Bloomberg News

UniCredit’s German Unit Posts 72% Drop in Second-Quarter Profit

August 03, 2012

HVB Group (HVB), UniCredit SpA (UCG)’s German banking unit, said second-quarter profit dropped 72 percent amid a “difficult” market environment.

Net income fell to 182 million euros ($223.5 million) from 639 million euros a year earlier, the Munich-based company said in an e-mailed statement today. Pretax earnings declined to 436 million euros from 925 million euros.

HVB Chief Executive Officer Theodor Weimer said in a conference call with reporters that the second quarter was generally difficult for banks and that it has been “historically” a weaker quarter for the German lender.

The bank still expects 2012 pretax earnings to be higher than the previous year, the CEO said. The company won’t exceed 2011’s results “significantly” as “clients are cautious at all levels, IPOs are failing and credit demand remains low,” he said.

UniCredit rose as much as 8 percent to 2.78 euros in Milan today and was up 4.3 percent at 2:51 p.m. The Italian bank’s Polish unit Bank Pekao SA (PEO) earlier today posted second-quarter profit that fell less than analysts estimated.

To contact the reporter on this story: Janhenrik Forster in Frankfurt at jforster14@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net


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