UniCredit retreats from capital target as bond run bites

UniCredit’s Common Equity Tier 1 (CET1) capital ratio fell for the fourth consecutive quarter, slipping to 12.11% from 13.81% a year ago, as exposures to the troubled Turkish lira and volatile Italian government bonds (BTP) took their toll. 

The Italian bank’s core ratio dropped 39 basis points in the third quarter alone. The Turkish lira’s slide, from €0.19 at end-June to €0.14 at end-September caused 14bp of the decline. The widening of the BTP-Bund spread drained a further 9bp, while risk

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: