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Restructuring charges dent UniCredit Q1 profit

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Restructuring charges dent UniCredit Q1 profit

on May 10 reportedfirst-quarter net profit attributable to the group of €406 million, down on ayearly basis from €512 million.

Excludingnonrecurring items related to restructuring charges in Austria and Italy, thegroup recorded a net profit of more than €640 million.

Thegroup's attributable net profit before the purchase price allocation effectstood at €410 million, compared to €577 million a year ago.

Netinterest income amounted to €2.88 billion, down from €2.96 billion in the firstquarter of 2015. Net fee and commission income dropped over the same period to€1.95 billion from €2.01 billion.

Nettrading, hedging and fair value income dropped on a yearly basis to €362million from €619 million. Net write-downs on loans and provisions dropped to€755 million from €980 million in the first quarter of 2015, while othercharges and provisions rose to €417 million from €264 million. Integrationcosts rose to €260 million from €1 million on a yearly basis and amortization,depreciation and impairment losses on intangible and tangible assets rose yearover year to €237 million from €224 million.

Thebank's annualized return on tangible equity stood at 3.8% in the first quarterand at 6.1% excluding restructuring charges.

Inthe quarter, UniCredit's core banking division booked net profit attributableto the group of €735 million, down from €877 million posted in the year-agoperiod. The noncore bank division's net attributable loss narrowed to €329million from €365 million in 2015.

On apro forma basis, the bank's fully loaded common equity Tier 1 ratio stood at10.85% at the end of March, down 9 basis points from the end of 2015. The transitionalpro-forma CET1 ratio stood at 10.50% at the end of March, down 23 basis pointsquarter over quarter.