UniCredit pledges 5.25 billion euro dividend after best quarter in a decade

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UniCredit pledges 5.25 billion euro dividend after best quarter in a decade

MILAN Reuters- UniCredit pledged to return 5.25 billion euros $5.69 billion to investors on Tuesday based on its 2022 results, making it one of the most ambitious payout targets among European banks, after posting its best profit in over a decade.

The bank said net profit came in at 2.46 billion euros in the three months through December, more than twice the average forecast of 1.10 billion euros $1.2 billion from analysts polled by the bank.

The write-up of deferred tax assets is expected to boost the figure by 852 million euro.

The lender paid out 3.75 billion euros to investors over the 2021 dividends and share buybacks.

UniCredit said it expected to post a net profit in 2023, broadly in line with 2022 including Russian business, after it excluded this from its profit goal last year due to Russia's invasion of Ukraine.

It wants to have a profit distribution target for 2023, in line with 2022.

UniCredit is not able to extricate itself from Russia, where it has a top 15 lender.

The bank said its core capital increased to 16% in the fourth quarter, from 15.41% at the end of September.

The pro-forma core capital was 14.9%, well above its target of 12.5 -- 13.0% when taking into account its most recent distribution plans, which are subject to shareholder approval and, for the buyback part, supervisory approval.

UniCredit said that income from its core lending activity increased 38% from the previous quarter and 43% from a year ago, as tighter monetary policy widened the gap between rates banks charge on loans and those they pay to raise funds.

The quarter's revenues rose to 5.72 billion euro, above a 5.12 billion euro average forecast.