Jean Pierre Mustier is pinning his hopes on share buy-backs and dividend buy-outs in UniCredit’s latest three-year plan, as he tries to convince investors to look beyond its falling return on equity.
The chief executive’s new plan, unveiled at the bank’s capital markets day in London on December 3, comes as lower-for-longer negative European Central Bank rates – and the looming effect of new Basel III reforms in Europe – are forcing more eurozone banks to abandon hopes of earning a double-digit return on equity, something previously regarded as an industry minimum.
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Jean Pierre Mustier, UniCredit |
UniCredit, which can style itself a pan-European institution thanks to top-tier positions in Italy and Germany, now targets an underlying return on tangible equity of 8% by 2023.
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