B as banks - UniCredit, the mystery of the corporate line of credit decreased by 7.8 billion in six months
From the "Sole 24 Ore on Wednesday, 6 October 2010, page 43
LPAC Getting down to 7.8 billion
UniCredit reduces claims lever
drop of uses - business 'leverage, project, aircraft and commodities' have been reduced by 42% between late 2009 and mid-June
Nicola Borzi
A comprehensive line of credit "Slimming" of 7.8 billion in just six months. There is also this in the accounts of UniCredit . The collapse of 42% applies to four types of operations: funding for acquisitions to leverage (leverage ), the project finance dedicated to industrial projects, the ' aircraft (naval aviation funding) and those in the field of raw materials (commodities ). The acronym of the initials LPAC. Line holds AG UniCredit, HVB new name, " hub" of the group Corporate and Investment Banking (CIB ), a strategic area of \u200b\u200bbusiness dedicated to industrial customers, which is attached to deputy CEO Sergio Ermotti .
What LPAC not shine was known for some time. On 17 March Alessandro Profumo explained that the line "weighed" for 7% of the CIB uses 268 billion for 2009. So 18.7 billion the cost of risk, although declining, had reached 272 basis points: 100 € each provided almost 3 were set aside for credit risk, despite "the stabilization and restructuring of the portfolio performed with some success corporate loans. " In the presentation of the half-year 2010, August 3, Scent explained that LPAC was worth 4% of the 274 billion euro of loans CIB: less than 11 billion. A drastic decline. Yet the cost of borrowing in Germany was positive in the past even 16 basis points thanks "to shoot impairment losses on assets specific customer portfolio in the LPAC. If things went well in Germany, in which countries had concentrated drop of almost 5 billion in the second quarter?
The bank argues that the decline in both physiological and forms part of a trend general, due to the crisis and to a lesser abundance of liquidity, as well as to reduce future demand for structured finance in areas such as air and and large corporate customers . UniCredit, the contraction of the credit line has nothing to do with securitization (ABS) and derivatives. The bank also, at the end of 2009, the stabilization of the portfolio was done at the cost of risk decreased.
be, but the trend is in contrast with the parallel recovery of the volume of corporate loans in six months under review. Also because, at constant exchange rates, according to the accounts of UniCredit Corporate divisional area in late June saw net profit grow by over 30% to 1.64 billion compared to June 2009, reflecting growth of 30% of fees & boom the result of trading, hedging and evaluation fair value of the portfolio doubled to 522 million. Even the write-downs, fell from 2.2000000000 to 1.8000000000 in 12 months, have contributed. But we must not forget that in the last 30 months the corporate scored 8.4 billion of net writedowns of loans, a sum equal to two thirds of all Consolidated net profit 2007 to present.
Perhaps this is the cause of the frequent reversals of corporate Italian, where in the last 15 months have alternated in the role of CEO Vittorio Ogliengo , 9 July 2009 replaced the former DG Gianni Coriani which, just four months later was replacing Piergiorgio Peluso . Not by chance UniCredit Corporate Banking in late 2009 has been the subject of an investigation inspection of the Bank of Italy "qualiquantitativo aimed to assess the performance of credit risk." In a few weeks away in Italy with the organizational model One4C , CIB will disappear in the melting " counter."
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