The Unicredit accounts are not liked by the Stock Exchange. On an already difficult day for the banking sector since the morning, the publication of the quarterly report of the bank in Piazza Gae Aulenti contributes to worsening the losses of the Ftse Mib index up to over -3% after 14 pm. Unicredit itself plummets, losing about 4% below 3 euro per share. The quarterly revealed that the group net profit reaches 1,7 billion euros in the 2015 financial year, down by 15% compared to 2014 and equal to over €2,2 billion excluding non-recurring items of approximately €540 million mainly related to restructuring charges relating to the Strategic Plan, the agreement on the sale of Ukrsotsbank, the extraordinary contributions for the new charges for systemic risk in Italy and in Poland and higher provisions on loans denominated in Swiss francs in Croatia.
In the fourth quarter the profit was 153 million, down sharply by almost 70% from the previous quarter and 10% on an annual basis. The group's revenues are stable compared to the previous year, while the core bank's profits are also down sharply: 640 million euros, -28% on a quarterly basis, -25% on an annual basis. The performance of non-performing loans is improving, and Unicredit has also communicated that it will propose to the annual shareholders' meeting, scheduled for April 14, the payment of a dividend from retained earnings for full year 2015 of 12 cents per share ordinary and savings shares, through the allocation of newly issued shares or, at the specific request of the shareholders, through cash payment. The dividend is unchanged compared to the amount paid for 2014 which was equally 'scrip' or in cash. For the 2013 financial year, the only possible option was that of the 'scrip dividend', while for 2014, as now for 2015, the option was given to opt for payment in cash.
“Our ability to generate capital through management is confirmed – he comments the managing director Federico Ghizzoni -: a growth of over 90 basis points which allows us to significantly strengthen the capital ratios. The fully loaded pro-forma CET 1 is close to 11% and already exceeds the requirements currently envisaged for 2018. Unicredit closed 2015 with a profit of over 2,2 billion, excluding non-recurring items which already discount a large part of the restructuring costs linked to the Strategic Plan, as well as some extraordinary items such as the contribution for the rescue of four banks in Italy. This is a highly valuable result given the difficult macroeconomic environment at the European level, especially for the banking sector. The implementation of our plan is proceeding at a sustained pace and in these few months important issues such as Austria and the Ukraine have been tackled and resolved; we are also working on cutting costs with speed and determination. The quality of our loans is constantly improving, the situation of non-performing and non-performing loans is totally under control and very manageable for a group of international dimension like ours which can boast very high levels of coverage."
The group also confirmed that it reduced headcount by 3.511 worldwide in 2015 and it closed 582 branches. This is what can be read in the note accompanying the balance sheet data. At the end of 2015, the total number of Group employees therefore fell to 125.510 units from 129.021 a year earlier and against 126.849 in the third quarter of last year (-1.339 the drop in the fourth quarter). Branch closures amounted to 582 in all of 2015 to 6.934 at the end of the year against 7.516 a year earlier and 7.055 in the third quarter of 2015 (-121 in the fourth quarter). On February 5, Unicredit signed an agreement with the unions for the voluntary exit of 2.700 employees.
Here is more data:
Il RoTE it is 4,1% in 2015 (5,4% excluding non-recurring items). The fully loaded pro-forma CET1 ratio3 improves to 10,94% with significant capital generation of 92bp Y/Y. The pro-forma CET1 ratio transitional reaches 10,73% (+32bps Y/Y), the pro-forma Tier 1 ratio transitional stands at 11,64% and the pro-forma Total Capital ratio transitional at 14,36%. The Leverage Basel 3 transitional pro-forma ratio is 4,69% and fully loaded pro-forma 4,53%.
Group asset quality improves in the fourth quarter, with i gross non-performing loans down further to €79,8 billion (-1,2% Q/Q, -5,5% Y/Y) with a solid coverage ratio at 51,2% (equal to 52,5% excluding 2015 NPL disposals). Gross NPLs were essentially stable Q/Q at €51,1 billion, mainly thanks to portfolio disposals, with a coverage ratio of 61,0% (equal to 62,2% excluding NPL disposals in 2015). The Net Non-Performing Loans/Total Net Loans ratio was 4,2% in the fourth quarter of 2015.
Other gross impaired loans further decreased by 4,7% Q/Q and 11,0% Y/Y, mainly due to lower inflows from performing loans. In Italy, asset quality continues to make progress, with a trend of non-performing loans of Unicredit decidedly better than that of the Italian banking sector (ABI sample) at the end of December 2015 and with the highest coverage ratio of gross non-performing loans equal to 50,9% (52,5% excluding the disposals of non-performing loans in 2015 ).
La core bank recorded a net profit of 894 million in the fourth quarter (excluding extraordinary items of around 254 million) and over 3,7 billion in 2015 (excluding extraordinary items of around 492 million). Positive revenue trend (+5,9% Q/Q, +0,6% FY/FY) thanks to good fee growth (+3,2% Q/Q, +4,7% FY/FY) . Invested Financial Assets (AFI) rise to €916 billion thanks to the excellent increase in net inflows (+€31,8 billion or +28,0% FY/FY) supported by asset management products (AuM) and deposits.
At the end of today's meeting, the Unicredit Board of Directors unanimously expressed “full confidence” in the managing director Federico Ghizzoni. "In the light of the results achieved in 2015, better than market expectations, especially as regards the capital ratios, - reads the note - the chairman Giuseppe Vita together with the board of directors deem it appropriate to express their appreciation to the management for the work done ”.
"In particular, - continues the press release - the capital requirements achieved organically provide comfort in the possibility of facing the challenges posed by the implementation of the multi-year plan with greater confidence, above all because this result was obtained in a decidedly negative market context for the banking sector”
