Stock Market

UniCredit initiates first installment of share repurchase program worth 2.34 billion euros

UniCredit is set to begin the first tranche of its share repurchase program as part of CEO Andrea Orcel’s efforts to boost the bank’s share price. BNP Paribas has been hired to buy back up to €2.34 billion ($2.53 billion) worth of shares, equivalent to 12% of the bank’s capital. The buyback is expected to be completed by the end of June. The European Central Bank has approved the bank’s plan to buy back €3.34 billion of its own shares following a €2.58 billion buyback last year. Orcel has expressed his goal of lifting UniCredit’s share price to trade in line with its book value, and the repurchased shares are expected to help close the gap. The share buybacks could also result in an increase in earnings per share since there are fewer shares in circulation. UniCredit’s shares were trading almost 2% higher on Monday, outperforming a 0.7% rise in Italy’s banking index.

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