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Aug. 4 (Bloomberg) -- UniCredit Bank Austria AG, the
Austrian and eastern European unit of Italy’s largest bank, said
second-quarter profit tumbled 56 percent after the company
increased bad-loan provisions.
Net income fell to 286 million euros ($412 million) from
647 million euros a year earlier, the Vienna-based bank said in
an e-mailed statement today.
UniCredit Bank Austria more than tripled writedowns and
provisions for loan losses in the quarter to 563 million euros.
Western European banks with units in the east of the continent
are battling an economic slowdown and an increase in bad debt
following the global financial crisis.
"We are aware of the risks in CEE and are effectively
responding to them with a strong focus on credit risk
management, pro-active and close monitoring of liquidity
positions in all countries and further cost reductions," Deputy
Chief Executive Officer Federico Ghizzoni, who is also in charge
of eastern European business at UniCredit SpA, said in the
statement.
Net interest income, the difference between money paid out
on deposits and earnings on loans, was 1.22 billion euros, the
bank said. The trading result was an 82 million-euro profit from
a loss of 55 million euros a year earlier.
Aug. 4 (Bloomberg) -- UniCredit Bank Austria AG, the
Austrian and eastern European unit of Italy’s largest bank, said
second-quarter profit tumbled 56 percent after the company
increased bad-loan provisions.
Net income fell to 286 million euros ($412 million) from
647 million euros a year earlier, the Vienna-based bank said in
an e-mailed statement today.
UniCredit Bank Austria more than tripled writedowns and
provisions for loan losses in the quarter to 563 million euros.
Western European banks with units in the east of the continent
are battling an economic slowdown and an increase in bad debt
following the global financial crisis.
"We are aware of the risks in CEE and are effectively
responding to them with a strong focus on credit risk
management, pro-active and close monitoring of liquidity
positions in all countries and further cost reductions," Deputy
Chief Executive Officer Federico Ghizzoni, who is also in charge
of eastern European business at UniCredit SpA, said in the
statement.
Net interest income, the difference between money paid out
on deposits and earnings on loans, was 1.22 billion euros, the
bank said. The trading result was an 82 million-euro profit from
a loss of 55 million euros a year earlier.