Unicaja Banco (UNI) Q4 2025 earnings summary

Executive summary

• Net profit rose 10.3% year-over-year to EUR 632 million, 26% above initial guidance, driven by strong net interest income, fee growth, and strategic plan execution.

• Lending growth reversed previous declines, rising 2% year-over-year, with new private sector lending up 40% and notable gains in consumer and corporate segments.

• Customer funds increased 3.5% year-over-year, with mutual funds up over 22% and insurance revenues rising.

• Dividend payout ratio raised to 70%, resulting in a record EUR 443 million dividend, up 29% year-over-year.

• Strategic plan initiatives, including diversification, digitalization, and AI adoption, are yielding efficiency and commercial gains.

Financial highlights

• Net interest income reached EUR 1,495 million, 7% above guidance, with gross margin up 2.6% year-over-year.

• Fee income grew nearly 3%, supported by mutual funds and insurance; mutual fund fees up 19.6%.

• Gross income rose 2.6% year-over-year; operating margin and efficiency ratio improved to 45.5%.

• Cost of risk at 0.27% annualized, below initial forecast; provisions fell 25% year-over-year.

• Return on tangible equity (ROTE) adjusted for excess capital at 12%, with ROCET1 at 17%.

Outlook and guidance

• Net interest income and fee growth expected to continue in 2026, with business volume and deposits projected to grow around 3%.

• Net income forecast to surpass 2025, with improved earnings expectations for 2025-2027 raised to EUR 1.9 billion.

• Costs projected to rise ~5% in 2026, reflecting ongoing investments.

• Cost of risk expected to remain below 30bps.

• Continued focus on commercial growth, digital innovation, and sustainability initiatives.