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Unicredit 2Q profits nudge higher under reform course

Unicredit 2Q profits nudge higher under reform course

MILAN (AP) — UniCredit says its second-quarter profits grew by 3 percent as the Italian bank undergoes reforms aimed at raising capital and improving profits.

The bank, Italy's biggest by assets, on Thursday reported net profit of 945 billion euros ($1.1 billion) in the three months ended June 30, compared with 916 million a year earlier.

UniCredit has been working under the guidance of its new CEO, Pierre Mustier, to raise capital, after the bank had one of the weakest showings in Europe during a stress test last year. Under the plan, Unicredit completed the sale of Polish subsidiary Pekao in July, and took 17.7 billion euros in non-performing loans off the books.

The bank's Core Tier 1 ratio, a measure of its health, was 12.8 percent in the quarter.