unicredit slashes jobs eyes €13bn
Last Updated : GMT 11:59:16
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 11:59:16
Egypt Today, egypt today

In fresh capital

UniCredit slashes jobs, eyes €13bn

Egypt Today, egypt today

Egypt Today, egypt today UniCredit slashes jobs, eyes €13bn

Milan-based UniCredit is Italy's biggest bank
Milan - Arab Today

Italy's biggest bank, UniCredit, announced plans Tuesday to slash 14,000 jobs and raise billions of euros in fresh capital as the country gets to grips with political instability and a banking crisis.

The bank, one of the worst performers in European bank stress tests, confirmed it would need to seek 13 billion euros ($13.8 bn) in fresh capital from investors despite political complications in Italy and the nation's third-largest bank scrambling to avoid a government-led rescue.

UniCredit also said it would shelve around 14,000 jobs by the end of 2019 as part of a cost-saving drive.

The bank estimated this would save it 1.1 billion euros in staff costs. It said it planned to slash other costs by 600 million euros, resulting in an annual saving of 1.7 billion euros.

UniCredit's announcements came at a time when investor confidence in Italy could be on the mend after the formation of a new cabinet under Paolo Gentiloni, having been shaken by the collapse of former prime minister Matteo Renzi's government.

- 'Credit-positive' -

Analysts welcomed the package of measures, but warned it would push results for the year's final three months deeply into the red.

"The writedown will cause the bank's fourth quarter earnings to drop to a considerable loss," predicted analysts at ING. "Having said that, the improvement of the bank's risk profile and capital position would be credit-positive."

In response, UniCredit's shares surged by more than seven percent in early Milan trading, helping lift other Italian banking stocks.

UniCredit's announcement was part of a major strategic review launched under new chairman Jean-Pierre Mustier that has so far involved selling off assets to strengthen the bank's capital base.

UniCredit was among the worst-performing banks in stress tests carried out in July by the European Banking Authority.

Since then, it has disposed of several assets and stopped certain banking activities to focus on its core strengths. 

Mustier said the strategic review was a "pragmatic plan based on conservative assumptions, with tangible and achievable targets."

The bank is targeting a net profit of 4.7 billion euros in 2019.

- 'Best in class' -

In another announcement that will be closely watched by investors, UniCredit said it aimed to boost its tier-one CET capital ratio -- an important gauge of a bank's ability to resist a financial crisis -- by 2019.

To achieve this, the bank, which is considered to be the only systemically-important bank in Italy -- or "too big to fail" -- said it would sell 17.7 billion euros worth of risky loans.

Non-performing loans have been a focus of worry in the Italian banking sector which is buckling under a total of 360 billion euros of risky loans, around a third of the eurozone total.

It said it was targeting a capital ratio of above 12.5 percent, which it said was "in line with other best in class" banks.

This ratio stood at 10.82 percent at the end of September. 

UniCredit has operations in 22 European countries and operates in 50 markets across the world.

At the end of September it employed 123,000 staff in 6,600 branches, 3,600 of which are in Italy.

Source: AFP


Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

unicredit slashes jobs eyes €13bn unicredit slashes jobs eyes €13bn

Egypt Today, egypt today Modern colorful bedroom renovation

GMT 12:15 2017 Thursday ,21 December

Modern colorful bedroom renovation

GMT 09:43 2019 Monday ,19 August

Live a calm atmosphere in your career

GMT 14:43 2018 Monday ,22 January

Tourism expected to take a big leap in Malaysia

GMT 17:42 2017 Monday ,17 April

WFP probes bomb attack on its convoy in Somalia

GMT 15:42 2017 Wednesday ,27 December

Female inspectors clamp down on commercial concealment

GMT 15:42 2015 Monday ,14 September

North Korea hints at possible rocket launch

GMT 12:18 2016 Monday ,23 May

Gunmen kill 8 worshippers in Sudan's Darfur

GMT 11:38 2017 Wednesday ,08 November

Why you should visit Downtown Design 2017

GMT 13:53 2017 Thursday ,02 November

Plane-sized 'void' discovered in Great Pyramid

GMT 13:30 2017 Monday ,06 November

SCORPIO (October24th-November22nd)

GMT 04:45 2015 Wednesday ,18 March

Not having friends at work can make you stupid

GMT 08:57 2017 Tuesday ,10 October

Woman booked for driving before lifting of ban
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday