Overwhelming Increase by Nearly 60% - Powerful Numbers that Convince!
In a significant move for the European banking sector, UniCredit has confirmed and updated its plans for share buybacks and shareholder returns, following the impressive performance of its stake in Commerzbank.
The Italian banking giant is set to kick-start a €3.6 billion share buyback program for the financial year 2024, as soon as practicable after its Q2 2025 results. This announcement comes as part of a broader plan to return at least €30 billion to shareholders over the 2025-2027 period, with at least €15 billion earmarked for cash dividends within that timeframe.
UniCredit's improved performance, reflected in a record net profit and a strong Return on Tangible Equity (RoTE) of 24.1% in Q2 2025, has allowed it to raise its full-year profit guidance to approximately €10.5 billion for 2025. The bank also plans to increase planned shareholder distributions to at least €9.5 billion for 2025 alone, including an interim cash dividend of about €2.1 billion scheduled for November 2025.
The success of UniCredit's stake in Commerzbank is a key factor in these ambitious plans. The bank holds around 29% of Commerzbank, and the consolidation of this stake is expected to further enhance results from 2026. The excess capital generated by these consolidations is being deployed, reducing it by about 130 basis points by year-end. However, UniCredit will update the market on its capital position and consequently on buyback plans later.
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In summary, UniCredit is proceeding with significant share buybacks and dividends, leveraging the successful Commerzbank stake performance to support these shareholder returns. The bank's improved financial position and enhanced profit guidance bode well for continued robust shareholder returns and buybacks, with ongoing updates expected as capital deployment progresses.
UniCredit's expanded share buyback program, amounting to €3.6 billion for the financial year 2024, represents a portion of its broader plan to return at least €30 billion to shareholders through 2027, encompassing investing in business segments and shareholder distributions. This financial progression of UniCredit is attributable to its profitable stake in Commerzbank, contributing significantly to its enhanced Return on Tangible Equity (RoTE) and full-year profit guidance.
