UniCredit
UniCredit is a pan-European Commercial Bank with a unique service offering in Italy, Germany, Central and Eastern Europe.
They serve over 15 million customers worldwide across four core regions and two product factories - Corporate and Individual Solutions.
Employees: 86,000
Revenue: €18 Billion FY2021
HQ Location: Milan, Italy
What they do:
They provide banking and financial services across Europe.
They have four operating regions
Italy
Germany
Central Europe
Eastern Europe
They have two ‘product factories’
Corporate Solutions - selling to 1m business clients
Individual Solutions - selling to 14 million retail consumers
Their vision and priorities:
Our Purpose:
To unlock the full potential of individuals and business across Europe and to empower communities to progress.
Our Core Values
Integrity - acting in the best interests of our customers
Ownership - accountability for actions and commitments and empowered to make decisions
Caring - caring for customers, communities and each other
Our Strategy: UniCredit Unlocked
Grow in our regions and develop our franchise
Change our business model and the way our people operate
Deliver economies of scale from our footprint
Transform our technology leveraging Digital and Data
Embed sustainability in everything we do
“We are investing in Digital and Data setting out a new way of working for our employees and pursuing a capital-light model with sustainability embedded.”
Things to know right now
Digital and Data
The company is investing in digital to be a bank for the future. Using data and AI they will transform the business.
Leveraging three global pillars of technology, data and business they will deliver last mile customer products tailored to local needs.
UniCredit Unlocked
The company’s strategy to deliver more predictable and higher rated earnings.
UniCredit recognised as a top employer
In January 2023 UniCredit was recognised as a top employer in Austria, Bulgaria, Germany, Hungary, Italy and Serbia by the Top Employers Institute
What does each business unit do?
Client Solutions
This unit provides recurring and scalable capital-light offerings that are sold across the four operating regions listed below.
It accounts for 45% of the group’s revenues (but note these are embedded and not additional to the regions below)
Italy
This division represents approximately 48% of group revenues.
UniCredit for Italy is a plan to actively support their clients and local communities.
Euromoney awarded them Best Bank in Italy 2022, who also list them as the Market Leader in Corporate Banking, Corporate Social Responsibility, and Digital Solutions.
Germany
Germany represents approximately 24% of group revenues.
They have a strong focus on Green Loans with 18% of the market share.
They have launched a retail transformation programme with “Smart Banking” - a scalable multi-channel operating model for 1.3m mass market customers.
Central Europe
Central Europe represents approximately 17% of group revenues.
Bank Austria is #1 bank for ESG related bonds, demonstrating their focus on sustainability.
More than 8000 accounts have been provided to Ukrainians in Czech Republic and Slovakia to support them through the war.
An ongoing digitisation programme is in place - 55,000 Czech accounts opened with 30% of loans sold via mobile.
Small business lending has been redesigned in Hungary with 5 days to decision
A new fully digital cash loan product has been launched in Slovenia
Eastern Europe
Eastern Europe represents 13% of the group revenue.
Continued focus on digital demonstrated through mobile cash loans prodicts in Bulgaria, Croatia and Romania.
Remote advisory being provided in Croatia.
#1 financial app in Bulgaria with >1m downloads
Their Competitors
Typically regional/national banks across Europe
ING
BNP Paribas
Their Financial Calendar
Q1: January-March - Earnings 5th May 2022
Q2: April-June - Earnings 27th July 2022
Q3: July-September - Earnings 26th October 2022
Q4: October-December - Earnings 6th 31st January 2023
Next Earnings Report:
Around 5th May 2023
Positives from the Q4FY22 earnings report:
Fourth quarter was eight consecutive quarter of growth
€5.19bn revenues - highest ever
Strong interest rate increases improved revenues and profitability
Challenges from the Q4FY22 earnings report:
Volatility and uncertainty in the market impacting client sentiment, M&A and underwriting
Highest inflation in the history of the Euro
Prolonged war in Ukraine resulting in impacts to eastern European and Russian business.