UniCredit to launch early part of 2023 share buyback for 2.5 billion euros

UniCredit to launch early part of 2023 share buyback for 2.5 billion euros

MILAN (Reuters) – Italy’s UniCredit on Wednesday said its strong fundamentals would allow it to bring forward up to 2.5 billion euros ($2.7 billion) of its 2023 share buyback plan.

UniCredit has an overall 2023 capital distribution target of at least 6.5 billion euros, up from 5.25 billion in 2022, which translates into a total yield of more than 16%, it said.

“This underlines UniCredit’s commitment to attractive and

sustainable shareholder returns while preserving capital strength,” UniCredit said in a note, adding that factoring in the announced buyback the pro-forma core capital ratio would stand at 15.8%.

The start of the buyback depends on approval by shareholders at an extraordinary meeting to be called on Oct. 27 as well as supervisory approval.

($1 = 0.9363 euros)

(Reporting by Valentina Za; editing by Jason Neely)