Q2 profit double analyst forecast, year ago figure
Applied to ECB for 1 bln euro buyback previously on hold
Lending momentum easing in Q3, uncertainty weighs on fees
MILAN, July 27 Reuters UniCredit raised its 2022 outlook on Wednesday after a surprisingly strong second quarter in which it cut exposure to Russia and moved ahead with a proposed share buyback it had put on hold.
CEO Andrea Orcel told reporters the bank was better placed than some rivals to withstand the economic damage from the Ukraine war, the impact of which was noticeable in the current quarter as people and companies have become more cautious in their financial decisionmaking.
At the moment performance is being affected by the high level of uncertainty and concern on what may arrive, Orcel said, adding the extent of the economic hit was still unclear.
We need to see how deep the deceleration which we still think it39;s the case is. Or are we looking at a recession?.
Even in a recession, UniCredit is confident of delivering the the majority of a 20212024 capital distribution target of more than 16 billion euros, he said.
We39;re very confident on … how we can manage and go through this crisis, the former UBS investment banking chief added. I don39;t think everyone is in the same position and so it may be that MA opportunities open at the right time and if they do we39;ll be ready.
UniCredit sought supervisory approval for a 1 billion euro share buyback it had frozen pending more clarity…