Unicredit flies into 2023: record profit of 8.6 billion. The stock soars on the stock exchange

Unicredit closes a record 2023: total revenues also jump to 23.8 billion. The stock soars on the stock exchange

Unicredit closed the 2023 with a Net income accounting of 9.5 billion euros and a net profit of 8.6 billion, up more than 50% compared to 2022. These are results “record in 2023 culminating three years of success and exceeding expectations”, reads a note from the institute. The Rote in 2023 it was equal to 16.6% while i total revenues they amounted to 23.8 billion. The Cet 1 at the end of the year it stood at 13%, adjusted for excess capital. Overall it settled at 15.89%, up 100 basis points despite the distribution of 100% of the net profit from the 2023 budget, reflecting “the solid efficiency of the capital, the profitability and organic capital generation of 12 billion in 2023”. The stock market reacts well: after the publication of the accounts the title of the bank stands out on the Milanese stock exchange gaining 8.10% at 28.82 euros.

For the twelfth consecutive quarter, the group “demonstrated the execution of the Strategic Plan and constant growth in the regions in which it is present”, obtained by balancing the three financial levers of revenues, costs and capital and “exploiting a pan-European model unique, and resulted in the fourth quarter of 2023 in a net accounting profit of 22.8 billion, or a net profit of 1.9 billion. These high returns were supported by net revenues of 55.7 billion, made up of 3.6 billion in interest margin, up 5.7% year-on-year mainly due to higher rates and the good management of deposit pass-through. Fees stood at €1.8 billion, down 0.6% year-on-year, primarily due to the impact of fee reductions on current accounts in Italy and higher securitization costs. Net of these components, commissions grew by 3.5% year on year, confirming their resilience despite the unfavorable macroeconomic framework.

For 2023 Unicredit “produced a record net profit of 8.6 billion, an increase of more than 50% compared to the previous year. The fourth quarter was the twelfth consecutive of quality and profitable growth, indisputable proof of the our unique and winning strategy. This shows what we can achieve when we put customers at the center of what we do, and we are focused on executing our industrial transformation, with each of the thirteen countries in our pan-European network contributing to our success. And while on the one hand we have far exceeded our initial ambitions with Unicredit Unlocked, our journey is far from over”. The bank's ADI said this, Andrea OrcelCEO, for whom “the growth of net revenues, cost discipline without renouncing to invest and despite inflation, and capital efficiency, contributed to a Rote of 16.6%, or 20, 5% on a Cet1 ratio of 13%”.

“Our Cet1 ratio at 15.9%, ours resilient asset quality and our strong defense lines place us in an enviable position to continue to move effectively in an uncertain environment. We intend – he added – to distribute to shareholders a total of 8.6 billion for 2023, or 100% of the net profit, pending approvals, up by 3.35 billion compared to last year, while increasing our Cet1 ratio of around 100 bps to 15.9%. From 2021, we returned 17.6 billion to our shareholders, thanks to extremely strong organic capital generation and with the sustainability of our returns ensured by our strategic momentum and significant excess capital. We have crowned – underlined Orcel – a year of progress towards our objectives of zero emissions at group level with the recent announcement of our 2030 target for the steel sector. We are making great strides in our sustainability program, and we are generating a significant positive impact on our communities. I am extremely proud of our employees for their commitment and enthusiasm. We have built some solid foundation and as we enter the next phase of Unicredit's growth, I know that we will continue to evolve and achieve excellence for all our stakeholders”, concluded the CEO.