UniCredit SpA hit with huge loss in fourth quarter

Nathan Andrada – Fourth Estate Cooperative Contributor

Milan, Italy (4E) – UniCredit SpA said on Tuesday that it suffered a huge net loss in the fourth quarter, after a massive write-down on the value of previous acquisitions and bad loans, as it released its a latest four-year strategic plan.

Net loss was 15bn euros ($20.79bn) in the fourth quarter, compared with 553mn euros in the year-earlier period.

Italy’s biggest bank in terms of assets allocated 9.3bn euros for bad loans in the fourth quarter, compared with 4.5bn euros in the year earlier, as it conducts a review of its asset that the European Central Bank (ECB) is implementing before taking over control of the region’s biggest banks.

The lender also wrote down the value of previous acquisitions by 9.3bn euros, which resulted to a full write-down of the goodwill for Italy, Austria and Central and Eastern Europe.

The lender said it has 3.5bn euros of remaining goodwill on its balance sheet, which matches the 2004 level. The improvement in most of company’s revenue streams matched with the same period in the previous year.

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