MILANO – Following the announcement of the start of negotiations for the potential acquisition of some Monte dei Paschi activities, Unicredit communicates to the market the data for its six months and they are growing strongly. Investors react to the package of news by buying the securities of the two banks involved in full hands: they do not price in the start of negotiations.
There are reactions from the trade union front too. The leader of the CGIL, Maurizio Landini, asks that the union be involved: “For some time we have been asking the government to activate a table. I believe that at this point it can no longer be postponed”. “It is now official news – explains Landini – while in recent weeks we were told that there was still nothing, and therefore the table was not called for this. It seems to me that we are in the presence of a formal fact: a negotiation is opened between Unicredit and the Minister of Economy, and therefore it is necessary for the trade union and the workers to enter into this discussion and discuss “. “As is well known – reiterates the general secretary of the CGIL – we are opposed to the idea of the stew because this means weakening the banking system of our country”. And then, adds Landini, “since we are talking about public money that has been put on the field, public money, layoffs and closures cannot be combined. As far as we are concerned, our position is very precise and in the next few hours we will act so that it comes quickly. called this table, and if this does not happen together with the category we should decide which initiatives to put in place “.
From Fabi, the independent banking union, Lando Maria Sileoni states: “With the interest of Unicredit on Monte dei Paschi di Siena, we have gone from gossip to facts and this, in itself, is a positive element. It is essential to have clarity on the assumptions, agreed between the Unicredit group itself and the Ministry of Economy and Finance (controlling shareholder of Mps). We want to understand, in particular, what it means that the transaction will concern the commercial activities of Mps, through the definition of a selected perimeter ‘. The interested parties must clarify as soon as possible whether it is a so-called’ stew ‘, because we believe and trust that it is not. In any case, we will deal with this situation as we always are used to “.
Returning to the Unicredit accounts, the first half of the bank in Piazza Gae Aulenti goes on file with a profit of 1,921 million euros (underlying at 1,985 million euros). Last year the same period closed with a loss of 2.28 billion. The second quarter alone recorded a profit of 1,034 million euros (the underlying 1.1 billion), above the estimates of 720 million. “There is enormous potential to be exploited in UniCredit and I look forward to the opportunities that the future holds”, underlines the CEO, Andrea Orcel, in the note on the accounts. “We have made initial but significant progress in simplifying the business, with the aim of operating more quickly and transparently. We still have a lot to do – adds the manager – and we will focus on continuously reducing complexity and accelerating the digitization process. making sure that the customer’s interest is always at the center of our every decision “.
In terms of the accounts for the second quarter, the bank explains, the underlying net profit of 1.1 billion is up 24.7% quarter on quarter, and 2 billion in the first half, equivalent to a RoTE (return on tagible equity). ) underlying of 7.7% in the first half of 2021. The result was mainly driven by the decrease in systemic charges and the lower negative contribution of Yapi Kredi to net investment profits.
Fees at 1.7 billion in the second quarter were up 21.4% year-over-year thanks to strong gross sales of insurance and asset management products. Revenues from trading activities amounted to € 425 million, up 19.1 percent year on year. 125 million euros dividends, up 102% year on year with the positive contribution of both equity and financial investments (+48 million euros year on year) and Yapi Kredi (+15 million euros year on year).
Operating costs amounted to € 2.5 billion in the second quarter, up 2% compared to the previous quarter, with a cost / income ratio of 56%. In the first half of the year, personnel costs decreased by 1.9% year on year thanks to the reduction in FTE (full time equivalent), especially in Commercial Banking Italy, Commercial Banking Germany and Central Eastern Europe.
The bank also announced that on the Investor day of the fourth quarter 2021 the new strategic plan will be announced, which has as its cornerstones: simplification, customer centrality and digitization. “The bank’s goal will be to achieve sustainable profits above the cost of capital over the plan period by optimizing the combination of three levers: risk-adjusted revenue growth, operational and capital efficiency.”
For the whole of 2021, in the meantime, Unicredit indicates that it expects total revenues for the whole of 2021 in line with the previous guidance of about 17.1 billion euros and costs confirmed at 9.9 billion. The underlying cost of risk guidance for the year is now below 40 basis points, equivalent to underlying credit adjustments of less than € 1.8 billion. For the year, the underlying net profit is now expected to be above 3 billion. “UniCredit has a strong foundation that rests on its unique geographic footprint, the strength of its distribution network and the strength of its balance sheet. These elements form an excellent basis for improving results and creating long-term value for all of our shareholders,” commented by Orcel.
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