UniCredit (UCG) Q2 2026 earnings summary

Executive summary

• Achieved record second quarter and first half results, with net profit of €6.1bn in H1 2026, up 24% year-over-year adjusted, and RoTE at 23.7%, driven by strong organic growth, AI-led transformation, and targeted market share gains across all regions.

• Transformation initiatives leveraging AI and technology accelerated operational efficiency, cost reduction, and sustainable profitability.

• Upgraded 2026 net profit ambition to circa €11.5bn (excluding integration costs), with enhanced prospects for 2027-2030 and strategic Commerzbank consolidation expected to further boost growth and diversification.

• Strategic move to consolidate Commerzbank, aiming for substantial value creation, enhanced group diversification, and capital efficiency.

Financial highlights

• Adjusted net profit grew over 20% to €3.1bn in Q2 and €6.3bn in H1, with RoTE at 23.7%; 1H26 net revenue rose 5.5% to €13.4bn, core revenue up 7%, and fees and net insurance up 11%.

• Cost/income ratio improved to 34.3% (down 2.2p.p. year-over-year); operating costs declined 0.9% year-over-year.

• CET1 ratio at 14.3% (pro-forma 14.5% after reversal of temporary RWA impact); LCR at ~140%, NSFR at ~124%.

• Cost of risk at 17bps for 1H26, with overlays of €1.6bn still in place; net NPE ratio at 1.36%, coverage at 45.9%.

• EPS for 1H26 was €4.09, up 3.3% year-over-year; tangible book value per share rose 8.1% to €41.5.

Outlook and guidance

• 2026 net profit ambition upgraded to circa €11.5bn (excluding integration costs), well above €11bn including them; 2028 and 2030 ambitions raised to well above €13bn and €15bn, respectively.

• Year-end CET1 ratio expected at circa 15% pre-Commerzbank consolidation, around 13% pro forma for both consolidation and share buyback cancellation.

• Distribution policy confirmed: 80% payout (50% dividend, 30% share buyback), with potential for improved interim dividends.

• Commerzbank integration expected to further enhance growth, profitability, and distribution trajectory from 2027 onward.