MILAN (AP) — Italy’s largest bank by assets, UniCredit, said yesterday it swung to a loss in the fourth quarter due to higher write-downs on bad loans.
The lender reported a loss of EUR835 million, compared with a restated quarterly profit of EUR1.99 billion in the same period of 2019, which had benefitted from a positive one-off tax boost.
The bank wrote down EUR1.6 billion in bad loans, an increase of nearly 80 per cent over EUR921 million allocated in the same period last year.
Net income sank by 7.3 per cent to EUR2.5 billion while fees and commissions grew by five per cente to EUR1.6 billion.
Adjusted full-year earnings dropped 18 per cent to EUR3.37 billion from a restated EUR4.1 billion.
The bank confirmed a revenue target of EUR18.2 billion for 2020.