UCG.MI - UniCredit S.p.A.

Milan - Milan Delayed price. Currency in EUR
8.45
+0.41 (+5.16%)
At close: 5:35PM CEST
Stock chart is not supported by your current browser
Previous close8.03
Open8.12
Bid8.45 x 0
Ask8.45 x 0
Day's range8.09 - 8.46
52-week range6.01 - 14.44
Volume38,067,391
Avg. volume28,095,910
Market cap18.905B
Beta (5Y monthly)1.79
PE ratio (TTM)4.96
EPS (TTM)1.70
Earnings date05 Aug 2020
Forward dividend & yieldN/A (N/A)
Ex-dividend date20 Apr 2020
1y target est16.38
  • An Italian Bank Deal Still Makes Perfect Sense
    Bloomberg

    An Italian Bank Deal Still Makes Perfect Sense

    (Bloomberg Opinion) -- It took years for Italy’s banks to cleanse their books of the bad debt they built up after the financial and sovereign debt crises. After a few months of the coronavirus, they may be staring at another wall of soured loans.Among the countries worst hit by Covid-19, Italy’s strict lockdowns have crippled its economy and its small and medium-sized companies in particular. The nation’s banks are heavily exposed to the SME sector and government-backed loans and grants can only soften the probable blow from credit losses.While Italy’s biggest banks have capital cushions that should see them through the crisis without needing to tap investors, regulators say some smaller, less profitable lenders might not make it on their own. Under these market conditions, one would think that consolidation in the Italian banking sector makes perfect sense. But Unione di Banche Italiane SpA, a mid-sized commercial lender based in Bergamo — a hot spot of Italy’s virus outbreak — has ideas of its own. UBI, as the bank is known, is so keen to thwart an unsolicited takeover by its bigger rival Intesa Sanpaolo SpA that it’s making an unusual claim: The coronavirus is a material adverse change and should invalidate the bid. This attempted rejection of Intesa might make sense if UBI were trying to squeeze out a better price for its investors, but that doesn’t appear to be the case. It just seems to want to pursue its own plans, a strategy shareholders might end up regretting.Days before the stock markets peaked in February, Intesa made an all-stock offer for UBI that valued the country’s fifth-largest bank at about a 25% premium. Intesa Chief Executive Officer Carlo Messina didn’t endear himself to his UBI counterparts: His hostile bid, a big no-no in banking, came hours after UBI’s CEO Victor Massiah had presented a new strategic plan. Nonetheless, the rationale for a combination is as compelling now as it was before the coronavirus hit — if not more so.Under UBI’s pre-pandemic strategy, the lender was trying to repair its measly profitability by improving efficiency, focusing on higher-margin corporate investment banking and getting rid of more of its bad debt. Massiah also sees UBI as a potential aggregator of smaller Italian banks. An alternative deal with Banco BPM SpA has been mooted.It’s unclear why Massiah’s approach is more appealing than a takeover by Intesa. The suitor may have to dial back its lofty dividend expectations for the merged company as the pandemic wrecks the economy, but if it achieves two-thirds control of UBI, it should be able to deliver chunky cost cuts by combining the two businesses.A tie-up between UBI and Banco BPM, by contrast, would leave little room for maneuver should credit losses spiral and the revenue outlook weaken, as expected. Analysts at JPMorgan Chase & Co. predict that non-performing loans in Italy could surge by 162 billion euros ($178 billion), under its worst-case scenario. While UBI has slightly better credit quality than its peers, 23% of its loan book is to SMEs, compared to Intesa’s 20%. The figure stands at 34% at Banco BPM.There is an argument that Italy could do with a third strong lender to rival Intesa and UniCredit SpA, and that UBI could team up with somebody else to deliver that. Italy’s antitrust authority is reviewing the deal. But with the economic damage caused by Covid-19, the Intesa-UBI deal has become more attractive. UBI’s shareholders should at least have their say on whether they support the idea.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters - UK Focus

    Lobby calls on EU for extra capital easing to help banks lend more

    A banking lobby group called on Tuesday for the European Union to further soften a capital measure to ensure banks do not run out of headroom to help companies hit by the coronavirus crisis. The Association for Financial Markets in Europe (AFME) said the European Central Bank (ECB) has estimated that such measures will free up 120 billion euros ($131 billion) to support 1.8 trillion euros of additional lending. "The question is are these changes going to be sufficient to furnish banks with enough capacity to provide the support to their customers that is going to be needed in the coming downturn, let alone the recovery?" Michael Lever, head of prudential regulation at AFME, said in a blog post.

