Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Italian Stock Exchange  >  UniCredit S.p.A.    UCG   IT0005239360

UNICREDIT S.P.A.

(UCG)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

UniCredit picks former Treasury chief Padoan as chairman

10/13/2020 | 07:36am EST

* To name economist, member of ruling PD party as chairman

* Will appoint new board early next year

* Banking M&A wave piles pressure on CEO Mustier

* Bank eyes split of domestic, foreign assets

MILAN, Oct 13 (Reuters) - Italian bank UniCredit on Tuesday named economist Pier Carlo Padoan as director and said it would appoint the former Treasury chief as chairman when it renews the board next spring.

The choice of Padoan, 70, a parliamentarian for the ruling centre-left PD party, comes as consolidation sweeps through Europe's battered banking sector, piling pressure on CEO Jean Pierre Mustier to drop his "no M&A" mantra.

As economy minister in two successive PD governments, Padoan oversaw the bailout of Italy's oldest bank, Monte dei Paschi, which the government is now seeking to re-privatise.

Sources have said UniCredit is seen as the best candidate to take over Monte dei Paschi but the Treasury is unwilling to meet conditions posed by UniCredit to consider a potential acquisition.

After politics sank early attempts to strike cross-border deals with Societe Generale and Commerzbank, Mustier has vowed to stay out of the current merger wave.

He has been working instead on a plan to split UniCredit's domestic assets from its foreign ones to cut funding costs for Italy's only bank designated by regulators as globally systemically relevant.

A source familiar with the matter told Reuters on Tuesday Mustier was looking to speed up such plans and seek approval from the current board before its mandate expires next spring.

Il Sole 24 Ore daily reported directors were divided on the issue and would prefer to wait until a new board is in place.

UniCredit said Padoan would play an active role in selecting candidates the board will put forward for its own renewal.

Sources with knowledge of the matter have told Reuters the proposed asset split could ease tie-ups, potentially paving the way for UniCredit to pursue an international merger for its foreign business as well as a domestic combination in Italy.

"UniCredit is a true pan-European winner with solid Italian roots. I very much look forward to working with the board and the management team to capitalise on these strengths," Padoan said in a statement.

Padoan's resume includes stints at the International Monetary Fund and the Organization for Economic Co-operation and Development. He will replace academic Cesare Bisoni, whom UniCredit had named interim chairman following the sudden death of Fabrizio Saccomanni last year.

The chairman is an honorary figure with no executive powers but two people familiar with the matter said Padoan may carry more weight than his predecessors.

Mustier has dispelled long-standing concerns about UniCredit's weak capital base by raising 13 billion euros in cash from investors and more than that through asset sales.

But the bank's share price stands below levels of mid-2016 when Mustier arrived, at around 0.3 times the book value.

The dividend ban driven by COVID-19 has stalled Mustier's plan to boost investor returns through dividends and buybacks.

"In case regulators' approach to capital return remains conservative and considering that the competitive landscape has changed in Italy, we believe UniCredit might consider M&A if it represents revenue/profitability or capital opportunities," Citi analyst Azzurra Guelfi said in a note.

By taking over smaller peer UBI earlier this year, rival heavyweight Intesa SanPaolo has leapfrogged UniCredit as Italy's biggest bank and cemented its dominance in the country's wealthy north.

Il Sole 24 Ore said UniCredit may list 49-50% of the sub-holding company created to house its foreign assets on the Frankfurt stock exchange, raising capital to pursue a domestic merger while still seeking an international deal with the remaining 50% stake. (Reporting by Valentina Za and Gianluca Semeraro in Milan Additional reporting by Giuseppe Fonte and Giselda Vagnoni in Rome and Andrea Mandala and Agnieszka Flak in Milan Editing by Philippa Fletcher and Matthew Lewis)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
COMMERZBANK AG -2.34% 5.272 Delayed Quote.-2.27%
INTESA SANPAOLO S.P.A. -0.39% 1.9376 Delayed Quote.-17.20%
SOCIÉTÉ GÉNÉRALE -1.88% 17.004 Real-time Quote.-44.13%
UNICREDIT S.P.A. -4.35% 8.694 Delayed Quote.-30.15%
All news about UNICREDIT S.P.A.
05:24aShares in UniCredit down 4.5% hit by concerns over CEO's future
RE
11/29UniCredit board holds governance talks as future of CEO in question
RE
11/29UniCredit board holds governance talks as future of CEO in question
RE
11/27UNICREDIT WORKING WITH GS, JPM AS ST : sources
RE
11/27UNICREDIT S P A : comfortably meets SREP capital requirements for 2020
AQ
11/26UNICREDIT S P A : organises Italy Tech Day 2020
AQ
11/24UNICREDIT SPA : Credit Suisse gives a Neutral rating
MD
11/23France's Credit Agricole makes $875 million buyout offer for Italy's Creval
RE
11/23UNICREDIT SPA : Jefferies reiterates its Neutral rating
MD
11/23AVIVA : sells Vita stake to UBI Banca as part of group overhaul
RE
More news
Financials
Sales 2020 17 199 M 20 611 M 20 611 M
Net income 2020 -1 896 M -2 273 M -2 273 M
Net Debt 2020 - - -
P/E ratio 2020 -10,7x
Yield 2020 1,27%
Capitalization 20 258 M 24 220 M 24 277 M
Capi. / Sales 2020 1,18x
Capi. / Sales 2021 1,16x
Nbr of Employees 83 621
Free-Float 91,6%
Chart UNICREDIT S.P.A.
Duration : Period :
UniCredit S.p.A. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends UNICREDIT S.P.A.
Short TermMid-TermLong Term
TrendsBullishBullishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 25
Average target price 9,42 €
Last Close Price 9,09 €
Spread / Highest target 39,7%
Spread / Average Target 3,59%
Spread / Lowest Target -34,0%
EPS Revisions
Managers
NameTitle
Jean-Pierre Mustier Group Chief Executive Officer & Executive Director
Cesare Bisoni Chairman
Pietro Carlo Padoan Chairman-Designate
Ranieri de Marchis Co-Chief Operating Officer
Carlo Vivaldi Co-Chief Operating Officer
Sector and Competitors
1st jan.Capitalization (M$)
UNICREDIT S.P.A.-30.15%24 220
JPMORGAN CHASE & CO.-13.04%369 503
INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED-22.17%275 465
BANK OF AMERICA CORPORATION-17.69%250 786
CHINA CONSTRUCTION BANK CORPORATION-11.29%199 469
CHINA MERCHANTS BANK CO.. LTD.19.98%174 181