Unicaja Banco (UNI) Q3 2025 earnings summary

Executive summary

• Net profit for the first nine months of 2025 reached €503 million, up 11.5% year-over-year, surpassing annual targets and driven by strong fee income, improved cost of risk, and higher gross margin.

• Business volumes improved 2% year-over-year, with mutual funds up 24%–24% and new private sector lending up 39%–46.1%.

• Asset quality improved, with net NPA ratio at 0.9%, NPL ratio at 2.2%, and NPLs down 20% year-over-year; coverage ratios increased to 74%–75.4%.

• Return on tangible equity (ROTE) adjusted for excess capital reached 12.3%, with a cost-to-income ratio at 45%.

• Strong capital and liquidity positions, with CET1 fully loaded at 16.1%–16.2% and LCR at 295%.

Financial highlights

• Net interest income for 9M25 was €1,117 million, with year-over-year change ranging from down 3.5% to up 3.5%; net fee income grew 2.8% to €392 million.

• Gross margin grew 4% year-over-year; total provisions fell 19%.

• Pre-tax profit for the period was €708 million, up 8% year-over-year.

• Cost-to-income ratio stable at 45%–45.2%; operating expenses increased 5.1%–5.2% year-over-year.

• Quarterly net income for Q3/3Q25 was €165 million.

Outlook and guidance

• 2025 guidance upgraded: net interest income expected above €1,470 million, cost of risk below 30bps, and adjusted ROTE around 12%.

• Fee income expected to grow low single digits, costs to rise by about 5%.

• Shareholder payout for 2025 set at 60%, with a three-year plan targeting 85% and potential for close to 100% payout by 2027.