(Adds further details, updates stock trend) MILAN, August 5 (Reuters) – UniCredit ended the second quarter with capital ratios and net income above analysts’ expectations, particularly appreciated by the market elements that awards the title with a leap of almost 7%. Traders attributed the rise mainly to the performance of core capital, which the market considers critical factor for several quarters, and dismissing fears of a recapitalization. At the end of June, the transitional CET1 rose to 10.52% (+66 basis points on quarter), which strengthens the 10,92% considering the operation of Pioneer. The coefficient ‘fully loaded’ proforma improves to 10.37% and 10.84%, including increases to the current value of AFS reserves and the operation Pioneer. “The most positive news is the core capital. Improvement is also linked to the reduction of RWA (minus 3% per year) which is 37 basis points, about 1 billion of capital generation, “said a trader. During the conference call for the presentation of the accounts the CEO Federico Ghizzoni also expressed confidence in the ability of the bank to generate additional capital and achieve a level above the target of 10% in the current business plan. In the second quarter, UniCredit has registered a net profit of 522 million euro, higher than the consensus of € 453 million, thanks to the positive contribution from all divisions. “For UniCredit – in contrast to the industry average in Italy – has confirmed the significant improvement in the quality of loans, with a decrease in impaired loans, the result of a better seal than performing and higher recoveries, “Ghizzoni said in the note. More …
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