2021 EBA EU-Wide Stress Test Results
30 July 2021
UniCredit was subject to the 2021 EU-wide stress test conducted by the European Banking Authority (EBA), in cooperation with the Single Supervisory Mechanism (SSM), the European Central Bank (ECB), and the European Systemic Risk Board (ESRB).
UniCredit notes the announcements made today by the EBA and the ECB on the EU-wide stress test and fully acknowledges the outcomes of this exercise.
The 2021 EU-wide stress test does not contain a pass/fail threshold and instead is designed to be used as an important source of information for the purposes of the SREP. The results will assist Competent Authorities in assessing UniCredit’s ability to meet applicable prudential requirements under stressed scenarios.
The adverse stress test scenario was set by the ECB/ESRB and covers a three year time horizon (2021-2023). The stress test has been carried out applying a static balance sheet assumption as of December 2020 and therefore does not take into account future business strategies and management actions. It is not a forecast of UniCredit profits.
UniCredit’s results are summarised below:
2023 fully loaded CET1r at 15.66% corresponding to 52bps higher than fully loaded CET1r as of December 2020
2023 transitional CET1r at 15.80% corresponding to 16bps lower than transitional CET1r as of December 2020
2023 fully loaded CET1r at 9.22% corresponding to 592bps lower than fully loaded CET1r as of December 2020
2023 transitional CET1r at 9.59%, corresponding to 637bps lower than transitional CET1r as of December 2020.
As a reminder, UniCredit's 2Q 2021 fully loaded CET1r is at 15.50% (transitional CET1r at 16.11%).
Milan, July 30, 2021
For more details please refer to EBA website (http://www.eba.europa.eu)
Media Relations: e-mail: MediaRelations@unicredit.eu
Investor Relations: e-mail: InvestorRelations@unicredit.eu
UniCredit: 2Q21 & 1H21 Group Results. Robust commercial performance and solid profitability
30 July 2021
New organisational structure 1 including dedicated management team for Italy. Simplification, clients and digital as guiding principles to underpin strategy
2Q21 underlying net profit 2 of €1.1 billion, with 1H21 underlying RoTE 3 at 7.7 per cent. 2Q21 revenues at €4.4 billion, with strong fees and stable NII 4. 2Q21 costs at €2.5 billion
Strong liquidity and capital position, with fully loaded CET1 ratio at 15.50 per cent 5 and fully loaded CET1 MDA buffer 6 at 647 basis points 7
FY21 total revenues in line with previous guidance of circa €17.1 billion and costs confirmed at €9.9 billion
FY21 underlying Cost of Risk 8 guidance improved to below 40 basis points, equivalent to LLPs of less than €1.8 billion. FY21 underlying net profit now expected to be above €3 billion.
UniCredit and the Ministry of Economy and Finance of the Republic of Italy have agreed prerequisite terms and will begin exclusive discussions around the potential transfer of a defined perimeter of MPS to UniCredit
29 July 2021
Milan, July 29 2021 - UniCredit and the Ministry of Economy and Finance (“MEF”) of the Republic of Italy, the majority shareholder of Banca Monte dei Paschi di Siena S.p.A. (“MPS”), have approved the prerequisites for a potential transaction involving the commercial operations of MPS with a carefully defined perimeter and appropriate risk mitigation. Exclusive discussions will now begin to assess the feasibility of a transaction.
The potential transaction would allow the Group to accelerate its organic growth plans and help deliver the ultimate goal of sustainable returns above the cost of equity over the cycle. MPS could contribute, subject to the definition of the final perimeter, approx. 3.9m clients, Euro 80bn customer loans, Euro 87bn customer deposits, and Euro 62bn assets under management and Euro 42bn assets under custody.
It could strengthen the Group’s competitive position and offering within Italy, in particular in the Central and Northern regions, where 77% of MPS branches are located. It could deliver market share growth of 17 percent in Tuscany, 4 percent in Lombardy and Emilia Romagna and 8 percent in Veneto.
