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Capital Allocation & ROE Discipline

avg score 8.0 · 1 pods
insights
1
net direction
100%
tail / head / mixed / risk
1/0/0/0

tailwind · 1

  • Cost of equity (9-17%) must drive every capital deployment decision
    andrea orcel · In Good Company with Nicolai Tangen

headwind · 0

  • — no headwind insights —

all insights

Capital Allocation & ROE Discipline
score 8/10
TAILandrea orcel·In Good Company with Nicolai Tangen·8 months ago
Cost of equity (9-17%) must drive every capital deployment decision
Banks historically ignored cost of equity; UniCredit now ranks every business by cost/income ratio and capital consumption, deploying capital only where returns exceed the 9-17% cost of equity, and fixing underperformers to make them eligible for further investment — maximizing the intersection of quality growth and distribution.
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