The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

UniCredit: Background music needs switching

The political tune of 2018 was not to UniCredit’s taste. Chief executive Jean Pierre Mustier needs a different rhythm to bring back the party spirit.

External events in 2018 did not give Jean Pierre Mustier, chief executive of UniCredit, much to celebrate by the year end.

Earlier in the year the bank had looked like it was getting ready for a party: capital was raised, transformation in train and governance reformed. Then its home country and key market set itself up for a sovereign debt scare and a bust-up with the EU.

The formation of a populist coalition between the Five Star Movement and Northern League in May and Italy’s subsequent pursuit of a more expansionary budget course in the autumn was by far the biggest short-term challenge UniCredit encountered in 2018.

This will continue to be a concern for investors in the bank in early 2019, thanks to its impact on capital, funding costs and the economy.

Unfortunately, Italy is not the only political and sovereign headache Mustier faces. The lira crisis in summer 2018 weighed heavily on Turkish banks, forcing UniCredit to revaluate its commitment to Yapi Kredi (Turkey’s sixth biggest bank, which it jointly controls with the local Koc Group).

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree