UniCredit: profit-taking after annual results

(CercleFinance.com) - On Tuesday, UniCredit suffered one of the steepest falls on the European stock market, even following the publication of record annual results, with its fairly cautious outlook for 2025 prompting profit-taking after the sustained rise in its share price in recent months.


This morning the Italian banking group reported that it had posted 16 consecutive quarters of profitable growth, enabling it to post a net profit up 8.1% to E9.3bn in 2024.

Revenues rose by 4% to E24.2bn last year, while costs fell by 1% to E9.4bn, despite inflationary pressures.

The Milan-based institution, which says it has thus exceeded the targets set out in its UniCredit Unlocked strategic plan, now declares itself ready to enter an acceleration phase over 2025-2027.

For 2025, however, the financial services group says it expects net profit to be broadly in line with last year, with revenues expected to top E23bn, marking a y-o-y decline in business.

UniCredit, which justifies its prudence by the current economic climate, nonetheless anticipates higher redistributions to shareholders than those paid out for FY 2024, with a dividend expected to reach 50% of its annual net profit.

Despite this, the share price was down 3.3% on Tuesday morning in the wake of this publication, a victim of profit-taking after its sustained performance in recent months.

Over the past 12 months, the share price has soared by over 60%, outperforming the STOXX Europe 600 Banks sector index (+43%), which also performed well over the same period.


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