Setting the
benchmark
for excellence
2024 Annual Reports and Accounts
Corporate information
Board of Directors, Audit Committee and External Auditors
as at 31 December 2024
Board of Directors
Chairman Pietro Carlo Padoan
Deputy Vice Chair Elena Carletti
CEO Andrea Orcel
Directors Paola Bergamaschi, Paola Camagni,
Vincenzo Cariello, Antonio Domingues,
Julie B. Galbo, Jeffrey Alan Hedberg,
Beatriz Lara Bartolomé, Maria Pierdicchi,
Marco Rigotti, Francesca Tondi, Gabriele Villa
Secretary of the Board of Directors
Paola Maria Di Leonardo (*)
Audit Committee
Chairman Marco Rigotti
Members Paola Camagni, Julie B. Galbo,
Gabriele Villa
Manager charged with preparing
the financial reports
Bonifacio Di Francescantonio
Sustainability Reporting Manager
Giuseppe Zammarchi (**)
External Auditors
KPMG S.p.A.
UniCredit has chosen not to print official copies of this report, leading by example
in our efforts to protect the environment.
Please view the digital versions of the report below, available at the following links:
Read more: unicreditgroup.eu/en/investors/financial-reporting.html
Read more: financialreports.unicredit.eu
Design, graphic development and production:
Brunswick Creative and UniCredit S.p.A.
February 2025
The following conventional symbols have
been used in the tables:
> a dash (-) indicates that the item/figure
is non-existent;
> “n.m.” when the figures do not reach the
minimum considered significant or are
not meaningful.
Any discrepancy between data disclosed
in this report are solely due to the effect
of rounding.
This document, PDF format, does not fulfil
the obligations deriving from Directive
2004/109/EC (the “Transparency Directive”)
and Delegated Regulation (EU) 2019/815
(the “ESEF Regulation” – European Single
Electronic Format) for which a dedicated
XHTML format has been prepared.
Notes
(*) The Board of Directors of 28 January 2025 appointed Ms. Paola Maria Di Leonardo as Secretary of the Board replacing Mr. Alessandro Paladini.
(**) The Board of Directors of 10 February 2025 appointed Mr. Giuseppe Zammarchi as Sustainability Reporting Manager.
UniCredit is a pan-European Bank with
a unique service offering in Italy, Germany,
Austria, and Central and Eastern Europe.
Our Purpose is to Empower Communities
to Progress, delivering the best‑in‑class
solutions and services for all stakeholders,
unlocking the potential for our clients
and our people across Europe.
For additional information visit our Reporting microsite
Excellence
at UniCredit
Empowerment
and trust
30
Simplification
and streamlining
38
Leveraging
common strengths
46
Strategic Review
2
UniCredit at a glance
4
Business model
6
2024 highlights
8
Letter from the Chairman
10
Letter from the Chief Executive Officer
14
Investment case
16
Strategic framework
24
2024 Key milestones
30
Strategic focus areas
Financial Review
60
Financial Progress
ESG Review
66
ESG Strategy & Progress
Preliminary Notes
93
Preliminary Notes
Consolidated Report
95
Consolidated Report and Accounts 2024
of UniCredit Group
Company Report
819
Company Report and Accounts 2024
of UniCredit S.p.A.
Additional Information
1083 Incorporations of qualitative information
by reference
1089 Glossary
1097 Contacts
Delivering Excellence
We believe that by delivering the very best for
our stakeholders, we are unlocking the potential
that exists across Europe, for our clients, our
people and our communities. We are setting
a new benchmark for banking through
our three strategic focus areas:
Contents
1
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
#3
In Germany
#2
In Austria
#2
In Italy
#1
In CEE1
UniCredit: a pan-European network empowering
thirteen banks, leveraging Group synergies
UniCredit at a glance
Confirming our value proposition
UniCredit is well-rooted in local communities and has a
leadership position in the Countries and Regions where
we have a presence, especially in terms of profitability
and efficiency. Local banks manage their day-to-day
operations, cascade and execute the Group Strategy.
The Group sets the overarching direction and
harmonises scalable activities, bringing
everything under a common denominator.
Offering our clients a gateway to Europe
Our core operations are located in Italy, Germany, Austria
and Central and Eastern European Countries, all served
by three high-quality product factories: Corporate,
Individual and Group Payment Solutions. Our approach
allows us to be as close as possible to our clients while
also using the scale of the entire Group for developing
and delivering the best products across our markets.
Placing clients at the centre
We provide top-tier products and solutions, strategic
advice and innovation to over one million SMEs and
corporates, as well as 14 million affluent, private
and other retail clients.
Our best in class in-house solutions, complemented
with the top industry expertise of our partners, and
powered by reliable digital and data capabilities,
create significant value for our clients, firmly
positioned at the centre of all we do.
13
Leading banks
>75,000
Talented colleagues2
4
Coverage Regions
3
Product factories
15m
Clients worldwide
1,000+
Employee Networks active members3
Italy - Quality earnings powerhouse
Consistently delivering high profitability and growth
Germany – Resilient anchor
High-quality growth and best year ever as a result
of successful transformation
Ranking based on Net Profit FY2024 for Italy and Germany and 9M24 for
CE&EE, as per FY2024 results market presentation methodology. Austria
based on total assets at bank level as per last available disclosure.
1. Central Eastern Europe (CEE) includes the Czech Republic, Hungary,
Slovakia, Slovenia, Bosnia and Herzegovina, Bulgaria, Croatia,
Romania and Serbia.
