Statement with reference to recent media reporting on the non-binding recommendation of the ECB to all banks directly supervised by the Single Supervisory Mechanism (SSM) regarding the coverage of the secured and unsecured NPL stock:
- Since Q3 2016, UniCredit has reduced its NPE portfolio by more than 36 billion as of Q3 2018. As a consequence, its Core bank NPE ratio was 4.3% in Q3 2018, in line with its EBA sample peers and it has committed to fully run off its Non-Core portfolio by 2021. In addition, UniCredit has a 62% NPE coverage ratio that is evidenced as highest in the sample of Eurozone banks in the recent EBA stress tests under adverse conditions. Consequently, UniCredit considers its NPE coverage fully adequate.
- Thanks to such decisive actions and taking into account the NPE portfolio dynamics, UniCredit estimates that the regulatory dialogue with the ECB could lead to a low annual single digit basis point impact on its CET1 ratio for any additional coverage of its NPE stock, for each year up to 2024, date mentioned by the ECB in its communication.
Milan, 16 January 2019
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