Investment banks are not known for their modesty and UniCredit Banca Mobiliare (UBM), part of UCI, is no exception. It claims it is the power behind European finance – quite an assertion for an investment bank that was born four years ago.
Yet, UBM is out front in fixed-income securities, both state and corporate. As well as leading in Italian government bonds, the bank is a primary dealer in France and a major player in German bund and Spanish bonos.
For those who reckon that the glamour of investment banking lies in mergers and acquisitions, UBM might seem dull. But if what counts is results, UBM shines with a cost/income ratio of 30% and good profits for its parent – it posted almost E300m ($346m) last year.
UBM’s managing director, Pietro Modiano, made his career in the research and finance departments of Credito Italiano, which explains the investment bank’s attention to systems and risk management.
How are relations with Mediobanca, whose offices are just round the corner? “There is some competition, some co-operation and great respect,” says Mr Modiano.