Unicredit, Italy's largest bank, said today that its second quarter net profit slumped 69.7% compared to the first quarter due to the market chaos caused by the European debt crisis and a large write-down.
The bank said its net profit dropped to €148m largely because earnings at its trading arm tumbled €58m from €560m in the first quarter because of 'decidedly less favourable conditions of the financial markets.'
Unicredit also said it had written down the value of its business in Kazakhstan by €162m because of the 'persistent economic crisis and the subsequent revision of business plans' in the region.
The second quarter in Europe was marked by widespread fears that Greece might not survive a debt crisis which threatened to spread to other weaker members of the euro zone until it was bailed out by the European Union and International Monetary Fund.
Unicredit's profit was much less than the €248m expected by some analysts.
