BIT:UBI

Stock Analysis Report

Unione di Banche Italiane

Executive Summary

Unione di Banche Italiane S.p.A., together with subsidiaries, provides banking products and services for retail, private banking, corporate, and institutional customers in Italy and internationally.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Unione di Banche Italiane's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UBI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.9%

UBI

-8.3%

IT Banks

-2.0%

IT Market


1 Year Return

-4.1%

UBI

-34.9%

IT Banks

-25.8%

IT Market

Return vs Industry: UBI exceeded the Italian Banks industry which returned -34.9% over the past year.

Return vs Market: UBI exceeded the Italian Market which returned -25.8% over the past year.


Shareholder returns

UBIIndustryMarket
7 Day-4.9%-8.3%-2.0%
30 Day-31.1%-31.4%-21.9%
90 Day-15.6%-39.5%-29.0%
1 Year0.7%-4.1%-31.3%-34.9%-22.5%-25.8%
3 Year-19.6%-31.1%-35.2%-41.5%-13.2%-21.9%
5 Year-61.6%-68.5%-59.7%-74.9%-24.8%-50.9%

Price Volatility Vs. Market

How volatile is Unione di Banche Italiane's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Unione di Banche Italiane undervalued compared to its fair value and its price relative to the market?

10.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UBI (€2.41) is trading above our estimate of fair value (€1.74)

Significantly Below Fair Value: UBI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UBI is poor value based on its PE Ratio (10.9x) compared to the Banks industry average (6.1x).

PE vs Market: UBI is good value based on its PE Ratio (10.9x) compared to the Italian market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: UBI is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: UBI is good value based on its PB Ratio (0.3x) compared to the IT Banks industry average (0.4x).


Next Steps

Future Growth

How is Unione di Banche Italiane forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UBI's forecast earnings growth (23.4% per year) is above the savings rate (1.2%).

Earnings vs Market: UBI's earnings (23.4% per year) are forecast to grow faster than the Italian market (11.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: UBI's revenue (6.6% per year) is forecast to grow faster than the Italian market (0.3% per year).

High Growth Revenue: UBI's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UBI's Return on Equity is forecast to be low in 3 years time (5.2%).


Next Steps

Past Performance

How has Unione di Banche Italiane performed over the past 5 years?

49.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UBI has a large one-off loss of €143.1M impacting its December 31 2019 financial results.

Growing Profit Margin: UBI's current net profit margins (9%) are lower than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: UBI has become profitable over the past 5 years, growing earnings by 49.8% per year.

Accelerating Growth: UBI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UBI had negative earnings growth (-36%) over the past year, making it difficult to compare to the Banks industry average (6.9%).


Return on Equity

High ROE: UBI's Return on Equity (3%) is considered low.


Next Steps

Financial Health

How is Unione di Banche Italiane's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: UBI has a low level of unsold assets or inventory.

Debt Coverage by Assets: UBI's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: UBI is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: UBI is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: UBI's level of assets compared to its equity is moderate.

Allowance for Bad Loans: UBI has a low allowance for bad loans.

Low Risk Liabilities: UBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: UBI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: UBI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: UBI has a high level of bad loans (6.72%)


Next Steps

Dividend

What is Unione di Banche Italiane's current dividend yield, its reliability and sustainability?

5.39%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: UBI's dividend (5.39%) is higher than the bottom 25% of dividend payers in the Italian market (2.4%).

High Dividend: UBI's dividend (5.39%) is low compared to the top 25% of dividend payers in the Italian market (5.84%).


Stability and Growth of Payments

Stable Dividend: UBI's dividend payments have been volatile in the past 10 years.

Growing Dividend: UBI's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.7%), UBI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UBI's dividends in 3 years are forecast to be well covered by earnings (44.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.8yrs

Average management tenure


CEO

Victor Massiah (60yo)

11.33s

Tenure

€2,038,600

Compensation

Mr. Victor Massiah has been the Chief Executive Officer of Unione di Banche Italiane S.p.A. since December 01, 2008 and its General Manager since June 01, 2015 and Director since April 12, 2019. Mr. Massia ...


