MILAN (AP) — Italian bank UniCredit SpA on Friday said second-quarter profits dropped 67 percent as it reinforced its capital buffers by nearly €2 billion.

The net profit of €169 million ($207 million) compared with €511 million in the same period of 2011 and was below analyst forecasts for €269 million, according to a survey by Factset. The earnings were net of €477 million spent to buy back bonds in the first quarter.