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[1/4] A Russian police officer stands in front of a branch of the Raiffeisen Bank in Moscow, Russia, February 27, 2016. It made a net profit of roughly 3.8 billion euros last year, thanks in large part to a 2 billion euro plus profit from its Russia business. Of UniCredit's more than 20 billion euro total revenue last year, Russia accounted for more than 1 billion euros. Meanwhile, Russian savers lodged more than 20 billion euros with the bank, which offers a place to deposit funds with fewer sanctions risks. It banned investors from so-called unfriendly countries from selling shares in banks, unless the Russian President grants an exemption.

☆ Snoop founder Gadhia quits UniCredit board after Moneyfarm chairmanship
▼ + stars: | 2023-02-10 | by ( ) www.reuters.com time to read: 1 min

MILAN, Feb 10 (Reuters) - Jayne-Anne Gadhia, founder of money managing application Snoop and former Virgin Money chief executive, has stepped down from the board of UniCredit (CRDI.MI) with immediate effect, the Italian bank said on Friday. Gadhia last month took on the chairmanship of digital wealth manager Moneyfarm, replacing co-founder Paolo Galvani to work alongside CEO and co-founder Giovanni Daprà. Gadhia was at the helm of Virgin Money, the digital bank of Britain's Virgin group, for more than a decade until its listing in 2018. UniCredit said Gadhia had decided to step down "due to a new commitment" and would remain as an adviser to the bank. Reporting by Valentina Za; Editing by Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

☆ Goldman Sachs strategist reveals the 'cheap' sectors to own right now
▼ + stars: | 2023-02-08 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Bank stocks are "inexpensive," and commodity companies look "cheap" in this high interest-rate environment, according to Goldman Sachs' Sharon Bell. Bell, a European strategist at the investment bank, said the two value sectors are set to do well as economic growth remains robust. Goldman forecasts global GDP to grow slightly above 2% this year — higher than was forecast by economists just a few months ago. Strong growth means that central banks are likely to keep interest rates higher for longer, according to Bell, and "that will be good for the banks." Higher interest rates allow lenders to increase their net interest margins — a key measure of bank profitability.

CDP is seeking to finalise its bid after U.S. investment firm KKR (KKR.N) last week filed its own offer for the same Telecom Italia (TIM) asset. Two sources familiar with the matter told Reuters KKR's approach valued the venture at about 20 billion euros ($21.4 billion). Prime Minister Giorgia Meloni repeatedly said her government wants to secure public control of TIM's network. But there is no common ground yet within her administration on how to reach such a goal and it was no clear whether a CDP bid would receive the blessing of the Treasury. Economy Minister Giancarlo Giorgetti believes Rome has "multiple options" to put TIM's network under strategic government control, a separate source said, without elaborating.

☆ Intesa slashes assets to boost capital as profit tops forecast
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: +1 min

MILAN, Feb 3 (Reuters) - Italy's biggest bank Intesa Sanpaolo (ISP.MI) slashed its assets in the fourth quarter to boost its capital buffers in the face of regulatory hits, raising doubts over future profits despite exceeding expectations in the latest period. Moving to offset adverse regulatory changes kicking in from January, Intesa reduced its total assets by 47 billion euros ($51 billion) in the quarter, boosting its core capital ratio to 13.5% from 12.4% at the end of September. Intesa said it would proceed with a second 1.7 billion euro share buyback it had put on hold due to recession risks. It also said it would pay another 1.7 billion euros in cash dividends from 2022 profits, after an interim dividend payout of 1.4 billion. With earnings boosted like peers by rising interest rates, Intesa posted a fourth quarter profit of 1.07 billion euros ($1.2 billion), well above an 873 million euro estimate in an analysts' poll compiled by Reuters.

☆ Investors cheer after UniCredit lifts payout goal by 40%
▼ + stars: | 2023-01-31 | by ( Valentina Za | ) www.reuters.com time to read: +5 min

However, the receding chances of a recession in the bloc as energy prices ease have boosted banking shares, with investors less wary of regulators hindering generous capital distribution plans. Shareholders, who have been promised more than 16 billion euros in dividends and buybacks by 2024, received 3.75 billion euros from 2021 earnings. Analysts calculate UniCredit could have at least 6 billion euros to spare after delivering on the 16 billion euro payout goal. STRONG PROFIT BEATUniCredit's net profit of 2.46 billion euros for the quarter to Dec. 31 was more than twice the 1.10 billion euros expected by analysts polled by the bank. The tax boost more than offset an increase in generic provisions against future loan losses, known as overlays, to 1.8 billion euros from 1.3 billion.

☆ UniCredit CEO says the bank's transformation is not yet done
▼ + stars: | 2023-01-31 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailUniCredit CEO says the bank's transformation is not yet doneUniCredit CEO Andrea Orcel tells CNBC how the lender beat 2022 targets despite the unwinding of its Russia business and other macro headwinds. The Italian bank's fourth-quarter net profit came in at more than twice the average forecast.