2. Headcount as at 31 December 2024.
3. Diversity traits represented: LGBTQIA+, Gender, STEM,
Disability, Cultural Diversity, Generations, Caregiving
2
UniCredit 2024 Annual Reports and Accounts
BoD (%)
Female representation
50
Group Executive Committee (GEC) (%)
50
Leadership team (%)
34
International presence in BoD (%)
International mindset
36
International presence in Group Executive Committee (%)
67
Nurturing our diverse talent base
UniCredit recognises that it is essential that we unlock
the potential of our over 75,000 people, businesses, and
communities across Europe. We have long recognised
that an equitable, inclusive and diverse workforce is
vital to our business and creates a more fair, inclusive
and positive working environment. We believe that
when Diversity, Equity and Inclusion (DE&I) work
in harmony, great things happen.
Group scale,
local reach
Empowered banks unified as
one Group, in the continuous
pursuit of excellence
Austria - Resilient anchor
Operational and capital excellence champion,
delivering best results ever, moving forward
with transformation
CEE - Growth Engine
Leading franchise in the region consistently
delivering excellent performance and
growth in individual markets
3
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Financial Review
Consolidated Report
ESG Review
Strategic Review
Enhancing our product
offering: three global
product factories
While clients access our services through
local banks, our comprehensive offering
to meet their needs is created by our
three global product factories –
Corporate, Individual and Payment
Solutions. Each of these factories
delivers best-in-class solutions,
developed internally or through our
dynamic ecosystem of trusted partners.
Business model
Our business model is centred on delivering sustainable growth,
built on strong foundations across 13 leading and empowered
banks with local coverage close to the clients, leveraging a
common denominator: the strength of three product factories
with an ecosystem of strategic partners, a centralised and efficient
Group Procurement, all continuously streamlined and simplified
through our Digital & Operations.
Corporate Solutions
Empowering corporates to progress
We have an extensive corporate client base and we provide them with
seamless access to value-added services through three product lines –
Advisory & Financing, Client Risk Management, Trade & Correspondent
Banking. Combining deep local expertise and a strong cross-border
presence, we support our clients with the broader array of products
and services that they require, facilitating their growth ambitions.
Individual Solutions
Advising clients to achieve their
investment and insurance objectives
Clients benefit from a large and attractive range of products for Retail,
Wealth Management and Private Banking across all our markets.
By combining our in-house capabilities with external top industry expertise,
we provide them with greater choice and access to our global solutions and
platforms. We have launched and we are progressing with our in-house
brand (onemarkets) and are seamlessly integrating Insurance into our
offering, with a unique client base for cross-selling.
Payments Solutions
Every European client’s
first choice for payments
Our unique pan-European footprint, cross-border positioning, payments
expertise and advanced data and technology support our Vision of
becoming the first choice for payments in Europe. In 2024 we formed a
multi-market partnership with Mastercard, while our new Group Payments
Solutions factory expanded our international offering and nearly doubled
the number of corporates accessing our digital portal since 2021.
4
UniCredit 2024 Annual Reports and Accounts
Unified Group
13
LEADING BANKS
C
o
n
te
n
t
&
P
ro
d
u
ct
s
Di
gi
ta
l
&
O
pe
ra
ti
on
s
Pr
in
ci
pl
es
&
V
al
ue
s
Our Partners’ Clients
Strategic Partners
G
r
o
u
p
P
a
y
m
e
n
t
s
S
o
l
u
ti
o
n
s
I
n
d
i
v
i
d
u
a
l
S
o
l
u
ti
o
n
s
C
o
r
p
o
r
a
t
e
S
o
l
u
ti
o
n
s
How we create value
Read more on page 14
Company Report
Other
Financial Review
Consolidated Report
ESG Review
Strategic Review
5
UniCredit 2024 Annual Reports and Accounts
The strongest performance in our bank’s history
2024 record results crowning 16 consecutive quarters of quality profitable
growth. All our geographies and product factories demonstrated superior
execution and beat all the targets set in 2021. This performance balances
excelling in the short-term and preparing for the future and is a testament
to the dependability of UniCredit and its people.
2024 highlights
Financial highlights
1. Before considering the impact of strategic investments.
2. Of the cash dividend (€3.73bn), €1.44bn already paid as interim. Of the SBB (€5.27bn), €1.7bn already completed, the balance to be completed
pending supervisory and shareholder approvals at AGM and expected to be commenced post completion of BPM offer.
3. Net Profit net of integration costs and RusChemAlliance (RCA) full coverage.
TOP-LINE GROWTH
€24.8bn
Gross Revenue
+4.3% FY/FY
+4.0% Net Revenue
OPERATIONAL EFFICIENCY
37.9%
Cost-to-income ratio
-1.8pp FY/FY
€9.4bn costs, -0.6% FY/FY
ASSET QUALITY
15bps
CoR
+2bps FY/FY
CAPITAL EFFICIENCY
8.7%
Net-revenue-to-RWA ratio
+0.8pp FY/FY
BEST-IN-CLASS
PROFITABILITY, RoTE
17.7%
RoTE 20.9% based on 13% CET1r
FY24 INCREASED
DISTRIBUTIONS2
€9bn
>€26bn total distributions FY21-24
RECORD
BOTTOM LINE
€9.7bn
Stated Net Profit
+2.2% FY/FY
€9.3bn Net Profit
€10.3bn underlying3
GOP
€15.4bn
Gross Operating Profit
+7.5% FY/FY
ORGANIC CAPITAL GENERATION1
444bps
€12.6bn
6
UniCredit 2024 Annual Reports and Accounts
Sustainability highlights
Thanks to our strong ESG foundations, in 2024 we continued to make progress on our ESG KPIs.
Environment
Sustainable financial
instruments and Net Zero
commitments.
Read more on page 83
Social
Social financing for initiatives
in our communities.
Read more on page 84
Governance
ESG-aligned remuneration
and solid DE&I framework.
Read more on page 85
We advanced our sustainable
financial instruments, reaching
a total of €26.9 billion in cumulative
green lending since January 2022.
Since 2022, we have provided
€13.2 billion in social financing
via micro‑credit, impact financing
and lending to disadvantaged areas.
CEO and top management remuneration
saw a 20% weighting of long-term
performance related to ESG business,
DE&I priorities, and climate risk.
