UniCredit: 2020 earnings exceed targets

(CercleFinance.com) - UniCredit, Italy's leading banking group, announced net profit of 1.
3 billion euros for the financial year 2020, a result that is significantly above its target of 800 million euros, which it says is thanks to sound cost control.

Jean-Pierre Mustier, its CEO who will soon leave the group, described the performance as "impressive" in view of the provisions of five billion euros booked by the group to protect itself against possible future defaults on loans it has made.

In its statement, UniCredit - which now estimates that it has reduced its cost base by 20% since 2015 - said it is well on track to meet its target of closing 500 branches, a measure that will lead to the loss of around 8,000 full-time jobs.

For FY 2021, UniCredit says it expects to report earnings of at least 3 billion euros.

Pending the arrival of Andrea Orcel as the new CEO in April, the group announced this morning the appointment of Ranieri de Marchis, its deputy co-CEO, as interim CEO, with Jean-Pierre Mustier having decided to leave tomorrow.

The UniCredit share is currently down 2.9% on the Milan Stock Exchange.


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