Unicredit is close to the increase of capital. Heavy weight title – The Republic

MILAN – Title Unicredit heavy to trading in Piazza Affari, where also passes in a phase of suspension of the trade in the morning and is then in sharp decline (follow live). The banking sector is weak and drags down the overall index.

this Morning the bank of Piazza Gae Aulenti has published a registration document, prepared in view of the capital increase by 13 billion euros, for which he received the go-ahead from the Consob. The document – together with the informative note and summary still to be published – is the material put at the disposal of shareholders and investors to evaluate the opportunity to subscribe to the recapitalization. And today, Milan is in the program a cda approach to the recapitalisation, which should then be launched the first of the board of directors on the accounts of the 2016 scheduled for 9 February. “The acceleration of the timing of the capital increase is quite surprising, considering that the operation should start on the 6th of February,” say analysts at Icbpi, which have a council ‘buy’ and target price of 29 euros on the title. “It is not excluded that the management wants to take advantage of the good intonation of the markets, a voiding the risk of the operation to conditions more adverse than the current ones (the title is rose 16.4% in the course of the last three months)”.

In the first pages of warnings to the investor, of the over a thousand that make up the note of recording, Unicredit is the point of the situation by going through the Strategic Plan 2016-2019, of which the increase is pillar. It adds “the completion of certain extraordinary transactions of sale of assets (including, in particular, the disposal of the Group Pioneer Investments and Bank Pekao) in addition to the sale transactions already completed”; the improvement of the quality of the assets (“Project Up” and “Port Project”, which involve the sale of packages of non-performing loans and their coverage in the balance sheet); and “the significant reduction in the number of employees and, consequently, of the staff costs and other operating expenses”.

In view of the accounts, the bank anticipates that the operations on the non-performing loans (increase of coverage, and disposals) is expected “adverse impacts to non-recurring profit or loss net income for the fourth quarter of 2016 the UniCredit Group, for a total amount of € 12.2 billion.” Impacts that will bring down the assets, with accounting effect as at 31 December 2016, while the increase will come only launched in the next few days: formally, the bank will be for a period – until the completion of the recapitalisation – out from the parameters of the Supervision. As he had no way to tell the ceo Jean-Pierre Mustier, “the increase is going well” with regard to the surveys, preparatory, but Unicredit stresses as a warning that – if the operation should only be completed partially, would take the stop, dividends, payments in respect of instruments “Additional tier 1″, and the bonus of the manager.

by Mentioning, the analysis carried out by the Ecb on the group (in the context of the activity known as Srep), Unicredit remember that Frankfurt am main has “highlighted the persistence of a level of profitability that is weak, due both to macroeconomic factors, both factors specific to the Issuer, represented by low interest rates and the economic recovery may slow in key Countries, a high level of net adjustments to loans in Italy, and a high level of operating costs in Austria and Germany”. He also asked to “submit, by 28 February 2017 a strategy of non-performing loans, supported by an operational plan to deal with the issue of the high level of non-performing loans”.

As to the strategy of the sales, made to strengthen the assets, the reverse of the medal you see on the perspectives of the margins: “the effect on The intermediation margin and the result of the management of the Group UniCredit is equal to Euro -1.860 million and € -948 million (compared to a brokerage margin for the first nine months of 2016 Euro 17.070 million and an operating profit for the first nine months of 2016 of € 7.263 million), mainly attributable to the disposal of the Group Pioneer Investments, as well as the sale of a stake in Bank Pekao”. The intermediation margin is still expected growth from the plan, even if in “measure”, at 0.6% on average per annum.

Topics:

Unicredit

Piazza Affari

Italian banks

banks

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