UniCredit SpA , Italy’s biggest bank, reported fourth-quarter profit that beat analysts’ estimates after a tax gain helped cushion higher provisions for bad loans in Germany and costs to overhaul units.
Banca Popolare dell’Emilia Romagna SC may face a capital shortfall of as much as 300 million euros ($409 million) in the European Central Bank’s asset quality review, though Italy’s No. 6 lender rules out a share sale.
Banca Monte dei Paschi di Siena SpA, Italy’s third-biggest bank, pledged to cut an extra 3,360 jobs and increase capital to win European Union support for 4.1 billion euros ($5.6 billion) in aid. The shares surged.
Italian President Giorgio Napolitano was elected to a second term after accepting a last- minute appeal from party leaders to run again, a step that may resolve the nation’s political crisis two months after inconclusive elections.