UniCredit Plans to Distribute at Least $18 Billion by 2024, Shares Rise
09 Dezember 2021 - 11:32AM
Dow Jones News
By Cristina Roca
UniCredit SpA plans to return at least 16 billion euros ($18.15
billion) to its shareholders by 2024 and grow net profit by 10% a
year, it said Thursday, as it set targets for the next three
years.
The bank, Italy's second-largest by assets, said it will aim to
grow net profit by 10% a year and net revenue at a compound annual
growth rate of 2% over 2021-2024.
At 0950 GMT, shares in UniCredit traded 7.5% higher at
EUR12.41.
Return on tangible equity, a key profitability measure for
banks, should be around 10% in 2024, UniCredit said. Cost-income
ratio should be about 50% the same year.
UniCredit said that, for 2021, it will pay a cash dividend of
about 30% of underlying net profit and top it up with share
buybacks. Cash dividend will be about 35% of net profit the year
after, and thereafter it will be at least 35% of net profit, with
share buybacks to top up dividend distributions.
The bank also said it will invest EUR2.8 billion in digital and
data capabilities over the span of the plan. It will make 3,600 net
new hires, with 2,100 of the new jobs in the digital and data
department.
Write to Cristina Roca at cristina.roca@wsj.com
(END) Dow Jones Newswires
December 09, 2021 05:17 ET (10:17 GMT)
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