UniCredit is a pan-European Commercial Bank with a unique service offering in Italy, Germany, Central and Eastern Europe. Our purpose is to empower communities to progress, delivering the best-in-class for all stakeholders, unlocking the potential of our clients and our people across Europe.
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On 5 November 2024 the Board of Directors of UniCredit S.p.A., having fulfilled the requirements pursuant to art. 2433 bis of the Italian Civil Code, and on the basis of Company’s balance sheet as at 30 June 2024, approved a resolution to distribute an interim dividend to shareholders on the 2024 results, for a total amount of 1,440,000,000 euro, equal to a “per share” amount for each of N°1,554,803,184 outstanding and having the right shares at 4 November 2024 and, therefore, also deducting the N°72,497,676 of the treasury shares in portfolio at the same date, of 92.61 euro/cent (DPS), before tax.
The interim dividend will be paid, in accordance with the applicable laws and regulations, on 20 November 2024, with the "ex-dividend date" on 18 November 2024 (coupon n 9), through the intermediaries participating in the settlement service (Monte Titoli). The shareholders entitled to receive the interim dividend will be those with evidenced ownership at the end of the day 19 November 2024 (record date).
Subject to what is stated above, own shares purchased by the Bank after the 4 November 2024 and held in the treasury shares portfolio at the record date, are not entitled to receive the interim dividend, which will be allocated to the Statutory Reserve.
The Directors’ report and the Company report of UniCredit S.p.A. as at 30 June 2024, to which refer for further information, are available to the public on the Company's website www.unicreditgroup.eu/en/investors/equity-investors/dividends.html and on the website of the authorized storage mechanism "eMarket STORAGE" managed by Teleborsa S.r.l. (www.emarketstorage.it/en).
These documents, together with the opinion of the Independent Auditors, are also available, for shareholders’ consultation, at the Company’s registered Office in Milan till the approval of the current annual financial statements.
Milan, 6 November 2024
Contacts
Media Relations: e-mail MediaRelations@unicredit.eu
Investor Relations: e-mail InvestorRelations@unicredit.eu
UniCredit: 3Q24 and 9M24 Group Results. Record 3Q and 9M Results: 15th Consecutive Quarter of Profitable Growth and Sequential Improvements to our Kpis
PRESS RELEASE
06 November 2024
PRICE SENSITIVE
Demonstrates a new era of sustainable quality growth
3Q24 net profit up 8% versus prior year to €2.5 billion; €7.7 billion 9M24 net profit, up 16% compared to 9M23 and a RoTE of 19.7%
Net revenue growth of 2.6% year on year in 3Q24 underpinned by €1.9 billion in fees, up 8.5% versus prior year on client activity, and resilient NII at €3.6 billion
3Q24 costs further reduced year over year with industry leading to 9M24 cost/income ratio below 37%
Continued superior asset quality with cost of risk at 15 basis points in 3Q24, while maintaining c. €1.7 billion overlays
Strong CET1 ratio at 16.1% despite impact of strategic investments, underpinned by record organic capital generation at €3.5 billion1 in 3Q24
Distribution accrual of €7.7 billion in 9M24 or 100% net profit, interim 2024 cash dividend of c. €1.4 billion2, or 92.61 €/cent dividend per share, in addition to the c. €1.7 billion 2024 interim share buy-back already under execution
Upgraded 2024 net profit guidance to above €9 billion, or around €10 billion “clean3”, and FY24 distribution4 confirmed in line with FY23
FY25-26 annual ambition of above €9 billion net profit and distribution5 greater than FY24. Cash dividend payout ratio to be increased to 50% from 40% starting from FY25 results
Ushering in a new era of our plan: after the success of our transformation there is still sustainable quality growth ahead
UniCredit has funded a new plafond of €5 billion for Italian corporates following investing criteria established by the “Piano di Transizione 5.0”, bringing the entire plafond to €35 billion since 2022
On 5 November 2024, the Board of Directors of UniCredit S.p.A. (“UniCredit” or “the Group”) approved the 3Q24 and 9M24 Consolidated Results as of 30 September 2024. Another strong set of financial results is further demonstration of the success of UniCredit’s transformation, paving the way for sustainable quality growth ahead. For the 15th consecutive quarter, the Group has shown its ability to balance the three financial levers of net revenue, costs and capital and leveraging a unique pan-European model to deliver consistent growth across regions, resulting in a 3Q24 net profit of €2.5 billion, up 8.2 per cent versus prior year, and an equal stated net profit.
