Home » Unicredit: ECB approves 3.34 billion treasury share buyback programme

Unicredit: ECB approves 3.34 billion treasury share buyback programme

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Unicredit: ECB approves 3.34 billion treasury share buyback programme

UniCredit has received the ECB’s authorization to execute the share buyback program for 2022 for a maximum amount of €3.343 billion.

The approval is based on financial information provided by the Company, which demonstrated significant strength in capital levels and organic capital generation at the top of the industry. Together with the consistency of the liquidity position, these elements ensure that the company can face stress scenarios from a position of strength.

The valuation took into consideration a capital trajectory with conservative assumptions and updated macroeconomic scenarios. In addition, the historical performance of the bank, which is operating at a new level of profitability, was assessed; a new net income run-rate and distribution to shareholders from which the company can further grow and continue to deliver solid results for all stakeholders.

Together with the proposed dividend, this results in a total distribution to shareholders for 2022 of €5.25 billion: a 40% increase compared to 2021. This underlines UniCredit’s commitment to deliver meaningful and sustainable returns for shareholders, while maintaining at the same time a robust capital.

UniCredit’s CET1 ratio, pro-forma for distribution, is equal to 14.9% at the end of the year 2022 and a further increase is expected in the first quarter of 2023.

The objective is to carry out the buyback of treasury shares in two tranches, the first of approximately 2.34 billion euros to be launched as soon as possible after the approval of the Shareholders’ Meeting, while the second tranche of approximately 1.0 billion euro is expected to start in the second half of 2023, shortly after the completion of the first tranche.

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