UniCredit’s German HVB Unit Says Net Unchanged on Fees, Trading

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 osuess@bloomberg.net

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net; Edward Evans at eevans3@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.