ROME—UniCredit SpA on Tuesday said it planned to launch a €13 billion ($13.8 billion) rights issue, a massive cleanup of its balance sheet and slash thousands of jobs, as part of an overhaul aimed at bolstering its capital base.

The bank, Italy's largest by assets, said it planned to shed €17.7 billion of gross bad loans by bundling them into securities that will be sold to investors.

It added that it will take a €12.2 billion one-off hit in risk charges for the fourth quarter of this year, in preparation for the balance sheet cleanup. These charges will include €8.1 billion in provisions for losses on bad loans.

UniCredit's strategic plan also includes the bank cutting 14,000 jobs to save about €1.1 billion in personnel costs.

To regain its financial footing, the bank has already sold a number of assets since Jean-Pierre Mustier took the helm earlier this year and announced a strategic review.

On Monday, UniCredit said it had agreed to sell its asset-management unit Pioneer Investments to France's Amundi SA for €3.88 billion.

Write to Giovanni Legorano at giovanni.legorano@wsj.com

(END) Dow Jones Newswires

December 13, 2016 03:25 ET (08:25 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
Unicredito (PK) (USOTC:UNCFF)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Unicredito (PK) Charts.
Unicredito (PK) (USOTC:UNCFF)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Unicredito (PK) Charts.