CEO Compensation Analysis

Compensation vs Market: Victor's total compensation ($USD2.23M) is about average for companies of similar size in the Italian market ($USD2.33M).

Compensation vs Earnings: Victor's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Letizia Maria Brichetto Moratti
Chairwoman of the Board1yr€495.00kno data
Victor Massiah
CEO, GM & Director11.33yrs€2.04m0.061% 1.7m
Elvio Sonnino
Senior Deputy GM & COO8.25yrs€1.05m0.0064% 175.3k
Rossella Leidi
Deputy GM and Chief Wealth & Welfare Officer13.25yrs€564.61k0.0028% 77.4k
Frederik Geertman
Deputy GM & Chief Commercial Officer3.67yrs€782.54k0.0019% 51.2k
Gian Toffetti
Head of Administration and Depository Bank Macro Areano datano datano data
Laura Ferraris
Head of Investor Relationsno datano datano data
Sergio Passoni
Head of International Activitiesno datano datano data
Pierangelo Rigamonti
Operational Chairman of UBI Sistemi e Servizino data€412.37kno data

9.8yrs

Average Tenure

63yo

Average Age

Experienced Management: UBI's management team is seasoned and experienced (9.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Letizia Maria Brichetto Moratti
Chairwoman of the Board1yr€495.00kno data
Victor Massiah
CEO, GM & Director11.33yrs€2.04m0.061% 1.7m
Emilio Zanetti
Honorary Chairmanno data€1.83mno data
Roberto Nicastro
Deputy Chairman of the Board1yrno datano data
Gino Trombi
Honorary Chairmanno data€459.50kno data
Pietro Gussalli Beretta
Director1yr€145.00k0.000040% 1.1k
Silvia Fidanza
Director1yr€120.00k0.0010% 28.4k
Letizia Bellini Cavalletti
Independent Director1yr€125.00k0.016% 425.4k
Paolo Boccardelli
Independent Director1yrno datano data
Alessandro Zannini
Independent Director1.25yrsno datano data

1.0yrs

Average Tenure

57yo

Average Age

Experienced Board: UBI's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Unione di Banche Italiane S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Unione di Banche Italiane S.p.A.
  • Ticker: UBI
  • Exchange: BIT
  • Founded: 1869
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €2.735b
  • Shares outstanding: 1.14b
  • Website: https://www.ubibanca.it

Number of Employees


Location

  • Unione di Banche Italiane S.p.A.
  • Piazza Vittorio Veneto, 8
  • Bergamo
  • Bergamo
  • 24122
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BPPU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2003
UBIBIT (Borsa Italiana)YesOrdinary SharesITEURJul 2003
BPDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2003
0LBNLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2003
UBIMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2003
UBIWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 2003

Biography

Unione di Banche Italiane S.p.A., together with subsidiaries, provides banking products and services for retail, private banking, corporate, and institutional customers in Italy and internationally. The company operates through Banking, Non-Banking Financial, Corporate Center, and Insurance segments. It offers various deposit and loan products; and asset management advisory, bancassurance, investment advice, leasing, factoring services, and online banking services, as well as credit card, ATMs, and mobile banking services. The company also provides financial instruments placement, payments and settlements, and custody and administration services; manages open-ended mutual investment funds; and engages in trustee activities. In addition, Unione di Banche Italiane S.p.A. sells and purchases real estate properties and trades in gold and jewelry; and offers insurance brokerage, and life and non-life insurance services. As of December 31, 2018, it operated approximately 1,648 branches in Italy; and 5 branches internationally, as well as 2,325 ATMs. The company was formerly known as Banche Popolari Unite Scrl. Unione di Banche Italiane S.p.A. was founded in 1869 and is headquartered in Bergamo, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 20:53
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.