- Wednesday, October 16, 2024
UniCredit, the Italian bank, is scheduled to release its second-quarter financial results on Wednesday. Here are the key details:
Revenue Forecast
Analysts' average views predict that UniCredit will report a total second-quarter revenue of €5.62 billion ($6.25 billion). This is a significant increase compared to the consolidated total group revenue of €4.78 billion reported in the same period last year.
Net Profit Forecast
The bank-provided consensus suggests that UniCredit's second-quarter net profit will amount to €1.66 billion. This is slightly lower than the consolidated net profit of €1.82 billion recorded in the same quarter last year.
What to Watch
Net Interest Income
UniCredit's second quarter is expected to show a slight sequential increase in net interest income compared to the first quarter of the year. Analysts predict a rise to €3.4 billion, while UBS forecasts a 2% sequential increase to €3.37 billion. The bank-provided consensus estimates UniCredit's net interest income for 2Q at €3.35 billion, whereas it was €3.30 billion in the first quarter.
Operating Costs
UniCredit demonstrated its ability to structurally reduce expenses in the first quarter, with a 5.8% sequential decline (0.6% year-on-year) in operating costs despite high inflation. Equita Sim suggests that the bank's second-quarter operating costs will "remain under control," with a cost-to-income ratio around 40%. Analysts expect operating costs of €2.37 billion for 2Q, while UBS predicts total expenses of €2.38 billion. In 1Q, UniCredit reported operating costs of €2.33 billion and EUR2.36 billion in 2Q last year. Analysts also anticipate the bank to book €317 million in writedowns on loans, according to the bank-provided consensus, compared to €93 million in 1Q.
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