Approval takes into account updated adverse macro scenario
ECB39;s casebycase approach positive for other banks
Shares up 4, outperform sector

MILAN, Aug 31 Reuters UniCredit on Wednesday said it had gained supervisory approval for a new share buyback of up to 1 billion euros 1 billion, putting it on track to hit its capital distribution goals despite economic recession risks.

Analysts welcomed the European Central Bank39;s green light for the second tranche of UniCredit39;s buyback, saying it highlighted a casebycase approach with positive implications for other lenders such as Nordea and ING.

UniCredit39;s large exposure to Russia had appeared to threaten its capital distribution plans when the Ukraine conflict first broke out. UniCredit said in March it would only execute the buyback in full if its core capital ratio remained above 13 despite the impact of the Russia crisis. 

Since then, however, the bank has completed a first 1.58 billion euro buyback, repurchasing 7.4 of its own share capital. In July it went on to seek ECB clearance for the second tranche, on which shareholders will vote on Sept. 14.

Given the risks stemming from the bank39;s Russian exposure along with the current macroeconomic uncertaintyrisks, we believe that the buyback approval is a vote of confidence for UniCredit, Berenberg analysts said.

Shares in UniCredit gained 3.8 by 1121 GMT, outperforming a 1.2 rise in Italy39;s banking index.

The latest buyback amounts to 32 basis points…