MILAN (AP) — Italian bank UniCredit SpA says second-quarter profits dropped 67 percent as it reinforced its capital buffers by nearly €2 billion.
UniCredit reported net profit of €169 million ($207 million), compared with €511 million in the same period of 2011. The earnings were net of €477 million spent to buy back bonds in the first quarter.
Analysts had forecasted a net profit of €269 million, according to a survey by Factset.
UniCredit shares were up 4.8 percent to €2.69, as the Milan benchmark FTSE Mib traded 4.6 percent higher.
Revenues in the quarter were down 3.2 percent to €6.2 billion.
The bank's Core Tier 1 ratio, a key measure of a bank's health, stands at 10.4 percent, above European regulatory requirements.