking revenues declined 9.9% year-on-year, while domestic market operations increased 9.5%.
The bank’s overall net profit increased by 26.6% compared to the second quarter of last year to € 2.3 billion.
“BNP Paribas’ performance is strong and reflects the recovery of activity and the potential for our growth,” said Jean-Laurent Bonafe, Chief Executive Officer.
BNP’s investment bank was one of Europe’s most active banks during last year’s pandemic, providing loans to companies in crisis.
Bank risk costs fell from € 2.9 billion to € 1.7 billion year-on-year due to a reduction in the allowance for doubtful accounts accumulated during the pandemic.
UniCredit’s profits rise against the backdrop of a surge in fees
Source link UniCredit’s profits rise against the backdrop of a surge in fees