Italian lender UniCredit SpA (UCG,UNCFF.PK) reported Thursday that its fiscal 2020 net loss was 2.79 billion euros, compared to net profit of 3.37 billion euros in the prior year.
Underlying net profit for the year was 1.26 billion euros, compared to 4.68 billion euros in the prior year. However, the company noted that underlying net profit was ahead of guidance thanks to lower annual costs while booking 5 billion euros of loan loss provisions to properly reflect the current and future economic impact of Covid-19.
Net interest income declined 6.3 percent from last year to 9.4 billion euros, while net fees and commissions decreased 5.2 percent to 5.98 billion euros.
Total revenues for the year declined 9.0 percent to 17.14 billion euros from 18.84 billion euros a year ago, with a decrease in all revenue line items including lower NII, fees and trading.
Looking ahead, UniCredit said it expects fiscal 2021 underlying net profit of more than 3 billion euros and revenues as well as costs for the year in-line with previous guidance, subject to the potential impact of the Covid-19 pandemic evolution on client activity and market rates stabilising.
The company has proposed capital distribution to shareholders of 1.1 billion euros in ordinary and extraordinary distribution in 2021.
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