July 3, 2020 / 1:12 PM / a month ago

BRIEF-UBI Cuts 2022 Net Profit Forecast, Raises Dividend Payments

July 3 (Reuters) - Ubi Banca:

* ISSUES UPDATE OF 2022 BUSINESS PLAN

* EXPECTED NET PROFIT IS €562 MILLION IN 2022 COMPARED WITH €665 MILLION IN THE ORIGINAL PLAN

* SEES REDUCTION OF APPROX. ONE PERCENTAGE POINT OF ROTE IN 2022

* THE STRATEGIC DECISION TO ACQUIRE 100% OF AVIVA VITA WAS TAKEN, WHICH WILL LEAD, OVER THE TIME HORIZON OF THE PLAN, TO AN EXPECTED RETURN ON THE INVESTMENT OF OVER 10%

* IMPACT OF COVID-19 PANDEMIC ON LOAN LOSS RATE IS ESTIMATED AT ADDITIONAL CUMULATIVE 85 BASIS POINTS OVER 2020-2022 PERIOD

* CONFIRMING ALL THE STRATEGIC LINES OF ACTION OF THE BUSINESS PLAN PRESENTED LAST FEBRUARY

* SEES EXCESS CAPITAL DISTRIBUTABLE COMPARED TO A FLOOR CET1 RATIO OF 12.5% AT AROUND 840 MILLION EUROS FOR 2020-2022 EQUIVALENT TO A CUMULATIVE AMOUNT OF OVER 73 EURO CENTS PER SHARE

* RECRUITMENT AND INCENTIVISED REDUNDANCY PLAN, POSTPONED DUE TO UNCERTAINTIES CONNECTED WITH THE PUBLIC EXCHANGE OFFER, IS CONFIRMED

* MEASUREMENT OF IMPACT OF COVID-19 ON CREDIT PARAMETERS CARRIED OUT IN A SCENARIO WHICH INCLUDES CHANGES IN REAL GDP OF -10.3% IN 2020, +2.8% IN 2021

* NET OF APPROX. 1,000 NEW RECRUITS, DEPARTURE OF APPROX. 2,000 STAFF IS FORECAST, EXPECTED MOSTLY IN 2021, CONSISTENT WITH THE CONCLUSION OF TRADE UNION AGREEMENTS THAT WILL BE PROGRESSIVELY NEGOTIATED

* AVIVA INTERNALISATION EXPECTED TO HAVE AN IMPACT ON 2021 CET1 RATIO OF AROUND -50 BASIS POINTS, MORE THAN OFFSET BY OTHER OPERATIONS

* SEES NPE COVERAGE INCL. WRITE OFFS OF 51.2% IN 2022

* ESTIMATED TO GRANTS AROUND 6 BILLION EUROS OF LOANS WITH STATE GUARANTEES IN 2020.

* SEES CET1 RATIO OF 13.9% IN 2022

* SEES CUMULATED IT INVESTMENTS OF 645 MILLION EUROS OVER THREE-YEAR PERIOD

* POSTPONES TRADE UNION AGREEMENTS FOR DEPARTURES AND RECRUITMENT OF STAFF DUE TO UNCERTAINTIES CONNECTED WITH THE INTESA PUBLIC EXCHANGE OFFER

* SEES ROTE OF 7.1% IN 2022 (COMPARED WITH 8.3% PREVIOUSLY)

* SEES WORSENING OF LOAN LOSSES OF MORE THAN 700 MILLION EUROS OVER PLAN PERIOD Source text for Eikon: Further company coverage: (Gdansk Newsroom)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below