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UniCredit SpA (IT:UCG)
:UCG
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UniCredit SpA
(OTC:UCG)
Rating:77Outperform
Price Target:
€69.00
▲(2.18% Upside)
UniCredit SpA (UCG) vs. iShares MSCI Italy ETF (EWI)
Market Cap
$100.83B
Dividend Yield3.63%
Average Volume (3M)5.28M
Price to Earnings (P/E)9.6
Beta (1Y)1.31
Revenue Growth3.38%
EPS Growth12.17%
CountryIT
Employees75,265
SectorFinancial
Sector Strength67
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.16
Shares Outstanding1,557,675,200
10 Day Avg. Volume5,613,112
30 Day Avg. Volume5,282,465
Financial Highlights & Ratios
PEG Ratio0.94
Price to Book (P/B)1.04
Price to Sales (P/S)2.72
P/FCF Ratio-7.84
Enterprise Value/Market Cap2.06
Enterprise Value/Revenue8.32
Enterprise Value/Gross Profit8.57
Enterprise Value/Ebitda14.74
Forecast
1Y Price Target
$67.07Price Target Upside-0.68% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering8
UniCredit SpA Business Overview & Revenue Model
Company DescriptionUniCredit S.p.A. operates as a commercial bank that provides retail, corporate, and private banking services. It offers accounts and deposits, loans, cards, transactions and payments, funds, advisory, treasury, and insurance products, as well as digital and mobile banking services. The company also provides solutions for payments and liquidity, working capital, hedging, international trade, and treasury operations; and funding solutions comprising of structured, project, and commodity trade and export finance, as well as debt and equity funding; and structured investments and investments advisory solutions. In addition, the company provides corporate finance, capital structure, and rating advisory, as well as patient capital, financial sponsor solutions, and sustainable finance solutions. It servs retail, corporate, and public sector customers, as well as international companies and institutional clients. The company operates in Italy, Other European countries, America, Asia, and internationally. The company was formerly known as Unicredito Italiano S.p.A and changed its name to UniCredit S.p.A. UniCredit S.p.A. was founded in 1870 and is headquartered in Milan, Italy.
How the Company Makes MoneyUniCredit SpA generates revenue through various streams, primarily driven by its banking operations. The company earns money through net interest income, which is the difference between the interest it earns on loans and the interest it pays on deposits. Additionally, UniCredit generates fee and commission income from services such as asset management, investment banking, and payment processing. The bank also engages in trading and investment activities, contributing to its revenue from financial markets operations. Strategic partnerships and collaborations with other financial institutions and service providers often enhance its service offerings, expanding its client base and increasing its market share. Moreover, UniCredit's geographic diversification across Europe helps in mitigating risks and optimizing its revenue potential across different economic environments.
UniCredit SpA Earnings Call Summary
Earnings Call Date:Jul 22, 2025
(Q2-2025)
| % Change Since: 16.35%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted UniCredit's strong financial performance, including record net profit and return on tangible equity, cost efficiency improvements, and successful strategic initiatives. However, challenges such as the termination of the BPM transaction, impact of interest rate decline on NII, and geopolitical volatility were also noted. Despite some challenges, the positive aspects, including upgraded guidance and strong capital generation, outweigh the negatives.Q2-2025 Updates
Positive Updates
Record Net Profit and Return on Tangible Equity
UniCredit achieved a record net profit of EUR 3.3 billion in Q2 2025 and EUR 6.1 billion in the first half of 2025. The return on tangible equity was 20.6% in Q2 and 21.3% in the first half.
Core Revenue Growth
Core revenues, defined as NII, fees, and dividends, grew 1.3% year-over-year in Q2 and 1.5% in the first half of 2025.
Cost Efficiency Improvements
Operational efficiency improved with a cost/income ratio reaching less than 36%, and costs were reduced by 1.5% in Q2 and 1.4% in the first half of 2025.
Strong Capital Generation
UniCredit generated EUR 2.4 billion or 82 basis points of capital organically and EUR 3.4 billion or 119 basis points overall, with a CET1 ratio of 16.2% pro forma.
Successful Internalization and Partnerships
The internalization of life insurance in Italy was completed in Q2 2025, and the integration of Alpha Bank in Romania is planned for Q3 2025.
Upgraded Guidance for 2025 and 2027
UniCredit upgraded its 2025 guidance, expecting a net profit of circa EUR 10.5 billion and a distribution of at least EUR 9.5 billion. The 2027 ambition was also upgraded to reach at least EUR 11 billion in net profit.
Negative Updates
Termination of BPM Transaction
UniCredit decided to withdraw from the Banco BPM transaction due to uncertainties related to Golden Power and shifting value dynamics.
Impact of Rate Decline on NII
Net interest income (NII) declined by 0.3% quarter-on-quarter in Q2 2025, primarily due to accelerated decline in interest rates.
Volatility and Geopolitical Challenges
Market volatility, geopolitical uncertainty, and events like Liberation Day affected fee growth and overall financial performance.
Russia Exposure
UniCredit continues to reduce its exposure in Russia, with net local loans declining by 19% in the quarter, impacting the overall business climate.
