Unicredit S.p.a. · MIL:UCG
Unicredit — Q1 2025 Earnings Presentation
42 slides from Unicredit's earnings presentation, May 12, 2025
Slide 1: UniCredit Unlocked
UniCredit Unlocked Distinctive Excellence: The best quarter in our history, execution of our winning strategy underpinning record results Milan, 12 May 2025
Slide 2: The best quarter in our history: Execution of UniCredit Unlocked underpins record results
The best quarter in our history: Execution of UniCredit Unlocked underpins record results FINANCIAL STRENGTH DISTINCTIVE Record results, while strengthening lines of defence, further differentiating us vs peers Reinforced leadership across all KPIs positioning us to deliver sustainable net EXCELLENC
Slide 3: Financial Strength
Financial Strength Record results, while strengthening lines of defence, and upgraded guidance with possible upside ACCELERATING 2025 QUALITY REVENUE GROWTH OPERATIONAL & CAPITAL EFFICIENCY SUPERIOR PROFITABILE GROWTH Core revenues growing driven Best-in-class grip on costs and Best-in-class increas
Slide 4: Core revenue growth driven by better fees and more resilient NII
Financial Strength: Net Revenue growth driven by core revenue, further boosted by trading, mostly client driven Core revenue growth driven by better fees and more resilient NII NET REVENUE, bn STRONG NET REVENUE BASE, bn RELENTLESS FOCUS ON QUALITY REVENUE GROWTH 8.9% 8.1% 9.2% +3.2% 7.7% Net revenu
Slide 5: Superior NII profitability, driven by unwavering focus on margins
Financial Strength: Net Interest Income decline as planned; profitability better Superior NII profitability, driven by unwavering focus on margins NET INTEREST INCOME, bn NIM2 2.0% 2.1% 2.0% 2.0% SUPERIOR NII PROFITABILITY RESILIENT MARGINS NII RoAC1 NII evolution, bn 3.6 3.6 3.5 3.3 Superior NII pr
Slide 6: Structurally low CoR; strong coverage increased and overlays intact
Financial Strength: Cost of Risk significantly better than planned; overlays not yet used Structurally low CoR; strong coverage increased and overlays intact LLPs, m CoR, bps 34 STRONG ASSET QUALITY; STABLE CoR 9 10 8 STRONG ASSET QUALITY 357 Gross NPEr at 2.6% 103 Net NPEr at 1.4% 83 Increasi
Slide 7: Record Fees acceleration across all main categories
Financial Strength: Fees better than planned Record Fees acceleration across all main categories FEES, bn STRONG FEES ACCELERATION; Strong fees from increased client appetite and broader product offering FEE/REVENUE1 AT A TOP TIER 36% +8.2% 138 152 165 172 FEES ACCELERATION Outstanding growth +8.2
Slide 8: Record Cost / Income, #1 in Europe
Financial Strength: Operational efficiency better than planned driven by both sides of the jaws Record Cost / Income, #1 in Europe COSTS, bn -1.3% at CONFIRMING OPERATING constant perimeter Superior Operational Excellence EXCELLENCE + 0.6% REDUCED COST BASE Cost evolution, bn 2.5 Costs down -1.3% Y/
Slide 9: Capital Generation offsets Basel, distributions while increasing CET1
Financial Strength: capital efficiency better than planned, driving increase in excess capital Capital Generation offsets Basel, distributions while increasing CET1 CET1 ratio % +67bps OUTSTANDING CAPITAL TREND +10bps +113bps1 -62bps 16.6% SUPERIOR CAPITAL GENERATION 15.9% o/w c.60bps -52bps 16.1%
Slide 10: Stable and strong liquidity, unaffected by recent volatility
Financial Strength: liquidity position as planned Stable and strong liquidity, unaffected by recent volatility STABLE & DIVERSIFIED DEPOSIT BASE VERY SOUND LIQUIDITY RATIOS 1Q25 LOANS/DEPOSITS 130% NSFR 1Q251 101% UC 98% 92% 93% 93% 125% 86% avg 86% 87% 87% 79% 120% Avg 72% 63% 115% Robust liquidity
