UniCredit (UCG) Q4 2024 earnings summary

Executive summary

• Achieved record FY24 results with €9.7bn stated net profit, 16 consecutive quarters of profitable growth, and surpassing all original financial targets.

• Underlying net profit reached €10.3bn, absorbing €1.3bn in extraordinary charges.

• Transformation initiatives delivered best-in-class profitability, operational efficiency, and capital generation, positioning as a leading pan-European bank.

• Strategic focus on high-value client segments, operational efficiency, and capital-light fee growth.

• Outperformed peers across all KPIs, delivering unrivalled shareholder value and setting a new sustainable run rate.

Financial highlights

• Net revenue grew to €24.2bn (+4% YoY); gross revenue at €24.8bn (+4.3% YoY); fee income up 8–9% YoY.

• Operating costs at €9.4bn, down 0.6–1% YoY; cost/income ratio improved to 37.9%.

• CET1 ratio stable at 15.9%, with €12.6bn organic capital generation and €6.5bn excess capital.

• Total FY24 distribution increased to €9bn, including €3.7bn cash dividend and €5.3bn share buy-back.

• EPS up 22% YoY; DPS up 33%; TBVPS up 20%.

Outlook and guidance

• 2025 net profit and RoTE expected broadly in line with FY24; 2027 ambition: net profit ~€10bn, RoTE >17%, and yearly distributions greater than FY24.

• Annual distributions >€9bn for 2025–2027, with cash dividend payout at 50% of net profit.

• Cost/income ratio targeted at ~40% through 2027; operating expenses at ~€9.6bn.

• NII expected to decline moderately in 2025, offset by mid-single digit fee and insurance growth.

• Basel IV to increase RWAs to ~€300bn in 2025; CET1 target 12.5–13%.