After the recent disposals of stakes in Yapi ve Kredi Bankasi A.Ş. ("YKB" or the "Company") announced respectively on 30 November 2019 and on 5 February 2020, the European Central Bank has notified UniCredit today of its decision to allow the application of the equity method pursuant to Article 18(5) of the CRR.
Following such notification, the Group risk weighted assets will no longer include YKB's proportional contribution; instead, the remaining approx. 20% stake held by UniCredit in the Company will be consolidated via the equity method and subject to the deduction mechanism applicable to the significant investments in financial sector entities. In addition, the Group will not include YKB either when calculating its consolidated regulatory liquidity ratios.
The total impact on the consolidated CET1 ratio of UniCredit of the disposals of the stakes in YKB closed in 1Q2020 and of the application of the equity method for the prudential consolidation of the Company is expected to be equal approx. +0.5 percentage points in the quarter.
Milan, March 11, 2020
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