UniCredit SpA: Record Profits and Strategic Growth in 2024

UniCredit SpA (UNCFF) reported record-breaking results for the fourth quarter and full year of 2024, marking the 16th consecutive quarter of sustainable profitable growth. The Italian banking giant's strong performance reflects the significant trapped potential unlocked during the initial phase of its UniCredit Unlocked strategy, with all targets set being meaningfully surpassed across all regions. The bank's unique pan-European model, focusing on diversified fees and high-quality net revenue growth, high organic capital generation, strong RoTE, and generous total distributions, has positioned UniCredit as a transformed entity, ready to enter the next phase of acceleration from 2025 to 2027.



Key Financial Highlights
UniCredit's stated net profit for the full year 2024 reached €9.7 billion, up 2% year-over-year (YoY), while net profit net of DTA increased to €9.3 billion, up 8% YoY. Both figures were achieved while absorbing €1.3 billion in extraordinary charges. The bank's Return on Tangible Equity (RoTE) reached 21%, with Earnings per Share (EPS) at €5.74, up 22% YoY. Total FY24 distribution increased to €9.0 billion, of which €3.7 billion was cash dividend for a FY24 total Dividend per Share (DPS) at €2.40, up 33% YoY.

Net revenue grew to €24.2 billion, up 4% YoY, driven by fees at €8.1 billion, up 8% YoY, on strong client activity and product offering. Net Interest Income (NII) increased by 3% YoY to €14.4 billion. Costs of €9.4 billion were down by 1% YoY despite inflationary pressures and investments, with an industry-leading cost/income ratio at 37.9%. Asset quality remained robust, with a low cost of risk of 15 basis points, maintaining the bank's lines of defence, including circa €1.7 billion of overlays on performing loans. The Common Equity Tier 1 (CET1) ratio remained unchanged at 15.9% despite strategic investments and higher distributions, reflecting continued strong organic capital generation of €12.6 billion.

Strategic Growth and Guidance
UniCredit's FY25 guidance includes net profit and RoTE broadly in line with FY24 despite macro headwinds. Distributions are expected to be greater than FY24, with a cash dividend at 50% of net profit. The bank's 2027 ambition is a net profit of circa €10 billion, with excess capital return and yearly distributions greater than FY24. UniCredit remains committed to sustainable profitability, targeting a FY25-27 RoTE above 17%.

Inorganic options will only be pursued if they meet strict strategic and financial parameters and improve UniCredit's standalone case for the benefit of all stakeholders. The bank's FY24 ESG plan's targets were achieved, reaching 15% ESG lending share and exceeding targets with 20% sustainable bond and 53% ESG AuM stock penetration.

UniCredit's record-breaking performance in FY24 crowns the bank's 16th consecutive quarter of sustainable profitable growth, reflecting the significant trapped potential unlocked during the initial phase of UniCredit Unlocked. The bank's unique pan-European model, focusing on diversified fees and high-quality net revenue growth, high organic capital generation, strong RoTE, and generous total distributions, has positioned UniCredit as a transformed entity, ready to enter the next phase of acceleration from 2025 to 2027. With a solid foundation in place, UniCredit is well-positioned to keep delivering positively differentiated shareholder value.