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UniCredit expects €11.8B loss for FY'16 as one-offs bite

UniCredit SpA said Jan. 30 that it expects to report a net loss of approximately €11.8 billion for full year 2016.

The result includes €12.2 billion in previously disclosed one-off charges, which will be reflected in its fourth-quarter 2016 results, as well as an additional one-off charge of approximately €1.0 billion for the full year, resulting from a higher write-down of its investment in Atlante as well as deferred tax assets for temporary differences and extraordinary contributions to the national resolution fund.

Excluding the one-off charges, the bank would have made a profit in 2016, it noted.

As a result, the bank expects its common equity Tier 1 capital ratio at 2016-end to have a temporary deficit of approximately 2% against capital requirements of 10.005%. UniCredit envisages that the deficit will be fully restored following the completion of its €13 billion rights issue, which is expected to be settled before March 10.

UniCredit added that it continues to target a CET1 ratio of above 12.5% in 2019.

The bank's preliminary full-year 2016 consolidated results will be published Feb. 9.