Unicaja Banco (UNI) Q1 2025 earnings summary

Executive summary

• Net income rose 43% year-over-year to EUR 158 million, driven by improved efficiency, revenue growth, and resilient NII.

• Business volumes increased 2.4% year-on-year, with balance sheet funds up 3.8% and off-balance sheet funds up 9.4% year-on-year.

• Asset quality improved with NPLs down 5% quarter-on-quarter and NPAs down 22% year-on-year, with NPA coverage at 73%.

• CET1 fully loaded ratio improved to 15.4%, up 27bps from 4Q24, with a 60% dividend payout accrual.

• Adjusted ROTE reached ~11% for the last 12 months, supporting 2025 profitability targets.

Financial highlights

• Net interest income was EUR 369 million, down 5.6% year-over-year and 3% quarter-on-quarter, but gross margin rose 11.5% year-on-year to EUR 550 million.

• Pre-provision profit rose 18% year-on-year to EUR 280 million.

• Net fee income increased 1.6% year-over-year to EUR 132 million, with strong momentum in mutual funds and insurance.

• Cost-to-income ratio improved by 3 percentage points to 46%.

• Loan loss charges were EUR 32 million (27 bps cost of risk), below the 30 bps annual guidance.

Outlook and guidance

• 2025 guidance reiterated: net interest income above EUR 1.4 billion, flat fees, costs up ~5%, cost of risk ~30 bps, ROTE ~10% at 12.5% CET1.

• Loan book expected to be flat to low single-digit growth for the year, with acceleration in subsequent years.

• Fee income expected to remain flat for the year, despite a strong start.

• Dividend policy targets a 60% payout of net profit.