Unicredit closes the first quarter with a profit of 2.6 billion euros, up by approximately 24% compared to the same period of 2023. The figure is above estimates which expected 2.1 billion. Net revenues amounted to 6.3 billion, up 7%. It is “quality profitable growth for the thirteenth consecutive quarter”, highlights the bank in a note.
Numbers that allow the bank’s number one, Andrea Orcel, to say that “we started the year on extremely solid foundations” and still “fully exceeding expectations in all main lines, with a RoTE (measure of profitability, ndr) by 19.5%”. And which lay the foundations for improving estimates for the entire financial year. Unicredit’s financial guidance for 2024 net profit has in fact improved to over 8.5 billion, with an unchanged RoTE of around 16.5 percent and an organic capital generation of more than 300 basis points.
Orcel further explained that the quarterly result “was supported by a significantly improved environment for commissions and AuM, by our focus on customers and towards our product factories which translated into exceptional commercial momentum, and by a resilient interest margin . While we continue to invest, we remain vigilant on costs and reap the benefits of the initiatives we have taken previously with an industry-leading cost/income ratio of 36.2%.”
“The extraordinary quality of our assets – he concludes – is reflected in a Cost of Risk equal to 10 bps which will remain low thanks to our prudent approach, our hedges and overlays”.
Russia, record revenues for Western banks, which pay over 800 million in taxes to the State. Intesa and Unicredit are also at the top of the list
by Enrico Franceschini
Among the balance sheet items, there are 213 million in profits on 282 million in revenues from the activity in Russia, compared to the net profit of 99 million in the first quarter of 2023. “Unicredit’s cross-border exposure” in Russia “will be eliminated in the next 12-15 months and the local bank will be significantly smaller”, assures a Cnbc Orcel in recalling that “cross border exposure has fallen by 91% in two years and local presence by 67%” and that “”the strategy is to continue to do so in an orderly and accelerated way”. As for the letter invited by the ECB inviting credit institutions to reduce their exposure to the country, Orcel responds that “as far as I know, every single bank in Europe that has exposure to Russia of any size has received the letter” from part of Frankfurt.
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– 2024-05-10 06:43:37
