Unicredit S.p.a. · MIL:UCG
Unicredit — Debt Investor Presentation (February 2025)
50 slides from Unicredit's debt investor presentation, Feb 11, 2025
Slide 1: UniCredit Unlocked
UniCredit Unlocked Unlocking Acceleration: ushering in UniCredit’s next phase of success 2024 record results crowning 16 consecutive quarters of quality growth FIXED INCOME & ESG PRESENTATION Milan, 11 February 2025
Slide 2: Initial disclaimer
● UniCredit - Public Initial disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN Countries. Anyone receiving such documents shall not distribute, forward or send them (neither by postal PART, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, AUSTRALIA, CANA
Slide 3: Agenda
Agenda UniCredit at a glance Financial highlights Funding, liquidity and securitisation ESG 3
Slide 4: Industrial and cultural transformation allowed us to beat across all KPIs
● UniCredit - Public Industrial and cultural transformation allowed us to beat across all KPIs … We beat our Unlocked targets set in 2021, Strongly exceeding profitability and distribution reaching a new sustainable run rate ambitions 2024 Target 2024 Actual 2024 Target 2024 Actual (set in 2021) Gro
Slide 5: Unique preparedness to fuel future ambitions
● UniCredit - Public 2025 Guidance Unique preparedness to fuel future ambitions Favourable gap versus peers will widen further, in a context of increasing headwinds 2027 Ambitions EU banking industry future trends vs. UniCredit differential value NII Euribor decline acceleration • Superior NII profi
Slide 6: Offsetting headwinds with our unique proposition
● UniCredit - Public 2025 Guidance Offsetting headwinds with our unique proposition β 2027 Ambitions UNDERLYING 2025 GUIDANCE ASSUMPTIONS: ENTERING A CHALLENGING NET REVENUE >23bn ENVIRONMENT NII Moderate decline Updated rates scenario and FEES Up mid-single digit2 pass-through assumptions COR c.15b
Slide 7: An exciting story to show our truly differentiated value
● UniCredit - Public 2025 Guidance An exciting story to show our truly differentiated value Continuous focus driving excellent results, leading to attractive shareholders remuneration 2027 Ambitions Continue growing in a quality way FY25-27 YEARLY DISTRIBUTION AMBITION Net Revenue: c.24bn Net profit
Slide 8: Our Commercial Machine: Geographies
● UniCredit - Public Our Commercial Machine: Geographies Extracting full potential from our attractive franchise A balanced geographic mix QUALITY GROWTH NII QUALITY OPERATIONAL CAPITAL EXCELLENCE EXCELLENCE RoAC3 NET PROFIT (FY27-FY24 2024-2027 KPIs 2 Fees /Rev. NII RoAC Cost/Income Net rev./RWA3 C
Slide 9: Vodeno-Aion: organic growth accelerator
● UniCredit - Public Vodeno-Aion: organic growth accelerator Strategic Rationale and Key Performance Indicators CLEAR STRATEGIC RATIONALE UNIQUE ADVANTAGES Market expansion coupled with State-of-the-art technology Integrated with EU banking license scalable finance solutions HIGH FLEXIBILITY LOW COS
Slide 10: Update on M&A
● UniCredit - Public UPDATE Click to standalone UniCredit edit Master plantitle stylea compelling base case remains M&A is a potential accelerator, only at our strict terms and ON M&A conditions, capable of generating substantial value M&A Accelerators ONLY IF … FULLY ALIGNED TO GROUP STRATEGY THAT
Slide 11: UniCredit Unlocked: Closing remarks
UniCredit I 16TH CONSECUTIVE QUARTER OF PROFITABLE GROWTH CROWNING OUR BEST YEAR EVER Stated Net Profit of 9.7bn (absorbing 1.3bn non operating items) – Unlocked 9.3bn excluding DTAs, 10.3bn underlying – supporting an increase in distributions to 9.0bn TRANSFORMED INTO EUROPE’S BEST PERFORMING II AN
Slide 12: Why UniCredit?
