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BANK

Unicredit back in profit amid lending boost

UniCredit returned to profit in 2014, netting €2.0 billion $2.26 billion, Italy's largest bank said on Wednesday, while touting it had stepped up lending to households and small businesses.

Published: 11 February 2015 15:29 CET
Unicredit back in profit amid lending boost
Unicredit said it has boosted lending to households and small businesses. Photo: Gaetano Virgallito

"We have successfully completed the turnaround in Italy and we…considerably increased our lending to households," it said in a statement, adding that it had "been supporting the economies in all countries where the group is present."

Unicredit said it had already loaned to businesses most of the €7.8 billion in special funds it took from the European Central Bank that were intended to boost growth in the struggling eurozone by stepping up lending to companies.

The bank had hemorrhaged €14 billion in 2013 after writing down many of its assets ahead of "stress tests" carried out by the European Central Bank on the heels of the financial crisis.

Today, UniCredit is "one of the most solid European commercial banks," CEO Federico Ghizzoni said in the statement.

Despite the upbeat news, UniCredit's share price plunged 2.39 percent to €5.34 in otherwise flat mid-afternoon trading on Milan's FTSE MIB.

Annual turnover shrank by 3.5 percent to $22.5 billion, while costs declined 2.9 percent to €13.8 billion.

The bank said it would pay out a dividend of 12 euro cents per share, a rise of 20 percent.

BANK

Deutsche Bank to pay $130m to settle US bribery probes

Deutsche Bank will pay $130 million to settle a foreign bribery probe and fraud charges in precious metals trading, US officials announced on Friday.

Published: 9 January 2021 15:08 CET
Deutsche Bank to pay $130m to settle US bribery probes
A woman walks past the offices of Deutsche Bank in London. Photo: Tolga Akmen / AFP
The bribery case relates to illegal payments and to false reporting of those sums on the bank's books and records between 2009 and 2016, the Department of Justice said in a press release.
   
The bank “knowingly and wilfully” kept false records after employees conspired with a Saudi consultant to facilitate bribe payments of over $1 million to a decision maker, the DOJ said.
   
In another case, the bank paid more than $3 million “without invoices” to an Abu Dhabi consultant “who lacked qualifications… other than his family relationship with the client decision maker,” the DOJ said.
   
In addition to criminal fines and payments of ill-gotten gains, Deutsche Bank agreed to cooperate with government investigators under a three-year deferred prosecution agreement.
 
   
In the commodities fraud case, Deutsche Bank metals traders in New York, Singapore and London between 2008 and 2013 placed fake trade orders to profit by deceiving other market participants, the DOJ said.
   
The agreement took into account Deutsche Bank's cooperation with the probes, DOJ said.
   
“Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others so that they could unfairly obtain and retain lucrative business projects,” said Acting US Attorney Seth D. DuCharme of the Eastern District of New York.
   
“This office will continue to hold responsible financial institutions that operate in the United States and engage in practices to facilitate criminal activity in order to increase their bottom line.”
   
“We take responsibility for these past actions, which took place between 2008 and 2017,” said Deutsche Bank spokesperson Dan Hunter, adding that the company has taken “significant remedial actions” including hiring staff and upgrading technology to address the shortcomings.
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