THIS is no time to be timid. Or so Jean-Pierre Mustier seems to think. On December 13th, after five months in the job, the chief executive of UniCredit presented his plan for Italy’s biggest bank. He didn’t hold back. UniCredit is shedding €17.7bn worth ($18.8bn) of bad loans, taking a one-off provision of €8.1bn. It will save €1.7bn a year by 2019, cutting 6,500 jobs on top of 7,500 previously announced to shrink its workforce by 14%. And in a rights issue next year it will raise €13bn—just €2bn less than its market value before the announcement. The markets lapped it up: the shares gained 16%, before retreating the next day.
Mr Mustier had already been busy. The previous day UniCredit sold Pioneer, its asset-management arm, to France’s Amundi (though it will still distribute Pioneer’s products). It recently unloaded its stake in Bank Pekao, in Poland, as well as 30% of Fineco, an Italian online bank of which it will retain control. The bad-debt write-down, restructuring costs and other bits and bobs will partially offset the gains from these sales and the rights issue. But the boss expects UniCredit’s ratio of...Continue reading
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