Q2 2024 UniCredit SpA Earnings Call Transcript
Key Points
- UniCredit SpA (UNCFF) reported a record quarter and first half of 2024, marking 14 consecutive quarters of profitable growth.
- Net revenues increased by 7% to EUR 12.6 billion in the first half and 6% to EUR 6.3 billion in the quarter.
- Fee income grew impressively by 6.6% in the first half and 10% in the quarter, driven by investments in people and products.
- The cost-to-income ratio improved to 36.3%, a 2.9 percentage point improvement from the previous year.
- The company achieved a record return on tangible equity of 13% and a CET1 ratio of 16.2%, indicating strong capital generation and financial health.
- Net interest income (NII) and margins showed a slight decline quarter-on-quarter due to reducing rates and increasing pass-through.
- Germany's net revenue fell by 3.6% in the first half and 2.6% in the quarter, with NII down 10% in the half and 11% in the quarter.
- The cost of risk in Germany remained elevated at around 20 basis points, indicating sensitivity to single-name files and early credit cycle stages.
- Despite strong performance, the company remains cautious about fee income sustainability due to potential rate normalization and portfolio rebalancing.
- The company faces ongoing challenges in reducing its exposure to Russia, with significant reductions in local loans and deposits still required.
Good morning, ladies and gentlemen. Before I hand over to Magda Palczynska, Head of Investor Relations, a reminder that today's call is being recorded. Madam, you may begin.
Good morning, and welcome to UniCredit's second-quarter and first-half 2024 results conference call. Andrea Orcel, our CEO, will take you through the results.
This will be followed by a Q&A session with Andrea and Stefano Porro, our CFO. Please limit yourself to two questions. With that, I hand over to Andrea.
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Good morning, and thank you for joining us today. It is with great pleasure that we announce our second quarter and first half 2024 results.
This mark the historic achievement for UniCredit in its journey to set a new benchmark for banking. 14 consecutive quarters of profitable growth, delivering a record quarter, and a record first half. These results are
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