Italy’s top bank reports higher losses than initial post virus fears
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    Italy’s top bank reports higher losses than initial post virus fears

    Unicredit's headquarters in Milan, Italy. Credit: Pixabay

    Italian bank UniCredit recorded a greater loss for the first quarter of 2020 than initially predicted, it announced on Wednesday.

    The bank recorded a net loss of €2.7 billion in the first quarter, while they expected a net loss of €1.71 billion, according to a consensus of 21 analysts.

    UniCredit explained the loss by non-operational elements, mainly integration costs in Italy (-€1.3 billion) and operations linked to the Turkish bank Yapi, in which it sold part of its stake (-€1.7 billion).

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    In addition, due to the coronavirus pandemic, which has led to strict containment measures, the bank has decided to make adjustments to additional loan loss provisions amounting to €902 million.

    Turnover fell by 8.2% over the quarter to €4.37 billion, which was also lower than the expected €4.95 billion.

    Italy, as a whole, has been hit hard by the new coronavirus (Covid-19), counting 213,013 cases since the onset of the pandemic and reporting 29,315 coronavirus related deaths. Italy was also the first European country to call on the EU Solidarity Fund for financial aid.

    Jason Spinks
    The Brussels Times