“Market Cap $53.85 B As of May 2014
At a Glance
- Industry: Major Banks
- Founded: 1870
- Country: Italy
- CEO: Federico Ghizzoni
- Website: www.unicreditgroup.eu
- Employees: 162,864
- Sales: $32.78 B
- Headquarters: Milan
#435 Global 2000
- #278 in Sales
- #24 in Assets
- #179 in Market value
UniCredit SpA is a holding company, which is engaged in the provision of commercial banking services. It operates through the following segments: Family and Small Medium Enterprise (F&SME) Network in Italy, Germany, Austria, Poland, and Factories; Corporate and Investment Banking (CIB); Private Banking; Asset Management; Central and Eastern Europe (CEE); and Group Corporate Center. The F&SME Network in Italy, Germany, Austria, Poland, and Factories segment provides consumer finance, credit management and collection, leasing, investment, and financial services to individuals, households, and small and medium enterprises. The CIB segment offers structured finance, capital markets, and investment products; and corporate banking, transactions, financial, and advisory services to corporate and multinational customers. The Private Banking segment provides wealth management solutions for medium-to-high net worth individuals. The Asset Management segment, which operates under Pioneer Investments brand, offers financial solutions such as mutual funds, hedge funds, assets under administration, and portfolios for institutional investors. The CEE segment provides international financial banking services. The Group Corporate Center includes global banking services and corporate center. The company was founded in October 1998 and is headquartered in Milan, Italy.“
“UniCredit Group History
UniCredit Group was the outcome of the 1998 merger of several Italian banks.
In 1999, UniCredito Italiano, as it was then known, began its expansion in Eastern Europe with the acquisition of Polish Bank Pekao.
In 2005, UniCredit merged with the German group HVB, which is itself formed in 1998 by the combination of two Bavarian banks: Bayerische Vereinsbank and Bayerische Hypotheken-und Wechsel-Bank. Integration with the HVB Group was reinforced by the merger with Bank Austria Creditanstalt in the year 2000 and enabled further growth for the UniCredit Group. However, this merger was only marginally profitable. Additionally, Bank Austria Creditanstalt was a major shareholder in Bank Medici AG. Bank Medici wasThema Fund’s investment manager. In returning for finding investors, Bank Medici collected fees of 4.6 million euros from Thema International Fund in 2007. Following the news that Bank Medici had invested US$2 billion with Bernard Madoff, officials in Vienna appointed a supervisor to run the private bank, raising questions about control of the sprawling group.
In 2007, in combination with the Capitalia Group, the third-largest Italian banking group; UniCredit Group consolidated and strengthened its position, but added considerably to its overhead costs. In the same year, two more acquisitions were carried out:ATF Bank, which ranks fifth out of domestic banks in Kazakhstan with 154 branches, and Ukrsotsbank, a universal bank. With these two banks the Group extended its operations in this area to 19 countries (including Central Asia). However, in November 2012, Kazakh government sources declared UniCredit is in talks with Kazakh investors over the sale of a controlling stake in ATF Bank.
In 2013 UniCredit Finance informed that they would no longer provide banking services in Latvia.
On March 14, 2014 UniCredit announced that it expects to cut around 8.500 jobs upcoming time, together with the announcement of an 15 billion loss in the 4th quarter of 2013 due to extensive cash-reserving for bad loans and writing down goodwill from acquisitions. UniCredit is one of the 6 European banks which is currently most exposed to potential problems in the emerging markets.
UniCredit Group also controls the Banco di Sicilia Group which is one of the oldest Italian banks.”
*Information from Forbes.com and Wikipedia.org
**Video published on YouTube by “UniCredit“