Unicredit returns to full year profit

MILAN (AP) — Italian bank Unicredit says it returned to profit last year thanks to ambitious cost-cutting measures and plans to resume a dividend payment.

Italy's largest bank by assets reported net profit of €865 million ($1.1 billion), compared with a loss of €9.2 billion last year that was due to the sovereign debt crisis and weak economic activity.

Revenues grew 1 percent to €25 billion. Operating costs dropped 3 percent to €15 billion as the bank cut some 4,000 positions.

In the fourth quarter the bank lost €553 million, compared with a €114 million profit in the same period of 2011.

The bank said Friday it would propose a dividend of €0.09 for 2012 after foregoing one the year before.