MILANO – The Unicredit accounts convince the market by beating expectations, the CEO Andrea Orcel claims the “phenomenal steps forward” made in recent months and on Monte dei Paschi he puts a stone: “That window is closed for us”.
The bank of Piazza Gae Aulenti closes the first 9 months of 2021 with a profit of 3 billion euros (underlying of 3.1 billion euros). Last year the same period closed with a loss of 1.6 billion. The third quarter recorded a profit of 1,058 million euros (the underlying 1.1 billion), thus beating the estimates of 838 million. The stock’s reaction on the stock market was positive (follow live). Numbers that Orcel commented in a message to his colleagues: “We have made phenomenal steps forward, but we are only at the beginning of our journey. And we are also at the beginning of the work that I and the GEC (Group Executive Committee) must carry out, to bring about the transformation you asked for “.
Unicredit-Mps, negotiation skipped. Towards a solo plan for Siena, then the search for a new partner
In the note on the accounts, Orcel announces the date of the plan: “We continue to develop our three priorities – simplification, digitization and customer centricity – which will be at the heart of UniCredit’s new strategic plan, which will be presented on December 9, 2021, and will support our commitment to the group’s solidity, stability and long-term growth, “he says. Meanwhile, the bank updates the guidance on total revenues to approximately 17.5 billion and costs in line with the previous guidance, confirmed at 9.9 billion. The underlying cost of risk guidance further improved to around 30 basis points. Over 3.7 billion was increased for the underlying net profit.
Inevitable questions on the MPS game, for which the negotiation with the Mef was closed. “We have announced that, after a period of due diligence and negotiation with the Italian Minister of Economy, MPS will not be part of our future strategy”, he explains in call with analysts. The banker adds: “The discussions were long and detailed, but despite the efforts of both parties and it was not possible to reach an agreement that met all the parameters set out in the Memorandum of Understanding” and for this “the negotiations were concluded. “. He therefore reiterates the position he has already recalled several times on acquisitions: “M&A is not an end, we will do it only under the right conditions. Our focus is on organic growth and on the industrial plan which will be presented on December 9”. “The greatest value we can create is from an organic point of view and this has been, and remains, our unshakable goal,” explains Orcel. “From the beginning of my tenure, my ambition for UniCredit has been clear: to deliver profitable risk-adjusted growth with the primary goal of achieving sustainable returns above the cost of capital throughout the cycle,” adds the CEO recalling that “one of the ways we will achieve this is through a simpler and more empowered organization, an organization fully accountable for demonstrating clear cost discipline, as well as a renewed focus on net revenue growth. say revenue minus loan loss provisions, and capital efficiency. Over all we are making good progress and delivering tangible results and will provide more detail on our next Strategy Day, “he says.
“Negotiations on MPS were interrupted despite the commitment of the two parties”
by Andrea Greco
Orcel’s words certainly do not go unnoticed. The closure of the Monte dei Paschi di Siena dossier, “worries us because, at the moment, there are no alternatives to take over the Mps group, the only one would be the Apollo fund, which is a speculative fund and which would not have a soft attitude even though it concerns the employees “, says the secretary general of Fabi, Lando Maria Sileoni, during the Coffee Break broadcast on La 7.” The European Union will grant the extension to the Italian State, to remain in Montepaschi’s shareholding again, if Prime Minister Mario Draghi. In any case, money, at least 3 billion euros within the year, is needed to remain the property of the Treasury “, adds Sileoni.