VIENNA, June 20 Italian bank UniCredit
is performing above target in central and eastern Europe and its
Russian business is functioning smoothly despite Moscow's
standoff with the West over Ukraine, Chief Executive Federeico
Ghizzoni said in a newspaper interview.
"The business in central and eastern Europe in 2014 is going
better than expected," he told Austrian paper Der Standard in an
interview published on Friday.
"In Russia the business is still doing well."
He said negotiations on selling its Ukraine business were
under way, which would practically wrap up its restructuring in
the central and eastern Europe region where it is the leading
bank. It has already flagged a sale of the Ukraine business.
Big writedowns pushed the Italian group to a 14 billion euro
($19.1 billion) 2013 loss.
"We still have goodwill positions in Poland, Germany or
(asset management business) Pioneer. I see no need at this time
to write them down. Our goodwill is at pre-crisis levels," he
Asked about the bank's forecast for a 2 billion euro profit
this year and whether it would make money in Italy, he said:
"Yes. We did not correct our profit forecast despite the new tax
on revaluing Bank of Italy shares, which will cost us around 200
Italian banks are shareholders in the Italian central bank
and the revaluation has allowed some of them to book significant
($1 = 0.7336 Euros)
(Reporting by Michael Shields. Editing by Jane Merriman)