UniCredit chief resists rush to capital increase for Basle III

UniCredit’s chief executive insists the bank has no immediate need to raise extra capital despite recent cash calls by rival Italian lenders ahead of Europe’s stress tests.

Federico Ghizzoni tells Euromoney that he “doesn’t feel under any pressure to rush” to access the capital markets, emphasizing that the bank already meets Basle III requirements eight years ahead of schedule.

UniCredit’s core tier-1 ratio is 8.58% under current rules. Even if diluted by the new Basle rules, the ratio would still be 7.3%, above the minimum threshold of 7%.

UniCredit, however, lags behind other leading European banks, such as Credit Suisse, HSBC and Barclays, which all have ratios above 10% under the present regime.

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