Unicredit posted 31% profit growth as it continues to reduce operations in Russia

Today, the Italian banking group Unicredit reportedthat in the third quarter it received a net profit of €1.33 billion, which is 31% more than a year earlier. In the first nine months of the year, profit amounted to €4 billion (an increase of 49%). The bank noted that net income has risen for the seventh straight quarter, driven by successful cost coverage, stronger consumer activity and higher trading profitability (a 60% increase). Strong performance in the third quarter allowed the bank to improve its full-year profit forecast from €4 billion to €4.8 billion.

Speaking about its Russian operations, the bank noted that it is gradually curtailing them in order to avoid harsh consequences for its business. In the opinion of the bank’s management, taking into account Russia, the profit for the first nine months would have been slightly lower – € 3.8 billion. In the third quarter, Russian operations brought the group a profit of € 344 million.

Speaking on TV channel BloombergAndrea Orcel, head of Unicredit, said the bank will continue its strategy of gradually reducing operations in Russia, in contrast to other foreign financial institutions that have chosen to curtail their business in this country much more sharply.

Evgeniy Khvostik