The Unicredit group closed the 2017 financial year with a net profit of 5,5 billion euros, compared to a loss of 11,8 billion in 2016. The adjusted net profit was 3,7 billion euros, excluding effects of the Bank Pekao and Pioneer disposals and the negative impact of a non-recurring cost recorded in the third quarter.
At the next shareholders' meeting, the Board will propose the distribution of a cash dividend of 0,32 per share, equal to 700 million in total dividends, for a payout ratio of 20% on normalized profits. EBIT increased 73,7% to $5,7 billion driven by commercial performance and cost and risk management.
Gross non-performing loans decreased by 5,6% on a quarter and by 14,0% in the last twelve months, reaching €48,4 billion, with the ratio between gross non-performing loans and total loans improving to 10,2% in fourth quarter (-0,5 pp Q/Q, -1,6 pp Y/Y).
Net non-performing loans decreased to €21,2 billion (-5,1% QoQ, -15,2% year-on-year), progressing towards Transform 20,2's €2019 billion target. total loans stood at 4,7% in the quarter (-0,2 pp Q/Q, -0,9 pp Y/Y). Coverage ratio was 56,2% (-0,2 pp Q/Q, +0,6 pp Y/Y).
As for the Transform 2019 plan, the Bank underlines that so far all the targets have been achieved.
“2017 was a turning point for Unicredit: we launched the Transform 2019 plan which is already achieving tangible results leading to a vastly improving financial performance, as well as laying the foundations for Unicredit's future success and growth”. This was underlined by Jean Pierre Mustier, CEO of the Bank, commenting on the 2017 results.
"We have significantly strengthened our capital - he added - thanks to the fully subscribed capital increase of 13 billion euros and we have taken decisive actions for the de-risking of the balance sheet through an unprecedented 17,7 billion euro operation euro on non-performing loans forming part of the Fino portfolio, with the second tranche of the deal concluding in January of this year,” he added. “We have also reduced our perimeter with the disposals of Pekao and Pioneer, so that we can fully focus on our core strategic assets and on strengthening our position as a pure pan-European commercial bank.”
Mustier said he was "very satisfied with the financial results achieved in 2017 which showed improvements in all areas" and underlined in particular the net book profit for the fourth quarter, which reached 801 million euros: "our best quarter quarter in the last decade". Transform 2019, concluded the French manager, is "ahead of schedule" and "all the objectives for 2019 have been confirmed and we are on the right track to make UniCredit a winning pan-European bank".
Finally, the Unicredit Board of Directors, in view of its renewal, unanimously approved the list of candidates to be proposed to the Shareholders' Meeting scheduled for April 12, 2018. The list includes Fabrizio Saccomanni, proposed to the presidency, and Jean Pierre Mustier , confirmed managing director. In the rest of the list, fewer foundations and more market than in the past: Lamberto Andreotti, Sergio Balbinot, Cesare Bisoni, Martha Dagmar Boeckenfeld, Isabelle De Wismes, Stefano Micossi, Mohamed Hamad Al Mehairi, Maria Pierdicchi, Andrea Sironi, Alexander Wolfgring, Elena Zambon , Elisabetta Pizzini and Giuseppe Cannizzaro.
SECURITY UPDATE TRAINING
By mid-morning, in the wake of the publication of the accounts, the Unicredit stock gained 2,68%, to 17,938 euros per share, achieving one of the best increases in the Ftse Mib.
