ROME (dpa-AFX) - Shares of UniCredit SpA (UCG, UNCFF.PK) were gaining around 2 percent in the morning trading in Italy after the lender updated its fiscal 2022 forecast for net interest income excluding Russia. The company also maintained its forecast for fiscal 2023.
In a statement, the company announced the financial effects of the European Central Bank or ECB changes to the terms and conditions of Targeted Longer-Term Refinancing Operations or TLTRO facilities, which generally negatively affect credit institutions with TLTRO borrowings.
UniCredit now said the full-year net interest income guidance excluding Russia is updated to over 9.7 billion euros including a full year TLTRO positive contribution to NII of around 0.4 billion euros. There is no positive effect of TLTRO to UniCredit's financial results from 2023 onwards.
The company last week said it expects fiscal 2022 net interest income exluding Russia of 9.6 billion euros, along with net profit forecast above 4.8 billion euros and net revenue view above 17.4 billion euros.
The company now said the revision reflects its conservative recognition of the TLTRO benefit and factoring in all the economic consequences of the ECB announcement.
Further, for fiscal 2023, UniCredit continues to expect net interest income of at least 10.1 billion euros for the Group excluding Russia. This assumes a Deposit Facility Rate or DFR of 1.5 percent and can vary depending on future developments in interest rates, volumes, deposit betas and other.
In Italy, UniCredit shares were trading at 12.47 euros, up 1.71 percent.
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