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UniCredit Capital Levels Questioned After Its Buffer Shrinks

  • UniCredit CEO says bank’s capital position not critical
  • Ghizzoni confident UniCredit will reach 2016 targets
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UniCredit's Ghizzoni Sees Capital Level Improving

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UniCredit SpA Chief Executive Officer Federico Ghizzoni faced a torrent of questions from analysts over the bank’s capital strength after lending growth led to an erosion of the buffer in the first quarter.

UniCredit’s common equity Tier 1 ratio, a measure of financial strength, fell to 10.5 percent under Basel III transitional rules as of March 31, from 10.73 percent at the end of December, the Milan-based bank said on Tuesday. Net income declined to 406 million euros ($463 million) from 512 million euros a year earlier.