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UniCredit: 1Q24 Group Results. Quality profitable growth for 13th consecutive quarter


Significant value creation ahead


Excellent net profit of €2.6 billion up 24% versus prior year and a RoTE of 23%1


Net revenue of €6.3 billion, up 7% year on year with NII of €3.6 billion and fees of €2.1 billion growing on robust commercial momentum, supported by focus on clients and powered by product factories


Industry leading Cost/Income ratio further improved to 36.2% with ongoing operational efficiency


High and stable asset quality with very low CoR of 10 basis points and lines of defence maintained


Outstanding shareholder value creation with EPSup 42% and tangible book value per share +25%3 year on year


CET1 ratio of 16.23% up 35 basis points as continued strong organic capital generation of €3.4 billion more than offset €2.6 billion distribution accrued in 1Q24


FY24 net profit guidance improved to over €8.5 billion and total FY24 distribution4 guidance improved to in line with 2023


Well on track to deliver mid-term aspirations of RoTE in excess of 15%, strong EPS2 and DPS growth with best in class, sustainable and balanced distributions supported by organic capital generation and the return or deployment of our substantial excess capital by no later than 2027


Further ESG progress with Net Zero transition plan published, and launch of third "UniCredit for Italy" tranche for €10 billion



On 6 May 2024, the Board of Directors of UniCredit S.p.A. ("UniCredit" or "the Group") approved the 1Q24 Consolidated Results as of 31 March 2024.


UniCredit's outstanding performance in 1Q24 with momentum across all fee lines marks the 13th consecutive quarter of quality profitable growth. The Group's strategic focus on enhancing client-centric operations and focusing on cost and capital efficiency has yielded excellent results yet again, positioning UniCredit well for ongoing success and growth.


As evidence of a transformed UniCredit, the Group delivered EPS2 up 41.8 per cent year on year in 1Q24, accrued DPS +63.6 per cent year on year, and tangible book value per share up 25 per cent3 year on year.


These high-quality results are being achieved across all regions and product factories while preserving a superior financial strength and lines of defence, protecting future results and distributions. UniCredit's CET1 capital ratio further increased to 16.23 per cent, a large excess to our 12.5-13 per cent managerial target and already net of the €8.6 billion of 2023 distributions, as well as €2.6 billion of distribution accrual for 2024. The amount of overlay provisions on performing exposures stands at €1.8 billion.


The financial guidance for FY24 net profit is improved to over €8.5 billion, with unchanged RoTE of circa 16.5 per cent and an organic capital generation above 300 basis points.


In 1Q24 UniCredit delivered once again high-quality sustainable growth, reflected in €6.3 billion of net revenues, up by 10.9 per cent quarter on quarter and 7.5 per cent year on year. Such outstanding performance was underpinned by net interest income ("NII") of €3.6 billion, €2.1 billion of fees, and €0.1 billion loan loss provisions ("LLPs").


NII was down 0.9 per cent quarter on quarter to €3.6 billion, or up 5.3 per cent on an NII net of loan loss provisions basis, a robust performance despite the lower calendar days in the quarter. Average gross commercial performing loans were -1.3 per cent quarter on quarter, as the Group maintained its focus on capital accretive and risk-adjusted returns, limiting overall volumes while focusing on growing exposure to quality and profitable clients and segments, with increase in SMEs and consumer finance, offset by a reduction in large corporates and mortgages, as well as general lower market volumes in Italy, Germany and Austria. Total deposits pass-through management remained disciplined at circa 30 per cent in 1Q24. Overall NII was up 8.5 per cent year on year.


Fees started the year strongly, increasing by 15.8 per cent quarter on quarter and improving across all fee categories, benefiting from our diversified and balanced model, resulting in a sizeable fee base of 33 per cent of our total gross revenues. The quarter was characterized by particularly strong growth in investment fees, especially in Italy and Germany, thanks to commercial momentum and more supportive macro. On a year on year basis, fees grew by 3.3 per cent in 1Q24, or 7.6 per cent when excluding the impact arising from the current account fee reduction in Italy and higher securitisation costs.


The Group confirmed its structurally low and stable Cost of Risk ("CoR") at 10 basis points in 1Q24, booking €0.1 billion LLPs. On an underlying CoR basis, meaning on a Group excluding Russia basis and net of changes in overlays, 1Q24 stood at 19 basis points, higher than the stated CoR mainly due to write-backs. The Group continues to have a high quality, geographically diversified and resilient credit portfolio with sound coverage levels and strong lines of defence with, among others, 1.8 billion of overlays on performing portfolio. The FY24 CoR guidance remains unchanged at below 20 basis points.


In 1Q24 operational costs were €2.3 billion, reduced by 6.9 per cent quarter on quarter and by 0.7 per cent year on year, confirming the Group's track-record in operational efficiency through targeted cost reductions while investing in the future to drive growth. This result was achieved also thanks to the significant investments and integration charges taken in the past quarters which allowed the Group to mitigate the impact from inflation and from the national labour contract increases in Italy and Austria. The Cost/Income ratio stood at an industry leading 36.2 per cent.


The Group continues to lead in capital excellence, with 118 basis points or €3.4 billion of organic capital generation in the first quarter, more than offsetting the distribution accrual of 100 per cent of the €2.6 billion net profit, resulting in a CET1 ratio of 16.23 per cent, up 35 basis points quarter on quarter. Furthermore, RWAs were reduced by 1.7 per cent quarter on quarter to €279.6 billion, reflecting UniCredit's commitment to active RWA management to improving capital efficiencies.