This would lead to a significant increase in future profitability for the Group, while the prerequisites of the transaction would allow UniCredit to preserve its capital position, improve its asset quality and its risk profile on a pro-forma basis. Any potential transaction would take place alongside the Group’s existing focus on unlocking internal value, which remains a current and ongoing priority.
The main prerequisites agreed with the MEF to assess the feasibility of the transaction from an economic and financial perspective include but are not limited to the following:
capital neutrality of the transaction on the capital position of the Group on a pro forma basis;
in 2023, a significant accretion of the Group earnings per share when including the after-tax synergies deriving from the transaction, provided that the Group earnings per share shall remain at least unaffected if synergies are not factored in;
exclusion of all the extraordinary litigations not related to the ordinary banking activity and all relevant legal risks, actual or potential;
exclusion of NPEs and adequate protection from other potential credit risks, which may be identified also during the due diligence process, through actions to be defined;
agreement on the management of personnel, consistently with the perimeter of the going concern relating to the commercial activities, with the aim of ensuring a seamless, quick and effective integration into the Group.
The transaction under analysis is subject to the positive outcome of the assessment of the prerequisites as agreed, as well as the legal, economic, tax, accounting and industrial due diligence, the discussions with the MEF and MPS aimed at defining the transaction structure, terms and perimeter, and the subsequent definition of the relevant binding agreements. Following today’s announcement, UniCredit will agree with MPS the access to a virtual data room for the execution of the due diligence.
UniCredit confirms that, despite the absence of any actual conflict of interest and in full independence of mind, given his previous assignment as Minister of Economy and Finance the Chairman, professor Pier Carlo Padoan, abstained from the relevant resolution of the Board of Directors.
UniCredit will provide further updates on the potential transaction according to the applicable market disclosure requirements.
Andrea Orcel, CEO of UniCredit Group, will host a company call tonight, 29 July 2021, at 8.00 pm CEST. See below connection details.
UniCredit launches its new strategy on art and culture
28 July 2021
The bank stops sale of art and implements new initiatives to make its art collection more accessible to all
UniCredit announces new strategy to leverage and enhance its artistic heritage, particularly in Italy, in line with the overarching commitment to respect and value the Group’s roots.
After the decision to discontinue the Art4Future project, which previously oversaw the sale of some of the Group’s most significant artworks, the bank is now launching new programmes to ensure its collection is fully accessible to all. These include a dedicated digital initiative that will provide virtual access for the wider public to the bank’s art collection as well as educational programmes aimed at children in collaboration with the UniCredit Foundation.
Furthermore, a touring collection will be curated jointly to support the common priorities around young people and education.
Andrea Orcel, CEO of UniCredit, commented: “UniCredit is a pan-European Group with an Italian soul where art and culture are at the heart of this country, and a fundamental part of its history and heritage on which to build our future. That’s why UniCredit is halting any further sales and launching new and innovative initiatives to support art and culture, which have a deep social value and are closely intertwined with the social function that I believe a bank needs to have in all its communities. Our aim will be to make our exceptional collection, more widely accessible to the public allowing us to further engage with our communities and support their development and wellbeing.”
Further information on the bank’s new initiatives focused on art and culture will be announced in due course.
UniCredit will commit to honouring any remaining financial commitments from the Art4Future project as agreed.
Milan 28 July 2021
Notice of early redemption UNICREDIT “€1,000,000,000 NON-CUMULATIVE TEMPORARY WRITE-DOWN DEEPLY SUBORDINATED FIXED RATE RESETTABLE NOTES” (THE “NOTES”) ISIN XS1107890847
28 July 2021
With reference to the Notes, issued on 10 September 2014, UniCredit S.p.A., in accordance with the relevant Terms and Conditions of the Notes, will exercise its option to early redeem in whole the Notes on 10 September 2021 (the First Call Date).
The early redemption of the issue will be at par, together with accrued and unpaid interests. The interests shall cease to accrue on the same First Call Date.
Milan, 28 July, 2021