May 6, 2020 / 5:31 AM / a month ago

BRIEF-UniCredit Q1 Net Loss At EUR 2.71 Bln

May 6 (Reuters) - UniCredit:

* Q1 REVENUE EUR 4.37 BILLION VERSUS EUR 4.48 BILLION IN AVERAGE COMPANY-PROVIDED CONSENSUS

* Q1 NET LOSS EUR 2.71 BILLION VERSUS LOSS EUR 1.53 BILLION IN AVERAGE COMPANY-PROVIDED CONSENSUS

* Q1 NET INTEREST INCOME EUR 2.50 BILLION VERSUS EUR 2.47 BILLION IN AVERAGE COMPANY-PROVIDED CONSENSUS

* Q1 NET FEES EUR 1.62 BILLION VERSUS EUR 1.50 BILLION IN AVERAGE COMPANY-PROVIDED CONSENSUS

* CET1 RATIO AT 13.44% AT END-MARCH

* Q1 NET LOAN WRITEDOWNS EUR 1.3 BILLION VERSUS EUR 847 MILLION IN AVERAGE COMPANY-PROVIDED CONSENSUS

* GROSS NON-PERFORMING EXPOSURE RATIO AT END-MARCH 4.9%

* NPE COVERAGE RATIO AT END-MARCH WAS FLAT Q/Q WITH 65.2 PER CENT

* GROSS NPE RATIO AT END-MARCH OF 4.9 PER CENT (-0.2 P.P. Q/Q, -2.7 P.P. Y/Y)

* 1Q20 CET1 RATIO WAS UP 23 BPS Q/Q TO 13.44 PER CENT

* COVID-19 PANDEMIC HAD LIMITED P&L IMPACT, MAIN EFFECTS NOTICED WERE LOWER NEW CLIENT ACQUISITION AND RETAIL VOLUMES

* CEO SAYS FOLLOWING LOCKDOWN, WE ANTICIPATE Q2 IFRS9 MACRO SCENARIO UPDATE, WITH ADDITIONAL €902 MILLION IN LLPS

* COVID-19 PANDEMIC AND LOCKDOWNS IMPACTED BOTH, PERFORMANCE AND UPFRONT INVESTMENT FEE

* ONLY 10 PER CENT OF UNICREDIT’S €485 BN CREDIT PORTFOLIO FALLS INTO THE COVID-19 “HIGH IMPACT” CATEGORY

* MAIN COVID-19 IMPACT WAS STRONG CREDIT DEMAND FROM CORPORATES AND LOWER MANAGEMENT FEES IN MARCH

* CONFIRMS CET1 MDA BUFFER WILL BE WELL ABOVE ITS 200-250 BPS CET1 MDA BUFFER TARGET THROUGHOUT FY20

* COVID-19 IMPACT VISIBLE FROM MARCH ONWARDS

* CEO SAYS WE ARE WELL POSITIONED TO MEET UNPRECEDENTED CHALLENGES BROUGHT ON BY COVID-19 PANDEMIC

* REVENUES WERE DOWN IN 1Q20 Y/Y AND Q/Q AS A RESULT OF LOWER TRADING DUE TO MARKET DISLOCATION AND DISPOSALS

* Q1 NET PROFIT IMPACTED BY INTEGRATION COSTS IN ITALY (-€1.3 BN), YAPI TRANSACTIONS (-€1.7 BN) AND REAL ESTATE SALES (+€0.5 BN) Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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