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IBOS member UniCredit presented its 2016-2019 Strategic Plan, Transform 2019, at the Capital Markets Day in London on 13 December 2016.

UniCredit’s 2016-2019 Strategic Plan, approved on 11 July 2016, was presented to analysts and investors at the Capital Markets Day on 13 December 2016 in London. Transform 2019 highlights the bank’s decisive actions on legacy issues, transforming the bank and building on existing competitive advantages to capture opportunities and achieve future long-term profitability.

Jean Pierre Mustier, Chief Executive Officer, UniCredit S.p.A, commented:

“We have developed a pragmatic plan based on conservative assumptions, with tangible and achievable targets, dependent on cost and risk management, levers which are firmly under our own control.

We are taking decisive actions to deal with our NPE legacy issues to improve and support recurring future profitability to become one of Europe’s most attractive banks. We are going to build on our existing competitive advantages such as our unique Western, Central and Eastern European network as well as boosting the benefit of our simple commercial banking model with a fully plugged in CIB, by transforming it further. And, we shall capture opportunities whilst keeping a tight rein on risk, execution and costs. All these actions will allow us to generate a return on tangible equity of above 9 per cent in 2019 and allow for a cash dividend pay-out policy of between 20 to 50 per cent.”

The Transform 2019 plan rests on five strategic pillars:

  • Strengthen and optimise capital, to align capital ratios with the best in class G-SIFIs.
  • Improve the asset quality, decisive actions to address the Italian legacies via a proactive balance sheet de-risking, an increase of the NPE coverage, and by tightening risk management policies to further improve the quality of new loans origination.
  • Transform the operating model, increase client focus whilst simplifying and streamlining products and services to reduce the cost to serve customers.
  • Maximize commercial bank value, capitalize on Retail client relationship potential and the “go to” bank status for Corporate clients in Western Europe, further strengthen the leadership position in Central and Eastern Europe and enhance cross selling across business lines and countries.
  • Adopt a lean but strong steering Group Corporate Centre, consistent Group-wide KPIs to drive performance, ensure accountability, leaner support functions and transparent cost allocation.

Read the full press release, via UniCredit, here.