The UniCredit Board of Directors, further to the recommendation of the Nomination Committee, has approved a new organisational structure aimed at simplifying the Group, establishing a more efficient operational set-up, clarifying roles and responsibilities of senior management and bolstering accountability through shorter reporting and decision making lines.

The new structure will involve the reduction of the number of CEO direct reports, with the CEO focusing on the group’s strategy, risks and costs structure. As such, he will retain direct oversight of strategy, risk management, compliance, human resources, as well as operating activities.

All business related activities across the Group will be under the responsibility of GianniFranco Papa, currently Deputy General Manager of UniCredit and Head of the Corporate and Investment Banking division, who will take up an expanded and strengthened General Manager role, with the primary focus on developing further UniCredit’s client offer, maximizing cross-selling and value creation throughout UniCredit’s different divisions and areas of activities as well as driving the digital strategy and the change of the bank’s services model.

Operating activities will be lead by newly appointed co-Chief Operating Officers, Ranieri de Marchis, currently Head of Internal Audit, and Francesco Giordano, currently Chief Financial Officer of HVB, who will both report to the CEO. Their explicit brief will be to transform the operating model of the Group, to reduce costs, streamline and simplify processes and procedures and to instill greater accountability and transparency at all levels. Mr de Marchis will take charge of IT and operational activities, security and internal control systems, whilst Mr Giordano will have specific responsibility for cost management, purchasing, real estate and all finance functions. The latter will be lead by Mirko Bianchi, currently CFO of UniCredit Bank Austria, who becomes Group CFO. Ranieri de Marchis and Francesco Giordano will jointly supervise the strategic planning and rationalization of the IT development program, working closely with the different operational units to respond to business critical needs.

Also reporting directly to the CEO is Marina Natale, who will head the Strategy and M&A team for the period of the strategic review.

The Group’s Italian franchise will have an expanded leadership team under the supervision of General Manager GianniFranco Papa, with the nomination of Andrea Casini, General Manager Bulgaria, and Giovanni Ronca, General Manager New York branch, as co-Heads of the Group’s Italian network. Mr Casini, with Remo Taricani as deputy, will focus on the transformation of the retail side of the network, and Mr Ronca, with Lucio Izzi as deputy, on the corporate side.

Gianfranco Bisagni and Olivier Khayat, currently Deputy co-Heads of the CIB division are promoted to co-Heads of CIB, which will continue its successful development and reinforce its European leadership in capital markets and global transaction banking. Gianfranco Bisagni and Olivier Khayat will keep on reporting to GianniFranco Papa.

All the above appointments will become effective on 1 September 2016.

As previously announced TJ Lim, previously Global Head of Markets, has been appointed Group Deputy Risk Officer to ensure a proactive approach to the management of UniCredit’s non-core credit portfolio. Mr Lim is reporting to Massimiliano Fossati, UniCredit Group Chief Risk Officer.

Gabriele Piccini will be stepping down from his role as head of Italy and take up another position within the Group.

With the in-depth reorganisation of the management team, Paolo Fiorentino currently COO will be leaving the Group shortly as will Bernardo Mingrone, currently Group CFO. On behalf of the Board of directors the CEO expressed his sincere thanks to Mr Fiorentino, and Mr Mingrone for their valuable contributions to the Group.

Jean Pierre Mustier, CEO of UniCredit Group, commented on the changes: “The reorganisation announced today is the first step in the simplification of the Group. My objective is to streamline and improve its efficiency. Thanks to a leaner structure, shorter reporting lines and increased accountability we will foster a culture of strong risk and cost discipline and focused execution. With the right people in the right place, our teams will be able to focus fully on creating sustained and recurring value for all UniCredit’s stakeholders. These changes will allow us to develop further our deep pool of talents, and promote new managers from within whenever possible, to safeguard the future management strength of the Group. Whilst the outcome of our strategic review will be communicated before the end of 2016, our core objectives are to optimise our capital structure, further reduce costs and drive cross selling across the Group.”