UniCredit: There are gasping banks leaving a slice for those wanting strategic positions for the future

“Yearend outlooks are not great. The fourth quarter may bring a certain rebound or mean the end of some companies as it has a decisive impact, especially in retail or retail suppliers,” says Răsvan Radu, an executive president of UniCredit Țiriac Bank.

Banks are trying to offset the rising risk charges by cutting other categories of expenses. UniCredit in September reached a cost/income ratio of 41.8%. “We can go below 40% and this is the direction we want to pursue. (…)”.
The 11% loan volume increase UniCredit registered largely came from the corporate unit. As regards refinancing operations, Radu says the bank was not aggressive on this segment, but it offered “very good conditions” and could thus attract clients from other banks.
Demand for new retail loans is still low on the lack of confidence in the future, so that refinancing is likely to remain an important source of balance sheet growth for some players.
“There are banks that have lost their breath and hence a market slice is becoming available, which can be covered by other banks that are investing further and want to hold strategic positions for the future growth period,” Radu says.