Unicredit’s run continues. The results for the first nine months of 2024 show a net profit of 7.7 billion euros, marking a growth of 16% compared to the same period of the previous year. A positive trend that is also confirmed in the third quarter, with a profit of 2.5 billion, higher than analysts’ estimates which indicated a profit of 2.2 billion. It is the fifteenth consecutive quarter of growth for the banking group led by Andrea Orcel.
In light of the higher-than-expected performances, Unicredit has updated its guidance for 2024 net profit, raising the forecast to over 9 billion euros, or even around 10 billion in adjusted terms. Net revenues are estimated at 24 billion euros, a prospect that strengthens confidence in the growth plan. For 2024, the bank also confirms the distribution objective for shareholders in line with that of 2023, maintaining a policy oriented towards stable and sustainable remuneration.
In the third quarter, UniCredit saw revenues grow 2.6% year-on-year, supported by an 8.5% increase in fees, which reached 1.9 billion, and a resilient net interest margin of to 3.6 billion. Customer activities also contributed significantly to supporting revenues. Operating costs, down 1.2% to 6.9 billion, reflect the commitment to work on improving operational efficiency. The cost/income ratio fell below 37%. With a provision for distribution in the nine months equal to 100% of net profit, UniCredit has already allocated approximately 1.4 billion euros for the interim cash dividend (92.61 cents per share), in addition to a repurchase of treasury shares of approximately 1.7 billion already in progress.
CEO Andrea Orcel confirmed interest in German Commerzbank, but warned: “If Commerzbank or any other acquisition adds value it is a great thing, if not we will move on to something else, but everyone will have to take their responsibilities for what will happen next.” Two months after Unicredit’s first step into Commerzbank, the wedding still seems far away.
