Unicredit S.p.a. · MIL:UCG
Unicredit — Debt Investor Presentation (May 2025)
42 slides from Unicredit's debt investor presentation, May 12, 2025
Slide 1: UniCredit Unlocked: Fixed Income & ESG Presentation
UniCredit Unlocked Distinctive Excellence: the best quarter in our history, execution of our winning strategy underpinning record results FIXED INCOME & ESG PRESENTATION Milan, 12 May 2025
Slide 2: Agenda
Agenda UniCredit at a glance Financial highlights Funding, liquidity and securitisation ESG
Slide 3: 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 4: 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 5: Distinctive Excellence: 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 6: Agenda
Agenda UniCredit at a glance Financial highlights Funding, liquidity and securitisation ESG
Slide 7: Financial Strength
Financial Strength Record results, while strengthening lines of defence, and upgraded guidance with possible upside QUALITY REVENUE GROWTH OPERATIONAL & CAPITAL EFFICIENCY SUPERIOR PROFITABILE GROWTH ACCELERATING Core revenues growing driven by Fees and resilient NII, Y/Y Best-in-class grip on costs
Slide 8: 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% 9.2% +3.2% 7.7% 8.1% Net revenu
Slide 9: 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 2.0% 2.1% 2.0% NET INTEREST INCOME, bn NIM2 2.0% SUPERIOR NII PROFITABILITY RESILIENT MARGINS NII RoAC1 NII evolution, bn 3.6 3.6 3.5 3.3 Superior NII pr
Slide 10: 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 34 CoR, bps STRONG ASSET QUALITY; STABLE CoR 9 10 8 103 357 STRONG ASSET QUALITY Gross NPEr at 2.6% 83 Net NPEr at 1.4% 98 103 83
Slide 11: 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 AuM+AuA stock, bn Outst
Slide 12: 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/Y
Slide 13: 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 14: Agenda
Agenda UniCredit at a glance Financial highlights Funding, liquidity and securitisation ESG
Slide 15: 2025 Group Funding Plan expected at c. 20bn
2025 Group Funding Plan expected at c. 20bn • UniCredit S.p.A. acts as the Group Holding as well as the Italian operating bank and is the MREL issuer under Single-Point-of-Entry (SPE) • Geographical footprint and well-established name with recognition in domestic markets provides for funding diversi
Slide 16: MREL Funding Plan: almost 50% executed, focus on more senior instruments
MREL Funding Plan: almost 50% executed, focus on more senior instruments UniCredit SpA 2025 MREL expected funding plan, €/bn Main drivers Almost 50% of the overall MREL Funding Plan 2025 already executed, continuing to benefit on the significant spread tightening versus EU peers, Issued Funding Plan
Slide 17: Balanced profile with manageable redemptions
Balanced profile with manageable redemptions Group liabilities structure breakdown1 M/L term liability structure Maturity profile up to 2028, €bn2 18 17 AT1 UC SPA 6% 6% 15 7 7 T2 UC SPA 39% 10 4 2 1 1 SENIOR UNSECURED UC SPA3 4 6 40% 1 8 8 UNSECURED OTHER SUBS 4 2 9% 1 1 1 0 1 COVERED BONDS4 2025 2
Slide 18: 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 19: Ample buffers over MREL requirements
Ample buffers over MREL requirements MREL1 MREL Subordinated1 Eligible instruments Ample buffers over capital Actual 32.5% regulatory requirement Buffer 497bps 93.3bn 1Q25 24.4% SP2 23.3bn 465bps CET1 ratio 5 Tier 1 ratio 5,6 SNP3 10.6bn 27.5% Tier 2 AT1 7.2bn 5.9bn 16.1 % 18.2 % Regulatory 10.5% 7.
