UBI Banca closed the first 9 months of 2019 with an accounting profit of € 191.1 million and a profit net of non-recurring items of € 243.4 million </p><div> <! - <EdIndex> -><p><strong><img style="float: left;" src="http://www.soldionline.it/pictures/2019/05/08/ubi-banca_1.jpeg" alt="ubi-banca_1" width="200" />UBI Banca</strong> closed the first 9 months of 2019 with an accounting profit of € 191.1 million and a profit net of non-recurring items of € 243.4 million, down compared to € 260.6 million in the same period of 2018. the reduction in gross impaired loans.
UBI BANCA, THE ACCOUNTS OF THE FIRST 9 MONTHS OF 2019
During the period, UBI Banca reported operating profit up 9.6% to € 900.2 million, a result of both the increase in operating income (+ 1.4% to € 2.69 billion) and the continuing cost reduction (-2.3% to € 1.79 billion). The interest margin stood at 1.31 billion euros, down from 2.7% compared to the previous 1.35 billion euros.
In the first 9 months of the year they were registered net impairment losses on loans to customers for € 530.3 million. The 2019 figure compares with net adjustments of € 389.3 million in 2018.
The 9 months 2019 therefore ended with an accounting profit of € 191.1 million while that of non-recurring items was € 243.4 million, down compared to the same period of 2018 (210.5 and 260.6 million euros respectively).
UBI BANCA, THE ACCOUNTS OF THE THIRD QUARTER OF 2019
In the third quarter only net accounting profit rose to € 60.1 million, compared to 1.6 million in the same period last year. The analysts' consensus published on the bank's website and updated on October 28th indicated a final result of 65 million euros.
Operating income increased by 5.9% to 860.36 million euros, while the interest margin decreased by 5.7% to 426.85 million euros; analysts' consensus indicated operating income of € 865 million and net interest income of € 433 million, respectively.
UBI BANCA, BALANCE SHEET AGGREGATES AT THE END OF SEPTEMBER 2019
At 30 September 2019, net loans to customers totaled 85.2 billion from 89 billion at the end of 2018.
Also at the end of September, net impaired loans were steadily contracting and amounted to 8.31 billion euros, down 14.4% compared to 9.72 billion at the beginning of the year. In the third quarter alone, gross impaired loans fell by around 690 million (-7.7% compared to June 2019). As a result, the ratio of gross impaired loans to total gross loans amounts to 9.34% or 9.07% proforma considering the last tranche of non-performing leases being sold (9.97% in June 2019 and 10.42% in December 2018).
UBI BANCA, FINANCIAL STATEMENTS AT THE END OF SEPTEMBER 2019
At the end of September 2019, UBI Banca's CET1 ratio stood at 12.09% (fully loaded) compared to 12% at the end of June 2019 (and 11.34% at the beginning of the year). At the same date, the Total Capital Ratio amounted to 15.58% fully loaded (it was 13.44% in December 2018).
Also at the end of September, assets in the institute, including profits, amounted to 9.45 billion euros, up from 9.16 billion at the beginning of the year.
UBI BANCA, ITALIAN STATE SECURITIES AT THE END OF SEPTEMBER 2019
At the end of September UBI Banca's financial assets increased to 18.9 billion euros (they were 15.6 billion at 1 January 2019); Italian government bonds totaled (at market value) a about 10 billion, of which 1.4 pertaining to the insurance company.
UBI BANCA, OUTLOOK FOR THE NEXT MONTHS
In the next months UBI Banca will continue to reduce impaired loans through the internal management and completion of the sale of the last tranche of non-performing positions of UBI Leasing. In addition, it is under examination a transaction to sell non-performing residential mortgages for around 800 million euros (with securitization) to be carried out hopefully by the end of 2019.
Furthermore, for the last part of the year, UBI Banca confirmed the current commercial strategy and the positive trend to contain operating costs.
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