Slide 11: Financial Strength: leader across all KPIs
Financial Strength: leader across all KPIs 1Q25 Results further strengthen our leadership on all KPIs #1 QUALITY TOP-LINE #1 OPERATIONAL & #1 PROFITABILITY & FURTHER STRENGTHENED CAPITAL EXCELLENCE CAPITAL GENERATION LINES OF DEFENCE NII ROAC #1 + 6pp With gap C/I RATIO #1 50% - 15pp With gap ROTE #
Slide 12: Structural Advantages
Structural Advantages Unique pan-European franchise underpins resilient quality profitable growth and distribution GEOGRAPHIC FOOTPRINT CLIENT MIX BUSINESS MIX Profitable, diversified franchise Quality client base Superior, fully-fledged offering 13 Banks embedded in 4 Coverage 15m 14m Retail 1m Cor
Slide 13: Group quality earnings powerhouse: leading performance in Italy
Structural Advantages: Geographies Group quality earnings powerhouse: leading performance in Italy OUR QUALITY GROWTH APPROACH QUALITY +1.4% +7.8% −3.9% ITA REVENUE Gross 3.0bn Strong growth mainly driven by Fees, more than offsetting Gross Revenue Fees NII revenue (+1.4%) planned NII decrease. Core
Slide 14: Group resilient anchor: leading performance in Germany
Structural Advantages: Geographies Group resilient anchor: leading performance in Germany NII +1% adjusting for increase in refinancing volumes; net NII +6% OUR QUALITY GROWTH APPROACH QUALITY +3.8% +0.4% −6.6% ITA REVENUE Gross 1.5bn Gross revenue up in lower rate environment, with NII set to Gross
Slide 15: Group resilient anchor: leading performance in Austria
Structural Advantages: Geographies Group resilient anchor: leading performance in Austria OUR QUALITY GROWTH APPROACH QUALITY +1.9% +8.5% −8.3% ITA REVENUE Gross 0.7bn Gross Revenue up with Fees and Dividends more than Gross Revenue Fees 1 NII revenue (+1.9%) offsetting NII decrease −1.9% Net Revenu
Slide 16: Group growth engine: CEE profitable growth masked by Hungary
Structural Advantages: Geographies Group growth engine: CEE profitable growth masked by Hungary OUR QUALITY GROWTH APPROACH QUALITY +5.3% +16.5% +1.5% ITA REVENUE Gross 1.2bn Gross Revenue up with both NII and Fees contributing to Gross Revenue Fees NII revenue (+5.3%) growth, despite continuing dra
Slide 17: Russia orderly compression well ahead of ECB order and our targets
Structural Advantages: Geographies Russia orderly compression well ahead of ECB order and our targets CONTINUING A CLEAR STRATEGY LOCAL DEPOSITS3,4, NET LOCAL LOANS3, CROSS-BORDER EXPOSURE, CROSS-BORDER PAYMENTS5, BN BN BN BN Accelerated orderly solvent wind-down of Russian exposure always within th
Slide 18: Strong performance across all our product factories
Structural Advantages: Products Strong performance across all our product factories c.45% Client Solutions Group Revenue CORPORATE 29% 62% ADVISORY & TRADE & CLIENT RISK 39% 1.5 39% SOLUTIONS 3.1 FINANCING CORRESPONDENT MANAGEMENT1 BANKING bn bn 0.6 bn 0.3 bn 0.7 bn Gross Revenue +8% Y/Y +1% Y/Y -8%
Slide 19: Evolving Transformation
Evolving Transformation Leveraging structural PHASE 1: 2021-24 PHASE 2: 2025-27 advantages as we Unlock trapped Potential Unlock the Acceleration enter the next phase Focused on redesigning & streamlining our operating machine, while rebuilding & Optimising our operating machine, accelerating our co
Slide 20: Our Transformation is ongoing, with momentum ahead
Evolving transformation: from Unlocking Trapped Potential to Unlocking Acceleration Our Transformation is ongoing, with momentum ahead INVESTMENTS FINALISE UNLOCKING TRAPPED POTENTIAL ACCELERATE OUR TOP LINE GROWTH Impact from Investments (past – yet Status Status to fully crystallise – and future)