Furthermore a relevant link to Group’s
Values and Culture - “Winning. The Right
Way. Together” goal – is also part of the
short-term scorecard.
+1,500
Colleagues across the Group
part of Culture Network
365
Initiatives mapped
in the context of our
well‑being framework
€78.1m
FY24 contribution
to communities
c.15,000
Hours dedicated to
volunteering by
our colleagues
11
Green Bonds issued
€6.5bn
Total amount of
financing from
Green Bonds
7
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Financial Review
Consolidated Report
ESG Review
Strategic Review
Chairman’s letter
Delivering our
Vision of excellence
Dear Shareholders,
It is a pleasure to write to you as the Chairman of
the UniCredit Board.
In 2025, we look ahead to a horizon that promises
a great deal of change. At the same time, we are
still under the long shadow of the many changes
in the macroeconomic environment that have
rocked the world since we first put out our
strategic plan, UniCredit Unlocked, into action.
Global growth has been stifled by multiple wars
compounding an already fraught macroeconomic
environment post-pandemic. Globalisation is
fracturing increasingly under this pressure.
While there is optimism among the investor
community about America’s economy, recent
political developments and their implications
for how we address macro issues like climate change
contribute to the pervasive feeling of uncertainty.
In short, the clouds over Europe and the world have not
cleared, and we are not sure when they will. Dynamism,
innovation, and resilience are not only key to businesses
enduring in these circumstances, they are also essential
for continuing to support the communities that rely on
these businesses.
UniCredit continues to prove itself as an exemplary
European business; the type our continent needs,
according to Mario Draghi and Enrico Letta’s reports
on the state of European competitiveness and the
Single Market. UniCredit is a dynamic business
embracing innovation and keeping clients at the
centre of everything we do, unlocking value while
ensuring that our communities are supported.
8
UniCredit 2024 Annual Reports and Accounts
We have a proven model for resilience and delivery
under macroeconomic pressure, as is clear from our
results of the last four years. After 16 consecutive
quarters of quality growth, we are preparing to move
into a new era where we use this momentum to achieve
even greater success for the clients and communities
we serve.
The businesses we support are key to the prosperity
of our communities, because they contribute to the
competitiveness of those communities and our bloc
as a whole.
By deepening the markets we serve in Europe, while
also leveraging on the creation of continental banks,
we – as a banking group – can play an all-important role
as the driving force of our continent’s competitiveness,
serving companies to the best of our ability and
efficiently serving retails, so they can channel
their savings into the economy.
We have the leverage in our pan-European banking
network, the Strategy, the energy, and the ambition, to
help our continent steer a course out of these years of
stagnation and stalling and into a new era of prosperity.
We can help our bloc become a true rival to the likes
of the US.
Our strong position is supported by our adoption of a
new governance system. Operating under the mandate
of a new Board of Directors, we will continuously
improve our processes in the same spirit of always
striving to do better and deliver our best that has
defined UniCredit’s industrial Strategy since the
launch of our transformation.
Under the leadership of our CEO, Andrea Orcel, who
is working with the Board and our strong management
team to deliver this transformation successfully, we will
unlock new growth organically and, where they arise,
seize opportunities for inorganic growth that will
support our trajectory.
We will build the strength of our international profile,
having already built ourselves a strong foundation with
two core markets in Italy and Germany, demonstrating
the value of our status as a pan-European bank.
Though the economic picture is not what we would
want it to be for Europe, we have built our resilience
as an institution to be able to navigate what comes
and, most importantly, remain firmly by our clients to
help them achieve success. In this sense, the prospects
for us are positive.
We are ready to take the necessary steps to strengthen
our position – through technological innovation, for
example – and deliver sustainable results, so the
clients and communities we serve can navigate
a course through these difficult times. Our service
to them remains at the centre of everything we do.
Our greatest asset in achieving this will be our people’s
continuous commitment to our strategic Vision, our
Purpose, and our Culture. It is their dedication that
has brought us this far, and this is reflected in our most
recent results. I wish to congratulate and thank all of
them for their hard work. Their continued dedication
will empower us to push the bar even further.
There are great things for us on the horizon,
if we seize this opportunity now.
Thank you,
Pietro Carlo Padoan
Chairman UniCredit S.p.A.
UniCredit continues to prove itself as
an exemplary European business;
the type our continent needs.”
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
9
UniCredit 2024 Annual Reports and Accounts
Letter from the Chief Executive Officer
Leading the way
in European banking
10
UniCredit 2024 Annual Reports and Accounts
When we launched UniCredit Unlocked we
were stepping into a new era for the Bank.
I believe that we are doing it again and in
doing so we will improve even further.”
Dear Stakeholders,
Since launching UniCredit Unlocked in 2021, our
winning Strategy set to achieve our Vision – to be the
Bank for Europe’s Future – has also propelled us to
become one of Europe’s best performing banks and
one that sets ambitions and a path for others to follow.
UniCredit’s 2021-2024 transformation has been nothing
short of exceptional, achieved while also consistently
delivering outstanding financial results quarter after
quarter, setting a new benchmark for banking.
We unified, refocused, and galvanised all our people
around one single Vision, Strategy, and Culture.
We restored trust and empowerment in our 13 banks
and our people: all coming together as ONE Group.
We simplified and streamlined our organisation,
processes, and ways of working, transforming our
efficiency while also investing in our people, digital
and data, product factories, and distribution channels
to offer more to our clients.
We have lived by our Values and focused on our
fundamental Purpose: to Empower Communities
to Progress.
We continued to honor our ESG commitments
with notable social investments, such as our €2.6 billion
“UniCredit for CEE” initiative and our new Edu-Fund
platform, supporting programmes addressing
educational deprivation in our communities.
Together, this has firmly set out our proven blueprint
for banking not only in terms of financial achievements
but also in terms of how we should support the
communities in which we operate and always attempt
doing what is right, driving necessary change. This is, we
hope, the ambition and path we have set for our sector.
