UniCredit's M&A stance is 'steady as she goes' - CEO
Reuters
Published Apr 19, 2023 14:16
Updated Apr 19, 2023 14:28
By Conor Humphries
DUBLIN (Reuters) - UniCredit (LON:0RLS) is in a position to take advantage of current turmoil in the banking industry to gain market share but on merger and acquisitions its stance is one of "steady as she goes", its chief executive said on Wednesday.
Speaking at a Bloomberg conference in Dublin, CEO Andrea Orcel downplayed as "isolated cases" recent problems in the industry, including U.S. regional bank failures and the rescue merger of Credit Suisse (SIX:CSGN) with rival UBS.
Orcel said the European Central Bank's decision to go ahead with a planned rate rise and also authorise UniCredit to buy back 3.34 billion euros ($3.66 billion) of its own shares, nearly 10% of its value, "underscored the fact that the situations are very different."
Banking rules Europe introduced after the 2008 financial meltdown have proved effective, meaning the only threat was that of a confidence crisis spreading, he said.
"As far as we're concerned, we're very well capitalised, very liquid and we see this ... uncertainty as an opportunity to bring to bear our strengths," he said, when asked about M&A.
He said the lack of a banking union across the euro zone, providing uniform rules and the free flowing of capital, meant that deals only made sense domestically.
"Once you cross the border ... there is very limited incentive to pursue," he added.
Orcel, who built his career in investment banking, has always said he would consider M&A in countries where UniCredit is already present only if it did not derail his capital distribution plans. The bank operates in 13 countries.
"So we're not restricted, with discipline. We know where we want to expand, where we don't want to expand, we look very, very closely at risks. Our stance is one of steady as she goes," he said.
($1 = 0.9135 euros)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.