UniCredit (UCG) Q4 2025 earnings summary

Executive summary

• Achieved record FY25 net profit of €10.6bn, up 14% year-over-year, with RoTE at 19.2% and total distributions of €9.5bn, despite absorbing over €1.4bn in extraordinary charges.

• Delivered 20 consecutive quarters of profitable, capital-generative growth, transitioning from UniCredit Unlocked to UniCredit Unlimited, aiming to redefine banking through technology, AI, and a client-centric approach.

• Entering 2026 with strong momentum, leading across KPIs and maintaining a disciplined approach to transformation and operational efficiency.

• Strategic focus on quality top-line growth, operational and capital efficiency, and sustainable, high-return distributions.

• FY25 EPS rose 20% to €6.89, DPS up 31% to €3.15, and tangible book value per share up 19% to €39.54.

Financial highlights

• FY25 net profit reached €10.6bn, up 14% year-over-year, with total revenues at €24.5bn (down 1.3%), and net interest income at €13.7bn (down 4.3%).

• Return on tangible equity (RoTE) increased to 19.2%, or 22% adjusted for excess capital.

• Distribution rose 6% to €9.5bn; EPS up 20%, DPS up 31%, tangible book value per share up 19%.

• Cost/income ratio improved to 38.5% (down 0.6p.p. year-over-year); operating costs were €9.4bn, broadly flat.

• Cost of risk remained low at 15bps; net NPE ratio at 1.6%, coverage ratio stable at 44%.

Outlook and guidance

• Targeting net revenue CAGR of 5% to ~€27.5bn by 2028, aspiring to exceed €29bn by 2030.

• Net profit expected to grow at 7% CAGR to ~€13bn by 2028, with RoTE above 23%.

• Cost base to decrease 1% annually, reaching ~€9.2bn by 2028 and below €9bn by 2030; cost/income ratio targeted under 30%.

• Double-digit EPS and DPS growth expected FY25-28, with cumulative distributions of ~€30bn in three years and ~€50bn in five years.

• Cost of risk expected to remain stable at 15–20bps.