The bank’s transformation is further evidenced by the continued excellent profitability and shareholder value creation with a 3Q24 RoTE at 19.7%, up by 1.4 p.p. versus prior year and EPS of €1.58, up almost 22 per cent versus prior year.
The 3Q24 financial outcome reflects the Group's strategic focus on enhancing client-centric operations and focusing on costs and capital efficiency, with further potential to be unlocked. These results were driven by €6.0 billion of net revenue in 3Q24, an increase of 2.6 per cent year on year, underpinned by net interest income (“NII”) of €3.6 billion, €1.9 billion of fees, and €165 million of loan loss provisions (“LLPs”).
NII was largely unchanged versus prior quarter at €3.6 billion, with an effective management of the deposit pass-through, closing the quarter at an average of circa 32 per cent, only marginally up versus prior quarter. The lower Euribor in the period, as well as lower volumes, were mostly compensated by higher calendar days in the quarter and other factors. NII demonstrated once again its resilience, remaining broadly stable year on year.
Loan loss provisions stood at €165 million for a cost of risk (“CoR”) of 15 basis points in 3Q24. Our asset quality’s soundness is once more evidenced by continued back-to-performing flows and continues to benefit from a geographically diversified and resilient credit portfolio with sound coverage levels and strong lines of defence with, among others, €1.7 billion of overlays on the performing portfolio. The FY24 CoR guidance was confirmed at below 20 basis points.
The very strong performance registered in quarterly fees of 8.5 per cent year on year growth demonstrates the effectiveness of our strategic direction and investments. Such performance once again highlights the benefits of our diversification and high-quality product factories, as well as the increased client appetite for our broader product offering. Fees were up 7.2 per cent nine months on nine months or 8.7 per cent when excluding the impact of the current account fee reduction in Italy and higher securitisation costs.
In 3Q24 operational costs were €2.3 billion, reduced by 0.3 per cent quarter on quarter and by 1.4 per cent year on year, confirming the Group’s track-record in operational efficiency while protecting revenue growth through targeted cost reductions and supporting investments to drive future growth.
The Group maintained its best-in-class capital position with a CET1 ratio of 16.1%, thanks to a record quarterly organic capital generation of €3.5 billion1, bringing the 9M24 total to €10.1 billion1, or 357 basis points. As such, FY24 organic capital generation guidance has been increased to circa 400 basis points6 from above 350 basis points. The CET1 ratio is already net of €7.7 billion distributions accrued in 9M24 and net of the impact stemming from strategic investments related to price commitments for an insurance joint venture, Aion/Vodeno and Alpha Bank Romania acquisitions and the investment in Commerzbank. This investment provides optionality and is hedged to allow us to protect our capital without penalising our shareholders.
On 5 November 2024 the Board of Directors of UniCredit, in accordance with the current shareholder remuneration policy and having noted the fulfilment of the requirements of article 2433 bis of Italian Civil Code, approved the payment of an interim cash dividends against FY24 results envisaging a distribution of €1.44 billion, with the ex dividend date on 18 November 2024, record date on 19 November 2024 and payment date on 20 November 2024, equal to a “per share” amount of 92.61 €/cent (“DPS”), before tax.
The FY24 interim share buy-back for an amount of up to €1.7 billion was launched on 16 September 2024 and is currently being executed.
On the back of its new sustainable run rate, UniCredit has improved its financial guidance for FY24. The net revenue guidance has been increased to circa €24 billion, from above €23 billion, reflecting improved revenues across the board at 9M24. The guidance for net profit was upgraded to above €9 billion from the prior guidance of in excess of €8.5 billion, notwithstanding the significantly higher investments to protect and propel future performance; net of these, the FY24 net profit guidance is around €10 billion3. At the same time, FY24 RoTE guidance has been improved to circa 17% from circa 16.5%.
We confirm our FY24 distribution4 guidance in line with FY23, and we will increase the dividend payout ratio to 50% of earnings, from 40%, starting on FY25 results.
In line with the Net Zero Banking Alliance timeline, UniCredit has outlined its ambitions for seven of the most carbon-intensive sectors, including an industry-leading phase-out policy for coal, thus continuing to embed ESG in its financing activities.
