July 3 (Reuters) - Ubi Banca:
* ISSUES UPDATE OF 2022 BUSINESS PLAN
* EXPECTED NET PROFIT IS €562 MILLION IN 2022 COMPARED WITH €665 MILLION IN THE ORIGINAL PLAN
* SEES REDUCTION OF APPROX. ONE PERCENTAGE POINT OF ROTE IN 2022
* THE STRATEGIC DECISION TO ACQUIRE 100% OF AVIVA VITA WAS TAKEN, WHICH WILL LEAD, OVER THE TIME HORIZON OF THE PLAN, TO AN EXPECTED RETURN ON THE INVESTMENT OF OVER 10%
* IMPACT OF COVID-19 PANDEMIC ON LOAN LOSS RATE IS ESTIMATED AT ADDITIONAL CUMULATIVE 85 BASIS POINTS OVER 2020-2022 PERIOD
* CONFIRMING ALL THE STRATEGIC LINES OF ACTION OF THE BUSINESS PLAN PRESENTED LAST FEBRUARY
* SEES EXCESS CAPITAL DISTRIBUTABLE COMPARED TO A FLOOR CET1 RATIO OF 12.5% AT AROUND 840 MILLION EUROS FOR 2020-2022 EQUIVALENT TO A CUMULATIVE AMOUNT OF OVER 73 EURO CENTS PER SHARE
* RECRUITMENT AND INCENTIVISED REDUNDANCY PLAN, POSTPONED DUE TO UNCERTAINTIES CONNECTED WITH THE PUBLIC EXCHANGE OFFER, IS CONFIRMED
* MEASUREMENT OF IMPACT OF COVID-19 ON CREDIT PARAMETERS CARRIED OUT IN A SCENARIO WHICH INCLUDES CHANGES IN REAL GDP OF -10.3% IN 2020, +2.8% IN 2021
* NET OF APPROX. 1,000 NEW RECRUITS, DEPARTURE OF APPROX. 2,000 STAFF IS FORECAST, EXPECTED MOSTLY IN 2021, CONSISTENT WITH THE CONCLUSION OF TRADE UNION AGREEMENTS THAT WILL BE PROGRESSIVELY NEGOTIATED
* AVIVA INTERNALISATION EXPECTED TO HAVE AN IMPACT ON 2021 CET1 RATIO OF AROUND -50 BASIS POINTS, MORE THAN OFFSET BY OTHER OPERATIONS
* SEES GROSS NPE RATIO OF 7.2% IN 2022
* SEES NPE COVERAGE INCL. WRITE OFFS OF 51.2% IN 2022
* ESTIMATED TO GRANTS AROUND 6 BILLION EUROS OF LOANS WITH STATE GUARANTEES IN 2020.
* SEES CET1 RATIO OF 13.9% IN 2022
* SEES CUMULATED IT INVESTMENTS OF 645 MILLION EUROS OVER THREE-YEAR PERIOD
* POSTPONES TRADE UNION AGREEMENTS FOR DEPARTURES AND RECRUITMENT OF STAFF DUE TO UNCERTAINTIES CONNECTED WITH THE INTESA PUBLIC EXCHANGE OFFER
* SEES ROTE OF 7.1% IN 2022 (COMPARED WITH 8.3% PREVIOUSLY)
* SEES WORSENING OF LOAN LOSSES OF MORE THAN 700 MILLION EUROS OVER PLAN PERIOD Source text for Eikon: Further company coverage: (Gdansk Newsroom)
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