  • Reuters - UK Focus

    LIVE MARKETS-Closing snapshot: risk-off session on coronavirus fears

    You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London and Stefano Rebaudo (stefano.rebaudo@thomsonreuters.com) in Milan. "It is mostly about Q1 results, which in many cases were stronger than expected and the possibility of dividend payments later this year," says Luca Rubini, managing director in Milan of Spanish investment firm Fidentiis.

  • Reuters - UK Focus

    LIVE MARKETS-Italian banks buck the trend and outperform

    * Italian banks are outperforming Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters. You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London and Stefano Rebaudo (stefano.rebaudo@thomsonreuters.com) in Milan. The Italian banking sector is outperforming its peers across Europe on Monday as better-than-expected financial results and possible dividend payments lift sentiment.

  • European Commission Threatens to Sue Germany. Here’s How It Could Happen
    Bloomberg

    European Commission Threatens to Sue Germany. Here’s How It Could Happen

    (Bloomberg) -- Germany and the European Union are escalating a legal power struggle that could undermine the euro.On Sunday, the European Commission threatened to sue the EU’s dominant economy after the German top court questioned the legality of the European Central Bank’s bond-buying program. With the 27-nation bloc ravaged by the coronavirus pandemic, the standoff has major implications for the European project itself and the monetary policy that underpins it.Here’s a look at how the legal nightmare might play out.1\. What infringement would the EU claim?Germany’s constitutional court decided last week it wouldn’t follow a 2018 judgment by the EU Court of Justice that cleared the central bank’s debt purchases, totaling 2.7 trillion euros ($2.9 trillion) since 2015. But under EU treaties, the top European court ranks higher. The German judges said they could deviate because the bloc’s top judges overstepped their powers when they backed the ECB’s policy in a previous ruling. It was a stinging challenge to the 68-year-old EU tribunal. That prompted a rebuke by European Commission President Ursula von der Leyen on Sunday. “The final word on EU law is always spoken” by the European court, she said. “Nowhere else.”2\. How can the EU sue a member country?The European Commission, the EU’s executive and administrative body, has the task of policing whether member states are abiding by EU law.If it finds that an EU country isn’t complying, it has to take action. The commission first informs the country that it’s in breach and tries to negotiate a solution. If that goes nowhere, the commission files a court case.3\. How real is the risk of the case going to court?This warning by the Brussels-based guardians of the EU doesn’t necessarily trigger an infringement procedure. Yet von der Leyen also has to consider the deterrent effect. “The commission cannot simply ignore this challenge to EU law,” Miguel Maduro, a former advocate general at the EU Court of Justice, said in an interview. Otherwise, such national challenges “might be replicated by other states. What would the commission do if the Hungarian constitutional court or the Polish constitutional court, or others, do something like this.”4\. Is there a road map for such lawsuits?So-called infringement proceedings aren’t unusual. Most of them don’t make headlines because they often address very technical questions on EU regulations. However, they’ve usually resulted in a kind of give-and-take where EU complaints are resolved with policy changes or, in extreme cases, fines. Yet it’s unlikely that Germany’s top court would reverse its ruling if the European court ruled against it. That could trigger an institutional crisis for the EU. “Making this statement that they’re considering opening an infringement procedure without actually opening it is a smart, prudent approach,” Maduro said.5\. Would the EU sue the German court or the German government?The EU can only sue member states. That kicks in if an institution in a country — even a court — allegedly breaks EU law. Under international law, countries need to ensure that their agencies are in line with the law and must fix any transgressions.6\. Which court would hear the EU’s suit – and is that a problem?The case would be heard by the EU’s top court, the same one the German judges attacked in their May 5 ruling. A 15-judge panel handed down the December 2018 judgment on the ECB’s asset purchases. Since the court has 27 judges, that gives it some leeway to make sure that all of the same judges don’t rule on this case if it goes to court.7\. What will the ECB do?President Christine Lagarde has signaled that the ECB doesn’t plan on taking action, arguing that the institution is accountable to European parliament and remained under jurisdiction of the EU Court of Justice -- with national agencies having no say.Yet there are ways to diffuse the situation. The ECB could write a paper explaining that its policy meets the proportionality test, UniCredit’s Chief economist Erik Nielsen wrote in a note. “While tedious, it’s an easy paper to write,” he said. “After all, according to the minutes of the governing council meeting from 2015 when the program was agreed on, proportionality was indeed considered.”The document could be released as a study or working paper -- without any reference to the ruling -- to allow the ECB to cooperate without jeopardizing its independence or being perceived as bowing to national laws.8\. What can Germany do to salvage the situation?For the German government, the situation is tricky. Its constitutional court has been a hallmark of civil liberties and has very high approval rates with citizens. Its independence is enshrined in the constitution, and the government can’t just order it to reverse a ruling or set it aside.Behind the scenes, Chancellor Angela Merkel and her team may want von der Leyen to file a lawsuit. If Germany loses that case, its leaders could say it is forced to fix the situation and take measures without causing a constitutional crisis.9\. What are the politics behind the dispute?German opponents of the use of euro-area bailouts and ECB bond-buying to protect the shared currency repeatedly challenged the policies in the country’s courts, which until last week broadly went along with the rescue measures. Former German Finance Minister Wolfgang Schaeuble, a veteran of Europe’s bailout battles, warned that letting nations cast doubt on the EU court’s authority could eventually threaten the euro’s survival.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Is There Now An Opportunity In UniCredit S.p.A. (BIT:UCG)?
    Simply Wall St.

