UniCredit's Track Record Does Not Inspire Confidence

Since 2011 UniCredit has booked a cumulative net loss of EUR 20 billion and was loss-making in four of the 10 fiscal years over this period. UniCredit has not generated double-digit returns on equity since 2007, while we estimate its cost of equity to be around 12%. Unless this changes, UniCredit will continue to trade at a substantial discount to its own net asset value as well as the rest of the European banking sector.