UniCredit Expects FY 2016 Net Loss of EU11.8B

UniCredit Expects FY 2016 Net Loss of EU11.8B

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

UniCredit, an Italian lender, announced a significant loss of €11.8 billion for 2016, primarily due to negative nonrecurring items and a write-down of its Atlanta Fund investment. The market reacted negatively, with shares dropping by 5%. The European Central Bank (ECB) has demanded an improved plan for handling bad loans by February 28th. UniCredit plans a €13 billion capital raise to cover these losses and reset its financial standing. The Atlanta Fund, an industry initiative to support banks in need, is part of the additional losses reported.

Read more

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the primary reason for UniCredit's €11.8 billion loss in 2016?

High employee turnover

Expansion into new markets

Negative nonrecurring items

Increased operational costs

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What did the ECB demand from UniCredit that affected its shares?

A new CEO

An improved plan for bad loans

Reduction in workforce

Expansion into new markets

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much did UniCredit initially estimate for one-off losses before adding another billion?

€10 billion

€11 billion

€12 billion

€13 billion

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the purpose of UniCredit's €13 billion capital raise?

To increase employee salaries

To invest in technology

To cover one-off losses and reset finances

To expand into new markets

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What role does the Atlanta Fund play in UniCredit's financial situation?

It is a marketing campaign

It is a fund for employee benefits

It is part of the additional billion in losses

It is a new investment opportunity