Record-breaking results
Our 2024 results were the very best in UniCredit’s
long history. The most recent quarter marks our
16th consecutive quarter of profitable growth.
€24.2bn
Net Revenue
+4% FY/FY
17.7%
RoTE
Target: 10%
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
11
UniCredit 2024 Annual Reports and Accounts
Our RoTE reached 17.7% notwithstanding the
substantial excess capital we still carry, and is best-in-
class when adjusted for such excess capital. Our stated
Net Profit reached €9.7 billion (€10.3 billion underlying).
Our organic capital generation of 444bps – equal to
€12.6 billion – has allowed us to accrue €9.0 billion
to be distributed, while maintaining a CET1 ratio of
c.15.9% with c.€6.5 billion of excess capital vs our
CET1 ratio target.
Our Net Revenue reached €24.2 billion – up to 4% year
on year – further reinforcing the quality of our top line
as NII profitability remained best-in-class and our fees,
driven by our rebuilt market-leading product factories,
reached a top tier 33% of total revenues.
Our operational and capital efficiency also improved
further with a CIR <38% and a Net Revenue/RWA
ratio of 8.7% respectively.
We continued to build our lines of defence to protect
and propel our future taking extraordinary charges
of €1.3 billion.
Over the last four years, we delivered Total Shareholder
Return of 513%, outperforming our European peers1
by four times, with total cumulative distributions of
over €26 billion, more than 1.5 times our market cap
at the beginning of the period. Our EPS and DPS
growth (CAGR) of 48% and 64% respectively speaks
for itself. We are the most shareholder-friendly
bank in Europe.
Into a new era
The last four years have laid a firm foundation for
our next phase of quality growth. We have prepared
ourselves to take the essential next step. We will
redouble our commitment to unlock more value from
our Bank and go beyond the benchmarks we have set.
In summary, we are now moving to the second phase
of UniCredit Unlocked: Acceleration.
It will be our attractive geographical presence, client
and business mix, protected by our unmatched lines
of defence and leveraged upon by our team that will
allow us to further positively differentiate ourselves
from our peers and set a seven-year track record of
superior performance through the cycle.
We are both excited about the opportunity we have
in front of us and confident we will achieve it.
Letter from the Chief Executive Officer continued
513%
Total Shareholder Return
Beginning 2021-2024
4x greater than
our European peers
>€26bn
Total distributions
FY21-FY24
Target: €16bn
€12.6bn
Organic capital generation
In 2024
1. Considering core EU peers with market cap above €30 billion
as of 31 December 2024, i.e. BBVA, BNP, Crédit Agricole S.A.,
Deutsche Bank, ING, Intesa Sanpaolo, Santander.
UniCredit 2024 Annual Reports and Accounts
12
Our approach is showing the need to reform our single
market so it functions as it should, empowering our
European communities instead of stifling them.
We are showing the leadership Europe needs on this
issue, to support our bloc’s structural growth and
bring an end to years of economic stagnation.
The power behind our model for banking is the
people of UniCredit, united as ONE by a Vision, a
Strategy, and a Culture we all believe in, who have
made it a success. I am both grateful for their efforts
and honored to lead them.
When we launched UniCredit Unlocked we were
stepping into a new era for the Bank. I believe that
we are doing it again and in doing so we will improve
even further. I believe that, together, we can Unlock
our Acceleration!
Yours,
Andrea Orcel
Chief Executive Officer UniCredit S.p.A.
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
13
UniCredit 2024 Annual Reports and Accounts
G
E
R
&
A
U
T
IT
A
C
E
E
R
e
si
li
e
n
t
a
n
c
h
o
rs
Q
u
al
it
y
e
a
r
ni
n
g
s
p
o
w
er
h
o
u
s
e
P
r
o
fi
t
a
b
le
g
r
o
w
t
h
e
n
gi
n
e
Our investment case
A unique investment proposition
Delivering unrivalled shareholder value,
while laying future foundations
Structural advantages
Attractive geographic mix
2024-2027 KPIs
Share of 2024 Net Profit1 Share of 2027 Net Profit1
33%
c.35%
22%
c.25%
45%
c.40%
Quality client mix
15m
Clients across Europe
(+3.5m Alpha Bank)
60%
SMEs, Private
and Affluent,
% of Revenue2
Superior business mix
#1
NII RoAC3
Towards
40%
Fee-to-revenue ratio
Proven execution
Leading financial results
12/12
Financial targets
exceeded5
Leader
In operating and
capital efficiency
and profitability6
Marked transformation
One
Vision, Strategy
and Culture
Fully
redesigned
and streamlined
organisation
New sustainable run rate
5x
Net Profit
since 20217
3x
RoTE since 20217
1. Share of Net Profit computed as sum of Italy, Germany and Austria
and CEE (excl. Russia); excl GCC.
2. SMEs including Micro Business.
3. Peer group: BBVA, BNP Paribas, Commerzbank, Credit Agricole S.A.,
Deutsche Bank, ING, Intesa San Paolo, Santander, Société Générale.
4. Fees including Net insurance results and excluding Vodeno and Aion.
5. UniCredit Unlocked 2024 targets.
14
UniCredit 2024 Annual Reports and Accounts
EPS
21-24
CAGR +48%
+64%
FY24
FY23
FY22
FY21
5.7
4.7
2.7
1.8
2.40
1.80
0.99
0.54
DPS
Strategically fortified
Clear alpha initiatives
+€1.4bn
Fees 2024-20274
High
Efficiency
Solid lines of defence
€1.7bn
Overlay Stock
€3.6bn
Integration costs,
FY21–FY24
Long-term approach
Growth
From several
strategic investments
(e.g. onemarkets, Vodeno)
c.€2.5bn
Incremental
IT investments,
2025–2027
Outstanding returns
Sustainable organic value generation
c.€10bn
Net Profit target in 2027 Strong
EPS and DPS growth
Top-tier distribution policy
#1
50%
>FY24
Distribution
Dividend payout
Expected yearly
yield8 as
ratio from FY25
distributions9
of FY24
FY25-27
Strategic flexibility
c.€6.5bn
Excess Capital10
M&A
Executed only
if accretive
6. #1 among peer group FY24 Cost/Income, Net Revenue/RWA and
RoTE@13%.
