2Q21 & 1H21 Group Results: message from Andrea Orcel
Friday 30 July 2021
On the occasion of Group Results,
our CEO addresses to all colleagues detailing the targets achieved and outlining the main pillars that underpin UniCredit's future strategy
As I have said, and as I hope you will have seen for yourself, there is a huge amount of activity taking place currently to build UniCredit into the pan-European bank we know it can be. Our recent announcement about Banca Monte dei Paschi di Siena (‘MPS’) is one aspect of this activity.
It is one aspect, but it is not the only aspect. Nor is it the most important. Our central focus has been and will continue to be unlocking the internal value held within this bank. Opportunities like MPS may accelerate UniCredit’s path, but they are not what it will be built on.
Long-term growth and success will be built on a solid UniCredit foundation, with empowered teams across Europe leading their businesses efficiently and effectively. It will be built on an ambitious digitalisation plan, one which is embedded across all our businesses. And all of the above will be underpinned by a client-centric approach which must run through the heart of all that we do.
We have taken measures to implement change across these three pillars: simplification, digitalisation and client centricity. While we are still at the beginning of this process, I am pleased to say that our Q2 results show progress. They show that we have the right foundations on which to build, and that we can accelerate our growth based on these pillars.
Our results can be accessed here, but it is worth taking a moment to revisit some highlights. In 2Q21, UniCredit delivered a sound underlying net profit of 1.1 billion, up 24.7 per cent quarter on quarter. Revenues reached 4.4 billion, up 5.5 per cent year on year, reflecting very strong commercial revenues and keeping the bank on track for 17.1bn FY21 revenues, as previously guided. The Group’s continued focus on efficiency and strong cost discipline has resulted in 2Q21 costs equal to 2.5 billion, almost flat year on year.
Our results in 2Q21 showed a truly Pan European performance:
- CB GERMANY had a net operating profit of 115M, with ROAC at 5.1%
- CB AUSTRIA had a net operating profit of 45M with ROAC at 11.2%
- CEE had a net operating profit of 487M with ROAC at 22.3%
- CB ITALY had a net operating profit of 475M with ROAC at 15.3%
- CIB had a net operating profit of 636M with ROAC at 16.2%
Our Operations team pushed the simplification drive forward, saving 34m with automation and real estate optimisation initiatives.
I am particularly excited by the work we are doing to weave ESG through all our operations and what the establishment of our Sustainability Bond Framework means for our ability to be impactful in this space going forward. Key successes include the issuance of our €1bn inaugural Green Bond, involvement in 77.9bn of green or ESG-linked loans and deployment of ~6.5bn in renewable projects as of Jun 21.
However, banks represent more than just finances and numbers. Our robust commercial performance through the quarter translates to the empowerment of individuals and communities across Europe, whether that is in the granting of a loan to accelerate business success or a mortgage offered to improve a family’s quality of life. Most recently, this has manifested in the COVID-19 emergency support offered to European SMEs and individuals, comprising 28.5bn of state guaranteed loans and over 34.1bn of moratoria.
Our Foundation exists to accelerate this same progress, supporting over 5,800 projects with ~120m donations. In May it announced contributions of €300,000 to 10 non-profit organizations in Italy supporting children across disability, health, and scientific research.
Thank you to all of you. It is your commitment and hard work that have enabled the above results and the progress we are seeing. I look forward to taking this further together as we build UniCredit into the bank we know it can be. A bank to be proud of to work for and be part of.