HVB Group, UniCredit SpA (UCG)’s German banking unit, said nine-month profit was unchanged as lower interest and fee income was offset by higher trading revenue.
Net income for the period through September was 1.2 billion euros ($1.5 billion), the Munich-based lender said in an e- mailed statement today. Third-quarter pretax profit rose to 493 million euros from 73 million euros a year earlier.
HVB, led by Chief Executive Officer Theodor Weimer, announced plans last year to cut more jobs to reduce costs. Milan-based UniCredit, Italy’s biggest bank, yesterday reported a third-quarter profit that beat analysts’ estimates after a record loss a year earlier on writedowns.
HVB increased its loan-loss provisions to 424 million euros in the first nine months from 78 million euros a year ago. Net trading income rose 76 percent to 1.1 billion euros, while net interest income declined 14 percent to 2.7 billion euros and net commission income fell 13 percent to 883 million euros, the lender said.
To contact the reporter on this story: Oliver Suess in Munich Bureau at email@example.com