(AOF) – Unicredit (+9.92% to 29.31 euros) is propelled to the top of the Italian FTSE MIB index by higher than expected results and remuneration for its shareholders. A year ago, the Italian bank had already reserved the same pleasant surprise for investors. After recording record profits in 2023 by posting 8.6 billion euros in adjusted net profit, Unicredit plans to match its performance this year. UBS emphasizes that the consensus is 10% lower than this forecast.
Record 2023 net profit
Over the last three months of 2022, Unicredit generated a net profit up 14.1% to 2.8 billion euros, bringing its profits over the year to 9.5 billion euros, an increase of 47 %. On an adjusted basis, profit came to 1.9 billion euros, well above the consensus of 1.2 billion euros. Over the year, adjusted profit came to 8.6 billion euros.
Quarterly net revenues rose 9.5% to €5.7 billion while interest income rose 5.7% to €3.6 billion. At the same time, its operational costs increased by 0.8% to 2.5 billion euros.
Unicredit has a solid balance sheet, with a core capital ratio of 15.89% in 2023, an improvement of 97 basis points.
Well-paid shareholders
With its good results and financial strength, Unicredit can afford to be generous with its shareholders.
The Italian bank will distribute 8.6 billion euros to its shareholders for the 2023 financial year, including 5.6 billion euros in the form of share buybacks and 3 billion euros via dividends. This amount, which represents a distribution rate of 100%, is a positive surprise. Jefferies specifies that dividends will represent 1.78 euros per share, compared to a VA consensus of 1.67 euros. The analyst for his part anticipated 4 billion in share buybacks.
This year, Unicredit plans to distribute at least 90% of its net profit, knowing that it is expected to be stable in adjusted data.
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