Unicaja Banco (UNI) investor relations material

Executive summary

• Net income for H1 2026 rose 7.1% year-over-year to €361 million, driven by higher revenues, lower provisions, and strong fee generation despite a challenging macroeconomic environment.

• Business activity accelerated, with total customer funds and business volumes up 3.5% year-over-year, led by mutual funds (+18.2%) and loans (+3.7%).

• Asset quality improved, with NPL ratio at 1.8% and coverage at 83%, while cost of risk was 19 bps in H1 2026.

• Strategic plan investments are supporting above-sector growth, especially in investment funds and digital transformation initiatives.

• Shareholder remuneration is prioritized, with 95% of 2026 net income to be paid as dividends, representing a 28% increase over the previous year and a ~9% dividend yield.

Financial highlights

• Net interest income grew by up to 2.5% year-over-year in H1 2026, with gross margin up 8.5% and pre-provision profit up nearly 15%.

• Fee income increased, with higher value-added services now 54% of total fees.

• Operating expenses rose 5% year-over-year due to investments and new hires, with a cost-to-income ratio of 46%.

• Loan provisions fell by nearly 25%, supporting a 7% year-over-year net profit increase.

• Wealth management and insurance revenues grew 7% year-over-year, representing 19% of gross margin.

Outlook and guidance

• Net interest income, fees, and net profit are expected to grow by mid-single digits in 2026, with further acceleration in coming quarters.

• Fee growth guided to remain low single-digit due to loyalty campaigns and reduced transactional fees.

• Costs to grow at mid-single digits, reflecting continued investment.

• Cost of risk guidance improved to 20–25 basis points for 2026.

• Business volume expected to grow ~3% in 2026.