Slide 21: Organic accelerators help buffer headwinds and boost bottom line
Evolving transformation: from Unlocking Trapped Potential to Unlocking Acceleration Organic accelerators help buffer headwinds and boost bottom line >400 m ADDITIONAL 2027 NET PROFIT CLEAR NEXT STEPS AND DIRECTION OF TRAVEL Aion Poland: Retail and SMEs market entrance in 4Q25, first Corporate deal s
Slide 22: Announcing our strategic partnership with Google Cloud
Evolving transformation: from Unlocking Trapped Potential to Unlocking Acceleration Announcing our strategic partnership with Google Cloud DRIVING TRANSFORMATION WITH A BEST-IN-CLASS PARTNER Expanding our ecosystem of By leveraging best-in-class technology we will gradually migrate towards cloud, be
Slide 23: Improved 2025 Guidance, increased confidence in 2027 ambition
Distinctive Excellence Improved 2025 Guidance, increased confidence in 2027 ambition NET PROFIT DISTRIBUTIONS1 2025 Q1: NOP up Y/Y – better than Q2-Q4: NOP down Y/Y (in line with original guidance) Increased to >9.3bn Ahead of FY24 and FINANCIAL STRENGTH Improved expected results Delivered record In
Slide 24: Unmatched standalone profitable growth and distribution story
Distinctive Excellence Unmatched standalone profitable growth and distribution story Leadership across all KPIs, Our evolving transformation We have options like no other … underpinned by relentless uniquely positions us to keep In our 13 geographies and FINANCIAL execution of our Strategy outperfor
Slide 25: Our investment case remains attractive
Distinctive Excellence Our investment case remains attractive SUPERIOR EARNINGS AND DIVIDEND PER SHARE TRAJECTORIES … … WITH AN ATTRACTIVE ENTRY POINT Even before considering the impact of our superior EPS trajectory DPS trajectory Overlays and Excess Capital FINANCIAL STRENGTH 4 + p.p. 130 126 + 42
Slide 26: Annex
Annex 26
Slide 27: Delivering on our ESG and related commitments
Delivering on our ESG and related commitments al LEAD BY EXAMPLE CLIENTS DIVERSITY, EQUITY & INCLUSION ACCOUNTABILITY Member of Net Zero Banking Alliance, Updated our ESG penetration targets nt G Group Executive Committee: ESG representation at with targets on Oil&Gas, Power (yearly to be achieved)
Slide 28: Group P&L and selected metrics
Group P&L and selected metrics All figures in bn Q/Q Y/Y unless otherwise stated 1Q24 2Q24 3Q24 4Q24 1Q25 % % Revenue 6.4 6.3 6.1 6.0 6.5 9.2% 2.8% o/w Net interest income 3.6 3.6 3.6 3.6 3.5 -4.8% -2.9% o/w Fees 2.1 2.1 2.0 2.0 2.3 16.5% 8.2% Costs -2.3 -2.3 -2.3 -2.5 -2.3 -7.4% 0.6% Gross Operatin
Slide 29: Updated base case macro scenario
Updated base case macro scenario Scenarios 2025, 2026, 2027 EUROZONE UNICREDIT FOOTPRINT Group Group excl. Russia 2025 2.1 0.9 2025 3.6 0.7 2.1 0.5 2026 1.9 1.0 2026 2.7 1.5 2.0 1.4 2027 2.0 1.3 2027 2.5 1.8 2.1 1.7 Inflation,% ◼ GDP growth, % Estimates based on UniCredit data 29 GDP growth and in
Slide 30: Balance sheet and liquidity profile
Balance sheet and liquidity profile LIQUIDITY PROFILE Other Assets 40 1Q25 27 39 Other liabilities Cash and cash balances 44 Financial liabilities & hedging liabilities Balance 66 Equity and equity instruments LCR >140% Financial Assets at Amortised Cost 97 Sheet NSFR >125% Sound and stable Financia
Slide 31: Deposit details
