RECORD SECOND QUARTER AND FIRST HALF MARK A MILESTONE IN OUR STRATEGIC AND FINANCIAL ACCELERATION
Excellent set of results with 2Q25 net profit at €3.3 billion and first half net profit at €6.1 billion, turning a transitional year into our best year ever
Record net profit ex one-offs1 at €2.9 billion in 2Q25 and €5.7 billion in 1H25, both up 8% versus prior year RoTE improved respectively to 20.6% and 21.3%
Core revenue2 of €5.9 billion in 2Q25, up 1.3% year on year
Industry leading cost-income ratio below 36% ex one-offs1, reflecting continued focus on efficiency while investing
Gross operating profit ex one-offs1 up 2.8% in 2Q25, and up 3.9% in 1H25
Sound asset quality confirmed by stable gross NPE ratio at 2.6% and continued low cost of risk of 9 basis point in 1H25, while maintaining level of coverage and c. €1.7 billion overlays3
CET1 ratio at 16.2%, (pro-forma for Danish Compromise4) thanks to superior organic capital generation of €2.4 billion5
FY25 guidance improved across the board with net profit around €10.5 billion
FY25 distribution guidance improved to at least €9.5 billion6 - at least €4.75 billion in cash dividend. At least €30 billion6 - at least €15 billion in cash dividend - for the FY25-27 period
FY24 share buy-back of €3.6 billion to start as soon as practicable after the 2Q25 results7. Interim FY25 cash dividend of c. €2.1 billion8, up 46% year on year
Continued strong shareholder value creation with 1H25 EPS up 26%, accrued DPS up 31% and Tangible Book Value per share up 19%9 versus prior year
Clear initiatives to unlock further organic growth from 2026 are in flight
Equity consolidation of Commerzbank and Alpha Bank10 further enhance results from 2026
We continue to execute on our ESG strategy, integral part of our strategic plan
On 22 July 2025, the Board of Directors of UniCredit S.p.A. ("UniCredit" or "the Group") approved the Consolidated First Half Financial Report as of 30 June 2025. UniCredit has once again demonstrated its strength in the second quarter with an excellent set of financial results, leading to a further improvement of financial guidance.
In 2Q25, we achieved a record net profit and Return on Tangible Equity ("RoTE"), driven by robust core revenue2 growth both on year on year and half-year on half-year basis. This success, combined with our disciplined approach to asset quality and a focus on operational and capital excellence, has enabled us to maintain strong P&L buffers.
By decisively accelerating our best-in-class organic growth plan we have not only mitigated external headwinds but have also positioned ourselves to deliver further net profit growth. As we look ahead to 2026 and beyond, we anticipate boosting revenue and net profit through the internalization of life insurance and the equity consolidation of Alpha Bank10 and Commerzbank. This strategic approach enhances our structural earnings, RoTE, and distribution trajectory, leading to upgraded guidance across key metrics.
We posted €6.0 billion of net revenues in 2Q25, or €6.4 billion up 0.5% year on year when excluding a €335 million negative impact in trading profit line, mainly due to hedging costs connected to Commerzbank equity consolidation only partially offset by trading gains on other strategic investments. Core revenue2 stood at €5.9 billion in 2Q25, up 1.3% year on year.
Net interest income ("NII") was down 0.3% quarter on quarter at €3.5 billion, a resilient performance given the lower Euribor in the quarter, largely thanks to a disciplined management of our deposits pass-through, closing the quarter at an average of circa 31 per cent. NII was down 2.8 per cent year on year.
The Group confirmed its structurally low Cost of Risk ("CoR") at 10 basis point in 2Q25, booking €109 million of loan loss provision ("LLPs"). The Group has a good quality credit portfolio with sound coverage levels and strong lines of defence with €1.7 billion of overlays3 on the performing portfolio.
