Rome, May 7 (EFECOM).- The Italian bank Unicredit closed the first quarter of 2024 with a net profit of 2,558 million euros, 23.9% more than in the same period of the previous year, a result that exceeds expectations , reported this Tuesday the largest banking entity in Italy by number of clients.
Net income also exceeded estimates, which amounted to 6,371 million euros, which represents an increase of 7.4% compared to the first quarter of 2023, the group explained in a statement.
This is “quality profitable growth for the thirteenth consecutive quarter,” explained Unicredit, whose CEO, Andrea Orcel, highlighted that these results “represent a very solid basis to start the year” by “completely exceeding expectations in all areas.” main lines”.
Net interest income was €3.57 billion, an increase of 8.5%, while fees, which amounted to €2.1 billion, grew by 3.3%.
On the contrary, one of the few values that present the negative symbol was that of operating costs, which in the first quarter of the year were reduced to 2.3 billion euros, 0.7% less.
Operating expenses also decreased by 0.7%, to €2.3 billion, while provisions for bad debts, €103 million, increased slightly (+5.5%).
In addition, the Rote (profitability) stood at 19.5%, rising 2.8 points over the year, while the CET1 solvency ratio rose two points to stand at 16.2%.
Loans reached 384,300 million euros during the first three months of the year, reducing by 5.2% year-on-year, and gross impaired loans were equivalent to 12,603 million, 4% less than the previous year.
Orcel assured that these results represent an “exceptional creation of value for shareholders, with an increase in earnings per share of 42% and tangible equity per share of 25% year-on-year.”
Due to the quarterly results, Unicredit has raised its net profit forecasts for 2024 to above €8.5 billion, with unchanged Rote around 16.5% and organic capital generation of more than 300 basis points.
The group expects that the distribution to shareholders in 2024 will amount to around 10 billion euros, according to the bank’s quarterly note, which recalls that the distribution is subject to the approval of shareholders and regulatory authorities.
“Unicredit is on the right track to continue achieving exceptional results, and we are proud to be a model in the industry,” said Orcel, who highlighted the CET1 ratio is “among the best.” EFECOM
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