UniCredit to cut 9% jobs, citing pressure on profitability
In its strategic plan, the lender will close about 500 branches
Stocks impacted: UniCredit (CRDI)
Under its new four-year strategic plan to 2023, Italy’s biggest bank, citing slow economic growth, negative interest rates, intense competition and regulation weighing on profitability, will see about 8,000 job cuts, or 9% (through the closure of about 500 branches), and will reward investors with 2 billion euros of share buybacks. The lender plans to boost shareholder remuneration through a combination of dividends and share repurchases. UniCredit said it sees revenue growing an average 0.8% annually in 2018-2023, and costs falling by 0.2% over the same period. As a reminder, the bank sold its stakes in online lender FinecoBank SpA and in Mediobanca SpA recently. A few days ago, UniCredit reached an agreement to cut its stake in Turkish bank Yapi ve Kredi Bankasi AS. Early on Tuesday, the lender’s stocks are trading 1.25% higher.
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