CLOSING: UNICREDIT

CLOSING LONG -3.6%

Numbers from UCG not good enough for us. We will close here -3.6%.

Headline profit beat was driven by one-off provisions that lowered LLP.

Both revenue & operating income were lighter than expectations – and weaker than Italian peers.

We think it could get ugly and close for a small loss.

 

NOT JOINING IN THE RALLY TODAY

Monday • 18 August 2014 • 16:30

For us it is one of the best stories out there in financials and definitely in Italy.

Get periphery exposure but in a liquid name.

Good numbers on 5 Aug beating expectations and due upgrades. We think around 10%.

Capital is good and improving. Added 90bps Q-Q. NPLs moving the right way. Loan losses in non core halved YoY.

Trades on 0.7 BV.

Underperformed ISP by 17% this year and trades cheaper on various multiples.

Happy buying it outright here or against ISP.