Unicaja Banco (UNI) Q4 2024 earnings summary

Executive summary

• Net profit reached €573 million in 2024, up 115% year-over-year, driven by improved profitability, cost control, and higher gross margin, with a record dividend and a 60% payout ratio.

• Customer business volume grew 2%, with deposits up nearly 5% and off-balance sheet funds up 7.1% year-over-year.

• Asset quality improved: NPL ratio down to 2.7%, NPA coverage up to 71%, and foreclosed assets coverage at 77%.

• CET1 fully loaded ratio rose to 15.1%, up 40bps year-over-year, supporting increased shareholder remuneration.

• Launched a new strategic plan for 2025–2027, focusing on retail and corporate banking transformation, digitalization, sustainability, and targeting >€1.6 billion cumulative profit and >85% shareholder remuneration.

Financial highlights

• Net interest income grew 14% year-over-year to €1,538 million, exceeding guidance.

• Cost-to-income ratio improved to 44%, down 4 points year-over-year.

• Operating margin increased by 14% year-over-year; gross margin up 15%.

• Interim and final dividends totaled €0.134 per share, 2.7 times higher than the previous year.

• Return on tangible equity (ROTE) adjusted to 12.5%; ROCET1 rose to 12.6%.

Outlook and guidance

• 2025 guidance: net interest income >€1,400 million, business volume targeted to grow by 2%, cost of risk ~30bps, and ROTE ~10%.

• Strategic Plan 2025–2027 targets >€1.6 billion accumulated net profit, ROCET1 >13%, and >85% shareholder remuneration.

• CET1 fully loaded expected to remain above 14% through 2027.

• Shareholder remuneration to exceed 85% of profits over 2025–2027, with a 60% payout ratio and potential for additional buybacks or extraordinary dividends.