    Is There Now An Opportunity In UniCredit S.p.A. (BIT:UCG)?

    UniCredit S.p.A. (BIT:UCG) received a lot of attention from a substantial price movement on the BIT over the last few...

  • Bloomberg

    Deutsche Bank Enjoys a Rare Day in the Sun

    (Bloomberg Opinion) -- For a bank that’s in the middle of its deepest corporate restructuring in decades, the economic slump unleashed by the deadly Covid-19 pandemic couldn’t have come at a worse time. Yet Deutsche Bank AG, Germany’s biggest lender, had a remarkably strong first quarter, even posting a surprise profit. A buoyant start to the year at the investment bank, the company’s top revenue driver, will only numb the pain for a while.In a Sunday-night statement reminiscent of some of Deutsche’s most turbulent years, Chief Executive Officer Christian Sewing raced out an early glimpse of its earnings. This time he had some good news for investors. Revenue — which has been under pressure as the lender shrank — held steady at 6.4 billion euros ($6.9 billion), a figure that exceeded even the most optimistic of analyst estimates by a wide margin. While details on the financials were scant ahead of Deutsche’s full earnings release on Wednesday, it seems that the bank’s traders did well, following their Wall Street peers, who had their best quarter in eight years.The bank also delivered on its cost-reduction plans, hitting analyst estimates, and it said it remains on track to meet year-end objectives. But controlling expenses has become much more complicated in the pandemic era. The spike in revenue from securities trading will normalize now that investors have rebalanced their portfolios.Deutsche is trying to reposition itself away from parts of the trading business and pivot back to its roots in corporate finance and trade finance. However, it remains to be seen whether this can be done successfully — especially at this time.Sewing had pledged to cut almost 18,000 jobs by 2022, but last month he paused involuntary departures in view of the coronavirus outbreak and Germany’s broader need to protect the economy. While the bank may not be hiring many people during the pandemic, fewer will want to leave during the worst economic contraction since the 1930s. The additional cost will put pressure on trader bonuses and the investment needed across the firm.The bank is abandoning some capital targets too. Gone is the objective for 12.5% of common equity Tier-1 capital. Deutsche expects that key metric of financial strength to fall temporarily below this level, but it didn’t say for how long or by how much — other than to say the fall would be modest. Its leverage ratio target for this year is also being jettisoned.At 12.8%, Deutsche is comfortably above its new 10.4% CET1 requirement, determined by the regulators, but the upheaval caused by Covid-19 will increase its market and credit risk. Relative to its peers, Deutsche sits on one of the largest piles of risky assets to capital, a position that has never been tested to this degree. Clarity on what Deutsche called a “series of pending and proposed regulatory adjustments, which could improve the bank’s reported CET1 ratio” might ease concerns. Analysts aren’t expecting the bank to be profitable for the whole of 2020.In the meantime, a 500 million-euro credit provision is hardly a bold acknowledgment of the risk. Italy’s UniCredit SpA, which has a similar sized loan book, is taking a 900 million-euro hit in the first quarter. Regulators have encouraged lenders to go easy on how much they set aside for souring credit, with the European Central Bank suggesting banks can assume an economic rebound this year in their calculations. Investors might be less sanguine.More than most European bank bosses, Sewing needs to keep shareholders with him as he tackles the restructuring. A 13% bounce in Deutsche’s share price on Monday shouldn’t distract from the difficulty of his mission.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters - UK Focus

    LIVE MARKETS-"I’m from the government, and I’m here to help"

    You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London and Stefano Rebaudo (stefano.rebaudo@thomsonreuters.com) in Milan. There was a time Ronald Reagan was cheered when he said the most terrifying words in the English language are "I’m from the government, and I’m here to help".

