Trimestrale

Unicredit makes a bang in 2023, profits +47%

Unicredit concluded 2023 with surprisingly positive financial results, literally making a "bang" with profits, which rose to a record figure of 9.507 billion euros, an increase of 47%.
This extraordinary result clearly exceeds analysts' expectations, demonstrating exceptional performance in financial management and investment strategies.
Let's see all the numbers in detail.
Annual results 2023 Unicredit recorded revenues of 23.823 billion euros in 2023, up 17.3% compared to the previous year.
Gross operating profit was 14.372 billion, highlighting a significant growth of 33.3% compared to 2022.
Net profit of 9.507 billion exceeded analysts' forecasts of 7.9 billion and marked an impressive increase of 47, 2%.
Orcel commented on the results, defining 2023 as “a record year”, highlighting the institution's positive transformation along the way to building sustainable excellence.
This metamorphosis was also reflected in the Return on Tangible Equity (Rote) of 16.6%, which confirms the profitability and effectiveness of the strategies adopted.
During the fourth quarter of 2023, Unicredit continued to shine with revenues of €5.979 billion, recording an increase of 4.6% compared to the previous year.
The gross operating margin reached 3.490 billion euros, exceeding analysts' expectations and confirming the solidity of the institution in the management of financial activities.
Despite the distribution of 100% of net profit, the capital strength index, the CET 1 ratio, stood at 15.89% in 2023, up by approximately 100 basis points compared to forecasts.
This figure, together with the organic capital generation of 12 billion during the year, underlines Unicredit's financial robustness.
The banking sector has always represented a dynamic challenge, but Unicredit has demonstrated remarkable resilience in dealing with various economic uncertainties.
Despite operating costs, which increased by 6.9% in the quarter compared to the previous three months and by 0.8% year-on-year, the institution maintained an enviable position in the market.
Dividends and buybacks From a strategic point of view, Unicredit has announced the distribution to shareholders of 8.6 billion euros for 2023.
This distribution will take place through share buybacks for 5.6 billion and a dividend of 3.0 billion , subject to the approval of members and the supervisory authority.
Compared to the 2017-2019 period, the EPS generated by the buyback plan tripled, while the DPS (dividend per share) grew 9 times.
Looking to the future, Unicredit is projecting itself towards an ordinary distribution policy which provides for a payout of at least 90% of net profit starting from 2024.
Furthermore, the company plans to increase the dividend provision to 40% of profit net, compared to 35% in 2023.
These strategic decisions aim to maintain an optimal balance between shareholder remuneration and reinvestment to support growth.
The buyback program played a fundamental role in Unicredit's exceptional results in 2023, generating earnings per share tripled compared to the average in the period 2017-2019.
The dividend per share increased ninefold, highlighting the effectiveness of the capital management policies.

Author: A.W.M.

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