The following is a summary of the UniCredit S.p.A. (UNCRY) Q1 2024 Earnings Call Transcript:

Financial Performance:

• UniCredit reported net revenues of €6.3 billion, up 7.5% year-on-year, with net profit of €2.6 billion.

• Improved cost-to-income ratio to 36.2%.

• Earned a record return on tangible equity at 13%.

• Earnings Per Share (EPS) saw a significant increase of 42%.

• Fees led to a top-tier fee-to-revenue ratio.

• Tangible book value per share rose by 25% year-on-year.

• Liquidity ratios remained strong with LCR above 140% and NSFR above 125%.

• Cost of risk remained low at 10 basis points.

• Profit before tax rose 18% in Italy and 24% in Germany.

Business Progress:

• UniCredit saw its 13th consecutive quarter of profitable growth.

• Transformation plan, UniCredit Unlocked, continues to be successful.

• Expanding fee base and improving earnings quality for sustained top-line growth.

• Plans to exceed mid-term guidance with strong growth in EPS, DPS, and tangible book value per share.

• Maintained focus on improving asset quality and coverage, thereby increasing net revenues and reducing their volatility.

• Strong focus on cost management, reducing overall costs by €170 million quarter-on-quarter.

• Partnership with Alpha Bank in Romania and Greece started strong, servicing over 5.5 million POS transactions per day in 2023.

• Commitment to pursue growth through internalizing processes and capturing more market share.

• UniCredit S.p.A. remains confident in offering strong growth of EPS, DPS, and profitability across a three-year period.

• Expects to return half of current market cap to shareholders in the next three years if excess capital cannot be productively deployed.

• UniCredit Unlock strategy has proven to offer growth, profitability, and distribution potential.

• Investing heavily in IT for improvements in cybersecurity, client experience, data, and cloud infrastructure.

• Any future acquisitions will align strategically and present favorable POS synergies, compared to ongoing share buyback.

• The capital return plan set to conclude by the end of 2027.

• Operational improvements to boost their M&A strategy, making it possible to effectively integrate and enhance operations of their acquisitions.

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