Italy’s biggest bank UniCredit (MI:CRDI) said on Tuesday it would shed 8,000 jobs to reduce costs by 1 billion euros in Western Europe under a new plan to 2023, while improving returns for shareholders.
The bank, which is struggling to lift its share price despite years of successful restructuring, said it was raising the capital distribution for this year to 40% of its underlying net profit from 30%, thanks to a share buyback.
UniCredit forecast an underlying net profit of 5 billion euros ($5.5 billion) in 2023. UniCredit targets a net income of 4.7 billion euros for this year.
It said revenues would grow on average by 0.8% annually in 2018-2023, while costs were seen falling by 0.2% over the same period.