On 27 October 2021, the Board of Directors of UniCredit S.p.A. ("UniCredit" or "the Group") approved the 3Q21 and 9M21 Consolidated Results as at 30 September 2021.
The Bank's ambition remains to deliver sustainable returns above the cost of equity over the cycle, by optimising the combination of risk-adjusted revenue growth, operational efficiency and capital efficiency. Simplification, client centricity and digitalisation remain our three guiding principles. The new strategic plan will be presented at our virtual Strategy Day on 09 December 2021.
In 3Q21 underlying net profit1 reached €1.1 billion, up 0.5 per cent quarter on quarter, and €3.1 billion in the first nine months, equivalent to an underlying 9M21 RoTE2 of 7.9 per cent. The excellent commercial performance, reflecting the strengths of our unique pan-European franchise, led to €4.4 billion of revenues in 3Q21. Fees delivered another very robust result, despite the third quarter being usually seasonally weak, and NII 6 had a positive quarter sequentially.
Year on year costs were largely stable at €2.4 billion in 3Q21 due to a continued focus on cost efficiency and strong cost discipline with cost/income ratio at 55.2 per cent.
Stated cost of risk stood at 27 basis points in 3Q21, thanks to better asset quality and limited impact from regulatory headwinds 7.
Asset quality improved despite Covid-19, with Group gross NPE ratio at 4.5 per cent. The fully loaded CET1 ratio stood at 15.5 per cent3 at the end of the quarter, with a fully loaded CET1 MDA buffer at 647 basis points4. Tangible equity stands at €53.4 billion increasing 2.0 per cent quarter on quarter mainly thanks to net profit.
FY21 total revenues guidance is updated to circa €17.5 billion and costs are in line with previous guidance confirmed at €9.9 billion. FY21 underlying Cost of Risk5 guidance further improved to circa 30 basis points. FY21 underlying net profit guidance increased to above €3.7 billion.
The key recent events include the following:
- Regulatory approval for the "Second Share Buy-Back Programme 2021" of €652 million
- Cancellation of the 17.4 million shares repurchased in the 1H21 "First Buy-Back Programme 2021", in accordance with the resolution passed at the shareholders' meeting on 15 April 2021
- Issuance of UniCredit Bank AG inaugural €500 million green mortgage covered bond
- UniCredit Ireland to be merged into UniCredit SpA as part of the strategy to streamline operations