Partner Services – Reuters Italy

MILAN (Reuters) – UniCredit cut headcount to 18,200 units (6,900 in Italy) by 2018 and cost 1.6 billion under the new strategic plan that sees the end of a period CET1 to 12.6% and a net profit of 5.3 billion Euros, without the need for capital increases.

The title after scoring also + 3% immediately after the announcement, then folded and then close the session slight. “The plan seems more credible than the flaming was expected”, is the comment of a broker.

Some analysts doubt the advance on target CET1 “that seems relatively low “, but appreciate the fact that a capital increase is avoided. Net of dividends promised, about 4.8 billion in the period, the target CET1 fact falls to 11.5%. At the end of September was at 10.53%.

The plan spending with a year earlier than the target date for the entry into force of the new capital requirements “TLAC” reserved systemic banks.

The data outputs also includes the planned sale of assets in Ukraine and the joint venture with Pioneer Santander Asset Management (6,000 overall), for which today signed a binding agreement, said in a statement.

The reduction in staff will cover the corporate center (-17% compared to 2014) and commercial bank in Italy, Germany, Austria and CEE regions (-9%). In Italy in particular the new plan adds about 550 redundancies compared to the numbers of the old plan, according to the unions and the objective will be achieved through the instrument of early retirement, said the CEO Federico Ghizzoni. The number of branches will be reduced to about 800 units by 2018 in Germany, Austria and Italy, where there are 150 to 200 more closures than those already envisaged.

The plan, which will be entirely self-financed, provides a total dividend “conspicuous “with an average payout of 40% and a Rote 11% compared to 5% today. “For now we have made available a dividend potential, but not a commitment,” said the CEO Federico Ghizzoni in the conference call by pointing out that you have to wait the outcome of Srep ECB.

Among the key points of the sale or restructuring of unprofitable business which retail banking in Austria and leasing in Italy, to be performed by 2016. It also will close the sub-holding Austrian and CEE subsidiaries report directly to the holding company UniCredit Spa.

Among the group’s priorities is the consolidation of the role of CIB with a target of revenues of 4 billion to 2018 in addition to the revenues generated by CIB in other divisions of the group who will be 3 billion in 2018. More …