7. FY24 vs FY21; Stated Net Profit.
8. Total distribution as announced FY24 on average market cap 2024
for peer group as per footnote 3.
9. Subject to inorganic opportunities and delivery of financial ambitions
10. vs target CET1r 12.5-13%.
With structural advantages – such as the unique geographic footprint, high quality
client base and a superior business mix – we are uniquely positioned for success.
Our proven execution delivers leading financial results and a sustainable run rate:
we drive clear alpha initiatives, ensuring outstanding returns and future growth.
A unique investment proposition, still accessible at an attractive valuation.
15
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
Our Purpose-led strategic framework
UniCredit Unlocked has proven to be a
successful Group Strategy that plays to our
strengths. We are evolving that Strategy to
Unlock Acceleration in 2025 and beyond.
Our Vision is
to be the Bank
for Europe’s
Future
16
UniCredit 2024 Annual Reports and Accounts
United around
a clear Vision
The Bank
for Europe’s future
Powered by
Culture, Principles
and Values
Integrity, Ownership, Caring
Read more on page 18
Committed
to Sustainability
Leading by example,
supporting client transition,
championing social impact
Read more on page 66
Inspired by a
shared Purpose
Empowering
Communities to Progress
Read more on page 20
Proud of the success
of our Strategy
Industrial Transformation,
Financial Progress
Read more on page 22
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
UniCredit 2024 Annual Reports and Accounts
17
Our Purpose-led strategic framework continued
Our Culture, Principles and Values
Our Group has created a new benchmark for banking,
keeping our clients at the centre and unlocking
the potential of our people
Our Culture is key to our success in unifying and inspiring
our people, driving them to work as a team and achieve
excellence in the right way. Our Culture network is
fuelled by passion and enthusiasm, spreading positive
cultural change throughout UniCredit.
Collectively, we are building the Bank for Europe’s
future, as one team of people acting as true partners
to our clients. A better bank, creating better outcomes:
strongly grounded in the right Principles and Values;
and delivering sustainable, quality growth and value.
Values
Integrity
> We act in the best
interest of our customers
> We are honest,
straightforward,
and transparent
> We do the right thing –
even when no one
is watching.
Ownership
> We deliver on our
promises and take
accountability for our
actions and commitments
> We are empowered to
make decisions and learn
from failure. We speak
up – to express an idea,
an opinion, or when we
see something wrong.
Caring
> We care about our
customers, communities
and each other
> We are eager to help
one another and for
our people to thrive
> We treat each other
with respect and value
our differences.
Our Values are the foundation of our identity –
what we pass down to our people and what
our people share and enact through their actions.
They are at the heart of our decision-making,
ensuring we deliver for our clients honestly,
straightforwardly and transparently. We’re
committed to helping our customers, communities
and each other by treating everyone with respect
and valuing our differences.
In 2024, we updated our Employer Value
Proposition to help our team bring our
Values to life and ensure everyone at UniCredit
is motivated to actively contribute to Unlocking
a Better Tomorrow. Through a single voice, we
are building a common narrative across the
Group and increasing the awareness and
attractiveness of our employer brand.
18
UniCredit 2024 Annual Reports and Accounts
March
Group
New EVP:
Unlock a Better Tomorrow
In March 2024, we launched a new Employer Value
Proposition (EVP) – Unlock a Better Tomorrow –
to fit our Strategy and Purpose.
We want our existing and future employees to unlock
their fullest potential at UniCredit – attracting and
retaining individuals who embody our Values of
Integrity, Ownership and Caring.
Our ambitions and commitments include
guaranteeing equal opportunities for all colleagues,
supporting our people’s personal growth and well-
being, nurturing a positive and inclusive working
environment, and leveraging our unique international
footprint. By encouraging and inspiring everyone at
UniCredit, we will drive innovation and create better
solutions for all our clients, helping us to achieve
business success.
Our EVP is built on four pillars:
> Accelerators of ambition – we are focused on
keeping our clients at the centre and unlocking
the potential of our people as individuals and
as professionals. We are a better bank, delivering
better outcomes for our stakeholders. Collectively,
we are building the bank for Europe’s future.
> Champions of diversity – we are fostering an
inclusive environment that has no ceiling, with
no limit to how high and far our team can go.
As a Group, we provide a diverse and dynamic
international experience that only a pan-European
bank such as UniCredit has to offer.
> Challenge seekers and changemakers – in
our team we have talented, dedicated and open-
minded individuals who challenge the status
quo. They deliver digital innovation that inspires;
they push boundaries and strive to set a new
benchmark for banking. There is no telling
what we might do next.
> Drivers of sustainable change – Sustainability
is in our DNA. We are rebuilding our communities
and economies for the better and keeping ESG at
the forefront of everything we do. We care about
creating a cleaner, greener future for our people,
our communities and Europe’s next generation.
To recognise and celebrate the contributions and
achievements of our people as champions of our EVP,
we’ve launched the UniCredit Storytellers initiative.
This advocacy programme features our colleagues
as the voice of our Bank, showcasing their UniCredit
journeys and giving a glimpse into life at UniCredit.
Browse the stories here to find out more.
For additional information visit Careers – UniCredit
19
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
Our Purpose-led strategic framework continued
Empowering Communities to Progress while ensuring
long-term, sustainable growth and delivering value
to all our stakeholders
By operating with the right Principles and Purpose,
we have the power to do tremendous good – for our
clients and communities, our people, our shareholders
and investors.