  • Reuters - UK Focus

    LIVE MARKETS-Loads of e-meetings, no game-changing decisions

    You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London and Stefano Rebaudo (stefano.rebaudo@thomsonreuters.com) in Milan. The internal EU divisions over Italy is feeding euro scepticism: Nomura says that the Eurozone membership prevents Italy from saving its own people.

  • Reuters - UK Focus

    LIVE MARKETS-Gold could reach $3,000 threshold in 18 months

    You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London and Stefano Rebaudo (stefano.rebaudo@thomsonreuters.com) in Milan. In addition to interest rates and nominal GDP, "central bank balance sheets or official gold reserves will remain the key determinants of gold prices," BofA says in a research note.

  • Reuters - UK Focus

    LIVE MARKETS-On the radar: Investors back to the stock market

    You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London and Stefano Rebaudo (stefano.rebaudo@thomsonreuters.com) in Milan. Another day in risk-off mood as concerns about coronavirus impact on the economy are keeping oil prices under pressure, but investors are back to the stock market after yesterday's selloff.

  • Reuters - UK Focus

    Europe's banks want regulators to match U.S. leverage plan

    Banks are calling on European regulators to match the U.S. Federal Reserve's plan to relax a rule that measures a bank's capital reserves to promote the flow of cash to businesses hit by the coronavirus crisis. Earlier this month, the Fed proposed a temporary easing of a supplementary leverage ratio rule that applies to the biggest U.S. banks that have assets of more than $250 billion. This would allow the U.S. banks to expand their balance sheets by lending more to customers hit by the pandemic, but without busting their leverage ratio cap of 3% of capital to total assets.

  • Reuters - UK Focus

    LIVE MARKETS-A blizzard of bad news coming

    * China cuts reverse repo rate * Oil prices tank * Euro zone banks start freezing dividends * STOXX 600 down 0.9% Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters. You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London. "Markets shrugged off the first round of bad data, reassured by the policy response and, perhaps, the reduction in uncertainty from finally seeing some hard data," Goldman Sachs says.

  • Reuters - UK Focus

    LIVE MARKETS-Corona crash: Who's neck and neck behind the travel sector?

    * China cuts reverse repo rate * Oil prices tank * Euro zone banks start freezing dividends * STOXX 600 down 0.9% Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters. You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London. In Europe, shares listed in the Travel and Leisure sector have lost over 45% year to date, which constitutes by far the worst performance.

  • Reuters - UK Focus

    LIVE MARKETS-EZ sentiment plunge triggers muted market reaction

    * China cuts reverse repo rate * Oil prices tank * Euro zone banks start freezing dividends * STOXX 600 down 0.5% Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters. You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London.

  • Reuters - UK Focus

    LIVE MARKETS-Which UK companies are still paying dividends?

    * China cuts reverse repo rate * Oil prices tank * EZ banks start freezing dividends * STOXX 600 down 1% Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters. You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London. WHICH UK COMPANIES ARE STILL PAYING DIVIDENDS?

  • Reuters - UK Focus

    LIVE MARKETS-Opening snapshot: A morning burst of volatility

    You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London. Apart from lenders, the pay-out freeze is still doing its thing with Sweden's SSAB dropping its dividend for 2019,a move that came less than a week after the steelmaker had halved its original payout proposal.

  • Reuters - UK Focus

    LIVE MARKETS-On the radar: The winter dividend is coming

    You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London. It's a bit a song of ice and fire this morning: blue chips are burning cash like Daenerys Targaryen her enemies and investors have to come to terms with one of the only certainty of these troubled times: the dividend winter is coming! UniCredit became the first Italian bank to comply with the ECB call to put dividend and buybacks on hold to preserve beef up capital and support the economy.