Deposit details Deposits from customers (Net of repos and IC - EoP) 466bn (-2.0% Q/Q) 1Q25 avg commercial deposits, bn vs 4Q24 Gross customer deposits rates 1Q25 (vs 4Q24) Italy Italy 177 -1.6% -0.35% Germany By (+11bps) Austria region CEE Russia Germany 131 +0.5% -1.36% (+26bps) Austria 58 -1.9% -1
Slide 32: Loan details
Loan details Loans to customers (Net of repos and IC - EoP) 405bn (+0.3% Q/Q) 1Q25 avg gross commercial performing loans, bn vs 4Q24 Gross customer performing loan rates 1Q25 (vs 4Q24) Italy Germany Italy 143 -0.3% 4.25% By (-32bps) Austria region CEE Germany 108 -2.0% 3.54% Russia (-25bps) Austria
Slide 33: Total Financial Assets
Total Financial Assets 18 TFAs1, bn TFAs DYNAMICS 14 13 13 13 AuM+AuA gross sales + 3% 3 3 2 2 3 Insurance gross sales 796 799 808 816 819 TFA evolution 142 143 143 819 136 138 22 28 AuM 796 quarterly 15 18 20 199 199 204 201 209 AuA 58 58 58 58 57 AuC 388 387 392 Insurance 383 381 Deposits 1Q24 2Q2
Slide 34: Asset quality details
Asset quality details TOTAL GROSS NPE TOTAL GROSS NPE ALMOST STABLE KEY HIGHLIGHTS 12.1 11.8 − 46% Gross NPE evolution 11.7 11.2 11.4 NPE COVERAGE RATIO Slightly up Q/Q at 47% on by quarter, bn book 21.2 Gross Past Due Gross Bad Loans SOUND LEVEL OF Gross UTP PROVISIONS NPE coverage does not 1Q24 2Q
Slide 35: Group gross loans breakdown by stages
Group gross loans breakdown by stages o/w Gross NPE GROUP GROSS LOANS1 AND PROVISIONS EOP, bn 2.7% 2.6% 2.7% 2.6% 2.6% Stage 3 445 444 441 45.5% 47.2% 47.0% 45.9% 46.9% Stage 3 12 12 434 12 428 11 11 Stage 2 62 52 51 48 49 o/w Stage 2 14.0% o/w Gross performing loans 11.7% 11.6% 11.5% 11.0% Stage 1
Slide 36: RWA details
RWA details RWA, bn CONTINUED RWA EFFICIENCIES RWA evolution by quarter 287 + 3% 280 277 278 277 Market risk Operational risk 287 Credit risk 1Q24 2Q24 3Q24 4Q24 1Q25 280 Q/Q EVOLUTION DETAILS, bn Including Aion/Vodeno, Y/Y EVOLUTION DETAILS, bn Including Aion/Vodeno, Alpha Bank and Alpha Bank and o
Slide 37: End Notes
End Notes 37
Slide 38: General notes related to this presentation
General notes related to this presentation END NOTES ARE AN INTEGRAL PART OF THIS PRESENTATION All data throughout the document are in Euro Numbers throughout the presentation may not add up precisely to the totals provided in tables and text due to rounding Russia includes the local bank and legal
Slide 39: Main definitions
Main definitions Allocated Capital Calculated as 13.0% of RWA plus deductions Clients Clients that made at least one transaction in the last three months Cost of risk Based on reclassified P&L and Balance sheet, calculated as (i) LLPs of the period annualised in the interim periods over (ii) average
Slide 40: Main definitions
Main definitions HQLA Assets which can be easily and immediately converted into cash at little or no loss of value even in periods of severe idiosyncratic and market High-Quality Liquid Assets stress. These assets are unencumbered, which means free of legal, regulatory, contractual, or other restric
Slide 41: Main definitions
Main definitions PD scenario Impacts deriving from probability of default scenario, including rating dynamics RoAC Annualized ratio between (i) Net profit after AT1/Cashes minus excess capital charge (where applicable) and (ii) average allocated capital, both as defined above RoTE (i) Annualized Net
Slide 42: Disclaimer
Disclaimer This presentation may contain “forward-looking statements” which includes all Japan or any other jurisdiction where such an offer or solicitation would be unlawful statements that do not relate solely to historical or current facts and which are (the “Other Countries”), and there will be