Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

UniCredit CEO Orcel says "up for more" when asked about future

Published 05/06/2023, 15:03
Updated 05/06/2023, 16:30
© Reuters. FILE PHOTO: Andrea Orcel, then UBS chief executive,  leaves after attending a UK parliamentary inquiry into Libor interest rates in London January 9, 2013. REUTERS/Olivia Harris

© Reuters. FILE PHOTO: Andrea Orcel, then UBS chief executive, leaves after attending a UK parliamentary inquiry into Libor interest rates in London January 9, 2013. REUTERS/Olivia Harris

MILAN (Reuters) -UniCredit (MI:CRDI) Chief Executive Andrea Orcel said on Monday he would be "definitely up for more," when asked about whether he would seek a new mandate at the helm of the Italian bank.

The former UBS investment banking chief started in April 2021, and in December that year he presented his 'UniCredit (LON:0RLS) Unlocked' strategy for Italy's only lender regulators deem of global relevance. He comes up for renewal in spring 2024.

"I love my job, I love UniCredit," he told a Bloomberg conference in Milan, adding he thought his work at the Italian bank was not done.

"UniCredit Unlocked has a lot further to go, if investors and shareholders will vote me I'm definitely up for more," he added.

Orcel said UniCredit was investing heavily to strengthen income from fee-yielding businesses, so as to reduce its still excessive reliance on net interest income (NII) - the gap from rates charged on loans and those paid to raise funds.

Like other European banks that quickly raised the cost of credit for customers as official rates rose, while failing to adjust returns for depositors, UniCredit has reaped record profits in recent quarters thanks to the NII boost.

"We can price our deposits better because there is a flight to quality," he said.

However, the situation has started changing in the second quarter as higher rates have filtered through to depositors.

"The so called 'pass through' will increase and that will create a headwind for banks," Orcel said.

© Reuters. FILE PHOTO: Andrea Orcel, then UBS chief executive,  leaves after attending a UK parliamentary inquiry into Libor interest rates in London January 9, 2013. REUTERS/Olivia Harris

To prepare for the challenges ahead, which are likely to include a rise in troubled loans from the second half of next year, UniCredit is focused on cutting costs, Orcel said, a task made more difficult by high inflation.

"With the fees, the costs, we feel our gross operating margin will continue growing ... We're relatively confident that next year we will at least be in line with this year."

Latest comments

Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.