UniCredit (UCG) Q4 2025 earnings summary

Executive summary

• Achieved record FY25 net profit of €10.6bn, up 14% year-over-year, with RoTE at 19.2% and total distributions of €9.5bn, despite absorbing €1.4bn in extraordinary charges and marking 20 consecutive quarters of profitable growth.

• Transitioned from “UniCredit Unlocked” to “UniCredit Unlimited,” entering 2026 with strong momentum and a focus on further outperformance into 2030.

• Outperformed all key metrics, including net profit, return on tangible equity, and distribution, with disciplined transformation and operational efficiency.

• Strategic focus shifts to accelerating quality top-line growth, operational and capital efficiency, and leveraging technology and AI for transformation.

Financial highlights

• FY25 net profit reached €10.6bn, up 14% year-over-year; RoTE at 19.2%; total revenues €24.5bn (down 1.3%), net interest income €13.7bn (down 4.3%), fees & net insurance €8.7bn (up 5.6%).

• Distribution rose 6% to €9.5bn; EPS up 20% to €6.89, DPS up 31% to €3.15, and tangible book value per share up 19% to €39.54.

• Cost/income ratio improved to 38.5%; operating costs were €9.4bn, broadly flat year-over-year.

• CET1 ratio at 14.7% after distributions and investments, supported by strong organic capital generation.

• Cost of risk at 15bps, overlays unchanged at €1.7bn; net NPE ratio at 1.6%, coverage ratio stable at 44%.

Outlook and guidance

• Targeting net revenue growth at 5% CAGR to ~€27.5bn by 2028 and ≥€29bn by 2030.

• Net profit expected to grow at 7% CAGR to ~€13bn by 2028, with RoTE above 23% and aiming for ~€15bn net profit and 25% RoTE by 2030.

• Cost base to decrease 1% annually, reaching ~€9.2bn by 2028 and below €9bn by 2030; cost/income ratio to fall to 33% by 2028 and below 30% by 2030.

• Ordinary payout policy confirmed at 80% (50% dividend, 30% share buyback), with cumulative distributions of ~€30bn in three years and ~€50bn in five years.

• Overlay buffer of €1.7bn and excess capital above €4.5bn provide resilience.