As the foundation of a principle-driven organisation,
we actively engage with and extensively listen
to all our stakeholders equally.
UniCredit is committed to maintaining high
standards of integrity, transparency, professionalism
and co‑operation in managing our relations with
regulators – EU authorities – and in performing
advocacy activities.
We actively communicate and engage with national,
European and international regulators to improve the
EU sustainable finance framework and facilitate
the transition to a low-carbon economy.
Offering our contributions to discussions held by
EU institutions and actively participating to the
development of a sustainable financial framework
is central to developing a sustainable economic
framework for all our stakeholders.
Our Purpose
20
UniCredit 2024 Annual Reports and Accounts
Our stakeholders
Our clients
Our people
Our shareholders
Our clients are at the heart of everything we do. We build everything around
their needs, providing choice and discretion through best-in class products
and innovative solutions.
Our teams deliver exceptional service and personalised support, building
strong relationships and consistently exceeding expectations. Through
our service model, we leverage a range of distribution channels – physical
and remote branches, call-centres, internet and mobile – accessible to our
clients any time, anywhere.
Our people are our greatest asset. We actively listen to them and are
committed to fostering an environment where they feel valued, trusted,
empowered and accountable, so they can focus on value-added, client-facing
activities and achieve excellence.
With our common Vision and a clear Culture, our teams are unified and
inspired to drive our business forward, aligning individual aspirations with
organisational goals. We invest in professional growth through training,
and a clear career path that recognises and rewards performance.
With a shared belief in our Mission, we take pride in who we are
and in the collective impact we can make.
As a unique pan-European champion, we leverage Group synergies to provide
superior capital generation and distributions. Our UniCredit Unlocked Strategy
has been consistently delivering unmatched value while protecting assets
and investing to secure sustainable, quality growth and remuneration.
We maintain open and transparent communication with our investors
through regular updates, financial disclosures and proactive engagement.
Through annual general meetings, investor calls and roadshows, we
provide platforms for dialogue, addressing queries and fostering
mutual understanding.
We also actively engage with investors on ESG topics, highlighting
our sustainable initiatives and aligning our practices with investor
interests in responsible growth.
>12k
Front-line hires since 2021, Group-wide
c.85%
Branches refurbished in Italy
26
Net promoter score,
+4 increase vs. 2023
20k
People involved in Culture Day in 2024,
including CEO and Top management
c.33
Hours of training courses
per employee per annum
1%
Gender pay gap on comparable roles,
from c.4%; €100m pledged to further
reduce our GPG
308
Institutions met during 2024
€9bn
2024 distributions
>€26bn
2021-2024 cumulative distributions
21
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
Our Purpose-led strategic framework continued
Driving industrial transformation, investing for the future
Our Strategy
UniCredit Unlocked is our unique Strategy tailored
to our inherent strengths and flexible enough to
adapt to a changing environment.
Over the past few years, we were committed
to Unlocking trapped potential and laying the
foundations of a fully transformed UniCredit.
Today, we have one Group with one Vision, Culture and
Strategy and clear direction to harmonise and leverage
scale and scope – best‑in-class product factories,
converging technology and operations. We also have
a network of 13 local banks empowered to manage
their own operations locally within a streamlined
organisation capable to deliver operations locally
within a streamlined organisation capable of delivery.
Unlocked Potential
Laying the foundations of a fully transformed UniCredit: 2021 to 2024
Empowerment
and trust
Simplification
and streamlining
Leveraging
common strengths
13 Banks empowered
by clear Principles and Values,
cascading Group Strategy.
Investing, trusting and
empowering our people with
clear Principles and Values.
Leaner and delayered
organisation, with decisions
closer to the clients where
it matters.
Simplified and
harmonised processes.
One Vision, One Culture,
One Strategy.
Product factories,
procurement and technology
under common denominator
leveraging scale and scope.
Read more on page 30
Read more on page 38
Read more on page 46
22
UniCredit 2024 Annual Reports and Accounts
Unlocking Acceleration
2025 and beyond: Ushering in a new era of sustainable growth
Having laid the foundations and released our full
potential, we’re entering the next phase, where
we’ll evolve, not change, our Strategy.
UniCredit Unlocked will maintain the same unifying
Vision, Culture and inspiring Purpose, while the focus
of the Strategy will be on Unlocking Acceleration to
unleash our full potential and widen the competitive
gap further to herald a new era of sustainable growth.
In the rest of this report, we dive deeper into our
progress against our UniCredit Unlocked Strategy.
Read more on page 63
Operational
Excellence
Simplification and streamlining to
target efficiencies and optimisation,
while continuing to invest in
the future.
Capital
Excellence
Considered capital allocation and
active portfolio management to
ensure sustainable, best-in-class
organic capital generation.
Quality
Growth
Focusing on capital-light
growth and quality lending,
while maintaining discipline
in origination.
The financial results achieved to date are a
testament of scale and progress made with the
holistic top‑to‑bottom industrial transformation.
We are not only delivering excellent results, but more
importantly we are producing the right kind of results.
Results that show the discipline with which we are
focusing on quality profitable growth, operational
and capital efficiency, building lines of defence and
continuing to invest in the business for the future.
The same,
evolving Strategy
Building on our structural strengths
with new alpha initiatives to widen
our competitive gap.
