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This article was published on November 11, 2015 at 14:21.
The last change is the November 11, 2015 at 15:33.
UniCredit launches new business plan to 2018, a plan “totally self-funded,” says the bank by suggesting that to achieve it are planned capital injections. The strategy document approved this morning by the board, which updates the objectives to 2018, is based on five pillars: the first two, those from which are expected higher returns, are the reduction of operating costs (1.6 billion the expected savings, 18,200 employees who will leave the bank, of which 6,900 in Italy) and the sale or renovation by 2016 of unprofitable business, as retail banking in Austria and leasing in Italy, in addition to the subsidiary in Ukraine. Then, as anticipated in recent days by the Sun 2 4 hours, it will be “dismantled” the sub-Austrian holding company that owns all east European subsidiaries (which will pass under the holding company), and it will accelerate the digital evolution, with 1 2 billion investment.
The plan aims to consolidate the bank in terms of assets (12.6% Common equty tier 1 to 2018) and profitability: by 2018, in fact, the group It intends to reach 5.3 billion net profit, with an ROE of 11%. Over the next three years, the dividend will be equal to 40% of profits.
“We want to achieve these goals in a macroeconomic environment that remains
easy, with interest rates at historic lows and a slowdown in international economic growth – says the CEO, Federico Ghizzoni, in a statement – Plan a strict and serious at the same time ambitious. But it is mainly realistic, because it is based on shares
who depend on our management decisions, and it is a totally self-funded plan. We are therefore fully confident about its realization “.
The reduction in staff
On the 18,200 job cuts in the Group under the new plan in 2018 UniCredit, 6 thousand are already covered by the planned sale of the subsidiary in Ukraine and joint venture Pioneer-SantanderAm: 12,200 of the remaining cuts, 6,900 will take place in Italy, as we read in the presentation slides of the plan. In detail, the Group employees in Italy (excluding Corporate Centres) will drop from 49 thousand in 2014 to 43,200 in 2018, a reduction of 5,800 units, to which must be added the cutting of 1,100 units in the Corporate Centers in Italy, whose levels employment will drop by 7,600 people in 2014 to 6,500 in 2018.
The accounts of the quarter
The starting point of the plan, the accounts for the first nine months of the year always approved this morning by the board. A quarterly sees 507 million of profits, most of the 458 expected by analysts, leading to 1.54 billion profit in the first 9 months of the year (-29.8% on 2014), which was impacted by extraordinary charges 400 million related to the devaluation of the Ukrainian subsidiary Ukrsotsbank (being sold) and higher provisions on loans in Swiss francs in Croatia. At September 30, the transitional CET1 stands at 10.53%, but rose to 10.93% if you include the joint venture Pioneer-Santander.
Just in this regard, the bank together with Spanish partners and funds Atlantic and Warburg Pincus has signed the agreement binding framework for the integration of Pioneer Investments and Santander Asset Management which will be born “a leader in the global asset management industry”, which will own 33 square Gae Aulenti %. “The Parties will engage the necessary actions to get the permissions due including those of regulatory authorities in the countries where the two companies are present,” reads a note: the completion of the transaction, basted a year ago, is expected in 2016.
On the stock exchange, the title – at the end of the morning earned about one and a half – has reacted to the plan and accounts bringing the increase to 3%. At 15, he travels around the +2%.
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