UniCredit SpA (UCG) Chief Executive Officer Federico Ghizzoni is working on a new business plan for Italy’s biggest bank with a target of a return on tangible equity higher than 10 percent for the “medium term.”
“With market conditions improving,” the Milan-based bank is reviewing a multi-year plan, Ghizzoni said in an interview with Guy Johnson on Bloomberg Television at the World Economic Forum in Davos.’’ No date has been set yet for the plan’s presentation, he said.
Ghizzoni is cutting expenses and setting aside more provisions for non-performing loans to help strengthen UniCredit’s finances as he prepares for a European Central Bank review of balance sheets. UniCredit, which is one of the 15 Italian banks that will be evaluated amid the ECB assessment, had a core Tier 1 capital ratio, a key measure of financial strength, of 11.7 percent on Sept. 30.
“Our capital position puts us in a position to tackle this challenge in a proper way,” the CEO said. “Probably mid-sized and small banks will have some issues.”
To contact the reporter on this story: Sonia Sirletti in Milan at firstname.lastname@example.org
To contact the editor responsible for this story: Frank Connelly at email@example.com