Unicredit S.p.a Stock Earnings Reports

UniCredit reported a record Q3 and best 9 months in its history, marking the 19th consecutive quarter of quality profitable growth. Key financial highlights: net revenue resilience (Q3 net revenues €6.1bn; 9M €18.5bn), costs broadly flat with a best-in-class cost/income (~37%), continued strong capital generation (€7.9bn organic capital), CET1 at ~14.8% (pro forma ~14.6%), overlays maintained (~€1.7bn) and asset quality stable (net NPE ~1.4%). Management confirmed 2025 net profit guidance of €10.5bn and reiterated 2027 guidance of “well above €11bn.” Strategic moves include early deployment of €6.5bn of excess capital into consolidating stakes (Commerzbank, Alpha, Vodeno/insurance internalization), expected to add ~€1bn net revenues and net profit by 2027 and to materially improve medium-term EPS/DPS. Distribution policy: 2025 distributions (dividends + buybacks) confirmed (€9.5bn), interim dividend of €2.2bn in Nov; from 2026 ordinary payout set at 80% of net profit with excess capital returns to be evaluated annually. Management is pivoting Phase 2 investments toward top-line acceleration (hiring, digital/omnichannel, product factories) which may generate one-off upfront costs in 2025–26 to boost 2027–28 results. Regional performance: Italy (44% of group profit) remains the earnings engine with best-in-class domestic metrics; Germany, Austria and CEE all delivering resilient profitability and efficiency; Russia exposure is now minimal and being wound down further. Risks/uncertainties highlighted: possible Italian bank levy (impact unclear), hedging/funding costs related to stake consolidations, and macro/rate trajectory affecting NII (management says NII appears to be troughing but final confirmation will come at year-end). Overall message: disciplined capital allocation, accelerated growth investments, strong returns and shareholder distributions while maintaining conservative risk buffers.