UniCredit Achieves Best First Quarter Results Ever with Profit of 2.1 Billion Euros

By accelerating the implementation of the UniCredit Unlocked strategy, consistent and high-quality profitable growth has been achieved: net profit of 2.1 billion euros, with a return on tangible equity (RoTE) of 20.4 percent and organically generated capital growth of 3.4 billion euros.

On May 2, 2023, the Board of Directors of UniCredit S.p.A. approved the consolidated results for the first quarter of 2023. The Group has made significant progress in implementing the UniCredit Unlocked strategy and is now entering the second phase of industrial transformation towards new untapped potential, according to their statement.

– This is the ninth consecutive quarter in which UniCredit has achieved excellent financial results, increased profitability, and distribution capacity. In doing so, we continue to unveil the value of our potentials. We are making significant progress in implementing our strategic plan, we are in the second phase of our industrial transformation, and we are setting new benchmarks in banking. We are strengthening our commercial network and optimizing our products and services to provide the best to our clients in the most efficient way.

‘Europe has proven resilient to external shocks’

Our record net profit of 2.1 billion euros in the first quarter was achieved with double-digit growth in net revenues, primarily driven by very strong net interest income and further cost reductions, creating a positive operational leverage. The growth of organically generated capital continued, resulting in an excellent CET1 ratio of 16.05 percent (the ratio already excludes the distribution to shareholders of 5.25 billion euros for 2022 and includes the cash dividend in the first quarter of 0.7 billion euros). Our liquidity is solid, and the quality of our assets is strong.

Improved macroeconomic outlook and interest rate environment, positive business trends, our continued transformation, and strengthened risk position have enabled us to grow key indicators for 2023. We now expect net profit of over 6.5 billion euros and a higher distribution to shareholders, at least 5.75 billion euros. The expected low cost of risk of 30-35 basis points for 2023 (with factors present that could lower it) is the result of our solid credit portfolio and high coverage with provisions.

So far, Europe has proven relatively resilient to external shocks and periods of increased uncertainty. To ensure our future results, at UniCredit we have anticipated a challenging macroeconomic scenario and prepared by strengthening our risk position and implementing preventive measures. While we remain cautious, we are confident that we will consistently continue to achieve high-quality profitable growth in the foreseeable future, with a structurally reduced cost base and lower cost of risk.

What we are achieving in our industrial transformation exceeds the ambitions of our UniCredit Unlocked strategy. However, the transition is by no means complete and will continue to impact our financial results, distribution to shareholders, and the way we support our clients and communities in the coming years,” said Andrea Orcel, CEO of UniCredit Group.