ROME (dpa-AFX) - Italian lender UniCredit (UCG, UNCFF.PK) Wednesday said it will take an additional 0.9 billion euros generic loan loss provisions or LLPs in the first quarter.
The company said it is anticipating the update of COVID-19 macroeconomic assumptions underlying the IFRS9 calculation of generic LLPs.
For the eurozone, UniCredit sees a fiscal 2020 GDP decline of 13 percent followed by a 10 percent recovery in fiscal 2021. These assumptions include the expected COVID-19 impact as well as the announced government and ECB mitigating actions.
Cost of Risk or CoR for the first quarter is estimated to be around 110 basis points, of which 80 basis points due to the updated IFRS9 macro scenario and 30bps underlying CoR.
For the full FY20, CoR is estimated to be in the range of 100-120bps. For FY21, the Group currently estimates a CoR of 70-90bps.
Further, UniCredit announced that its CEO, Jean Pierre Mustier, has proposed to reduce his 2020 salary by 25 percent, equivalent to 300,000 euros. This in addition to foregoing his full variable 2020 LTIP remuneration, equivalent to a maximum of 2.4 million euros.
The total reduction of the CEO's compensation is thus 2.7 million euros, which the board of directors, will donate with immediate effect, to the UniCredit Foundation.
Jean Pierre Mustier's total remuneration for the year 2020 will be 900,000 euros, a 75 percent reduction of his overall full year target remuneration.
UniCredit's first-quarter results will be published on May 6.
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