UniCredit to Raise 13 bn Euros in Fresh Capital
Italy's biggest bank, UniCredit, on Tuesday confirmed plans for a capital increase worth 13 billion euros ($13.8 bn) as it scrambles to raise funds amid market uncertainty.
UniCredit also announced plans to shed around 14,000 jobs by the end of 2019, which it said would save it 1.1 billion euros in staff costs.
The bank's plans to raise fresh funds come at a time when investor confidence in Italy has been shaken by the collapse of former prime minister Matteo Renzi's government.
And the Italian banking sector is in a perilous state, with the world's oldest bank, Monte dei Paschi di Siena, scrambling to put together a private-sector rescue after losing 80 percent of its market capitalisation in the past year.
UniCredit's announcement was part of a major strategic review launched under new chairman Jean-Pierre Mustier, that involves selling off assets to strengthen the bank's capital base.
Mustier said it was a "pragmatic plan based on conservative assumptions, with tangible and achievable targets."
The bank is targeting a net profit of 4.7 billion euros in 2019.
Source: Agence France Presse
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