The success of the transformative journey towards sustainable excellence is evident in the Group's performance, with 1Q24 net profit at €2.6 billion and RoTE at 19.5 per cent or at 23.0 per cent at 13 per cent CET1 ratio.


Following the regulatory and shareholder approval, the €3.1 billion of second tranche of the 2023 Share Buy-Back Programme is expected to commence as soon as possible following 1Q24 results, subject to market conditions. The first tranche of the 2023 share buy-back in an amount of €2.5 billion was concluded on 7 March 2024.


The total distributions4 on FY24 results are upgraded to in line with the FY23 distributions. The cash dividend accrual and pay-out are unchanged at 40 per cent of net profit and the residual pay-out on net profit in the form of share buy-backs. The final split between dividends and share buy-back will depend on market conditions, and it will be decided after 2024 results, together with the final decision on distributions. The interim distribution approach, applicable to both interim dividend and interim share buy-back, is assumed at circa 40 per cent of the total full year distributions. On a calendar year basis, the 2024 distribution is expected at circa €10 billion5.


UniCredit intends to either deploy or return its excess capital to shareholders no later than 2027. Excluding inorganic growth options, UniCredit expects the total average annual distributions4 in FY25-FY26 to be above the FY24 distributions, with a cash dividend policy equal to or above 40 per cent and share buy-backs capped by organic capital generation combined with excess capital deployment. In the event of deploying excess capital via inorganic growth opportunities, which would be pursued under strict criteria, the level of annual distributions in FY25-26 would depend on the return on any acquisition which would need to satisfy post synergy returns comparing favourably to share buy-backs.


UniCredit continues to make significant progress on its ESG ambitions and in 1Q24 disclosed the inaugural net zero transition plan and the new interim target for the Steel lending portfolio. In addition, the annual monitoring disclosure of baseline evolution versus targets for the three UniCredit priority sectors - Oil&Gas, Power Generation and Automotive - have also been published, confirming our ongoing support of clients in a just transition.


UniCredit has been recognised by EMEA Finance as the Best Bank for Sustainability in CEE and Best Bank for ESG in Austria and in Czech Republic by Euromoney, highlighting our leadership in the region. For the third year in a row the bank ranked amongst the "Top 100 Companies for Gender Equality Globally" by Equileap, evidence of the organisation's dedication to diversity, equity and inclusion.


In February 2024 the bank launched the third edition of "UniCredit for Italy", a comprehensive set of measures to support business growth, also capitalizing on new schemes recently introduced by the Italian Government, with new solutions and EUR 10 billion in additional credit. These loans are aimed at supporting investments, working capital and liquidity, and may include subsidized conditions, with 40 per cent of the resources earmarked for Southern Italy. Special attention is paid to integration of ESG factors, with the aim of increasing the environmental and social sustainability of economic initiatives.


The key recent events in 1Q24 and since the end of the quarter, plus those mentioned in the section "significant events during and after 1Q24", include:


− "UniCredit sets Net Zero target for steel sector transition" (press release published on 18 January 2024);

− "UniCredit: Board of Directors' resolutions" (press release published on 16 February 2024);

− "Revised date for 1Q24 results" (press release published on 6 March 2024);

− "Concluded the First Tranche of the Buy-Back Programme 2023. UniCredit: update on the execution of the share buy-back programme during the period from 4 to 7 March 2024. Definition of the final amount of the 2024 dividend per share referred to the year 2023" (press release published on 8 March 2024);

− "UniCredit: balance of 2023 Share Buy-Back Programme in amount of €3.1 billion authorised by the ECB" (press release published on 11 April 2024).



Andrea Orcel, Chief Executive Officer of UniCredit S.p.A. said:


We have started the year on an extremely strong footing with a net profit of €2.6 billion, up 24% year over year, with a resounding beat across all key lines and a RoTE of 19.5%. This was supported by a much improved environment for fees and AuM, our focus on clients and product factories resulting in excellent commercial momentum, as well as resilient net interest income. While continuing to invest we remain vigilant on costs and are reaping the benefits of previous actions taken with an industry leading cost income ratio of 36.2%. Our superior asset quality is reflected in a Cost of Risk of 10bps which will remain low thanks to our prudent approach, good coverage and overlays. UniCredit is on track to continue delivering exceptional results, and we are proud to be leading the way in the industry.


Our CET1 ratio increased even further to 16.2% already net of the €8.6 billion of 2023 distributions and €2.6 billion of distribution accrual for 2024, a testament to our superior organic capital generation which reached €3.4 billion supporting our best in class distribution.   


As a direct outcome of our investments in growing our diversified fee streams and strengthening our lines of defence, and the flexibility offered through our excess capital, we will continue to demonstrate sustainably high structural profitability and best in class shareholder returns across differing macro environments. We are unwavering in our focus on building for the future and delivering on our aspirations for all 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] Calculated on a 13% CET1 ratio as defined below.

[2] EPS calculated as net profit - as defined below - on average number of outstanding shares excluding avg. treasury and CASHES usufruct shares.

[3] Including the paid DPS in April 2023, or +22% Y/Y without it.

[4] Ordinary distribution of at least 90% of Net Profit, capped at organic capital generation.

[5] FY24 calendar distribution of circa €10 billion, of which €3 billion of cash dividend paid in April 2024, €1.1 billion of FY23 share buy-back already executed in 1Q24 (i.e. not including the 1.4 billion of FY23 share buy-back already executed during 2023 calendar year) and the €3.1 billion related to the residual FY23 share buy-back, and circa €3 billion FY24 interim distribution. Distribution subject to shareholder and supervisory approvals.  


*page 8 corrected quarterly growth percentage of AuM, now at 4.6%




Milan, 7 May 2024



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