UniCredit Profit Beats Estimates as Orcel Starts Paschi Talks
- Net income up to 1.03 billion euros, bank confirms guidance
- Lender has begun negotiations with government on Monte Paschi
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UniCredit SpA posted second-quarter profit that topped the highest analyst estimate and said it would set aside less than expected to cover bad debt, signaling strength just as the bank starts talks to take over long-troubled lender Banca Monte dei Paschi di Siena SpA.
Second-quarter profit more than doubled from a year earlier as asset-management fees climbed and loan loss provisions fell, according to a statement Friday. The bank also cut its full-year target for how much it will need to set aside for soured loans, indicating growing optimism about the economic recovery.