UniCredit: warns of additional loan loss provision

(CercleFinance.com) - UniCredit will book an additional loan loss provision of 900 million euros in the first quarter after updating its Covid-19 macroeconomic scenario, the Italian lender said on Wednesday.


The move comes as UniCredit now expects GDP to slump 13% in the eurozone this year, albeit followed by a 10% recovery in 2021.

UniCredit has also announced that its CEO will forego his variable remuneration for 2020, of up to 2.4 million euros, while cutting his annual salary by 25%.

As a result, Jean-Pierre Mustier's total remuneration for the year 2020 will be 900,000 euros, a 75% reduction of his overall full-year target remuneration.

In the statement, the group said it currently benefits from a "strong" liquidity position, with a liquidity coverage ratio of over 140% at the end of the first quarter.

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