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 higher gross margin, strong net interest income, and lower provisioning.

• 2025 marked the first year of the strategic plan, with business volume up 3%, mutual funds up 23%, and new lending up 40% year-over-year.

• The dividend payout ratio increased to 70%, resulting in a record EUR 443 million dividend, 29% higher than the prior year.

• Strategic initiatives in diversification, digitalization, and AI adoption led to efficiency gains exceeding 50% in some areas and improved commercial momentum.

• Asset quality improved, with the NPL ratio down to 2.1% and NPL coverage up to 77%.

Financial highlights

• Net interest income reached EUR 1.495 billion, 7% above guidance, with a quarterly increase to EUR 378 million in Q4.

• Fee income grew 3%, mainly from mutual funds and insurance, which now account for 49% of total fees.

• Operating costs rose 5.4% due to investments and hiring, but the efficiency ratio remained strong at 45.5%.

• Pre-tax profit was EUR 902 million; after taxes and sector-specific levies, net income was EUR 632 million.

• Provisions fell 25% year-over-year, mainly due to lower legal risks.

Outlook and guidance

• 2026 guidance anticipates net interest income growth above 2025, low single-digit fee growth, and cost growth around 5%.

• Cost of risk expected to remain below 30 basis points; business volume to grow around 3%.

• Net income projected to exceed 2025 levels, with updated 2025-2027 cumulative net profit guidance raised to EUR 1.9 billion.

• Shareholder remuneration to exceed 85% of accumulated net profit, with 70% as ordinary dividend and up to 25% as additional remuneration in 2026-2027.

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