☆ Morning Bid: 'Soft landing' or 'no landing'?
▼ + stars: | 2023-01-31 | by ( ) www.reuters.com time to read: +5 min

As U.S. Federal Reserve's Federal Open Market Committee kicks off its two-day policymaking meeting, the economic news from around the world brightened considerably. China's economic activity swung back to growth in January after three months of contraction, according to official business surveys released on Tuesday. The euro zone economy confounded forecasts for a quarterly contraction of gross domestic product in the final three months of 2022. Eurostat estimated GDP in the bloc rose 0.1% in Q4 despite consensus expectations for a fall of 0.1%. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ UniCredit hikes payout goal by 40% after record profit
▼ + stars: | 2023-01-31 | by ( ) www.cnbc.com time to read: +1 min

UniCredit pledged on Tuesday to return 5.25 billion euros ($5.69 billion) to investors based on its 2022 results, further hiking one of the most ambitious payout targets among European banks, after posting its best profit in over a decade. The bank said net profit came in at 2.46 billion euros in the three months through December, more than twice an average forecast of 1.10 billion euros ($1.2 bln) from analysts polled by the bank. The lender paid out 3.75 billion euros to investors over 2021 results in dividends and share buybacks. UniCredit said it expected to post a net profit in 2023 broadly in line with 2022 including its Russian business, after it had excluded this from its profit goal last year following Russia's invasion of Ukraine. That drove overall quarterly revenues to 5.72 billion euros, above a 5.12 billion euro average forecast.

LONDON/FRANKFURT, Jan 27 (Reuters) - Rising borrowing costs are giving a long-awaited lift to Europe's beleaguered banks, but they come with a sting in the tail. Last year central banks ended a decade of rock-bottom interest rates as the U.S. Federal Reserve and then the European Central Bank moved towards tightening. But while rising rates are good news for bank profits, they herald a slowdown in an economy hit by war and runaway prices that squeeze borrowers and could prick pricing bubbles, most notably in property. "On the one hand, interest rates are going up, which is good and helps banks," said Jerome Legras of Axiom Alternative Investments. Germany's financial regulator BaFin recently warned that a rapid rise in interest rates could weigh on some banks, and that loans may sour.

☆ The European Central Bank says it'll 'stay the course' on rate hikes. But it's not clear for how long
▼ + stars: | 2023-01-26 | by ( Silvia Amaro | ) www.cnbc.com time to read: +1 min

European Central Bank President Christine Lagarde has repeatedly used the phrase "staying the course" when referring to upcoming rate decisions, but some market watchers doubt the bank will keep its hawkish stance for much longer. The ECB entered tightening mode last year with four rate hikes in an attempt to control high inflation across the euro zone. But ECB watchers are asking: for how long? "The size of those rate hikes will depend on the inflation outlook. ECB Executive Board Member Fabio Panetta reportedly said earlier this week that the central bank should not pre-commit to any specific rate moves beyond its March meeting.

☆ Euro-banks have done their time in valuation jail
▼ + stars: | 2023-01-26 | by ( Liam Proud | ) www.reuters.com time to read: +7 min

Major euro zone and UK banks are trading at a 40% discount to the region’s wider benchmark index, using price to forward earnings multiples tracked by Refinitiv. The subsequent euro zone crisis in 2012 prompted a wave of bad debt that weighed down earnings. More recently, though, euro zone lenders have been facing up to their past sins, and offloading non-performing loans. There’s no evidence of a bank lending splurge, despite years of rock-bottom interest rates. Between November 2012 and November 2022, euro zone banks’ total lending to households and companies grew at an annual clip of under 2%, a fraction of its pre-2008 pace.

☆ Italy's Lottomatica eyes IPO as Q4 core profit rises at least 7%
▼ + stars: | 2023-01-25 | by ( Elisa Anzolin | ) www.reuters.com time to read: +2 min

It said preliminary results for 2022 showed that it had collected 22.8 billion euros in bets, with revenue of around 1.4 billion euros and earnings before interest, tax, amortisation and depreciation of 458 million-462 million euros. Pro-forma EBITDA stands at 516 million-520 million euros in 2022 when taking into account the acquisition of Italian remote gaming and betting collection company Betflag, which Lottomatica completed in November. Apollo Global Management entered the Italian gaming business in 2019 when it bought a large stake in Gamenet and proceeded to buy out other investors and delist it the next year. The private equity firm invested a further 950 million euros in the sector the following year when Gamenet acquired IGT's (IGT.N) Italian gaming machine, sports betting and digital gaming businesses. These businesses were housed in two companies dubbed Lottomatica Videolot Rete and Lottomatica Scommesse, with a valuation at the time of around 1.1 billion euros including debt.

