UniCredit Plans €2.5 Billion Share Buy-Back as Part of 2023 Distribution Strategy

UniCredit Plans €2.5 Billion Share Buy-Back as Part of 2023 Distribution Strategy

(IN BRIEF) UniCredit S.p.A. has announced its intention to launch a tranche of its 2023 share buy-back program, with a maximum value of €2.5 billion. The bank cites its strong capital levels, robust financial performance, solid asset quality, and lower Cost of Risk as factors enabling this decision. UniCredit’s total distribution target for 2023 is set at a minimum of €6.5 billion, reflecting the bank’s commitment to providing attractive and sustainable returns to shareholders while maintaining capital strength. The commencement of this buy-back is subject to approval by shareholders at an Extraordinary Shareholders’ Meeting scheduled for October 27, 2023. UniCredit’s CET1 ratio, proforma for this buy-back, stands at 15.8% as of 2Q 2023.

(PRESS RELEASE) MILAN, 21-Sep-2023 — /EuropaWire/ — UniCredit S.p.A (“UniCredit”, “The Company”) announces the intention to launch a tranche of the 2023 share buy-back programme for a maximum of Euro 2.5 billion.

The Company benefits from its high capital levels and best-in-class organic capital generation, underpinned by consistently strong financial performance, solid asset quality and structurally lower Cost of Risk. This has positioned the Company very well to weather periods of macro uncertainty and allows it to front load a portion of its 2023 share buy-back.

UniCredit’s 2023 total distribution target is a minimum of Euro 6.5 billion[1], versus Euro 5.25 billion in 2022, translating to a total yield of over 16%. This underlines UniCredit’s commitment to attractive and sustainable shareholder returns while preserving capital strength. Proforma for this buy-back tranche UniCredit’s CET1 ratio is 15.8% as at 2Q 2023.

Commencement of this buy-back 2023 tranche is dependent upon the approval by shareholders of the Company at an Extraordinary Shareholders’ Meeting (“EGM”) to be convened on 27 October 2023 for which a Notice of Call will be published in short order, as well as approval by the supervisor. Please refer to the Company website for further details of the EGM once published.

[1] Distribution subject to supervisory and shareholder approvals

Media Contacts:

Media Relations:
e mail: mediarelations@unicredit.eu

Investor Relations
e mail: InvestorRelations@unicredit.eu

SOURCE: UniCredit