(Adds analyst comment and details) MILAN, May 12 (Reuters) – UniCredit ended the first quarter with a net profit in line with expectations, a good operating performance and an improvement in asset quality but capital ratios, although growing, continue to weigh on the share price. Net income for the first quarter amounted to 512 million euro, perfectly in line with consensus gathered from the bank’s website. A year earlier net profit stood at 712 million. The transitional CET1 stood, calculated proforma considering the operation of Pioneer, to 10.5%, while the ‘fully loaded’ to 10.35%, both an improvement compared to the end of 2014, said in a statement. The contribution of the operation to Pioneer capital ratios is estimated at around 25 basis points. “The accounts are in line with expectations or even a little ‘better. It’ fitted the net operating margin which means that the core business functions. The market reaction is due to the fact that the CET1 continues be weaker than the competitor Intesa, “says Vincent Longo of IG. The title at 14.15 yields 0.23% against a stoxx industry that sells more than 1%. After the accounts came to lose up to 1%, turning negative. The net operating profit more than doubled compared to the previous quarter (+ 184%) due to revenue growth (+ 2.6%), due in particular to Italy (+6.8%). They grew commissions (+ 7%) and trading income (+ 83%), the latter thanks to the treasury and to customers. Net interest income fell by 3.3% to just under 3 billion, at constant exchange rates and number of days the decrease is reduced to 0.4%. Calano previous quarter gross impaired loans (to 83.2 billion) and loans (51.4 billion), with adjustments to loans which dropped to 980 million (-42.2%). More …
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