Unicredit closes the Mps operation and closes the first 9 months of 2021 with a profit of 3 billion euros compared to a loss of 1.6 billion last year. The third quarter, in particular, recorded a profit of 1,058 million euros (the underlying 1.1 billion) above the estimates of 838 million.
But the gaze of Gae Aulenti’s group is all turned to the future: “We announced that, after a period of due diligence and negotiation with the Italian economy minister, MPS will not be part of our future strategy”, he told analysts. CEO of Unicredit, Andrea Orcel. “The discussions were long and detailed, but despite the efforts of both parties, it was not possible to reach an agreement that met all the parameters set out in the Memorandum of Understanding” and for this reason “the negotiations were concluded”.
Then looking at the results, Orcel claims the success of a group that has 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 the GEC (group executive committee) and I must carry out, to carry out the transformation that you have asked of us. Unicredit is not the same bank as it was six months ago. A new energy, a new impetus, a new motivation are palpable from the outside, and I hope they are also inside ».
Orcel’s ambition is to «achieve profitable and balanced growth with respect to the risks we take on, with the aim of generating sustainable returns above the cost of capital throughout the economic cycle». The manager has already “observed clear signs of recovery”.
However, in the growth strategy, the acquisitions are not a dogma: «M&A is not an end, we will do it only under the right conditions. It is not an aim in itself, rather it can be an accelerator and a potential enhancer of our strategic result under the right conditions that increase the value and where we have full confidence in our ability to execute ».
In the breakdown of the accounts, the underlying net profit of 1.1 billion in the third quarter was up 0.5% quarter on quarter. Revenue for the quarter climbed to $ 4.4 billion with commissions of $ 1.7 billion, down 1.4% quarter-over-quarter and up 12.5% year-over-year. Net interest income was € 2.3 billion, up 3.1% quarter over quarter, but down 1.4% year over year. At the end of the quarter, the fully loaded Cet1 ratio was 15.5 per cent, with the fully loaded Cet1 Mda buffer at 647 basis points. Tangible equity at € 53.4 billion was up 2% quarter-on-quarter, mainly thanks to net income.
“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 9 December 2021, and will support our commitment to solidity, stability and growth. of the long-term group »commented CEO Andrea Orcel.