The institute led by Andrea Orcel recorded better revenues and net profit than the consensus. As a result, UniCredit management improved the estimates
UniCredit announced the financial results of the 3rd quarter 2022: the institute led by Andrea Orcel recorded revenue and net profit better than consensus of analysts.
Consequently, the management of UniCredit has improved financial estimates for the whole of 2022.
UniCredit, the numbers for the 3rd quarter of 2022
UniCredit closed the 3rd quarter of 2022 with revenues equal to 4.83 billion euro, an increase of 9.1% compared to the 4.43 billion obtained in the same period of the previous year, benefiting from the increase in the interest margin (+ 9.8%). The net operating income increased to € 2.36 billion, compared to € 1.69 billion in the third quarter of 2021. UniCredit ended the July-September period with a underlying net profit of 1.68 billion euros, compared to the underlying net profit of 1.08 billion euros recognized in the same months of the previous year; the net accounting result was 1.71 billion euros (profit of 1.06 billion in the third quarter of 2021).
Excluding Russian assets UniCredit ended the quarter with revenues of € 4.47 billion and an underlying net profit of € 1.33 billion. In the same period, operating costs fell by 3.1% on an annual basis.
UniCredit, what were the analysts’ estimates for the third quarter of 2022
According to the consensus indications of the analysts published on the UniCredit website (which also include the activities in Russia), the intermediation margin was forecast at 4.54 billion euros (median value), while the net operating result was estimated at 1.68 billion euros, after writedowns of receivables for 430 million euros. The consensus of the analysts indicated quarterly net profit of 937 million euros (median value).
The assets of UniCredit at the end of September 2022 (excluding Russia)
At the end of September 2022 the total financial assets of UniCredit amounted to 714.6 billion euros, down 0.9% compared to the previous quarter.
On the same date the gross impaired exposures they amounted to 13 billion euro (-1% Q / Q and -35.9% y / y), resulting in a ratio of gross impaired loans to total gross loans of 2.8%. Also at the end of September the ratio between net impaired exposures and total net loans was equal to 1.4%, while the coverage ratio it had risen to 49.7%.
UniCredit capital ratios at the end of September 2022 (excluding Russia)
At the end of September 2022 the UniCredit’s CET1 accounting ratio had reached 15.41%, mainly due to the positive effect of 42 basis points from organic generation of capital (excluding Russia). On the same date the risk weighted assets had risen to 302.6 billion euros.
UniCredit reported that as of September 30, 2022, the book value of exposures represented by “debt securities” amounted to € 106.43 billion, of which over 80% concentrated on eight countries; Italy, with 36.78 billion, represented a 35% share of the overall total.
UniCredit, forecasts for 2022
UniCredit management has improved the financial estimates for the whole of 2022, based on the quarterly results.
Excluding the activities in Russia, the top management of the institute foresees revenues of over 17.4 billion euros and a net profit of over 4.8 billion, with a cost / income ratio of approximately 51%. The CET1 ratio should be higher than 14.5%.
UniCredit top management reported that the quarterly results lay the foundations for a distribution for the year 2022 in line with or better than that on the 2021 financial statements, while maintaining a solid CET1 ratio.