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FINANCE

Italy’s Unicredit reports profit plunge

Italy's top bank, UniCredit, reported on Tuesday a net profit of €810 million in the first six months of 2013, down 25.2 percent from the outcome for the same period last year.

Published: 6 August 2013 15:53 CEST
Italy's Unicredit reports profit plunge
Federico Ghizzoni, the chief executive of UniCredit. Photo: Giuseppe Cacace/AFP

The net figure, equivalent to $1.0 billion, was better than analysts had expected.

The figures "allow UniCredit to look at the coming months with confidence," the bank's chief executive Federico Ghizzoni said in a statement.

Profit in the second-quarter more than doubled to €361 million from €169 million a year earlier, thanks to a capital gain on a bond buyback.

"Despite the eurozone struggling to get out of the recession and the negative growth of the Italian economy, UniCredit records the first positive signs of turnaround in Italy, including an increase in new loan origination to companies and households," Ghizzoni said.

The bank covered bad debts by increasing loan-loss provisions in the second quarter by 35 percent, to €1.7 billion, it said.

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FINANCE

German watchdog steps up monitoring of popular N26 online bank

Germany's financial watchdog on Wednesday ordered online bank N26 to step up "internal controls and safeguards" to prevent money laundering and terrorist financing, and said it was appointing a special representative to monitor progress.

Published: 12 May 2021 18:05 CEST
German watchdog steps up monitoring of popular N26 online bank
An N26 card. Photo: Wikimedia Commons

Bafin’s announcement marks an escalation of previous warnings to the popular Berlin start-up, which has come under fire in the past for not properly verifying the identities of new customers.

“Bafin ordered N26 Bank GmbH to rectify deficiencies both in IT monitoring and in customer due diligence,” the regulator said in a statement.

N26 “is required to ensure that it has the adequate personnel, technical and organisational resources to comply with its obligations under anti-money laundering law,” it said.

A “special commissioner” would oversee the company’s efforts, Bafin added. Founded in 2013 and known for its transparent debit cards, digital bank N26 is one of Germany’s most high-profile financial technology or “fintech” firms and now has seven million customers in 25 countries.

Its rapid growth has rested in part on fast-track identity procedures for new customers.

READ ALSO: What is the digital German bank N26 that’s about to hit a million users?

In 2019, German business weekly WirtschaftsWoche said it had managed to open accounts using forged IDs.

N26 on Wednesday pledged to “work closely” with Bafin and the special representative.

It said it had already significantly increased measures to prevent money laundering in recent years, “but we recognise that more must be done in this area”.

The coronavirus crisis had contributed to a spike in fraudulent online transactions worldwide, N26 added, “increasing the demands placed on banks in the fight against crime”.

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