Slide 20: Covered Bonds (CB) program
Covered Bonds (CB) program ITALY GERMANY AUSTRIA CZECH REPUBLIC UniCredit is a key Mortgage Mortgage Public Sector Mortgage Public Sector Mortgage mortgage provider and a leading Program size (Euro) 35bn 50bn 50bn 40bn 40bn 10bn Covered Bond Maturity (soft-bullet) ✓ ✓ 6 ✓ 6 ✓ 6 ✓ 6 ✓ issuer in Italy
Slide 21: ARTS program to be expanded
ARTS program to be expanded ARTS: a single program for Securitisations across assets and regions 4Q21-2024 2025 Goal is to strengthen the ARTS program in terms of asset ITALY • Residential Mortgages Already securitized classes and formats, with the • Large Corporate segments through • SMEs & MidCap
Slide 22: Creditworthiness above the sovereign by all three rating agencies
Performance recognized Creditworthiness aboveinthe impro sovereign by all three rating agencies Bildergebnis für standard poors Bildergebnis für moodys Bildergebnis für fitch ratings BBB+ / Stable / A-21 Baa3 / Stable / P-31 BBB / Positive / F21 Covered Bonds (Italian OBG I / OBG II)2 AA / n.r. UniC
Slide 23: Agenda
Agenda UniCredit at a glance Financial highlights Funding, liquidity and securitisation ESG
Slide 24: ESG Targets FY24 fully achieved and targets for 2025-27
ESG Targets FY24 fully achieved and targets for 2025-27 AL GO NT V ME ER ENVIRON NANCE ESG Lending1 Update of our ESG Good performance on 15% penetration targets on S O CIAL environmental lending with 26.9bn, while outperforming on total business volumes social lending with 13.2bn 15% 15% for 2025-2
Slide 25: Leading by example and supporting our clients' green and social transition
Leading by example and supporting our clients’ green and social transition Environment Social Governance Promoting sustainable financial instruments Communities initiatives CEO & Top Management remuneration2 35bn FY24 UniCredit's Sustainability Statements have been prepared in alignment with the new
Slide 26: Main strategic commitments supporting our ESG stance beyond climate
Main strategic commitments supporting our ESG stance beyond climate • Oct 21: signed Net Zero Banking Alliance • Published our first Natural Capital and commitment to reduce emissions on • Achieve gender equity at all organisational levels and Biodiversity Statement, setting the pace for our lending
Slide 27: Overview of 2030 Net Zero targets and progress
Overview of 2030 Net Zero targets and progress UniCredit Design Elements Baseline Progress Target Sector Value chain Primary metric1 Emission coverage Year Measure Value2 YE20233 By 20302 Financed Oil & Gas Full value chain emissions Scope 34 2021 MtCO2e 21.4 -47% -29% Power Physical generation Gene
Slide 28: Strong environmental, social and reputational risk management and policies
Strong environmental, social and reputational risk management and policies Client applicability Group Reputational Risk Management Global Policy3 OIL & GAS A B C COAL A B C Other sector policies Defence/Armaments Current revenues from >25% & Increase in coal business Mining sector ≤ 25% >50% No No Y
Slide 29: Supporting the integration of ESG into UniCredit's strategy
Supporting the integration of ESG into UniCredit’s strategy Organisational and Chair governance structure, Board of Directors Audit Committee focus on ESG Defines the overall strategy of the bank, including the components Group’s ESG strategy, and overseeing its implementation Governance and Sustain
Slide 30: Delivering on commitment to sustainability
Delivering on commitment to sustainability 1Q24 2Q24 3Q24 4Q24 1Q25 In November, we held our second ESG Day: “A challenged future: choosing the path ahead” Improved to “65” from “64” putting our clients at the centre, supporting them on ‘UniCredit for CEE 2025’ initiative launched, ‘UniCredit for CE
Slide 31: ESG ratings and indices: our efforts recognised thanks to improvements
ESG ratings and indices: our efforts recognised thanks to improvements CCC B BB BBB A AA AAA ● ESG rating stable at “AA” as of Mar 25. Included in the Bloomberg MSCI Green Bond Index ● Robust corporate governance practices and integration of ESG practices into lending Severe High Med Low Negl ● ESG
Slide 32: Annex
Annex 32
Slide 33: 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 34: 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 35: 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 Russia Germany 108 -2.0% 3.54% (-25bps) Austria
Slide 36: 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 12 428 434 12 11 11 62 52 51 49 48 Stage 2 o/w Stage 2 14.0% 11.7% 11.6% 11.5% 11.0% o/w Gross performing loans 370 380
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: Final disclaimer
Final disclaimer This presentation may contain “forward-looking statements” which includes all or any other jurisdiction where such an offer or solicitation would be unlawful (the statements that do not relate solely to historical or current facts and which are “Other Countries”), and there will be