(ANSA-AFP) - MILAN, JAN 28 - UniCredit, Italy's second
biggest bank, announced Friday a net profit of 1.54 billion
euros in 2021, after a loss of 2.78 billion euros in 2020 as
coronavirus ravaged the global economy. Underpinned by a strong
increase in commissions, the result is however lower than
analysts' expectations provided by the bank, which forecast a
net profit of 1.83 billion euros, while UniCredit's accounts
went back into the red in the fourth quarter. Chief executive
Andrea Orcel nevertheless confirmed his ambitious target to
return to shareholders at least 16 billion euros by 2024. In
total, 3.75 billion euros will be distributed to shareholders on
the back of the 2021 results, through dividends of 1.17 billion
euros and a share buyback of 2.58 billion euros. For 2022, Orcel
confirmed a forecast of "more than 3.3 billion euros" in net
profit. Last year's figures fell short of forecasts due to
restructuring costs linked to a new strategic plan that weighed
on the fourth quarter, where a net loss of 1.43 billion euros
was recorded. This loss was larger than the analysts' consensus,
which predicted some 1.14 billion euros. However, underlying net
profit -- excluding exceptional items -- still tripled to 3.9
billion euros in 2021, above the group's target of 3.7 billion.
Turnover was also higher than expected, rising by 4.8 percent
year on year to 17.9 billion euros. Orcel, who took over last
April from Jean-Pierre Mustier, announced a new strategic plan
in December that forecast net profit of more than 4.5 billion
euros in 2024. His priorities include the "simplification" of
the group, and on Thursday announced a deal with trade unions
for 1,200 voluntary exits, 725 new hires and 1,000 permanent
contracts between now and 2024. Meanwhile, UniCredit announced
Friday it had signed a deal to reinforce its partnership with
German insurance giant Allianz, notably for joint investments in
digitisation in Italy, Germany, central and western Europe.
UniCredit is seeking a new approach following the failure of its
negotiations with Italy's government over the mooted purchase of
Banca Monte dei Paschi di Siena (BMPS). (ANSA-AFP).
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