By Eyk Henning
FRANKFURT--UniCredit SpA's (UCG.MI) large German operations
Tuesday said first-quarter net profit fell by around one third to
131 million euros ($146.1 million) as the European bank levy dented
otherwise stable results.
Italy's UniCredit is set to report first-quarter results later
in the day. Its German unit Hypovereinsbank, or HVB, for the first
time paid EUR70 million to a European fund that aims at shielding
taxpayers from being on the hook for bailing out ailing lenders, up
from a EUR10 million contribution for a solely German rescue fund
last year. The first quarter's payment represents the levy for the
entire year.
The Munich-based lender recorded stable net interest income of
EUR652 million and boosted commission income by 18% to EUR302
million. Its trading results fell by about one third to EUR180
million, mainly due to adjustments on own debt.
The lender said it is on track in transforming its retail
banking network, where it is shedding roughly half of its 600
branches while modernizing the remaining ones.
"We've lost fewer [retail] clients than expected" so far, said
Chief Executive Theodor Weimer.
Mr. Weimer also warned that Europe's largest economy needs to do
more to support the economic upswing. "The combination of low
interest rates, the weak euro, cheap oil …are backing the economic
tailwind in Germany. But the uplift isn't sustainable because of a
lack of investments and innovation," he said.
Write to Eyk Henning at Eyk.Henning@wsj.com
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