the ROME – The Board of directors of Unicredit resolves on a capital increase from 13 billion euros, in the framework of the strategic plan, renamed the “Became 2019″. The transaction will be subject to approval by the assembly on 12 January. The increase, which should be completed in the first quarter of 2017, is fully guaranteed by a consortium of “leading international banks”.
In essence, these banks are committed to make one’s own, “the new shares not subscribed at the outcome of the auction of the unexercised rights, up to the amount of 13 billion euros” (follow the progress here of the title in direct).
The board of directors will propose to the shareholders the grouping of the ordinary and savings shares of UniCredit. The report will be of a new ordinary share, with regular dividend rights) for every 10 ordinary shares with existing and new savings share for every 10 shares of savings. And also with the cancellation of ordinary and savings shares “in the minimum number necessary to allow the balancing total of the transaction without reducing the share capital”.
THE COMMENT. Mustier cleans the skeletons of the past
The floor of the bank provides other of 6,500 redundancies – 3.900 in Italy – all posts to be eliminated by 2019. The staff cuts will be so – between the new and old – about 14 thousand units, with a savings of 1.1 billion (and the trade unions are already protesting). In Italy would be eliminated 21% of the labour force, one fifth of the employees) with the closure of 883 branches, one in four (there are no planned closures of branches in Germany, 20 and those scheduled to occur in Austria).
The box to the network and the staff will bring the staff total to 101 thousand to 87 thousand employees. Here is the map of the savings (to 2019):
- Italy: € 650 million,
- Austria: 320 million
- Germany: 300 million
From the trade union front, the protest, the general secretary of the Uilca, Masi: “If it is true what she said Mustier, who we’re now paying for the errors we have inherited from the old management, we ask for the resignation of all those who have handled the previous cda or who have held positions of responsibility, endorsing the previous industrial plans and that are currently in office”.
“With this staff reduction and the closure of more branches, as the face of Unicredit, the management of the customers, today, already in extreme suffering?”, he asks Masi.
In general, Unicredit provides for other economies that are expected to lead to a relationship between costs and revenues of the group under the share 52% by 2019. The goal of 4.7 billion euros net profit, still to 2019, will be the effect of a growth in revenues, an annual average of 0.6%.
Among other goals, also a better profitability indicator Rote (Return on tangible equity) of more than 9% and a policy of distribution of dividends in cash between 20% and 50% (while there will be dividends in 2016). Still to 2019 also the cost of the risk of the Group is imagined to 49 basis points, a decrease of 40 basis points compared to the year 2015.
The disposals agreed of the entire shareholding in Pekao and Pioneer, in addition to the sale already finalized of the Ukraine and of the 30% stake in Fineco “lead to an increase of 164 basis points” of one of the indicators most relevant to the soundness of a bank, the Cet1 fully loaded). Jean-Pierre Mustier, Unicredit
In this regard, Unicredit has signed two agreements – one with the Fortress and the other with Pimco – to transfer npls to 17.7 billion “in a new and independent entity in which Unicredit will have a minority share”.
about a possible aggregation with Societe General, Mustier seemed to be cold: “our plan is based on the
our forces, and on the organic development, we are focusing only on issues of organic and we’re not talking with anyone.”
Unicredit instead, maintain control of Fineco and its share in Mediobanca, which is the largest shareholder with 8,56%, because the sale would be “negative capital”; while he does not acquire shares in other institutions, keeping out of the national programmes for the consolidation of the sector.
about the Monte dei Paschi di Siena, the manager is convinced that the situation will be resolved “within the year. Therefore the dossier will not have an impact on the share capital increase of Unicredit”.
Mustier cut the salary of 40% to € 1.2 million. Also will not receive annual bonuses for the 2016 and for the duration of the plan, and even buonuscite in case you leave the job in the bank. The only form of variable remuneration will be established by the usual incentive plans long-term. The to finally will invest 2 million euros in shares Unicredit.
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