Summary of UniCredit Conference Call Company Overview - **Company**: UniCredit (OTCPK:UNCF.F) - **Event**: Morgan Stanley Financial Conference - **Date**: March 18, 2026 Key Points Strategic Direction - **Transition from UniCredit Unlocked to Unlimited**: The company aims to shift from a focus on profitability and efficiency to profitable growth, with a target of growing net revenues by 5% compounded over the next 3 to 5 years [2][3] - **Focus on Competitive Landscape**: The competitive environment is expected to change significantly, necessitating adaptation to compete with legacy banks, hyperscalers, and FinTechs [3][4] Financial Goals - **Net Income Growth**: The company targets high single-digit percentage growth in net income and aims to increase Return on Tangible Equity (ROTE) from 20% to 25% [6] - **Cost Management**: A commitment to reducing costs by 1% annually for the next 3-5 years, building on previous successes [4][5] AI and Technology Integration - **AI as an Opportunity**: AI is viewed as a tool for enhancing efficiency rather than a threat. The company plans to redesign processes to achieve significant efficiency gains [7][8] - **Cost Reduction through AI**: Projected net cost reductions of EUR 400 million to EUR 500 million over five years due to AI implementation [9] Digital Currency and Tokenization - **Impact of Digital Euro**: The digital euro is expected to have a significant impact on deposits, with potential disintermediation effects. The company is actively engaging with the ECB to manage these changes [12][27] - **Tokenization Opportunities**: The company sees potential in tokenization for corporate bonds, allowing access to previously unreachable market segments [23][24] Market Conditions and Adaptability - **Geopolitical and Macroeconomic Factors**: The company acknowledges the new normal of volatility and geopolitical uncertainty, emphasizing the need for agility and adaptability in operations [30][31] - **Cost Management Strategy**: The company has a low cost base relative to revenues and has already planned significant cost reductions for 2024 and 2025 [33] M&A Strategy - **Commerzbank Engagement**: The company is pursuing a constructive engagement with Commerzbank to break a stalemate and explore potential synergies. The offer aims to facilitate dialogue among stakeholders [38][41] - **Stakeholder Engagement**: The company emphasizes the importance of understanding and addressing the concerns of all stakeholders involved in the Commerzbank situation [42][46] Future Scenarios - **Potential Outcomes of Commerzbank Offer**: Three scenarios are outlined: maintaining a stake below 30%, gaining control without integration, or executing a merger that would create a leading bank in Germany [49][56] - **Focus on Core Markets**: The company aims to concentrate on its core strengths in Germany and Poland, seeking balanced growth without sacrificing margins [54][58] Capital Management - **Sustainable Capital Returns**: The company is committed to sustainable capital returns, with dividends being a priority. Any changes in capital strategy will depend on the outcomes of the Commerzbank engagement [71][72] Conclusion - **Outlook**: UniCredit is positioned to navigate a changing financial landscape through strategic growth initiatives, technological advancements, and proactive stakeholder engagement, with a focus on maintaining profitability and capital returns [37][60]

Core Points - The European Central Bank (ECB) has concluded framework agreements for the digital euro procurement procedures [1] - Giesecke+Devrient (G+D), in partnership with Nexi and Capgemini, has been selected as the first ranked tenderer for providing an end-to-end solution for the digital euro [1] Summary by Category Digital Euro Development - The ECB is advancing the preparation of a digital euro by finalizing framework agreements for five procurement procedures [1] - The selected partnership aims to deliver a comprehensive solution for the implementation of the digital euro [1]

By Tom Sims, Tommy Reggiori Wilkes and Valentina Za FRANKFURT (Reuters) -A consortium of nine European banks, including heavyweights ING and UniCredit, said on Thursday they are forming a new company to launch a euro-denominated stablecoin, a move they hope will help counter U.S. digital market dominance. A host of top U.S. financial firms have been preparing to launch their own dollar-backed crypto tokens after President Donald Trump signed a law overseeing rules for stablecoins that could further cem ...