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Bloomberg
Unione di Banche Italiane (UBA) SpA, Italy’s fifth-largest bank, plans to pay out 40% of net income to shareholders on average over the course of its three-year strategic plan and may make an extra payment if capital is strong enough.
UBI expects to eliminate about 2,030 positions and close 175 branches through 2022, the Bergamo, Italy-based bank said. That’s about 10% of the staff, according to data compiled by Bloomberg. The bank’s goal is to reduce costs to 58.1% of income from the current 62.1%.
The bank sees net income more than doubling by 2022 and it plans to cut provisions for bad loans and invest in digital technology, UBI said. It will focus on strengthening higher-margin businesses such as private and corporate banking.
Chief Executive Officer Victor Massiah has relied on curbing risk and cutting costs to boost the profit.