Bulletin: UniCredit SpA 2023 Year-End Results Confirm Profit Momentum

MADRID (S&P Global Ratings) Feb. 7, 2024--UniCredit SpA published robust results in 2023, at €8.6 billion, increasing 54% over 2022, with all geographical areas showing improvements. And more importantly the group guided toward an equally solid performance in 2024, which S&P Global Ratings sees as broadly achievable, despite the pressure of declining interest rates. While the bank's 2023 results exceeded our expectations, the strong recovery of UniCredit's profitability was already incorporated in our views on its creditworthiness and indeed it was one of the reasons underpinning our revision of the bank's stand-alone credit profile (SACP) to 'bbb+' from 'bbb' in October 2023 (see "Various Rating Actions On Italian Banks On Balance Sheets' Resilience To Economic Cycles," published Oct. 25, 2023,

...February 7, 2024 MADRID (S&P Global Ratings) Feb. 7, 2024--UniCredit SpA published robust results in 2023, at 8.6 billion, increasing 54% over 2022, with all geographical areas showing improvements. And more importantly the group guided toward an equally solid performance in 2024, which S&P Global Ratings sees as broadly achievable, despite the pressure of declining interest rates. While the bank's 2023 results exceeded our expectations, the strong recovery of UniCredit's profitability was already incorporated in our views on its creditworthiness and indeed it was one of the reasons underpinning our revision of the bank's stand-alone credit profile (SACP) to '###+' from '###' in October 2023 (see "Various Rating Actions On Italian Banks On Balance Sheets' Resilience To Economic Cycles," published Oct. 25, 2023, on RatingsDirect). Solid earnings performance was driven by the net interest income line, which was up 31%. But cost savings (down 1%) and extremely low credit provisions also contributed...

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