In a move that has sparked a significant response from the market, Italian banking heavyweight Unicredit (BIT:CRDI) has announced its intention to buy back €2.5 billion ($2.67 billion) worth of its own shares. This decision, part of the bank's 2023 share repurchase program, led to a 5% surge in its share price on Wednesday.
The execution of this plan is contingent upon approval from shareholders. To facilitate this, Unicredit has arranged an extraordinary meeting scheduled for October 27th to review and endorse the buyback proposal. The bank also noted that regulatory approval would be necessary before commencing with the buyback.
Looking ahead to the next year, Unicredit has established a minimum distribution target of €6.5 billion, marking an increase from the €5.25 billion distributed in 2022. This figure indicates a total yield exceeding 16%, demonstrating a robust strategy for shareholder returns in the upcoming period.
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