UniCredit records record quarter, profit at 3.2 billion and raises targets
Revenues grew by 4.9% per annum to EUR 6.9 billion, EUR 2.4 billion set aside for shareholders. Industry-leading' cost/income ratio down to 33.4%. Orcel: 'Ready for a wide range of scenarios'
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(Il Sole 24 Ore Radiocor) - Record results for Unicredit in the first quarter, allowing the bank to improve its target for 2026 despite the worsening geopolitical environment. The bank led by CEO Andrea Orcel closed the January-March period with a net profit of 3.2 billion, up 16.1% compared to the same period in 2025 and around 20% higher than the 2.675 billion consensus forecast published on the company's website.
This is, the bank claimed in a note, the '21st consecutive quarter of profitable growth' and the 'best quarter ever', with 'records across all major lines'. The figures therefore represent an 'extraordinary start' to the UniCredit Unlimited plan. Revenues rose 4.9% to EUR 6.9bn, with net interest income at EUR 3.6bn (-2%) and fees at EUR 2.5bn (+7.8%). Operating expenses were down 1.1% to 2.3 billion, for a cost/income ratio down to 33.4%, an 'industry-leading' level. The Cet 1 capital ratio is at 14.2% or 14.8% 'proformed for Danish Compromise'. It would rise to around 15% 'due to the temporary impact related to the equity value of Commerzbank and Alpha Bank'.
In 2026 profit "equal to or greater than 11 billion"
The numbers allow UniCredit to "increase its ambition for 2026 net profit and reaffirm those for 2028-2030 despite a more complex geopolitical and macroeconomic environment". This year's profit is now expected to be 'at or above EUR 11 billion', compared to a previous target of 'around EUR 11 billion', 'reflecting increased confidence in its ability to generate excellent returns'. Also confirmed are 'financial ambitions to 2028 and beyond, underpinned by a solid standalone trajectory and an outstanding equity story'.
2.4bn set aside for shareholder remuneration
Continuing its analysis of the income statement, UniCredit emphasised that in the quarter 'organic capital generation remained robust at 98 basis points', amounting to EUR 2.9bn, 'more than able to support EUR 2.4bn of distributions set aside for shareholders and the impact of the regulatory framework and other factors'. In particular, the bank set aside 80 per cent of the net profit of the, adjusted for non-distributable extraordinary items related to badwill arising from the consolidation of Commerzbank and Alpha Bank at equity'. Trading income amounted to 476 million, up 2.3%, and dividends totalled 408 million, "more than tripling year-on-year, benefiting from the higher contribution of our strategic portfolio". The cost of risk stood at 17 basis points, up 9 basis points from the same period in 2025.
As for the results of the individual divisions, Italia ended the quarter with a profit of EUR 1.1bn (-10.5% year-on-year), Germany with EUR 586m (-0.3%), Central and Eastern Europe with EUR 468m (-7.3%), Austria with EUR 361m (+7.4%) and the group corporate centre with EUR 531m (compared to a EUR 175m redline a year earlier). Russia ended the quarter with a profit of EUR 145 million (-47.1%).
