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Net profit of Bank Austria falls 56% Y/Y in Q1 2010.

(ADPnews) - May 12, 2010 - Bank Austria, a subsidiary of Italian Unicredit (BIT:UCG), announced today a net profit after minorities of EUR 242 million (USD 307m) for the first quarter of 2010, down by 56% on the year.

Pretax profit dropped by 60% to EUR 290 million. Operating profit amounted to EUR 778 million, a decline of 31% in an annual comparison. The bank said though that the figure from the first quarter of 2009 was "exceptionally high".

Net interest income fell by 16% to EUR 1.118 billion. The bank said that a year earlier the expansionary monetary policy led to a sharp fall in market rates, which fed through to net interest income.

Net fee and commission income stood at EUR 470 million, an increase of 3% in annual terms. The improvement was due to slightly higher activity levels in the securities and asset management business, the bank said.

Net trading, hedging and fair value income plunged by 60% to EUR 76 million. According to Bank Austria, the drop reflects the large trading profit in central and eastern Europe in the first quarter of 2009.

CEO Willibald Cernko commented that Bank Austria performed solidly in a challenging environment. The downward tendency from the second half of 2009 was stopped and the first-quarter results were above those of the two preceding quarters, he said.

Bank Austria made no predictions for the full year.

(EUR 1.0 = USD 1.271)

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Publication:ADP News Austria
Article Type:Financial report
Date:May 12, 2010
Words:240
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