Q3 2024 UniCredit SpA Earnings Call Transcript
Key Points
- UniCredit SpA (UNCFF) reported record-breaking results for Q3 2024, marking 15 consecutive quarters of quality growth and improvement.
- The company achieved a return on tangible equity of 13% and a CET1 ratio of approximately 23.3%, showcasing strong capital efficiency.
- Net profit increased by 16% over the nine months, with EPS growth of 31% and accrued EPS by 48%, indicating robust financial performance.
- The company's strategy, UniCredit Unlocked, has proven effective, delivering consistent value and setting a new benchmark in banking.
- Operational efficiency improved, with costs declining by 1.2% over nine months and a cost-income ratio at an industry-leading level of 36.6%.
- The company anticipates a moderate reduction in net interest income (NII) next year, which could impact overall profitability.
- There are concerns about the potential impact of strategic investments, such as in Commerzbank, which could lead to further capital consumption.
- The cost of risk is expected to normalize, potentially increasing from the current low levels, which could affect future earnings.
- The macroeconomic environment remains challenging, with potential headwinds from rate normalization and inflationary pressures.
- The integration of strategic investments, such as Aion/Vodeno and Alfa Bank in Romania, may pose operational challenges and impact capital ratios.
Good morning, ladies gentlemen. Before I hand over to Magda Palczynska, Head of Investor Relations, a reminder that today's call is being recorded. Ma'am, you may begin.
Good morning, and welcome to UniCredit's third-quarter 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.
Good morning, and thank you for joining us today as we present another record set of results, ushering UniCredit in a new era of sustainable quality growth. I apologize in advance for my voice, but I'm a little bit under the weather.
Over the last four years, UniCredit has undergone a successful transformation, achieving 15 consecutive quarters of quality growth and improvement,
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