Fees in the second quarter were down 1.0 per cent Y/Y, but up 1.1 per cent if excluding non-recurring impacts from the contracts renegotiation in payments that impacted 2Q24, securitisation costs and different timing of incentive schemes versus prior year. Fees increased 3.6 per cent half-year on half-year, the improvement was spread across most fee categories, and particularly led by investment (up 8.8 per cent half-year on half-year), insurance (up 0.9 per cent half-year on half-year), as well as client hedging fees, more than offsetting payment fees trend resulting from positive non-recurring impacts in 2Q24. The benefit of our diversification and product factories resulted in a fee base of 35 per cent11 out of total gross revenues.
In 2Q25 operational costs were €2.3 billion, an increase of 0.7 per cent both year on year and half-year on half-year due to the broader perimeter12, or down 1.4 per cent half-year on half-year on a like-for-like basis. Thanks to the proactive actions taken in the past quarters, our cost-income-ratio ("C/I") is only slightly up half-year on half-year, due to the revenue impact from the strategic portfolio and to the broader perimeter12.
This quarter's results were impacted by one-off items, including those linked to the equity consolidation of a 9.9% stake in Commerzbank and the full acquisition of the life insurance joint ventures. The 2Q25 trading profit of €192 million included the aforementioned €335 million negative impact (circa €220 million net of taxes) mainly due to hedging costs connected to Commerzbank equity consolidation only partially offset by trading gains on other strategic investments. Furthermore, an overall positive non-recurring result of €675 million (gross and net of taxes) was registered below the operating line, including the revaluation of our life insurance stakes (+€653 million) and the badwill stemming from the equity consolidation of a 9.9% stake in Commerzbank (+€230 million), both recorded in the profit on investments ("POI") line for a total amount of €882 million, and a non-recurring -€207 million provision for risk and changes. Excluding the €675 million below the operating line negative one-off and the €335 million strategic portfolio impact on trading profit, net profit stood at €2.9 billion, up 8% year on year. The €882 million non-recurring gains booked in the POI line are non-distributable and have therefore been excluded from our 1H25 distribution accrual, thus, the net profit ex non distributable one-offs in 2Q25 stood at €2.5 billion.
The Group continues to excel in capital generation, achieving 82 basis points5 of organically generated capital in 2Q25, amounting to €2.4 billion, which supports the €2.5 billion shareholder distribution accrual during 2Q25, i.e. 100% of net profit excluding non-distributable one-offs13 (1H25 shareholder distribution accrual at €5.2 billion). The CET1 ratio was strong at 16.0% with RWAs at €287.7 billion, up 0.3% quarter on quarter.
The interim cash dividend, which will be defined by the UniCredit Board of Directors' meeting which will approve the 3Q25 results, currently scheduled on 27 October 2025, after the completion of the necessary requirements, is envisaged at circa €2.1 billion - with the ex-dividend date on 24 November 2025, record date on 25 November 2025 and payment date on 26 November 2025.
FY25 net revenue guidance is upgraded to above €23.5 billion, while cost of risk guidance is confirmed to circa 15 basis points. FY25 NII guidance is improved to down mid-single percentage points digit versus FY24 and fees guidance (including net insurance result) is confirmed at up mid-single digit percentage points versus FY24. Costs guidance is improved to equal to or below €9.6 billion. This results in a FY25 net profit guidance improvement to circa €10.5 billion. FY25 RoTE guidance upgraded to circa 20% with stronger growth versus FY24 in EPS and DPS. In line with UniCredit's commitment to shareholder value creation, our FY25 distribution guidance is raised to equal to or above €9.5 billion6, of which equal to or above €4.75 billion cash dividend.
On the back of the excellent results delivered and the strong foundation in place to structurally increase our key financial metrics, we upgraded our 2027 ambitions to a net profit equal to or above €11 billion14, RoTE above 20% and total shareholder distribution equal to or above €30 billion6 between FY25 and FY27 with continued strong EPS and DPS growth.
Following the positive FY24 results, we are progressing towards our ESG penetration targets on total business volumes for 2025: 16% on ESG Lending at 1H25 versus 15% target, 14% on sustainable bond at 1H25 versus 15% target and 52% ESG AuM stock share at 1H25 versus 50% target.
