UniCredit to Boost Returns to Shareholders After Profit Rise

By Adria Calatayud

UniCredit plans to boost returns to shareholders through dividends and share buybacks after it reported a rise in fourth-quarter net profit.

The Italian bank said it intends to return 8.6 billion euros ($9.28 billion) to shareholders corresponding to 2023, pending regulatory approvals, or EUR3.35 billion more than a year before. This would match the net profit it made last year.

For 2024, the bank expects to increase shareholder distributions to EUR10 billion, including through the introduction of an interim dividend. The final split between dividends and buybacks will depend on market conditions, it said.

UniCredit reported a net profit of EUR2.81 billion for the fourth quarter, up from EUR2.46 billion in the same period a year before.

Revenue climbed 4.6% to EUR5.98 billion, with net interest income--the difference between what lenders earn from loans and pay for deposits--rising 5.7% and offsetting falls in fees and trading revenue.

Analysts on average expected UniCredit to report a net profit of EUR1.21 billion on revenue of EUR5.56 billion, according to consensus estimates provided by the bank.

UniCredit expects net profit for 2024 to be broadly in line with 2023 and revenue to fall to about EUR22.5 billion from EUR23.84 billion last year.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

February 05, 2024 01:54 ET (06:54 GMT)

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