OREANDA-NEWS. UniCredit presented the Strategic Plan 2013-18 and Group FY13 results on 11 March 2011. According to the plan, Group net profit 2014 is expected at EUR 2 billion and EUR 6.6 billion in 2018.

UniCredit plans to invest EUR 4.5 billion in the years to come and to cut an additional EUR 1.3 billionout of cost base.

“For UniCredit, 2013 was a turning point and we are now poised to further increase our lending and support of the real economy in Italy and in Europe. With the actions announced today, we have further reinforced our balance sheet and finalized the process started in 2010. UniCredit now has by far the highest impaired loan coverage ratio of the Italian banking system and amongst the best in Europe, in line with pre-crisis levels. - said Federico Ghizzoni, CEO of UniCredit. - Today we also announced the launch of our new 2013-18 strategic plan. In 2014 we estimate a net profit around EUR 2 billion, we intend to more than triple this to EUR 6.6 billion in 2018, with a ROTE target of 13 per cent. Our objective is to consolidate our leadership in corporate services across Europe, drive innovation in our retail networks and develop a leading edge digital footprint.”

It should be noted that in order to fulfill such ambitious plans the Group has taken a decision to write off EUR 9.3 billion of goodwill and to form additional loan loss provisions. In the result of such actions net loss 2013 led to EUR 14.0 billion. Together with that such losses don't have any real cash disbursement impact, and does not have any impact on capital ratios.