Unione di Banche Italiane SCPA, Italy’s fifth-largest bank, said first-quarter profit rose 31 percent on higher revenue and lower provisions for bad loans.
Net income increased to 75.9 million euros ($85 million) from 58.1 million euros a year before, the Milan-based lender said in a statement Tuesday. That compares with the 71.3 million-euro average estimate of 10 analysts surveyed by Bloomberg.
Chief Executive Officer Victor Massiah is seeking to reduce costs and steer clients toward more lucrative products as stricter measures of bank health and record-low interest rates squeeze margins. The lender expects lower credit costs this year and a higher contribution from trading income, while the net interest income will be affected by a lower contribution from the securities portfolio.
Revenue rose 1.5 percent from a year earlier to 866 million euros with a boost from higher fees and commissions. Loan-loss provisions declined to 190 million euros from 199 million euros.