MILAN (ITALPRESS) – UniCredit’s Board of Directors has approved the Group’s consolidated results as of December 31, 2024 for Q4 2024 and fiscal year 2024 (FY24).
“The Group’s record-breaking performance in FY24 crowns our sixteenth consecutive quarter of sustainable and profitable growth,” reads a note from the banking group. “This outstanding result reflects the significant untapped potential we unleashed during the initial phase of UniCredit Unlocked: all the targets we set ourselves were significantly exceeded in each of our regions, leveraging a unique pan-European model: diversified fee growth and high-quality net revenues, high organic capital generation, high RoTE, generous total distributions. The cost base target, set in 2021, has also been achieved despite much higher levels of inflation than initially anticipated. With this solid foundation, we are now ready to enter the next phase of acceleration from 2025 to 2027.”
Net income in FY24 of 9.3 billion, up 8.1 percent year-on-year, and FY24 net accounting profit of 9.7 billion, up 2.2 percent when compared to last year, “are clear evidence of our transformation,” the note continues. Net income in FY24 stood at 10.3 billion euros on an underlying basis, i.e., not taking into account the 1.3 billion related to extraordinary charges (before taxes) due to integration costs (0.8 billion) to secure future profitability and the full coverage of the RCA case.
“Three years ago we announced UniCredit Unlocked with financial targets that many judged too ambitious. Today we have far exceeded each of those goals, outperforming in every metric including profitability and distribution targets, and are entering the next phase of our strategy. In this phase we will accelerate our growth, aspiring to further widen the gap with our competitors, close the gap between us in terms of valuation, and consolidate UniCredit as the bank for Europe’s future and as the benchmark of the banking industry,” comments Andrea Orcel, CEO of UniCredit.
“We ended FY2024 with a solid fourth quarter, capping sixteen quarters of profitable and quality growth, and with our best ever annual net book profit of 9.7 billion, with net income excluding DTAs up 9 percent from last year,” he continues. “Underlying net income stood at 10.3 billion net of actions to secure future profitability. RoTE in FY24 was a solid 17.7 percent, or 20.9 percent on a CET1 ratio at 13 percent, supported by higher net revenues, an expense ratio among the best in the industry, and excellent capital efficiency with organic capital generation of 12.6 billion.”
“We intend to increase the distribution to shareholders to 9 billion by 2024, subject to obtaining the relevant approvals. As further evidence of our generous distribution policy, we are increasing the dividend to 50 percent of net income starting in 2025,” the CEO stresses. “Our stand-alone investment case, based on growth and distribution, is compelling thanks to attractive geographic diversification, a quality customer base and business mix, while our defense lines provide protection and our distinct initiatives will achieve ever-improving results. We will continue to demonstrate excellent financial performance and shareholder value creation. Any inorganic growth must enhance our stand-alone investment case and meet our rigorous financial and strategic criteria. The macroeonomic and geopolitical environment remains complicated and unpredictable. We are in any case extremely well positioned to absorb a normalization of interest rates, cost of risk, and cost inflation. Our diversification, together with management initiatives, integration costs and overlays already set aside, gives us a significant advantage. This will allow us to maintain solid profitability and distribution.
Finally, deep thanks to colleagues for their hard work and dedication to all our stakeholders. I am proud of your achievements as we build the bank for Europe’s future together,” Orcel concludes.
– IPA Agency Photos –
(ITALPRESS).