☆ Europe's revenue growth expected to slow to a crawl in Q4
▼ + stars: | 2023-01-24 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Pedro NunesLONDON, Jan 24 (Reuters) - Revenue at Europe's largest companies is expected to have risen by just 0.9% in the fourth quarter, Refinitiv I/B/E/S data showed on Tuesday, down from 27.4% in the third quarter and the slowest growth rate since the fourth quarter of 2020. The forecast, which tracks companies listed on the pan-European STOXX 600 (.STOXX) benchmark index, represents a drop from last week when analysts expected revenue growth of 4%. Earnings for STOXX 600 companies are expected to have increased 9.5% in the fourth quarter, down from 10.7% a week ago, Refinitiv I/B/E/S said. When results from the energy sector are excluded, Refinitiv I/B/E/S said earnings were expected to have increased by 4.6% and revenue by just 0.3% in the final three months of the year. Nine firms have reported revenue, with 77.8% beating expectations, compared to a typical quarter when 58% beat estimates.

☆ UniCredit CEO says 'we'll see' when asked about Monte dei Paschi -CNBC
▼ + stars: | 2023-01-18 | by ( ) www.reuters.com time to read: +2 min

Monte dei Paschi is 64% owned by the Italian state, which needs to eventually cut its stake to meet re-privatisation commitments given to the European Union at the time of the bailout. "I think Monte dei Paschi has taken a different direction in their strategy. And they've raised their capital, they're rationalising the bank, they're restructuring the bank," Orcel said in an interview with CNBC. So they need to do that, and then we'll see," he said when asked about a Reuters report that UniCredit was still seen as a potential buyer for Monte dei Paschi, alongside Banco BPM (BAMI.MI). Monte dei Paschi raised 2.5 billion euros in capital in December, despite rocky markets, to finance thousands of voluntary staff exits and cut costs.

☆ Europe may avoid recession, says UniCredit CEO
▼ + stars: | 2023-01-18 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailEurope may avoid recession, says UniCredit CEOAndrea Orcel, CEO of Italian bank UniCredit, discusses the outlook for the euro zone economy and credit conditions on the continent.

☆ UniCredit CEO says Europe may defy the odds and avoid a recession
▼ + stars: | 2023-01-18 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

A pedestrian wearing a protective face mask walks in front of a UniCredit SpA bank branch in Milan, Italy, on Thursday, Sept. 3, 2020. Recent data points suggest the euro zone may defy the odds and avoid a recession, according to Andrea Orcel, CEO of Italian bank UniCredit . Euro zone headline inflation came in at 9.2% year-on-year in December, marking a second consecutive month of decline from October's record high of 10.7%, but remaining well above the European Central Bank's 2% target. Meanwhile Germany, Europe's largest economy, stagnated rather than contracting as widely expected in the fourth quarter. A recent upturn in economic data has prompted some economists over the past week to upgrade their forecasts for the euro zone and beyond.

And as the worst economic fears recede, global investors are rapidly rethinking historical underweights in euro zone assets. "One of the main sources of downside risk for economic activity in the euro zone is dissipating," said UniCredit economist Edoardo Campanella. Euro zone economic surprisesUnicredit chart on EU gas storageEuro natural gas prices plungeWEIRD WEATHERThat's not to suggest the problem is gone. Although back below 2021's peaks, year ahead natural gas prices in Europe are still three times the average of 15 year up to the pandemic. But there's little doubt Europe at large is weathering the winter storm better than most had imagined only a few months ago.

By acquiring MPS, UniCredit could have bridged in part the gap with domestic champion Intesa Sanpaolo (ISP.MI), which overtook it as Italy's top lender in 2020 by buying smaller peer UBI. Such a deal would have further widened the distance between the top two banks and Banco BPM (BAMI.MI), which ranks third with roughly one-fifth of their assets. Sources with knowledge of the matter have told Reuters Banco BPM together with UniCredit remain potential buyers for MPS. On Thursday, Banco BPM CEO Giuseppe Castagna was quoted as saying MPS was "too big a mouthful" for his bank to swallow. Bankers say an MPS deal could help Banco BPM loosen the grip of Credit Agricole (CAGR.PA), the French bank which this year became the single biggest investor in Banco BPM.

☆ Italy's goal is several big banking groups as it works to exit MPS - PM
▼ + stars: | 2022-12-29 | by ( ) www.reuters.com time to read: +2 min

MILAN, Dec 29 (Reuters) - Italy will work to exit the capital of bailed-out lender Monte dei Paschi di Siena (BMPS.MI) with a view to creating a banking landscape with several large groups, Prime Minister Giorgia Meloni said on Thursday. Meloni said Monte dei Paschi had been "very badly handled" by previous governments leading to taxpayers spending billions of euros to prop up the Tuscan lender, whose restructuring however "appears rather solid." Italy owns 64% of Monte dei Paschi following a 2017 bailout that cost taxpayers 5.4 billion euros. Rome pumped another 1.6 billion euros into the bank as part of a 2.5 billion euro recapitalisation completed in November. In an interview on Thursday Banco BPM CEO Giuseppe Castagna said Monte dei Paschi was "too big a mouthful" for his bank to swallow.

