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MILAN, Feb 24 (Reuters) - Italy's biggest bank UniCredit
said on Monday boss Jean Pierre Mustier had confirmed
he would remain in his role, after a source told Reuters the
French banker had ruled himself out for the top job at rival
HSBC.
UniCredit shares came under pressure last week after media
reports that said Mustier, 59, was a leading candidate to
succeed HSBC interim CEO Noel Quinn, who is vying for the
permanent job.
The stock fell 3.9% in early trade on Monday, outperforming
a 4.8% slump in Italy's banking sector triggered by
concerns over the economic fallout of an outbreak of the new
coronavirus in the country.
UniCredit recently launched a new plan through 2023 and its
"whole management team, including Jean Pierre Mustier, is fully
focused on its successful execution", the bank said in a
statement.
"We consider the news positively as a potential CEO
resignation would have reduced the credibility of the company's
business plan," Banca IMI said in a research note.
Mustier arrived at UniCredit in mid-2016 and is widely
credited with turning around the bank's fortunes by shoring up
its weak capital base, slashing costs and dealing with problem
loans.
Under his management, the bank has also disposed of a raft
of assets.
After failing to clinch a cross-border merger, Mustier has
focused on boosting investor returns through dividends and
buybacks to drive the bank's share price higher.
UniCredit shares are up around 36% since Mustier's arrival
compared with a 10% rise in Europe's banking index.
Still, UniCredit trades below its book value like other
European rivals, which are grappling with negative interest
rates, the costs of digital transformation and rising
competition from nimbler non-banking players.
News about Mustier comes amid a string of top executive
changes in Europe. Swiss banks Credit Suisse and UBS
both named new bosses this month. On Monday, the
Financial Times newspaper reported that Barclays would start
looking for a new CEO.
HSBC said last August it would appoint a new CEO within six
to 12 months following the shock ouster of John Flint.
Quinn, the favourite for the role, last week announced plans
for a major overhaul at the bank, its third since the financial
crisis.
A source with knowledge of the matter told Reuters on Sunday
that Mustier had ruled himself out of the race to take the helm
at HSBC.
Two sources familiar with the matter had previously
confirmed the Frenchman, formerly head of investment banking at
Societe Generale, was being considered.
(Reporting by Valentina Za; editing by Sam Holmes and Jason
Neely)
