UniCredit by Andrea Orcel is ready to reward its shareholders with a buyback program which, as explained by the ceo of Piazza Gae Aulenti, is aimed at increasing dividends and profits.
The Italian bank has reached a new milestone today, collecting the approval of the shareholders’ meeting for the second tranche from 1 billion of the buyback from a total of 2.6 billion.
He voted 99.3361% of the share capital present at the meeting in favor of the resolution, equal to 63.99% of the total capital.
In answering a question from a shareholder, Orcel explained the dynamics underlying the buyback plan and which defines its objectives: the reaction of the UniCredit share is more than good, which on the Stock Exchange on the Ftse Mib has scored a rally towards 11 euros.
UniCredit has been the queen of the stock market among Italian banks in the last six months, despite Andrea Orcel’s apparent obstinacy not to withdraw from Russia (even if the cut in exposure to Vladimir Putin’s country in the war against Ukraine continues).
UniCredit quotes have gained over the past six months + 14.3% compared to + 12% Bper, + 7.4% Banco BPM and -3.8% Intesa SanPaolo.
UniCredit collects ok shareholders’ meeting with buyback plan
The buy-back program of treasury shares, the CEO of UniCredit Andrea Orcel pointed out today, “Was defined and approved with the aim of bringingpurchase and cancellation of shares“.
In fact, “The cancellation involves a decrease in the shares on the market, in this case by about 7% of the capital, which in turn means that when the transaction is carried out, of these two buyback tranches, the number of shares on the market would drop 11-12%. What that between profits and dividends will lead shareholders to receive this figure of 11-12% more compared to the current one, which should lead to investors’ appreciation of the program “.
During the UniCredit shareholders’ meeting, Orcel explained that “The approval (of the shareholders) is necessary to allow the 2021 share buyback program to be completed for the remaining part, equal to 1 billion euro, as the amount of shares for which the shareholders’ meeting of April 8, 2022 authorized the purchase is not enough, considering the evolution of the price of Unicredit shares due to the macroeconomic and geopolitical context “.
“We have very solid financial and strategic foundations “, reassured the CEO, stressing that “The successful completion of the 2021 shareholder distribution programs represents a further step towards realizing our strategy UniCredit Unlocked and our financial ambitions, generating strong returns and creating value for shareholders “.
Andrea Orcel has pitted concrete numbers, addressing the shareholders, who have endorsed confidence in the potential of UniCredit.
“Let me remind you – the CEO underlined – that during this year our commercial momentum and the progress we are making in the execution of our UniCredit Unlocked strategy have enabled us to obtain in the first half best results of the last ten years at least, with profitable growth in all our divisions, to complete the first 2021 share buyback tranche for 1.6 billion, set aside 0.9 billion in dividends on our results for the first half of 2022 and increase our Cet1 ratio to 15.7% to the second quarter of 2022, among the best in the sector “.
UniCredit, Padoan: it will be the bank of the future Europe
The solidity of the accounts of Piazza Gae Aulenti was also highlighted by UniCredit president, former Treasury Minister Pier Carlo Padoan: Padoan commented on UniCredit’s first half accounts, making no secret of his great satisfaction with the results achieved:
“The creation of UniCredit Unlocked has led us to achieve the best half-year results of the last ten years: all geographical areas have achieved record results and exceeding the objectives of the plan. This allowed us to confirm the remuneration of our shareholders and the completion of the share buyback program, decided last April and now authorized by the Supervisory Authority, which is why we are here today ”.
President Padoan added that he believes that “All of this is solid proof that UniCredit Unlocked is working”, noting the goal that the bank has set itself to achieve: “Making UniCredit the bank of the future of Europe”.
On the other hand, “UniCredit’s management team is working hard to achieve these results, acting quickly and effectively, always keeping in mind our clients and their goals”.
The UniCredit chairman did not fail to praise CEO Andrea Orcel, after the transfer of the leadership of UniCredit Italy from Niccolò Ubertalli to the same CEO, communicated by the institute weeks ago:
“The repositioning of our Italian activities under the direct guidance of the Chief Executive Officer (Andrea Orcel) e del Deputy Head of Italy” it’s a “Example of how we are providing the areas where we are present what they need. This strategy is already starting to produce tangible results “, said the former minister.
Italy, Padoan: beyond unknown political uncertainty
Padoan also referred to the deep crisis that Europe is experiencing, due to the consequences of the conflict between Russia and Ukraine.
The former Treasury holder made a comparison with the previous crisis, that of the Covid pandemic:
“Although the Covid pandemic has been long and has had significant impacts, considering the consequences of the Russian-Ukrainian crisis, what we are facing today in Europe is probably even more challenging as it concerns long-term and structural issues that need to be addressed“.
Padoan pointed out that “Both companies and individuals are already suffering the impact of rising energy prices, in a scenario where the cost of living continues to rise “.
Consequentially, “Economies across Europe are facing challenges to which governments and regulators must respond.” The former Treasury Minister stressed that, in the specific case of Italy, “political uncertainty (referring to the upcoming # political elections22) adds to the unknowns of the future “.
In any case, Padoan has shown confidence in the solidity of UniCredit:
“As a bank, we will not allow events beyond our control to distract us from our goal: better support the European economy and all its citizens. To this end, we must focus on delivering our strategic plan, UniCredit Unlocked, and on making our bank as strong as possible to support Europe in today’s and future difficult times ”.
“Thanks to the guidance of our management team – Pier Carlo Padoan said again – we are proceeding with UniCredit Unlocked keeping the promises made to the stakeholders. This includes the steps taken to simplify and optimize our bank, our ongoing commitment to ESG priorities and our willingness to put customers at the center of everything we do by providing, through tailored initiatives, tangible support to those who do. find themselves in difficulty due to the current context. In Italy, in particular, we are continuing to support the implementation of the National Recovery and Resilience Plan (Draghi’s PNRR), which is an essential pillar for the growth of the country “.
UniCredit and the Russia factor
Returning to Russia and UniCredit’s exposure to the country, it was Andrea Orcel himself who emphasized, on the occasion of the presentation of bank accounts, that “Russia is no longer a concern for the group’s results”.
That is to say:
“We are reducing our exposure as we have committed, our business in Russia is functional and from an economic, financial and capital point of view the impact of Russia on the accounts is no longer a concern for us – explains Orcel – We are commit to gradually reducing our exposure: we have reduced it by 2.7 billion and will continue to do so in an orderly and rational way. We have not changed our position in this regard ”.
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