UniCredit Plans to Return €50 Billion to Shareholders

UniCredit plans to return approximately €50 billion to shareholders by 2030, according to CEO Andrea Orcel. The bank aims to improve profitability and capital generation in the coming years.

UniCredit is expected to distribute 80% of its profits through a mix of dividends and share buybacks. It will also consider additional returns on an annual basis, depending on surplus capital.

The bank forecasts a 5% annual increase in net revenue, with profits reaching approximately €11 billion this year and €13 billion in 2028.

Since 2021, Orcel has cut jobs and reallocated resources to more profitable sectors. Fourth-quarter profits increased by 10%, exceeding analysts' estimates.

The bank's capital reserves remained stable, with the Common Equity Tier 1 capital ratio at 14.7% at the end of December. The bank also holds stakes in Commerzbank and Alpha Bank.