UniCredit to Hand $5.70 Billion to Shareholders After Swinging to 4Q Profit

By Mauro Orru

Italy's UniCredit SpA plans to distribute 5.25 billion euros ($5.70 billion) to shareholders in the coming months, EUR1.5 billion more than in the previous year, after the bank swung to a profit in the fourth quarter and posted revenue ahead of analysts' forecasts.

The Italian bank said Tuesday that the distribution, subject to supervisory and shareholder approvals, would consist of a EUR1.91 billion cash dividend and a share buyback of EUR3.34 billion. A first tranche of the buyback worth some EUR2.34 billion will begin once approved at the company's annual general meeting at the end of March, followed by a second tranche of about EUR1 billion in the second half.

UniCredit reported a net profit of EUR2.46 billion for the quarter from October to the end of December, compared with a loss of EUR883 million in the fourth quarter of 2021.

Provisions for credit losses fell to EUR528 million from EUR810 million. Revenue jumped 29% to EUR5.72 billion.

Analysts had forecast a median net profit of EUR1.16 billion, provisions of EUR851 million and revenue of EUR5.15 billion, according to a company-compiled consensus.

UniCredit's net interest income--the difference between what lenders earn from loans and pay for deposits, and a key profit driver for retail banks--climbed to EUR3.43 billion from EUR2.40 billion.

Net fees and commissions slipped to EUR1.62 billion from EUR1.70 billion, with net trading income up to EUR613 million from EUR202 million.

For 2023, UniCredit expects net revenue of more than EUR18.5 billion and net profit broadly in line with 2022.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

January 31, 2023 01:58 ET (06:58 GMT)

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