Within the program “UniCredit per l’Italia”, the Bank has funded a new plafond of €5 billion for Italian corporates following investing criteria established by the “Piano di Transizione 5.0”, bringing the entire Unicredit plafond to €35 billion since 2022. “UniCredit for CEE” initiative, worth €2.6 billion investment over 2024 across Central and Eastern Europe, is progressing well. Of the €30 million 2024 funding to the UniCredit Foundation, €14 million have been allocated to the UCF Edu-Fund Platform with the aim to strengthen the Bank commitment to combating educational poverty.
On 14th November 2024, we will hold our second ESG Day: “A challenged future: choosing the path ahead”. For this year's event, we want to put our clients at the centre, supporting them on their sustainable transition with actionable insights – tackling a range of topics from a customer-centric perspective. The event will provide a forum to discuss challenging issues and sustainability trade-offs, with a view to defining concrete solutions.
UniCredit has been included in the “Europe’s Climate Leaders 2024” list and, for the 4th consecutive year, in the “Europe’s Diversity Leaders 2025”. The Bank has also won the 2024 Diversity and Inclusion Initiative of the Year EMEA award from Environmental Finance for its "Group Holistic Well-being approach”. The Bank’s efforts have been recognized in further ESG rating improvements.
The key recent events in 3Q24 and since the end of the quarter, include:
· “Concluded the Third Tranche of the Buy-Back Programme 2023. Update on the execution of the share buy-back programme during the period from 12 to 19 August 2024” (press release published on 20 August 2024);
· UniCredit launched the execution of the 2024 share buy-back anticipation programme for an amount of € 1.7 billion on 16 September 2024, after receiving ECB authorization on 13 September 2024.
· “UniCredit: Moody’s upgrades Senior Preferred outlook to stable and affirm rating at Baa1” (press release published on 1 August 2024);
· “UniCredit is pleased to announce that it has acquired an equity stake equal to around 9% in the share capital of Commerzbank AG” (press release published on 11 September 2024);
· “UniCredit enters into additional instruments relating to Commerzbank shares and increases its aggregate position to circa 21%” (press release published on 23 September 2024);
· “UniCredit launches a strategic process to fully internalize life bancassurance in Italy. Exercise of the rights to acquire CNP UniCredit Vita and UniCredit Allianz Vita majority stakes” (press release published on 25 September 2024);
· “UniCredit: Moody’s affirms ratings, highlighting potential for upgrade of bank’s stand-alone rating above Italian sovereign” (press release published on 2 October 2024);
· Fitch upgrades issuer rating to 'BBB+', one notch above the Italian sovereign, and improves the outlook to positive (press release published on 31 October 2024);
· “UniCredit and Alpha Services and Holdings announce completion of the acquisition of majority stake by UniCredit in Alpha Bank Romania” (press release published on 4 November 2024);
· As of 1 November 2024, since the launch of the 2024 share buy-back anticipation programme, UniCredit purchased 30.1 milion shares, equal to 1.84% of the share capital for a total consideration of €1.2 billion (equal to 68.51% of the total amount of the 2024 share buy-back anticipation programme). As of the same date, following the cancellation of the treasury shares on 26 June 2024, UniCredit holds a total of 72.4 million treasury shares equal to 4.42% of the share capital (press release published on 5 November 2024).
Andrea Orcel, Chief Executive Officer of UniCredit S.p.A. said:
We reported our fifteenth consecutive quarter of profitable growth and record financial results with net profit of €2.5 billion, or €7.7 billion for nine months, and EPS growth of 31% year over year. Fees increased by 8.5% versus prior year on the back of client activity and as we continue to transform our franchise. Together with resilient interest income, well controlled costs and a continued very low cost of risk, our RoTE reached 19.7% without adjusting for our excess capital. All our regions are contributing to our success while they reap the benefits of a larger Group.
The CET1 ratio at 16.1% is broadly unchanged versus prior quarter notwithstanding the impact of strategic investments as organic capital generation of €3.5 billion set another quarterly record.
It is clear that we have rebuilt our capacity to transform, adapt and excel, underpinned by a clear, consistent and simple strategic vision. As a signal of confidence in our quality sustainable growth we will increase our cash dividend to 50% of net profit from 2025, up from 40%, given the strength of our earnings and organic capital generation. Over the cycle we will continue to demonstrate strong profitability and superior distributions.
During the quarter we deployed some of our excess capital and made a strategic investment in Commerzbank which may or may not eventually lead to a full combination. This is in line with our disciplined approach to inorganic options, keeping to strict financial criteria while giving us future optionality. Our day-to-day priority however remains a commitment to accelerating our undisputed sector leadership and achieving our organic ambitions. We take great pride from what we have delivered for our clients, communities and shareholders and our people will not waver from our determination to continue achieving excellence for all our stakeholders.