  • Reuters - UK Focus

    UK banks scramble to protect customers from wave of coronavirus scams

    UK banks are stepping up fraud prevention measures to protect customers from scammers eager to exploit the coronavirus pandemic with a whole range of new tricks, including fake sales of medical supplies and bogus government relief schemes. With British households effectively on lockdown, some banks said customers had already been caught out by fraudsters posing as banks, government and even health service providers to persuade victims to hand over passwords or other sensitive data. Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland have launched social media campaigns to flag ploys.

  • Reuters - UK Focus

    Basel banking watchdog to consider virus measures in coming days

    Banks and their supervisors must remain vigilant in light of the evolving nature of the COVID-19 epidemic to ensure that the global banking system remains financially and operationally resilient, global regulators said on Friday. The Basel Committee of banking supervisors from the world's main financial centres said it held a teleconference on Friday and supported measures taken by members so far.

  • Should You Or Shouldn't You: A Dividend Analysis on UniCredit S.p.A. (BIT:UCG)
    Simply Wall St.

    Should You Or Shouldn't You: A Dividend Analysis on UniCredit S.p.A. (BIT:UCG)

    Today we'll take a closer look at UniCredit S.p.A. (BIT:UCG) from a dividend investor's perspective. Owning a strong...

  • Bloomberg

    StanChart's Investors Should Be Careful What They Wish For

    (Bloomberg Opinion) -- Standard Chartered Plc investors should be careful what they wish for. Shares in the emerging markets lender rose on Tuesday after Bloomberg News reported that Chairman Jose Vinals has informally approached banking executives to gauge interest in replacing Chief Executive Officer Bill Winters, who’s about to complete five years at the Asia-focused bank. StanChart responded to the story by saying it would like to retain Winters for “as long as possible” and described the meetings with outside candidates as normal succession planning. Investors have plenty of reasons to want a new boss. Winters picked a churlish fight with some of them last year over his pay, calling them “immature,” even when his steering of the bank didn’t exactly justify the compensation. StanChart recently delayed its target of a 10% return on tangible equity to beyond 2021 after delivering just 6.4% last year, 2 percentage points lower than larger rival HSBC Holdings Plc.Still, viewed from coronavirus-hit Hong Kong — StanChart’s biggest market — you’d have to ask whether 2020 is really the right year for making big changes at the top. This isn’t 2015, when Winters was brought in to deal with a big bad loan problem. Now banks are grappling with low interest rates and the impact of the virus. A steady ship is critical.StanChart’s main task this year will be to lift profitability through stricter cost controls. Maybe a new CEO could cut thousands of jobs, as HSBC’s interim boss Noel Quinn is doing. But a similar axing of headcount might look like overkill if the outbreak doesn’t last much longer. The bank is midway through the launch of an internet bank to attract millennial and Generation Z savers in Hong Kong, where its customers are getting old. Why jeopardize that?True, StanChart’s $500 million buyback was less than investors expected last week, but the sale of Indonesia’s PT Bank Permata should release the capital needed to return some more to investors.Besides, where exactly is Vinals going to find this new CEO? Europe’s biggest banks are already struggling to fill their own posts, and there’s hardly a surfeit of talent out there. Neither are decent executives falling over themselves to work for bigger lenders; look at Jean Pierre Mustier’s snub of HSBC in favor of staying with Italy’s UniCredit SpA.If Vinals could land someone like Piyush Gupta, CEO of Singapore’s DBS Group Holdings Ltd., then investors would have cause to celebrate. The head of Singapore’s largest bank has won accolades for digitizing the lender, a holy grail for the finance industry. But would Gupta really consider the job unless Singapore’s state investment firm Temasek Holdings Pte. — the largest shareholder of both StanChart and DBS — saw value in combining the two banks? Such a merger, as far as we know, isn’t on the cards.  A mediocre StanChart may frustrate investors; an unstable one would hurt them even more. To contact the authors of this story: Andy Mukherjee at amukherjee@bloomberg.netNisha Gopalan at ngopalan3@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters - UK Focus

    LIVE MARKETS-An S&P reminder about these Italian banks

    You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@tr.com), Joice Alves (joice.alves@tr.com), Julien Ponthus (julien.ponthus@tr.com) in London. Banking stocks are among the worst performers and, as usual, Italian banks are at the bottom of the banking index this morning.