On climate transition, we continue to implement our Net Zero Transition plan on financed emissions, actively supporting our clients in their transition and monitoring the evolution of our emission baseline for the Net Zero sectors relevant to the Group.
In 2025, with an additional €30 million in funding, we brought our total financial support for the UniCredit Foundation over the past three years to €80 million, a bold statement of our commitment to our social strategy and within that to youth and education. Driven by the ambition to train over 680,000 students between 2023 and 2026. Among the initiatives launched by the UniCredit Foundation, the Edu-Fund Platform has already awarded, with the first two rounds, €9 million out of overall €14 million, to 18 education initiatives to combating educational poverty across Europe. We have also launched the first UniCredit Foundation's report "Smoothing the Path: from Compulsory to Tertiary Education in Europe", a major academic study which sheds light on persistent educational inequalities across Europe, with young people from lower socio-economic backgrounds being significantly underrepresented in higher education due to financial constraints, limited guidance, and systemic educational tracking. Furthermore, we continue to invest in financial education and awareness initiatives, reaching c.110,000 beneficiaries in 1H25 across the Group, and to have a positive impact on our communities with c.5,600 hours dedicated to volunteering by our employees in 1H25.
UniCredit has been included, for the third year in a row in the "Europe's Climate Leaders 2025" list and, for the 4th consecutive year in the "Europe's Diversity Leaders 2025" by the Financial Times. We have also been awarded CEE's Best Bank for ESG and Italy's Best Bank for ESG at Euromoney Awards for Excellence 2025 for its commitment to empowering communities and supporting a just and fair transition across its core markets. Furthermore, UniCredit Banking Academy has been recognized as winner of the national "Volontari@Work 2024" award by the Fondazione Terzjus ETS - under the patronage of the Ministry of Labour and Social Policies and Unioncamere - for the volunteer skills model based on the collaboration between Group employees and former employees who continue to offer their time and skills to our communities. Lastly, UniCredit has once again been included in the Top 100 Globally for Gender Equality by Equileap - marking our 4th consecutive year of recognition.
The key recent events in 2Q25 and since the end of the quarter, include:
- Notice pursuant to Article 41, paragraph 2, letter c) of Regulation adopted by Consob with resolution no. 11971 of 14 May 1999, as subsequently amended ("Issuers' Regulation") (press release published on 19 May 2025);
- Notice pursuant to Article 41, paragraph 2, letter c) of Regulation adopted by Consob with resolution no. 11971 of 14 May 1999, as subsequently amended ("Issuers' Regulation") (press release published on 20 May 2025);
- Notice of early redemption UniCredit S.p.A. €1,250,000,000 Fixed to Floating Rate Callable Senior Notes due 16 June 2026 (the "Notes") Isin XS2190134184 (press release published on 22 May 2025);
- Press release (press release published on 23 May 2025);
- Notice pursuant to Article 41, paragraph 2, letter c) of Regulation adopted by Consob with resolution no. 11971 of 14 May 1999, as subsequently amended ("Issuers' Regulation") - ERRATA CORRIGE (press release published on 23 May 2025);
- Moody's improved UniCredit's rating outlook to positive and affirmed rating above sovereign at Baa1 (press release published on 28 May 2025);
- UniCredit enters into financial instruments relating to Alpha Services and Holdings S.A. for a c. 9.7% stake, increasing its aggregate position to c. 20% (press release published on 28 May 2025);
- UniCredit successfully issued dual tranche Senior Preferred bonds for a total amount of EUR 2 billion (press release published on 3 June 2025);
- European Commission clearance pursuant to the Foreign Subsidies Regulation (press release published on 4 June 2025);
- UniCredit successfully issued EUR 1 billion subordinated Tier 2 12NC7 bond with a 4.175% coupon (press release published on 17 June 2025);
- Press release (press release published on 19 June 2025);
- UniCredit completes internalisation of life bancassurance in Italy (press release published on 20 June 2025);
- Revised date for 2Q25 and 1H25 results (press release published on 1 July 2025);
- Press release (press release published on 3 July 2025);
- UniCredit converts into shares part of its synthetic position in Commerzbank also increasing its voting rights to around 20% (press release published on 8 July 2025);
- Press release (press release published on 13 July 2025).