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 Excluding the impact stemming from strategic investments related to price commitments for the insurance joint venture, Aion/Vodeno and Alpha Bank Romania acquisitions and the investment in Commerzbank.
2 As approved by the UniCredit Board of Directors on 05 November 2024, having noted the fulfilment of the requirements of article 2433 bis of Italian Civil Code.
3 Net Profit excluding integration costs and extraordinary other charges, net of taxes.
4 Ordinary distribution of at least 90% of Net Profit, capped at organic capital generation.
5 Total average annual distribution for FY25-26, excluding inorganic.
6 Excluding strategic investments (e.g. impacts related to the insurance joint ventures, Aion/Vodeno and Alpha Bank Romania acquisitions and the investment in Commerzbank).
UniCredit: update on the execution of the share buy-back programme during the period from 28 October 2024 to 1 November 2024
PRESS RELEASE
05 November 2024
PRICE SENSITIVE
Within the UniCredit S.p.A. (the “Company” or “UniCredit”) share buy-back programme communicated to the market on 16 September 2024 and initiated on the same date, as per the authorisation granted by the Shareholders’ Meeting of the Company held on 12 April 2024 (the “2024 SBB Anticipation”) – on the basis of the information received from Morgan Stanley & Co. International Plc as intermediary in charge of executing, in full independence (so-called “riskless principal” or “matched principal”), the 2024 SBB Anticipation – UniCredit informs, pursuant to art. 2, paragraph 3, of the Delegated Regulation (EU) 2016/1052, that it has carried out the transactions indicated below.
The chart below provides aggregate details of the daily purchases of UniCredit ordinary shares (ISIN IT0005239360), made from 28 October 2024 to 1 November 2024.
Summary of purchase transactions from 28 October 2024 to 1 November 2024
Date
Type of transaction
Aggregated volume
Weighted average price (Euro)
Trading venue
28 October 2024
Purchase
407,063
40.4586
MTA
29 October 2024
Purchase
39,173
41.1605
MTA
30 October 2024
Purchase
615,942
40.9794
MTA
31 October 2024
Purchase
909,463
40.8374
MTA
1 November 2024
Purchase
160,619
41.0431
MTA
Total
2,132,260
40.8275
The details of all the purchase transactions carried out in the period indicated above are available in Excel format at www.unicreditgroup.eu (“Press & Media” / “Press releases”).
As of 1 November 2024, since the launch of the 2024 SBB Anticipation, UniCredit purchased no. 30,122,628 shares, equal to 1.84% of the share capital for a total consideration of Euro 1,164,619,096.96 (equal to 68.51% of the total amount of the 2024 SBB Anticipation). As of the same date, following the cancellation of the treasury shares on 26 June 2024, UniCredit holds a total of 72,365,603 treasury shares equal to 4.42% of the share capital.
UniCredit and Alpha Services and Holdings announce completion of the acquisition of majority stake by UniCredit in Alpha Bank Romania
PRESS RELEASE
04 November 2024
· Alpha Bank Romania will be merged into UniCredit Bank Romania, creating the third banking group by assets in the country
· The transaction is part of the strategic partnership between UniCredit and Alpha
UniCredit S.p.A. (“UniCredit”) and Alpha Services and Holdings S.A. ("Alpha”) announce that, having received approvals from all relevant authorities and following completion of the due diligence process, UniCredit has acquired from Alpha International Holdings S.M.S.A., 100% subsidiary of Alpha, a 90.1% stake in Alpha Bank Romania S.A. (“Alpha Bank Romania”) in consideration of (i) 9.9% of the share capital of UniCredit Bank S.A. (“UniCredit Romania”) and (ii) circa Euro 255 million in cash.
The transaction is part of the strategic partnership between UniCredit and Alpha Services and Holdings, announced on 23 October 2023.
The acquisition starts the process for a gradual integration of Alpha Bank Romania into UniCredit Group. Subject to legal and authorization stages, integration will be completed with the merger through absorption of Alpha Bank Romania S.A. within UniCredit Bank S.A. estimated to take place in the second part of 2025.
The merger will bring together two complementary banks, both with long-standing relationships and expertise in the Romanian market. The experience of UniCredit Romania and Alpha Bank Romania, both in the corporate and retail segments, will strengthen the position of the resulting bank, that will bring UniCredit Group on the third place in the Romanian market - subsidiaries included - with a combined market share of around 12% in terms of total assets.
