Italy’s UniCredit SpA (CRDI.MI) said on Friday its capital requirements could increase slightly following a regular review by the European Central Bank (ECB) but would not impact its plans to provide returns for investors.
Bloomberg had earlier reported that the ECB had indicated to UniCredit that it was considering raising the firm’s so-called Pillar 2 requirement (P2R), which currently stands at 1.75%.
“Based on preliminary communication by the ECB the P2R may increase minimally from the current 175 basis points,” the bank said in a statement.
“There is indeed no impact on UniCredit’s 2022 and future distribution ambitions, funding plan and capital targets, which remain as per guidance,” it added.
UniCredit, led by Andrea Orcel has set a distribution goal of more than 16 billion euros ($16.8 billion) to 2024.
UniCredit said it would provide a further update upon receiving the formal evaluation and final outcome from the ECB.
($1 = 0.9502 euros)