UniCredit announced on Monday that it plans to redistribute 8.6 billion euros to its shareholders after posting "record" results for the 2023 financial year.

The Italian banking giant said that in the fourth quarter it recorded its 12th consecutive quarter of profitable growth, with net profit of 1.9 billion euros, well above the consensus of 1.2 billion.

For the year as a whole, net profit was 8.6 billion euros, an increase of over 50% compared with 2022.

According to CEO Andrea Orcel, these good figures testify to the success of the "unique and winning strategy" implemented by the Group, which is present in 13 European countries.

For the 2023 financial year, UniCredit says it plans to pay out 8.6 billion euros to its shareholders, both in the form of share buybacks (5.6 billion euros) and dividends (three billion euros).

This amount corresponds to a distribution of 100% of its net profit for the year.

For 2024, the bank says it is aiming for a net income payout ratio of at least 90%.

Following these announcements, UniCredit shares climbed over 10% on Monday morning on the Milan Stock Exchange.

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