Alpha will retain its longstanding presence in the Country by having, post-merger completion, a 9.9% of UniCredit Bank S.A.
Alpha Bank Romania change of ownership will not bring immediate changes for its customers, who will continue to be served as before, both through electronic channels and in physical offices. As the natural stages of the integration process will be completed. all the necessary or useful information will be made available, the main objective being to ensure a transparent and easy transition for all the bank`s customers, also on websites (https://www.unicredit.ro/en/institutional/the-bank/alphabank-unicredit-en.html; https://www.alphabank.ro/despre-noi/noutati-alpha-bank-romania ).
UniCredit mandated Antoaneta Curteanu as new Executive President of Alpha Bank Romania to coordinate the integration process into UniCredit Romania. Andrei Bratu will also join Alpha Bank Romania, on behalf of UniCredit, to act as Executive Vice President, coordinating the Wholesale Division responsible for managing corporate clients.
Sergiu Oprescu, the Executive President of Alpha Bank Romania prior to the change in the shareholding, will in the following period join the management of UniCredit Romania, at the level of the Supervisory Board, after the approval by the National Bank of Romania for the new role. At the same time, Alpha Services and Holdings designated two members within the Supervisory Board of UniCredit Romania.
Andrea Orcel, CEO of UniCredit said: “This is a decisive step in our strategic partnership with Alpha, allowing us to further enhance our presence in the country for the benefit of clients and our wider stakeholders. Romania holds strategic importance within our growing Eastern European region. With a stronger, efficient bank powered by innovative products made available to a larger customer base we will be able to increase support to individuals, SMEs and local communities. The resulting bank will be well positioned for growth opportunities in the market, as well as for the development of the potential of all employees in Romania and across the wider Group”.
Vassilios Psaltis, CEO of Alpha Services and Holdings said: “The timely completion of our transaction in Romania underscores the value both parties place on the strategic agreement announced last year. Together with UniCredit, we are building a leading bank in the Romanian market -reflecting Alpha Bank’s longstanding presence in the country -while actively collaborating across multiple areas to deliver top-tier services to Greek companies expanding into Europe and to European groups looking to invest in Greece”.
Mihaela Lupu, CEO of UniCredit Bank Romania said: "We are happy to collaborate with the Alpha Bank Romania team, each of us continues to be concerned with the organic growth strategy, and, in parallel, to prepare and implement the merger. During this transition period, we are ensuring business development, quality service to our customers, the best possible work environment for employees, focusing on growth and transparency as the merger process progresses."
Sergiu Oprescu, Executive President of Alpha Bank Romania, said: “I am confident that today’s step towards merger lays the groundwork for one of the most important, dynamic and customer-focused banking institutions in Romania. This institution resulted will stand as a modern, leading force in the industry—one that not only meets but anticipates the evolving needs of our customers and all stakeholders in an increasingly competitive and fast-changing business landscape”.
Milan, Bucharest 4 November 2024
Contacts:
Media Relations e-mail: MediaRelations@unicredit.eu
Investor Relations e-mail: InvestorRelations@unicredit.eu
UniCredit: Fitch upgrades issuer rating to one notch above the Italian sovereign and improves the outlook to positive
PRESS RELEASE
31 October 2024
PRICE SENSITIVE
The rating agency Fitch Ratings has upgraded UniCredit SpA’s Long-Term Issuer Default Rating (IDR) and Senior Preferred rating by one notch to ‘BBB+’ and improved the outlook from stable to positive. The rating is now one notch above the Italian sovereign.
According to the agency, this is driven by an exceptional position of strength relative to domestic peers and is supported by successful diversification in well performing or growing economies. The agency believes this would mitigate pressures on UniCredit even in the unlikely event of a severe Italian sovereign stress.
The Viability Rating (i.e. standalone rating) has been upgraded to ‘bbb+’, while the corresponding long-term deposit, Senior Non-Preferred, Tier 2, and Additional Tier 1 ratings have each been upgraded by one notch.
The Short-Term Issuer Default Rating has been affirmed at ‘F2’.
For further details please refer to Fitch Ratings’ corresponding press release on the website of the rating agency: www.fitchratings.com
Milan, 31 October 2024
Contacts
Media Relations: e-mail MediaRelations@unicredit.eu
Investor Relations: e-mail InvestorRelations@unicredit.eu
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