MILAN (AP) — Italy’s biggest bank, UniCredit, says it made a big profit in the third quarter but has warned that the economic outlook appears dim.
The bank said Thursday that it made 1.1 billion euros ($1.2 billion) in the quarter, up from just 29 million euros in the same period a year earlier.
It credited a cost-cutting turnaround plan as well as good earnings from trading.
The Milan-based bank, which has operations across Europe, warned that risks to economic growth have increased, “especially due to the uncertainty related to increasing protectionism.”
It said that a recession in manufacturing is spilling over into other sectors, which could hurt economic growth. That, in turn, hurts earnings for banks that hand out the loans to companies to invest and expand.