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UPDATE 1-UniCredit CEO says buyback shows capital focus is correct

UPDATE 1-UniCredit CEO says buyback shows capital focus is correct

Reuters · 09/14/2022 05:30
UPDATE 1-UniCredit CEO says buyback shows capital focus is correct

Adds outcome of vote

- UniCredit CRDI.MI Chief Executive Andrea Orcel said focusing on capital generation was the right strategy for the Italian bank on Wednesday as its shareholders approved a 1 billion euro ($1 billion) share buyback.

UniCredit's second buyback this year brings the overall capital distribution on 2021 earnings to 3.75 billion euros, as Orcel works towards a goal of returning more than 16 billion euros to shareholders by 2024.

UniCredit's distribution plans had appeared at risk after Russia's invasion of Ukraine, given its significant exposure to the sanctions-hit country.

"This confirms the validity of our business model focused on high capital generation," Orcel said.

Shareholders representing 64.42% of UniCredit's capital attended the meeting, including U.S. asset manager BlackRock BLK.N with a 5.68% stake, London-based Parvus Asset Management with 5.47% and German insurer Allianz ALVG.DE with 3.44%.

The buyback was approved with 99.34% of votes.

($1 = 1.0003 euros)


(Reporting by Valentina Za, editing by)

((valentina.za@thomsonreuters.com; +39 02 6612 9526;))