Why UniCredit? A unique investment proposition, with a still attractive point of entry STRUCTURAL PROVEN STRATEGICALLY OUTSTANDING ADVANTAGES EXECUTION FORTIFIED RETURNS ATTRACTIVE GEOGRAPHIC MIX LEADING FINANCIAL RESULTS CLEAR ALPHA INITIATIVES SUSTAINABLE Profitable and diversified footprint ORGAN
Slide 13: Agenda
Agenda UniCredit at a glance Financial highlights Funding, liquidity and securitisation ESG 13
Slide 14: 2024 record results crowning consecutive quarters of quality growth
● UniCredit - Public 2024 record results crowning 16 consecutive quarters of quality growth All our regions and product factories delivering superior performance and beating targets Unlocking Trapped Potential Unlocking Acceleration BEST-IN-CLASS PROFITABILITY, RoTE FY24 2025 GUIDANCE 15bps 17.7% GO
Slide 15: 16th consecutive quarter of delivering quality profitable growth
● UniCredit - Public 16th consecutive quarter of delivering quality profitable growth, crowning our best year ever in million 4Q24 Y/Y FY24 FY/FY +1.3% excl. Net Revenue 5,645 -0.1% CBK one-off 24,203 +4.0% o/w NII 3,652 +1.1% 14,358 +2.5% +2.5% Q/Q o/w LLPs (357) +14.8% (641) +14.4% o/w Fees 349 1,
Slide 16: Net Revenue
Net Revenue High-quality, resilient top line NET REVENUE, bn Strong net revenue base, bn RELENTLESS FOCUS ON QUALITY REVENUE GROWTH +4.0% 8.6% 7.9% 8.1% Net revenue / RWA STRONG NET REVENUE GROWTH FY/FY 6.6% +1.3% Y/Y exc. CBK trading Sound Net Revenue growth FY24 vs FY23, 24.2 5.7 6.0 5.6 one-off d
Slide 17: Net Interest Income
Net Interest Income Solid and highly profitable on its own merit NET INTEREST INCOME, bn GROWING AND RESILIENT 1.9% 2.2% 2.0% 2.0% NIM2 GROWING AND RESILIENT +2.5% • Resilient NII growing Y/Y and Q/Q despite rates decline, thanks to excellent pass- 14.4 NII evolution, through management in Italy and
Slide 18: Asset Quality and Cost of Risk
Asset Quality and Cost of Risk Gross NPE at historically low levels; structurally low CoR protected by strong coverage and overlays stock LLPs, m VERY STRONG AQ; CoR IN LINE FY/FY 56 bps 33 bps CoR ex. Russia 17 bps 46 17 bps STRONG ASSET QUALITY 34 29 Asset quality remaining very strong with 15 641
Slide 19: Fees
Fees Acceleration across all main categories FEES, bn FUELING FEE GROWTH IN THE YEAR Strong fees from increased client appetite and broader product offering AND TOWARDS THE FUTURE +8.7% excl. CAFR in Italy and securitization costs 165 ACCELERATION 163 136 144 • Strong fee growth FY/FY, with contribu
Slide 20: Costs and Operational efficiency
Costs and Operational efficiency Firm discipline led to FY cost decline despite inflation and investments CONFIRMING OPERATING EXCELLENCE COSTS, bn Flat Q/Q excluding Superior Operational Excellence 4Q24 one-offs 3RD YEAR IN A ROW OF COSTS REDUCTION − 0.6% Non-HR costs: -1.3% FY/FY 2.5 2.5 Cost base
Slide 21: RWAs and Capital efficiency; Distributions
RWAs and Capital efficiency Record 12.6bn OCG in the year generation, allowing to absorb 9bn distributions and c.3.6bn of other impacts o/w: -11bps model changes -11bps FX reserve -17 bps regulatory deductions7 CET1 ratio % 88bps SUPERIOR CAPITAL GENERATION -51bps STRONG CAPITAL GROWTH -48bps SBB3:
Slide 22: Agenda
● UniCredit - Public Agenda UniCredit at a glance Financial highlights Funding, liquidity and securitisations ESG 22
Slide 23: 2025 Group Funding Plan expected at ca. 20bn
● UniCredit - Public 2025 Group Funding Plan expected at ca. 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 provid
Slide 24: MREL Funding Plan: 20% executed, focus on more senior instruments
● UniCredit - Public MREL Funding Plan: 20% executed, focus on more senior instruments UniCredit SpA 2025 MREL expected funding plan, €/bn Main drivers Issued Funding Plan Issued Expected 20% of the overall MREL Funding Plan 2025 already in 20243 2025 in 20253 by YE25 executed. Institutional market
Slide 25: Balanced profile with manageable redemptions
● UniCredit - Public Balanced profile with manageable redemptions Group liabilities structure breakdown1 M/L term liability structure Maturity profile up to 2027, €bn2 5% 18 18 AT1 UC SPA 6% 13 7 7 T2 UC SPA 40% 5 2 1 SENIOR UNSECURED UC SPA3 2 7 39% 8 UNSECURED OTHER SUBS 5 2 10% 1 1 1 COVERED BOND
Slide 26: Balance sheet and liquidity profile
● UniCredit - Public Balance sheet and liquidity profile (€bn) LIQUIDITY PROFILE Other Assets 40 4Q24 25 38 Other liabilities Cash and cash balances 41 Financial liabilities & hedging liabilities Balance 63 Equity and equity instruments LCR >140% Financial Assets at Amortised Cost 94 Sheet NSFR >125
Slide 27: Ample buffers over MREL requirements
● UniCredit - Public Ample buffers over MREL requirements MREL1 MREL Subordinated1 Eligible instruments Ample buffers over capital Actual 32.7% regulatory requirement Buffer 523bps 90.7bn 4Q24 24.0% SP2 24.2bn CET1 ratio Tier 1 ratio 429bps Fully Loaded5 transitional SNP3 10.0bn Regulatory 27.5% Tie
Slide 28: Covered Bonds (CB) program
● UniCredit - Public 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 Covered Bond Program size (Euro) 35bn 50bn 50bn 40bn 40bn 10bn Maturity (soft-bullet) ✓ ✓ 6 ✓ 6 ✓ 6
