MILAN (Reuters) - UniCredit has received authorization from the European Central Bank for its 2022 share buyback program of up to 3.34 billion euros.

The bank, a note explains, aims to execute the buyback plan in two tranches: the first of about 2.34 billion "as soon as possible" after the green light from the shareholders' meeting, while the second, for the remaining portion of about 1 billion, is expected to start in the second half of this year, shortly after completion of the first tranche.

"The approval is based on the financial information provided by the company, which showed significant strength in capital levels and organic capital generation at the top end of the industry," UniCredit says.

"Together with the consistency of the liquidity position, these elements ensure that the company can face stress scenarios from a position of strength," it adds.

UniCredit recalls that the buyback, together with the proposed dividend, results in a total distribution to shareholders for 2022 of 5.25 billion, up 40 percent from 2021.

As for the impact on capital, the Cet1 ratio,pro-forma for the distribution, is 14.9 percent at the end of 2022 and "is expected to increase further in the first quarter of 2023."

The announcement on the ECB's go-ahead for the buyback pushed the stock up sharply in the Milan Stock Exchange, jumping 3.5 percent as of 4:30 p.m.

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(Andrea Mandalà, editing Gianluca Semeraro)