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Italy’s top bank UniCredit announced massive losses of €10.64 billion ($14.5 billion) for the third quarter, triggering a plunge in shares for one of Europe’s leading lenders.
UniCredit blamed the losses on €10.17 billion in write-downs “due to the negative impact of the new macroeconomic and regulatory scenario.”
Excluding the write-down, it said the loss was €474 million, still down from a net profit of €334 million in the same quarter last year.
It also approved a €7.5-billion capital increase and said that by 2015 it would cut 5,200 jobs in Italy — around 12 per cent of its workforce.
The recapitalisation will be UniCredit’s third since the start of the global financial crisis in 2008 after it had to raise fresh funds in 2009 and 2010.
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