Andrea Orcel, then UBS main executive, leaves right after attending a British isles parliamentary inquiry into Libor interest rates in London January 9, 2013. REUTERS/Olivia Harris

  • Italy head stripped of function a calendar year right after appointment
  • Other senior executives still left in latest months
  • Board wishes Italy underneath CEO’s immediate remit

MILAN, July 6 (Reuters) – UniCredit CEO Andrea Orcel has taken direct responsibility for running the Italian bank’s domestic enterprise, an inside memo confirmed, following the board eliminated Niccolo Ubertalli as its head.

Ubertalli’s shock ousting comes all-around a 12 months just after he was appointed as head of Italy and follows the current exits of other extended-standing senior UniCredit executives.

Orcel, previous head of financial commitment banking at Swiss financial institution UBS (UBSG.S), took above as UniCredit’s main govt in April 2021 and set about reshuffling its senior management group, together with by bringing in former UBS colleagues.

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Ubertalli, who experienced been tipped as an interior applicant to the CEO part when Orcel obtained the position, did not straight away reply to a request of comment.

UniCredit, which is Italy’s 2nd greatest financial institution, is nevertheless going through a period of inner adjustment beneath the new leadership crew, 3 persons with expertise of the make a difference mentioned.

The board’s final decision to strip Ubertalli of his role with quick result follows friction around strategy, the people explained, requesting anonymity presented the sensitivity of the make any difference.

As Italy-based group CEO, Orcel previously performs duties that in other nations wherever UniCredit operates are done by local CEOs, this kind of as meetings with large corporate clientele or federal government ministers, one more two persons shut to the matter explained.

Reversing a conclusion by his predecessor to operate Italy as part of a Western Europe commercial banking division such as Germany and Austria, Orcel had entrusted it to Ubertalli, who was then the co-head of Central Eastern Europe.

Following Jean Pierre Mustier’s endeavours to distance UniCredit from its credit card debt-laden dwelling market, which the previous CEO noticed as a supply of vulnerability, Orcel experienced promised in its place a renewed focus on Italy and has been working to get back market share.

“We are prepared to additional boost Italy’s existence at a team stage, enabling it to move more rapidly in its transformation … whilst navigating the envisioned risky surroundings,” the internal memo seen by Reuters said.

“As such, the board has made the decision to make the job of Head of Italy element of the team CEO’s direct remit,” it additional.

The decision more than Ubertalli follows the departure of UniCredit’s Main Working Officer Ranieri de Marchis in Might and that of Andrea Maffezzoni, UniCredit’s head of functionality administration and previous M&A main in June.

“The accomplishment of Italy is essential to the success of our team … Bringing our Italian small business under the remit of the team CEO will cement this alignment,” Chairman Pier Carlo Padoan and Orcel mentioned in the concept to workers.

Remo Taricani, the head of UniCredit’s business network in Italy, will help Orcel by starting to be deputy head of Italy.

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Reporting by Valentina Za Modifying by Emelia Sithole-Matarise and Alexander Smith

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