☆ Enel signs state-backed credit line worth 12 bln euros
▼ + stars: | 2022-12-23 | by ( Francesca Landini | ) www.reuters.com time to read: +2 min

MILAN, Dec 23 (Reuters) - Enel (ENEI.MI) and a pool of banks signed a 12 billion euro ($12.74 billion) credit facility to fund margin calls linked to the group's derivative trades, Italy's biggest utility said. The financing is 70% guaranteed by the Italian export credit agency SACE and has a term of about 18 months, Enel said on Friday. As anticipated by Reuters, the credit line is part of the Italian government's efforts to shield the country's utilities against volatility on energy markets. Other Italian utilities are expected to apply for the SACE guarantee scheme. Italy's second-biggest utility A2A (A2.MI) told Reuters on Tuesday it would tap the credit facility backed by the credit export agency in January.

☆ Credit Agricole strikes bancassurance deal with Italy's Banco BPM
▼ + stars: | 2022-12-23 | by ( ) www.reuters.com time to read: +1 min

The deal allows the provision of non-life insurance products and related services through BBPM's networks for a 20-year period. It also stipulates that the French bank's Credit Agricole Assurances (CAA) division will buy from Banco BPM 65% of the share capital of both Vera Assicurazioni and Banco BPM Assicurazioni. "We are very pleased that our long-standing strategic partnership with Banco BPM will soon be strengthened," Credit Agricole CEO Philippe Brassac said in a statement. Credit Agricole has a 9.18% stake in Banco BPM, Italy's third-largest bank behind Intesa Sanpaolo (ISP.MI) and UniCredit (CRDI.MI). Three weeks ago, Banco BPM picked Credit Agricole over a rival bid from French insurer AXA (AXAF.PA) to start exclusive talks over a non-life insurance partnership.

☆ Italy to cap Monte dei Paschi CEO's annual pay at 240,000 euros
▼ + stars: | 2022-12-21 | by ( ) www.reuters.com time to read: +1 min

MILAN, Dec 21 (Reuters) - Italy is preparing to cap at 240,000 euros ($254,496) the yearly pay of top executives hired from 2023 in banks rescued by the state, a move that has bearings for the reappointment of Monte dei Paschi's (MPS) (BMPS.MI) chief executive. After failing to clinch a sale of Monte dei Paschi to UniCredit (CRDI.MI) last year, the Treasury in February hired veteran banker Luigi Lovaglio to lead the Siena-based lender. He runs for reappointment in April when Monte dei Paschi's current board expires. As a bailed out bank, Monte dei Paschi already applies curbs to executives' pay and Lovaglio's fixed pay amounts to 466,000 euros a year with no variable compensation. Under terms Italy agreed with European Union authorities, MPS executives cannot earn more than 10 times the average employee salary.

☆ Analysis: Investors on alert for policy error after cheering slower rate hikes
▼ + stars: | 2022-12-12 | by ( Yoruk Bahceli | ) www.reuters.com time to read: +6 min

With inflation potentially peaking and recession looming, the risk of overtightening accelerating a downturn is on investors' watchlists for next year. "We're past the point of the big (Fed) policy mistake, we think they kind of made it," Robert Waldner, head of macro research at $1.3 trillion asset manager Invesco, said. Recent Fed research suggests the bank has exceeded the level called for by commonly followed policy rules and should target 3.52%, versus the 3.75%-4% it currently targets. Fed research, taking into account the premium on mortgages and corporate borrowing costs, has found financial conditions in September already reflected the equivalent of a 5.25% policy rate. I am worried the Fed may not be taking into account the lags in their monetary policy," Costerg said.

☆ UniCredit CEO Orcel has leverage in pay debate
▼ + stars: | 2022-12-06 | by ( Lisa Jucca | ) www.reuters.com time to read: +4 min

Under UniCredit’s remuneration policies, Orcel receives 2.5 million euros in salary, with the potential for twice that via an annual bonus. A regulatory cap prevents UniCredit from paying its CEO a bigger bonus, so the board may have to hike his fixed salary to pay him more. UniCredit Chairman Pier Carlo Padoan said Orcel has not asked for a pay rise. Follow @LJucca on TwitterloadingCONTEXT NEWSItalian lender UniCredit will review the pay package of its Chief Executive Andrea Orcel ahead of its 2023 general meeting. Orcel’s pay package envisages a fixed salary of 2.5 million euros a year and a bonus of up 5 million euros.

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