Company Guidance
During the second quarter of 2025, UniCredit demonstrated robust financial performance, achieving a record net profit of €3.3 billion for the quarter and €6.1 billion for the first half of the year. The bank's core revenues, including net interest income (NII), fees, and dividends, grew by 1.3% year-over-year in Q2 and 1.5% in the first half, despite challenging market conditions. The operational efficiency improved, with costs reduced by 1.5% in Q2, leading to a cost/income ratio of less than 36%. Return on tangible equity, excluding one-offs, stood at 20.6% for the quarter. The bank's capital efficiency was evident with a net revenue to RWA ratio reaching 8.8% in the quarter. UniCredit upgraded its 2025 guidance, projecting a net profit of circa €10.5 billion, net revenue above €23.5 billion, and a cost of risk at approximately 15 basis points. The bank also plans to distribute at least €9.5 billion, including a dividend of at least €4.75 billion, reflecting a significant year-over-year increase.UniCredit SpA Financial Statement Overview
Summary
UniCredit SpA shows strong revenue growth and high profitability with a robust net profit margin. The balance sheet indicates solid financial stability due to zero debt, although a low equity ratio suggests potential risk. Cash flow challenges exist, but there are signs of improvement.Income Statement
The income statement shows strong revenue growth over recent years, with a 5.3% increase from 2023 to 2024. Net profit margins are robust, at approximately 39.1% in 2024, indicating significant profitability. However, the absence of EBIT and EBITDA figures in 2024 limits a more comprehensive assessment of operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects a solid equity position with a total equity of €62.44 billion in 2024, translating to an equity ratio of approximately 8%. The company has reduced its debt to zero, which enhances financial stability. However, the low equity ratio suggests a potential risk in terms of leverage despite the absence of debt.75
Positive
Cash Flow
The cash flow statement indicates negative free cash flow in 2024, although an improvement from the prior year. Operating cash flow remains negative, raising concerns about cash generation from core activities. However, the significant reduction in operating cash outflows from 2023 to 2024 is a positive development.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.99B | 23.99B | 23.57B | 21.04B | 18.60B | 18.43B |
| Gross Profit | 24.29B | 26.58B | 23.57B | 21.04B | 18.60B | 18.43B |
| EBITDA | 14.12B | 14.08B | 12.19B | 8.23B | 3.23B | -544.00M |
| Net Income | 9.80B | 9.72B | 9.51B | 6.46B | 2.10B | -2.83B |
Balance Sheet | ||||||
| Total Assets | 795.90B | 784.00B | 784.97B | 857.77B | 916.67B | 931.46B |
| Cash, Cash Equivalents and Short-Term Investments | 99.00B | 41.55B | 72.34B | 111.80B | 162.27B | 165.62B |
| Total Debt | 93.60B | 122.72B | 122.52B | 115.46B | 125.91B | 134.08B |
| Total Liabilities | 730.10B | 721.16B | 720.73B | 794.28B | 854.58B | 871.51B |
| Stockholders Equity | 65.40B | 62.44B | 64.08B | 63.34B | 61.63B | 59.51B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -8.33B | -42.28B | 9.09B | -8.76B | 81.89B |
| Operating Cash Flow | 0.00 | -7.08B | -41.13B | 10.26B | -7.52B | 83.32B |
| Investing Cash Flow | 0.00 | -1.06B | -787.00M | -237.00M | -699.00M | 569.00M |
| Financing Cash Flow | 0.00 | -10.99B | -8.45B | -5.55B | -1.41B | 660.00M |
UniCredit SpA Technical Analysis
Positive
67.53
Price Trends
58.64
Positive
55.17
Positive
48.31
Positive
Market Momentum
2.05
Negative
71.13
Negative
92.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:UCG, the sentiment is Positive. The current price of 67.53 is above the 20-day moving average (MA) of 61.07, above the 50-day MA of 58.64, and above the 200-day MA of 48.31, indicating a bullish trend. The MACD of 2.05 indicates Negative momentum. The RSI at 71.13 is Negative, neither overbought nor oversold. The STOCH value of 92.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:UCG.
UniCredit SpA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $100.83B | 9.62 | 15.82% | 3.63% | 3.38% | 12.17% | |
67 Neutral | $17.04B | 11.60 | 9.79% | 3.95% | 10.64% | 1.80% | |
| ― | €17.04B | 7.12 | 16.10% | ― | ― | ― | |
| ― | €16.95B | 7.81 | 15.44% | ― | ― | ― | |
| ― | €11.29B | 17.29 | 29.15% | ― | ― | ― | |
| ― | €91.88B | 10.16 | 14.03% | ― | ― | ― | |
| ― | €16.58B | 12.86 | 11.90% | ― | ― | ― |
* Financial Sector Average
Performance Comparison
IT:UCG
UniCredit SpA
67.53
34.86
106.73%
GB:0RLA
Banco BPM S.p.A.
11.56
6.41
124.47%
GB:0MU6
BPER Banca S.p.A.
8.64
4.21
95.03%
GB:0QVF
FinecoBank SpA
18.72
5.00
36.44%
GB:0HBC
Intesa Sanpaolo SpA
5.34
2.14
66.87%
GB:0HBF
Mediobanca Banca di Credito Finanziario S.p.A.
21.09
8.07
61.98%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.