Europe Needs Stronger Banks, Orcel Says

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00:00We get trade wars, we get real wars, so completely different from what it was in the past.

00:07And on that, now we are overlaying disruption from a technology standpoint that is truly affecting the way we do business.

00:16If the world, but in particular Europe, needs to change, they need financing.

00:21If they need financing, they need banks.

00:23And we need larger, stronger, more capable banks to accompany that transformation.

00:30But the point is, in as much as we are the bank in Europe with the most optionality on M&A,

00:35because we are in 13 markets and we can do multiple transactions in every market,

00:40at the same time, unfortunately or fortunately, we're disciplined and determined not to disappoint our shareholders.

00:46So we will not move in things that do not generate value.

00:50So you dropped your bid for Banco BPM. Do you still want it?

00:54We closed the chapter on that.

00:56But we tried at certain terms for a number of reasons.

01:01It was not to be.

01:02We closed it.

01:03For Unicredit, this is exactly how we see the next three years.

01:07We think there will be a lot of dislocation, and that is a great opportunity for us.

01:10Why is bigger better?

01:12You've been on the acquisition trail.

01:13Again, what's the guiding thread on why you think you can better service your clients?

01:20Well, look, I think, especially in the last year, but actually since I got here,

01:25there has been this acquisition trail topic that has been there all the time.

01:30And every time we have disappointed peak of all, because we actually weren't on the acquisition trail.

01:34In 2021, we did not proceed with Monterey Pasqui.

01:38It was an interesting acquisition, but we said very clearly the value we can create standalone is multiple times.

01:47I think the point is that, and I've done a lot of it, M&A is not a substitution for getting an organization that is capable to grow,

01:59grow profitably, and do so while they are gaining market share and they are returning to shareholders disproportionate returns.

02:07We'll see you next time.