UniCredit predicts a new wave of hiring in investment banking under Orcel


UniCredit is “investing heavily” in recruiting negotiators as part of a larger overhaul of its business under the leadership of Andrea Orcel.

Italian lender is hiring bankers in equity capital markets and mergers and acquisitions, Orcel told reporters on a call outlining a new strategic plan that will lead to cost cuts of € 1.5 billion and a surge towards digitization.

“We can do a lot more in the consulting and equity capital markets, both private and public. And so what we’re doing is we’re making a significant investment in this business,” Orcel said.

Orcel is a career negotiator who was previously Managing Director of UBS’s investment bank, overseeing a radical business transformation that resulted in the loss of thousands of jobs and a major shift from commerce to advisory roles. low cap.

READ Wave of hiring of negotiator takes banker workforce to highest level in nine years

He has previously brought in former UBS Head of Equity Markets Sam Kendall for the newly created role of Head of Sector Coverage, Advisory, Private Equity and Private Equity. Kendall launches hiring wave that could see up to 50 senior negotiators hired, Financial news reported.

“Our ambition is to improve our penetration and our offering of solutions to our clients … something that we have not been able to do as well as we would have liked in the advisory and equity markets”, said declared Orcel. “Because we were under-invested in the business, this business is a business that we’re growing, and we’re hiring, and we have high expectations of it.”

READ UniCredit upsets investment bank leadership as Orcel streamlines management

UniCredit’s investment banking doesn’t figure in the same leagues as other big players on Wall Street and Europe, and generates the vast majority of its revenue in the unit in Europe, the Middle East and Africa.

Across the region, it ranks 13th in terms of debt capital markets commissions, according to data provider Dealogic, with $ 219.1 million so far in 2021. This represents 60% of the $ 370 million. dollars of investment banking income at UniCredit en Emea.

UniCredit unveiled a broader strategic shift on December 9 to increase organic growth, reduce costs and hire thousands of data and digital specialists. The bank will recruit 1,500 net employees, she said in a presentation, and will also take a 600 million euro hit in “HR integration costs”.

Bloomberg reported on December 1 that the Italian lender was likely to cut another 3,000 jobs, many of them at its centralized business center. Orcel did not provide a specific figure on the job cuts, but said the bank was not just aiming to downsize and that there would be a “significant shift in talent and skills” within organisation.

UniCredit intends to return 16 billion euros to shareholders over the next three years as part of Orcel’s new plan.

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