Uni-Credit achieves results without predictions in quarter/3..

Uni-Credit (MI: CRDI), Italy's largest bank, achieved results below expectations in the third quarter due to the depreciation of its share in the Turkish Yapi Credit Bank and said it would boost cost reduction to compensate for the decline in revenue.

The severe decline of the Turkish lira led to the depreciation of the 41 percent indirect UniCredit quota at the Turkish bank.

Like other Italian banks, Yoni Kredet faces local problems as the spending plans of the new Italian government have led to a steep rise in sovereign debt costs.

The net profit amounted to 29 million euros (33 million dollars) in the third quarter after an estimated ˆ846 million decrease in its share of the Yapi bank, Yoni Kredet said Thursday.

Analysts predicted that the bank would earn ˆ907 million, based on estimates provided by the company. Net profit interest and fees came in line with expectations.

Uni-Kredet kept the profit target for 2019 at ˆ4.7 billion, but increased the proposed cost reductions by 200 million euros to compensate for less than expected revenues in a more challenging environment.

The bank's base capital adequacy rate fell to 12.11 percent from 12.51 percent at the end of June June.

The bank said it expected the capital adequacy rate next year to be between 12 and 12.5 percent, compared with a higher than 12.5 percent in earlier forecasts.

(USD = 0.8753 euro)