Andrea Orcel, Chief Executive Officer of UniCredit S.p.A. said:
UniCredit has achieved outstanding financial results, with a record breaking Q2 contributing to the best H1 in the bank's history. We reported a quarterly net profit of €3.3 billion and a robust RoTE of 24.1%, with core revenues rising year-over-year to €5.9 billion. We are protected for the future as our low cost of risk, strong asset quality and unmatched overlays safeguard against potential macroeconomic downturns.
We ended the quarter with a best-in-class proforma CET1 ratio of 16.2% (pro-forma for Danish Compromise). This exceptional performance in H1 along with additional levers for further growth have enabled us to raise our guidance for 2025 and ambitions for 2027, projecting at least €30 billion in total shareholder distributions of which at least €15 billion in cash from 2025-2027. We look to the future with confidence.
Achieving these results in the current macro environment makes this an even bigger achievement for the team, of whom I am immensely proud. They continue to outperform even when it shouldn't be possible to do so. UniCredit is now firmly in the acceleration phase of UniCredit Unlocked, which is delivering results ahead of plan as well as strengthening and protecting our bank for the future.
Please refer to the General Notes and Main Definition sections at the back of this document for information regarding the financial metrics and defined terms mentioned in this press release.
1 i.e. (i) impact on trading from strategic investments - mainly hedging costs connected to Commerzbank equity consolidation and (ii) below net operating profit one-offs in the profit on investments i.e. the revaluation of the stakes in the life insurance joint ventures and the badwill stemming from the equity consolidation of a 9.9% stake in Commerzbank, and the one-off provision for risk & charges in the other charges & provisions.
2 i.e. NII plus fees plus net insurance result plus dividends.
3 Including calibration factor.
4 Subject to regulatory assessment.
5 Based on net profit ex. non distributable one-offs in the profit on investments line: (i) revaluation of the stakes in the life Insurance joint ventures and (ii) badwill stemming from the equity consolidation of a 9.9% stake in Commerzbank.
6 Distributions subject to supervisory, board of directors and shareholder approvals, inorganic opportunities and delivery of financial ambitions. They include cash dividends at 50% of net profit excluding non-distributable one-offs (in 2Q25: (i) revaluation of the stakes in the life insurance joint ventures and (ii) badwill stemming from the equity consolidation of a 9.9 per cent stake in Commerzbank), and additional distributions, including the excess capital.
7 Subject to market conditions.
8 The interim cash dividend, envisaged at circa 45% of the total FY25 cash dividend, will be defined by the UniCredit Board of Directors' meeting which will approve the 3Q25 results, currently scheduled on 27 October 2025, after the completion of the necessary requirements; the expected dividend dates are: ex-dividend date on 24 November 2025, record date on 25 November 2025 and payment date on 26 November 2025.
9 Including FY24 interim dividend paid in November 2024 of €0.93 and FY24 final dividend paid in February 2025 of €1.48, or +12% Y/Y without.
10 Equity consolidation of Alpha bank envisaged by 3Q25 pending necessary regulatory approvals.
11 Including dividends from Insurance JVs.
12 i.e. including Aion/Vodeno and Alpha Bank Romania majority stake acquisition and internalization of life-insurance.
13 Net profit excluding non-distributable one-offs i.e. net profit excluding €882 million non-distributable one-offs in the profit on investments line: (i) €653 million revaluation of the stakes in the life insurance joint ventures and (ii) €230 million badwill stemming from the equity consolidation of a 9.9% stake in Commerzbank.
14 Based on net profit consensus of equity consolidated stakes (considering c.29% of Commerzbank) and our expectations on consolidated perimeter.