...December 10, 2021 MILAN (S&P Global Ratings) Dec. 10, 2021--S&P Global Ratings said today that UniCredit SpA's (###/Positive/A-2) strategic focus on tackling moderate earnings generation comes as no surprise, given the tough profitability prospects currently faced by European banks. We view the updated business plan positively, and think that the strategic actions will benefit its efficiency and enhance its revenue diversification in the longer term. That said, ultra-low interest rates and some legacy credit costs continue to weigh on the bank's returns over the coming quarters. On Dec. 9, 2021, UniCredit disclosed an updated business plan targeting a 10% return on tangible equity in 2024. This will primarily stem from an expansion of its revenue, mostly via a 4% compound annual growth rate (CAGR) of the fee component, increase of its activity, particularly in Germany and Central and Eastern European countries, and about 1.5 billion of gross cost cut, mainly in Germany and Austria. UniCredit...
