(Il Sole 24 Ore Radiocor Plus) – Unicredit took off in Piazza Affari at the top of the FTSE MIB, after the words of the CEO, Andrea Orcel, who anticipated an increase in estimates for 2023 at the presentation of the third quarter accounts. Speaking at the 27th annual Financials CEO Conference of Bank of America Merrill Lynch, he stressed that “the guidance will be substantially improved”, given that “the institute is well on its way to guidance for 2022 regardless of the context”. The bank, Orcel said, should reach “all targets even in the event of a slight recession” and, should there be a severe recession, it would still be ready “to face any shock and perform better than the average of its competitors”.
Furthermore, on Wednesday 21 September, Orcel had already spoken of a “strong” institution in terms of position and generation of capital and had stressed that UniCredit “will achieve the objectives of the plan” and is currently able to distribute a coupon, which, however, cannot be made if we were to enter “the abyss of the economic crisis”. Having said that, however, the company is ready to absorb the economic shocks to come, given that it enters “from a position of extreme strength”.
To all this, the “central banks” effect on financial institutions on the stock exchange is added, which, in general, benefit from the prospect of new interest rate squeezes: the Federal Reserve has increased the cost of money by 75 basis points, to highs since 2008, and has anticipated further tightening in the months to come, confirming a very aggressive strategy in the fight against inflation. In general, the rise in interest rates will have positive impacts on banks’ revenues, also allowing them to strengthen balance sheets so as to be able to absorb potential negative effects of the economic slowdown on the credit quality front. Thus, in addition to UniCredit, among the best there are also Banco Bpm, Intesa Sanpaolo and Mediobanca.