UniCredit (UCG) Q1 2026 earnings summary

Executive summary

• Achieved a record first quarter and the 21st consecutive quarter of profitable growth, with net profit up 16.1% year-over-year to €3.2bn and EPS up 19.7%, marking best-in-class ROTE of 25.8%.

• Upgraded 2026 net profit ambition to at least €11bn, reaffirming 2028 and 2030 targets despite macro and geopolitical headwinds.

• Transformation initiatives, including accelerated digitalization and AI adoption, drove operational efficiency and quality growth.

• Inorganic opportunities, such as the Commerzbank offer, are considered only if value-accretive and exceeding cost of equity.

Financial highlights

• Net profit rose 16% year-over-year to €3.2bn; EPS grew 20%, tangible book value per share up 17%.

• Revenues grew 4.9% year-over-year to €6.9bn, with core business up 3% excluding Russia; fees and net insurance rose 8%.

• Cost/income ratio improved to 33.4%, with costs down 1% year-over-year despite ongoing investments.

• Organic capital generation reached €2.9bn in the quarter.

• Loan growth of 6% and deposit growth of 5% year-over-year; net NPE ratio at 1.4% with increased coverage.

Outlook and guidance

• Net profit ambition for 2026 upgraded to at least €11bn, with continued commitment to 2028 and 2030 targets.

• Guidance assumes deposit facility rate at 2.5% by year-end, with positive NII sensitivity to rate increases.

• Volume growth in lending expected to outpace nominal GDP, especially in Central and Eastern Europe and Italy.

• Fee income and cost discipline expected to remain strong, with ongoing transformation and AI deployment supporting future performance.