Unicredit beats estimates with a net profit of 2,7 billion euros: This is the fourteenth consecutive quarter of growth for the bank led by Andrea Orcell. Revised upwards guidance 2024 on revenues and organic capital generation, confirmed for this year 1,4 billion in dividends e 1,7 billion buybacks. Not at least, the institute buy the Belgian Aion and Polish Voden for 370 million euros.
Unicredit, the figures for the second quarter of 2024
Unicredit therefore closed the second quarter of the year with a Net income of 2,7 billion euros, up 16% over the same period of 2023 and higher than analysts' expectations, stuck at 2,35 billion euros. THE revenues, we read in a note, are rose by 6% to 6,3 billion allowing the bank to improve to "over 23 billion euros". guidance on revenues for the 2024 financial year and at "over 350 basis points" that on organic capital generation while that on net profit was confirmed at "over 8,5 billion".
Unicredit, advance on cash dividend and buyback
Unicredit confirms the advance on the distribution of resources to members to apply to the 2024 results: in particular, we read in a note, in the next month November the bank will pay dividends of 1,4 billion euros while the advance on the buyback of own shares has already been authorized up to a maximum of 1,7 billion euros by the assembly and is subject to the approval of the supervisory authorities.
During the first six months of the year, Unicredit generated 6,7 billion in capital to support the 5,2 billion set aside in the half-year for distributions to shareholders in the form of dividends and buybacks, having a CET1 of 16,2% .
Unicredit, agreement for the acquisition of Vodeno and Aion Bank
Unicredit then announced that it had stipulated a binding agreement for purchase the entire share capital of Vodeno and Aion Bank at a price of approx 370 million euro. The two companies combine a proprietary, next-generation, cloud-based core banking technology capable of offering complete end-to-end Banking-as-a-Service for companies across Europe and are capable of embedding financial solutions, including checking accounts, deposits, loans and payment services, directly into the processes of retailers, marketplaces, e-commerce, fintechs, financial technology providers and banks.
Through the operation Unicredit acquires a Belgian digital bank which operates with branches in Europe and a proprietary new generation, cloud-based core banking technology, with a complete suite of scalable and flexible Banking-as-a Service products, offered by the Vodeno platform, to which are added the expertise of 200 engineers, developers and data scientists, with the ability to quickly and profitably enter specific customer segments and markets, explains the note. Furthermore, the operation represents one of the first moves by Unicredit to acquire the full ownership of a new technology, without any dependence on third-party core banking providers. “This investment allows us to leverage Vodeno's technology and talent to further enhance their proprietary technology, using it as a sandbox to develop, test and innovate for the benefit of our entire group. The combination of Aion Bank with this integrated technology gives us the ability to enter specific customer segments and entire markets across Europe, offering further opportunities to efficiently deploy our excess capital,” said the CEO of Unicredit , Andrea Orcell. The price of 370 million, which will have an impact of 15 basis points on Unicredit's CET1, is subject to customary adjustments and the transaction is expected to close in the fourth quarter of 2024 subject to obtaining regulatory authorizations.
Orcel: “We will achieve ambitions”
“For the first half and second quarter of this year, Unicredit once again reported a record set of financial results.” He underlines it Andrew Orcel, CEO of the bank, comments on the second quarter results. “Our revenue (return on tangible capital, ed) reached 20% (before adjusting for our significant excess capital compared to competitors), our net profit increased by 16% to 2,7 billion euros in the quarter and by 20% to 5,2 billion in the half-year, and our organic capital generation improved to €3,3 billion and €6,7 billion for the quarter and half-year respectively. Each of these results is a record,” he explains. “Based on these elements – he adds –, together with the significant value still to be released and our excess capital that we will employ or distribute, we are strongly convinced that we can achieve our future ambitions”.
