UBI expects loan losses to be contained in 2013
MILAN, March 13 (Reuters) - UBI Banca, Italy's No.5 bank by number of branches, said it expected loan losses this year to remain below 2012 levels despite a protracted recession on its domestic market.
The bank posted on Wednesday a net profit of 82.7 million euros for 2012, recovering from a loss of 1.8 billion euros for 2011 which was due to writedowns on goodwill impairments.
UBI, which like other Italian lenders is under pressure to set aside more cash to cover for bad debts, said net impairment losses on loans rose to 847.2 million euros in 2012 from 607.1 million euros from a year earlier.
Its core Tier 1 ratio, a measure of financial strength, stood at 9.16 percent at the end of last year when calculated under rules set by the European Banking Authority.