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
UniCredit 2024 Annual Reports and Accounts
23
Delivering excellence in 2024
Together, every change we make, every month
of the year, throughout all our businesses across
all our geographies, contributes to delivering
excellence and reaching our ambitions
Review all our milestones on our Reporting microsite
Customers rate Bulbank Online
#1 in internet banking
UniCredit included as an Equileap
Top 100 gender equality company
Ranked #2 in Italy for the third year in a row
Launch of EmpoweringU
UniCredit's first holistic approach
to employee well-being
Bank iD launched in the Czech Republic
Smoothing organisations’ access
to online services
Employee daycare opened
by HypoVereinsbank
Office in Munich supports
our work‑life balance
UniCredit named Top Employer
in Europe for the eighth year
America's Cup 2024
UniCredit becomes the event's Global Partner,
exclusive Global Banking Partner, and is named
partner of the UniCredit Youth America's Cup
January
February
24
UniCredit 2024 Annual Reports and Accounts
UniCredit offers contactless services
in the Czech Republic and Slovakia
UniCredit launches My Advisory
Making our expertise easier to access
for wealth management and private
banking clients
Pre-approved loans for small-sized clients
Advisors provide exclusive service
for smaller businesses
Women’s financial advisory month
Leveraging on dedicated products
and services to help women
plan their finances
Focusing on women in digital
A series of initiatives to empower
female employees' growth
250
Contactless ATMs
New Employer Value Proposition
Unlocking a Better Tomorrow;
for colleagues, clients
and communities
Strategy
Finance
Clients
People & Culture
ESG
Digital & Data
UniCredit Foundation
March
April
UniCredit’s strategic support for
German startups with GetYourGuide
Continuing to set industry benchmarks
by fostering growth in the tech sector
25
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
Delivering excellence in 2024 continued
UniCredit supports Education
Academy project in Austria
Free facility CAPE 10 helps children
and young people to learn
1Q24 Group Results
Record results, significant value ahead
Statement on Natural Capital
and Biodiversity
UniCredit's first comprehensive framework
to link biodiversity and climate
UniCredit’s online branch buddy
becomes new official banking partner
of the Davis Cup 2024
UniCredit in Germany hosts the third
edition of our Culture Day
Basket Bond ESG: from UniCredit and CDP
Two new rounds for Italian
programme funding
>€143m
funding
May
June
26
UniCredit 2024 Annual Reports and Accounts
Strategy
Finance
Clients
People & Culture
ESG
Digital & Data
UniCredit Foundation
2Q24 & 1H24 Group Results
Record quarter and first half results;
profitable growth and superior distribution
trajectory continue
Net Zero targets set on Shipping and
Commercial Real Estate sectors in addition
to Steel sector disclosed in January
UCF Edu-Fund Platform launched
Helping to lift young people out
of educational deprivation
UniCredit starts process of acquiring
Vodeno and Aion Bank
Launch of UniCredit for CEE
Helping micro and small
enterprises to grow
Zaba's AI virtual assistant enhanced
Saving clients’ and bankers’ time
SmartBizz app now live
Accelerating loan approvals
for small businesses
July
August
UniCredit supports Europe’s largest
liability management operation
TIM NetCo/KRR deal worth €5.5 billion
27
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
Delivering excellence in 2024 continued
UniCredit’s €15 million social impact loan
Provided to Nuova Assistenza Soc. Coop.
Sociale ONLUS
Digital Days reloaded
Showcasing our Digital team
to the Group
Leading the way for digital corporate
banking in Germany
Launch of UNA App
Simplifying business processes
for employees and customers
€5 billion plafond
Supporting Italian businesses that
reduce energy consumption
with “Transizione 5.0”
UniCredit acquires around 9%
equity stake in Commerzbank AG
~9%
Equity stake
12,000
Online connections
Digital Strategy moves to Phase II
Tech and talent transformation accelerates
September
October
Expansion of our onemarkets Fund
28
UniCredit 2024 Annual Reports and Accounts
Strategy
Finance
Clients
People & Culture
ESG
Digital & Data
UniCredit Foundation
Talento Diffuso project extended
Enhancing employee talent in Italy
Second annual ESG Day
tackles pressing concerns
A challenged future: choosing the path ahead
3Q24 & 9M24 Group Results
Record third-quarter and nine-month
results, ushering in a new era of
sustainable quality growth
4Q24 & FY24 Group Results
Unlocking Acceleration: Record results
crowning 16 consecutive quarters of
quality growth
UniCredit Bulbank to use 75% green energy
Contract signed with photovoltaic
power plant
€8.3 million
Financing Agroloop Kft with
innovative greenfield investment
UniCredit secures majority stake
in Alpha Bank Romania
FT names UniCredit Global Bank of the Year
Won the award for the second time
November
December
Over €1 million to support education
in Serbia
Investing in initiatives to help transform
the education system, from 2023 to 2026
29
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
Strategic focus areas
Empowerment
and trust
A winning mentality grounded in clear Principles and Values
and a shared Culture of Empowerment and trust. Fostering
bottom up ideas and an environment where people are
proud to own and drive growth and success.
Our progress this year
2024 was another year of extensive listening
to our people and joint work across all levels
to spread and reinforce the Culture and Values
that define us.
We made significant investments in education,
professional development, and continuous
learning, nurturing our talent for long-term
success.
Today, as a transformed bank, our people feel
connected, valued, embrace a can-do attitude,
and view mistakes as opportunities to learn,
all in the relentless pursuit of excellence.
This progress has contributed to our recognition
as Global Bank of the Year for the second
consecutive year by The Banker.
Read more on page 32
16
Culture roadshows
With 20k colleagues involved,
including CEO and Leadership Team
c. 600
Colleagues in Italy
participating in reskilling plan
Moved from central functions to
commercial branches, as a blueprint
to be extended to the overall Group
€30m
To UniCredit Foundation
Strengthening our focus on
Youth and Education
25k
Participants in UniCredit University
in Italy in 2024, with 50 hours of
active learning per capita
>16k
Hirings in business divisions,
since 2021, 9k of which young talents,
transforming the organisation
30
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
31
UniCredit 2024 Annual Reports and Accounts
Strategic focus areas Empowerment and trust continued
Group
Empowering teams to lead
Supported by a comprehensive preparatory training
programme, the project Empowerment Italy –
Credit Delegations project has:
> Enhanced customer proximity
> Rebuilt and empowered our first line of defence
> Refocused and evolved our second line of defence
of risk management
> Clarified the roles between first and second line
of defence, strengthening our controls framework.
