Unicredit closes 2019 with a Net income equal to 3,4 billion euros. The result – communicated by the Bank before the opening of the markets – records a drop of 17,9% on an annual basis, but is still higher than analysts' estimates.
THEunderlying group net income it reached 4,7 billion, up 55,5% on 2018, with an underlying Rote of 9,2% (+1,3 pp).
In fourth quarter of the year, the Piazza Gae Aulenti group, on the other hand, suffered a loss of 835 million due to substantial extraordinary operating items (-2,3 billion), however lower than the expectations of analysts, who forecast an average loss of around 1,1 billion.
I revenues for the full year, they reached 18,8 billion (-0,7%), thus exceeding the guidance of 18,7 billion set by the Transform 2019 plan.
Following these numbers, the stock on the Unicredit Stock Exchange it gained 5,8% in the middle of the morning, to 13,578 euros, posting the best increase in the Ftse Mib by gap.
For the 2019 financial year, a capital distribution of a total of 1,9 billion euro is proposed (tripled compared to the previous year), which consists of 1,4 billion euro of cash dividends and in one buyback of own shares from 0,5 billion (transaction subject to the opinion of the shareholders' meeting and the competent authority). The dividend proposed per share is 0,63 euro.
On the property side, the Cet1 ratio pro forma at the end of 2019 is equal to 13,09%, already taking into account the proposed buyback of treasury shares.
"We have successfully run Transform 2019 – commented the CEO of Unicredit, Jeans Pierre Mustier – We can now devote all our energies and efforts to achieve our new plan, Team 23. While Transform 2019 was a restructuring and reorganization plan for the Group, Team 23 focuses on strengthening and growing our client base."
As for the buyback, Mustier confirmed that the group prefers “the buyback of treasury shares rather than M&A. For the 2019 financial year, the capital distribution is 40%. The increase to 50%, between cash dividend and/or buyback of treasury shares, will be considered for the rest of the new plan (Team 23)”. Nothing to do instead for the possibility of distributing interim dividends.
Yesterday Unicredit placed about 12% of the Turkish subsidiary Yapi Kredi through accelerated bookbuilding. At the end of November the bank had reached an agreement with Koc Holding to sell its 50% of the joint-venture controlling shareholder of the Turkish bank and become a direct shareholder with 31,93%. Mustier confirmed that the remaining stake in Yapi will be maintained throughout 2020.