Slide 29: ARTS program to be expanded
● UniCredit - Public 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 thr
Slide 30: Performance recognized in improved ratings
● UniCredit - Public Performance recognized Ratings affirmed in impro following the offer on Banco BPM Moody's and Fitch ratings above the sovereign BBB / Stable / A-21 Baa3 / Stable / P-31 BBB / Positive / F21 Covered Bonds (Italian OBG I / OBG II)2 AA- / n.r. UniCredit’s stand-alone rating Aa3 / A
Slide 31: Agenda
● UniCredit - Public Agenda UniCredit at a glance Financial highlights Funding, liquidity and securitisations ESG 31
Slide 32: ESG Targets FY24 fully achieved across products
● UniCredit - Public ESG Targets FY24 fully achieved across products tal G From ESG volumes … ESG Lending1 n Good performance on 15% … to ESG penetration ov e environmental lending with nm ern 26.9bn, while outperforming Enviro ance on social lending with 13.2bn 15% Focus on ESG share over total sin
Slide 33: Leading by example and supporting our clients' green and social transition
● UniCredit - Public Leading by example and supporting our clients’ green and social transition Environment Social Governance Promoting sustainable financial instruments Communities initiatives CEO & Top Management remuneration2 11 c. 6.5bn 35bn UniCredit per l’Italia, including 5bn credit “Piano Tr
Slide 34: Main strategic commitments supporting our ESG stance beyond climate
● UniCredit - Public 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
Slide 35: Overview of 2030 Net Zero targets and progress
● UniCredit - Public 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 Phy
Slide 36: Strong environmental, social and reputational risk management and policies
● UniCredit - Public Strong environmental, social and reputational risk management and policies Client applicability Group Reputational Risk Management Global Policy 3 OIL & GAS A B C COAL A B C Other sector policies Defence/Armaments Current revenues from >25% & Increase in coal business Mining sec
Slide 37: Supporting the integration of ESG into UniCredit's strategy
● UniCredit - Public 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 G
Slide 38: Delivering on commitment to sustainability
● UniCredit - Public Delivering on commitment to sustainability 4Q23 1Q24 2Q24 3Q24 4Q24 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 ‘UniCredit for CEE’ initiative Improved to “64” fr
Slide 39: ESG ratings and indices: our efforts recognised
● UniCredit - Public ESG ratings and indices: our efforts recognised thanks to improvements CCC B BB BBB A AA AAA ● ESG rating stable at “AA” as of Dec 24. Included in the Bloomberg MSCI Green Bond Index ● Robust corporate governance practices and integration of ESG practices into lending Severe Hig
Slide 40: Annex
● UniCredit - Public Annex 40
Slide 41: Russia
● UniCredit - Public Russia Most 2025 targets already exceeded, compliant with ECB order Practically reached 2025 targets 1 year in advance, confirming our strong committment to compliance CONTINUING A CLEAR STRATEGY LOCAL DEPOSITS3,4, NET LOCAL LOANS3, CROSS-BORDER EXPOSURE, CROSS-BORDER PAYMENTS5,
Slide 42: Deposit details
● UniCredit - Public Deposit details Deposits from customers (Net of repos and IC - EoP) 476bn (+4.0% Q/Q) 4Q24 avg commercial deposits, bn vs 3Q24 Gross customer deposits rates 4Q24 (vs 3Q24) Italy Italy 179 -0.2% -0.46% Germany By (+7bps) Austria region CEE -1.62% Russia Germany 130 +2.5% (+15bps)
Slide 43: Loan details
● UniCredit - Public Loan details Loans to customers (Net of repos and IC - EoP) 404bn (+0.3% Q/Q) 4Q24 avg gross commercial performing loans, bn vs 3Q24 Gross customer performing loan rates 4Q24 (vs 3Q24) Italy Italy 143 -0.4% 4.57% Germany (-17bps) By Austria region CEE 109 3.78% Germany +0.8% (-1
Slide 44: Group gross loans breakdown by stages
● UniCredit - Public Group gross loans breakdown by stages o/w Gross NPE GROUP GROSS LOANS1 AND PROVISIONS EOP, bn 2.7% 2.7% 2.6% 2.7% 2.6% Stage 3 440 445 444 441 47.2% 45.5% 47.2% 47.0% 45.9% Stage 3 12 12 12 12 428 11 62 52 51 Stage 2 76 49 o/w Stage 2 17.2% 14.0% 11.7% 11.6% 11.5% o/w Gross perf
Slide 45: End notes
● UniCredit - Public End notes 45
Slide 46: Final disclaimer
● UniCredit - Public Final disclaimer This presentation may contain “forward-looking statements” which includes all Australia, Canada or Japan or any other jurisdiction where such an offer or statements that do not relate solely to historical or current facts and which are solicitation would be unla
Slide 47: General notes related to this presentation
● UniCredit - Public 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
Slide 48: Main definitions
● UniCredit - Public Main definitions Allocated Capital Calculated as 13.0% of RWA plus deductions CAFR Current Account Fee Reduction in Italy 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
Slide 49: Main definitions
● UniCredit - Public 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, contract
Slide 50: Main definitions
● UniCredit - Public 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 Ro
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