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Thursday, October 28, 2004

Unicredito group will set up a central operating centre in Romania for its East and Central European business

Unicredito Italiano SpA said it plans to cut about 3,000 jobs as part of its 2004-2007 business plan.

In a presentation to analysts, Unicredito said annual cost savings are scheduled to reach 263 mln eur in 2007 and rise to 293 mln after 2007, it said.

In other measures to improve synergies, the group will set up a central operating centre in Romania for its East and Central European business, it said.

On real estate rationalisation, Unicredito said it will 'optimise' its non-core assets, and the corporate structure will be rationalised with the reduction of number of units.

The bank will take a 'prudent' attitude and will not revalue its real estate nor revalue its stake in the Bank of Italy, it said.

Net profits for the group should rise by an annual average of 2-4 pct in 2005 to 2007 thanks to the change in accounting, which includes a less than 2 pct rise expected for 2005.

Under IAS, net interest income should rise, operating costs should rise because of the impact of stock option plans, goodwill depreciation will fall, and net provisions on new doubtful loans will rise, the bank said

Posted by Iulia Rasoiu : 10/28/2004 01:12:00 pm