UniCredit (UCG) investor relations material

Strategic transformation and growth plans

• Transitioning from a focus on profitability and efficiency to profitable growth, aiming for 5% compound net revenue growth over the next 3–5 years.

• Emphasis on margin-driven growth, targeting higher-margin products and client segments, with less focus on mortgages and large company credit.

• Ongoing cost discipline, aiming to reduce costs by 1% annually for the next 3–5 years, leveraging technology, AI, and nearshoring.

• High organizational engagement and clarity on objectives, aiming for high single-digit net income growth and increasing RoTE to 25%.

• Empowerment and agility are prioritized to adapt to ongoing geopolitical and macroeconomic volatility.

Technology, AI, and digital innovation

• AI is viewed as a significant opportunity for efficiency, with a targeted net cost reduction of €400–500 million over five years.

• AI adoption requires process redesign, upskilling, and redeployment of staff, with a focus on measurable productivity gains.

• Tokenization and stablecoins are seen as transformative for corporate banking, enabling new products and market access, especially for SMEs.

• The digital euro is expected to have a greater short-term impact on retail deposits than AI, with careful ECB modulation anticipated.

• The bank is preparing for both opportunities and challenges from digital currencies and tokenization, aiming to stay ahead of fintech competitors.

M&A strategy and Commerzbank offer

• The primary goal of the Commerzbank offer is to break an 18-month stalemate and foster constructive engagement among all stakeholders.

• Three scenarios are outlined: maintaining a stake below or just above 30%, gaining control, or achieving a full merger, each with different integration and value creation implications.

• Any change in offer terms would depend on the outcome of stakeholder engagement and a recommended deal.

• The capital impact of the offer is marginal if no control is gained; significant capital is required if control is achieved, but dividends remain a priority.

• The outcome of the offer is expected to be clear by June 2026, with settlement potentially in 2027.