UniCredit has reported solid financial outcomes for the year 2024, signaling its growth and responsiveness to market demands. The bank achieved a record net income of €9.3 billion, marking an increase of 8.1% compared to the previous year.
UniCredit's total net banking income reached €24.2 billion, with €8.1 billion arising from fees, which saw an impressive growth of 8%. The rise was supported by a 3% growth in the interest margin, leading to figures amounting to €14.4 billion.
The institution's Return on Tangible Equity (RoTE) stood at 21%, supported by cost management with operational costs decreasing by 1% to €9.4 billion. This successful year also saw the bank maintaining its Common Equity Tier 1 (CET1) ratio at 15.9%, reflecting stability even amid increased shareholder distributions.
UniCredit’s total distributions for the year amounted to €9 billion, which included dividends of €3.7 billion, leading to a Dividend Per Share (DPS) of €2.40—a substantial 33% increase compared to the prior year. Moving forward, the bank expects to increase its dividend payout to 50% of net income for the year 2025, up from 40% previously.
Andrea Orcel, the bank's CEO, emphasized the achievement by stating, "Three years ago we announced UniCredit Unlocked with financial targets many deemed overly ambitious. Today, we have exceeded each of those targets, outperforming on every metric including profitability and distribution." This speaks volumes about the bank’s unwavering commitment to growth.
For 2025, UniCredit forecasts net income and RoTE to remain consistent with 2024 figures, even amid less favorable macroeconomic conditions. Expected net revenues are projected to be over €23 billion, with operational costs aligned at approximately €9.6 billion.
Continuing the positive projections, UniCredit aims for net income to ascend to around €10 billion by 2027, alongside achieving a RoTE exceeding 17%. The bank anticipates annual distributions to be higher than those recorded for 2024, which is attributed to the strengthened profitability and sound capital generation capabilities.
Despite facing economic challenges on the global front, Orcel expressed confidence, indicating, "We are extremely well-positioned to absorb normalization of interest rates, cost of risk, and inflation effect.” This forward-looking approach positions UniCredit as not just resilient but as a banking leader for the future of Europe.
Even as UniCredit charts its growth course, Orcel pointed out, “Any inorganic growth must improve our standalone investment case and meet our stringent financial and strategic criteria.” This highlights the bank’s cautious yet ambitious expansion strategy.
Overall, UniCredit's financial strength for 2024, coupled with its ambitious dividend plans for 2025, solidifies its stance as one of Europe’s leading financial institutions, continually focusing on shareholder value and sustainable growth.