  • Reuters - UK Focus

    Citi, Credit Suisse among banks curbing Italy trips on coronavirus fears - sources

    LONDON/MILAN, Feb 25 (Reuters) - Investment banks including Citigroup Inc, Credit Suisse and Nomura Holdings Inc have curbed trips to Italy on fears that the coronavirus outbreak across the north of the country could quickly spread across Europe, four sources told Reuters. Citi has told staff heading to Italy's financial capital Milan or other northern cities to postpone their trips or seek approval from top management if they are working on sensitive deals, the sources said, speaking on condition of anonymity as banking policies are confidential.

  • Bloomberg

    Drama and Scandal Are Totally Normal at Europe's Banks

    (Bloomberg Opinion) -- European banks have a problem with their boardrooms.From the Anglo-Asian giant HSBC Holdings Plc to Spain’s Banco Santander SA and Switzerland’s Credit Suisse Group AG, a troubling phenomenon has become apparent at many of the region’s lenders: the weakness of the body tasked with ensuring the company’s success.Bankers are already under pressure because of rock-bottom interest rates and digital disruption, so it’s far from ideal that their boards appear slow, clumsy and overly beholden to their chief executives. Proper corporate governance matters as much now as it did during the financial crisis. While lenders may be simpler and safer by some measures, they’re still impenetrable to the outside world, and new risks are always emerging. Their CEOs need to be chosen, managed and held in check more effectively.An endless series of boardroom dramas has beset Europe’s banks in the past year. Consider HSBC. the continent’s biggest lender has just embarked on its biggest overhaul in decades (its third attempt to adapt to the post-crisis era), a plan that involves tens of thousands of job cuts, scrapping buybacks and reallocating capital to more profitable businesses. It’s hardly the time to be leaderless.Yet six months after ousting CEO John Flint, who only held the job for a year and a half, HSBC’s board hasn’t made up its mind whether it wants to give his interim replacement Noel Quinn the job, or to hire externally.In fairness, finding the right boss for a sprawling bank with a $2.7 trillion balance sheet is the most important task of the board and Chairman Mark Tucker — alongside setting the strategy. It mustn’t be rushed. But a strategic overhaul of this magnitude needs a leader who owns the new plan. The longer the appointment drags out, the tougher it will be for Quinn to execute; and the harder it would be for a credible external candidate to implement someone else’s turnaround story. The board has given itself until as late as August, but time isn’t on its side after the favorite outside candidate, UniCredit SpA’s Jean Pierre Mustier, committed himself to his current employer.HSBC’s board is in fine company when it comes to messy situations. At Barclays Plc, another regulatory probe into CEO Jes Staley — this time looking at his relationship with the disgraced financier Jeffrey Epstein — raises questions about oversight at the top of the firm. Staley was fined previously for attempting to unmask a Barclays whistleblower. The London-based bank took two months to go public on the latest inquiry, and it hasn’t shared details of its own review into the CEO’s relationship with Epstein. While one shouldn’t jump to conclusions, more transparency from the board would have been invaluable to investors.Elsewhere, the Credit Suisse board hardly covered itself in glory during a months-long spying scandal that cost CEO Tidjane Thiam his job. While Thiam was cleared of knowing about the surveillance operations against employees, past and present, it’s pretty damning that neither he nor the board were aware of those activities being carried out by key personnel. The Swiss giant’s directors must share responsibility for an episode that damaged the bank’s reputation and upset employees.In April, Santander faces its own embarrassing showdown in a Spanish court. After withdrawing its offer of the CEO post to Andrea Orcel — the former head of investment banking at UBS Group AG — over a disagreement on pay, Santander is being sued by Orcel for more than 100 million euros ($108 million). Why Santander would have agreed to honor UBS’s generous financial obligations to Orcel, and then withdrew the proposal, is unclear. A detailed account of alleged text messages between Santander Chairman Ana Botin and Orcel and his wife, published by Reuters, points to personal relationships possibly playing a bigger role than they should have in a CEO appointment.For its part, UBS botched its own internal CEO succession plan, and eventually hired Ralph Hamers from ING Groep NV — despite the Dutch bank’s failings over money-laundering and Hamers’s lack of experience in UBS’s core businesses. That was a controversial move by the directors of the world’s biggest wealth manager. In the age of the “purposeful company,” bank boards should be leading the way on properly representing their shareholders, as well as employees and society. It isn’t obvious whose interest they’ll serve by remaining so ineffective. To contact the author of this story: Elisa Martinuzzi at emartinuzzi@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

By using Yahoo, you agree that we and our partners can use cookies for purposes such as customising content and advertising. See our Privacy Policy to learn more