UniCredit Reports Strong Q4 Profit, Plans Shareholder Rewards

UniCredit reported a net profit of €1.97 billion for the fourth quarter of 2024, exceeding analyst expectations and bringing the full-year total to approximately €9.71 billion, a 2% increase from the previous year. However, the bank forecasts a modest revenue slowdown in 2025, anticipating lower net interest income and a decline in its Russian business operations. CEO Andrea Orcel emphasized the bank's success under its 'UniCredit Unlocked' strategy and plans to increase shareholder returns, raising the cash dividend payout to 50% of net profit starting in 2025. Despite the positive earnings, market reactions have been mixed, with some investors concerned about the less ambitious outlook for 2025. UniCredit aims for a net profit of €10 billion by 2027 and has embarked on an aggressive M&A strategy to strengthen its position in the European banking landscape. The bank's revenue for 2025 is projected to be below last year's €24.84 billion due to these anticipated pressures.