UniCredit, Italy's biggest and top ranked bank, has revealed that after a substantial fall in risk costs for the July-September period for the current year, it is now looking at better outcomes in the coming year. According to the bank, the huge risks costs had been weighing down its profits for over a year.

For the third quarter, UniCredit reported a fall of 11% in risk costs to a figure of 2.16 Billion Euros. Declines have been seen in Turkey, Russia and Ukraine, countries where UniCredit is the biggest lender. The fall in risk costs has been recorded for the first time since 2008's second quarter and is being viewed as a much positive development.

Despite a cut in risk costs, the bank posted a 20% decline in the third quarter net profits, to 94 Million Euros ($590 Million). Revenue also dropped from a good second quarter figure. The bank, however, is sure that things are now bound to improve with one of the biggest threats to its profits falling.

With the cut in risk costs, UniCredit is now looking to work towards making its earnings and revenue rise, and with a gradually improving market condition, the bank is confident that it will reach that goal real soon.