Unicredit suffered worse than expected net loss in 2020

Posted on Feb 10, 2019 2021 at 22:22Updated Feb 10, 2019 2021 at 22:45

For the outgoing CEO of Unicredit Jean-Pierre Mustier, these are the latest results well below expectations. The Italian bank announced on Wednesday that it had suffered a net loss of 2.78 billion euros in 2020, in an economic context heckled by the coronavirus pandemic. A worse-than-expected result: Analysts were forecasting a loss of 2.01 billion euros, according to financial information provider Factset Estimates.

The results were affected by a provision of 5 billion euros for the adjustment of receivables “in order to adequately respond to the current and future economic impact of Covid-19”, explained the group. In the fourth quarter, the loss reached 1.17 billion euros, again higher than the forecasts of analysts who expected a loss of 774 million euros. The bank’s turnover for its part fell by 9% to 17.1 billion euros in 2020. In the fourth quarter, it fell 12.6% to 4.23 billion euros. euros.

Jean-Pierre Mustier’s latest results

These results, the publication of which was originally scheduled for Thursday morning, are the latest presented by outgoing CEO Jean-Pierre Mustier. The French banker, who has headed Unicredit since 2016, announced in November that he would leave his post in 2021, due to differences with the board of directors on the strategy to be pursued. Among the contentious points was the proposal made by the Italian government to Unicredit to buy BMPS bank, which benefited from a public bailout in 2017.

By mutual agreement with the board of directors, the date for Mr. Mustier’s departure was set for February 11, the bank said in a separate statement. Unicredit has appointed Ranieri de Marchis interim chief executive pending the assumption of the post of Mr Mustier’s designated successor, Italian banker Andrea Orcel, 57. His appointment will be proposed to shareholders at the next general meeting scheduled for April 15.

With AFP

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