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)

Copyright (c) 2021 Dow Jones & Company, Inc.
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