UniCredit successfully concluded first of a number of comprehensive financial measures to prepare for new strategic plan
As stated in its press release on 8 May 2019, UniCredit announced that it had sold 17 per cent of Fineco's issued share capital to institutional investors for gross proceeds of €1,014 m. Fineco will be deconsolidated and the placement will lead to an increase in the Group's CET1 ratio of +21 bps in 2Q19. The remaining stake of ca. 18 per cent will be classified as a financial asset.
The placement is the first step in a comprehensive set of financial measures, to prepare for the wider 2020-2023 business strategy to be presented later this year. Specifically:
- Targeting to be at the upper end of the 200-250 bps MDA buffer by year end 2019 through the disposal of certain assets, including those already executed (e.g. real estate in 1Q19, 17 per cent of Fineco in 2Q19);
- Gradually align over time UniCredit's domestic sovereign bond portfolio with the domestic bond holdings of its Italian and European peers on a relative basis;
- Further acceleration of the Non Core rundown, which is expected to meaningfully beat the FY19 €14.9 bn target. 2021 Non Core runoff fully on track;
- Evolution of Group structure to increase optionality and flexibility, in particular optimising the cost of funding under different potential macroeconomic scenarios.
Details of these measures, as well as the accompanying new business strategy for 2020-2023, will be presented at the UniCredit Capital Markets Day on 3 December 2019 in London.