UniCredit's Capital Faces Marginal Hit From Commerzbank Derivatives Exposure -- Market Talk

Dow Jones2024-12-19

0911 GMT - The hit to UniCredit's capital from its derivatives exposure to Commerzbank is marginal but its conversion into direct participation could consume some capital, Equita analyst Andrea Lisi says in a research note. The Italian lender raised its stake in its German peer to 28% with 9.5% through direct participation and 18.5% through derivatives. Only after the ECB's approval to up its holding to 29.9%--which could reasonably be expected in early 2025--can UniCredit decide whether to convert it, Lisi says. "The conversion of the entire position into direct holdings could result in CET1 consumption in the 60-70 basis points area," he notes. The bank indicated an overall impact for the first 21% stake of 10-20 basis points. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

December 19, 2024 04:13 ET (09:13 GMT)

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