A new major training programme for our people
in Italy has introduced new collaborative ways of
working at UniCredit, empowering decision-making
for our credit teams.
Implemented in June 2022, after a year of
preparatory activities, our Empowerment Italy –
Credit Delegations project is a significant example
of how UniCredit has transformed. It has helped
employees to better support our new business
model, as they have gained awareness and
accountability. It has also aligned our risk and
business functions, encouraged greater collaboration
and enabled both functions to jointly take ownership
of the Italian credit portfolio, guaranteeing a strong
risk presidium.
>2,000
People trained in Italy
by FY23 to take c.90%
credit decisions vs +5% in
FY21 (based on volumes)
70
Hours training per person,
over 356 classrooms and
80 teachers
32
UniCredit 2024 Annual Reports and Accounts
Unlocking the talents of all our people
Everyone has intrinsic abilities and skills that can help
us to succeed. That’s the idea behind Talento Diffuso.
Talento Diffuso stemmed from a listening campaign
piloted in 2023. We engaged with 28,000 colleagues
to discover what motivated them and what inherent
talents they wanted to develop. We then committed
to building a personalised training path that helps
them grow, express these skills and unlock their
true potential, professionally and personally.
More than 12,000 colleagues across UniCredit Italy,
including Retail, Corporate and Private Banking
as well as Central Functions, Competence lines,
Wealth Management and Large Corporates, have
joined the initiative since its launch in 2023.
Almost 2,200 colleagues have completed a blended
learning path with online courses and an on‑site
“Talent Development Lab” resulting in individual
development plans; another 4,000 colleagues
from Network Italy and Central Functions, Wealth
Management, Large Corporates will be involved in
2025 in experiential workshops dedicated to personal
efficacy and enhancement of their own talents.
“I have learned to pay attention to the talents
of my colleagues. The talent of each person
allows us to create value: that’s the true
essence of Talento Diffuso.”
Elisabetta Zavagli
Operational Manager, Private Area Lombardia East
“The Talento Diffuso programme definitely
helped me become more conscious about our
work, providing me better understanding of what
will be in the focus of our Bank in the future.”
Fabio Maltese
Private Banker
“Joining Talento Diffuso means I have increased
the awareness of my talents, and I manage my
daily work life much more effectively.”
Francesco Lerza
Manager, Corporate Area Napoli
December
Italy
33
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
Employee daycare
opens in Munich
HypoVereinsbank is supporting colleagues’ work-life
balance by opening a daycare centre in Munich.
Bavaria’s shortage of childcare places makes it
challenging for colleagues to balance their work
and family life. The bank’s innovative daycare centre,
operated with Dussmann KulturKindergarten GmbH,
bridges the gap by providing childcare spots for
36 children aged three months to three years.
Housed in a distinctive circular building with a rooftop
garden, the centre is a protected, inspiring and traffic-
free environment where children can play and relax.
The new centre is part of a broader offering that
supports a sustainable, family-friendly corporate culture,
such as flexible care options for elderly or dependent
relatives and children, and a Parents4Parents network
for parents to connect and exchange ideas.
January
Germany
Strategic focus areas Empowerment and trust continued
34
UniCredit 2024 Annual Reports and Accounts
Bold move to lift young people
out of educational deprivation
The UniCredit Foundation advanced its mission
to Empower Europe’s Next Generation by launching
the UCF Edu-Fund Platform with a total commitment
of €14 million.
The initiative seeks to foster quality education and
promote regional growth by engaging community
stakeholders, contributing to a more equitable future.
It supports multidimensional projects focused on the
academic challenges young people face in countries
where we operate. Examples include preventing
school dropouts, addressing inadequate educators’
skills, encouraging university education and improving
employability for students aged 11 to 19.
The initiative is open all year round. Its funding pool
offers three streams of funding opportunities, ranging
from €100,000 to over €1 million, to non-profits
across Austria, Bosnia and Herzegovina, Bulgaria,
Croatia, the Czech Republic, Germany, Hungary,
Italy, Romania, Serbia, Slovakia, and Slovenia.
The entities must have a comprehensive background
in fostering quality education, regional development,
and an inclusive response to their communities’
educational needs.
July
Group
Over €1 million to support education in Serbia
UniCredit Bank and the UniCredit Foundation in Serbia
have invested over €1 million in an educational initiative
to help schools and teachers transform the country’s
education system and unlock the potential of young
people, in the period from 2023 to 2026.
The RePower project builds on partnerships established
with Junior Achievement Serbia, the Nordeus Foundation
and Teach For All, alongside the Faculty of Philosophy at
the University of Belgrade. The aim is to strengthen local
communities and provide teachers with the tools they
need to build more inclusive school environments,
reflecting the enduring commitment of the UniCredit
Foundation to the development of young people.
In just one year, 11,629 students and around 300
teachers from 190 secondary schools took part in
programmes including a Business Challenge, Student
Company, Financial Literacy and Business Ethics,
as well as a Special Challenge competition.
We plan to reach more than 10,000 students in
the underdeveloped regions of Serbia by 2026, via
a network of 100 dedicated and innovative teachers
who will focus on concrete actions in their communities.
“Investing in education is an investment in the
future of our community. It is not only socially
responsible, but also a smart business decision.
One of UniCredit’s key priorities is education, and
we actively cooperate with many institutions in
order to ensure that educational programmes
reflect the state’s strategic goals. We believe
that in this way we are creating a synergy
that will benefit our country.”
Nikola Vuletić
President of the Management
Board of UniCredit Bank
November
Serbia
35
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
Women’s financial
advisory month helps bridge
the financial gender gap
UniCredit firmly believes that investing in financial
education for women generates long-term benefits
and boosts the sustainable development of
communities and social inclusion.
We used International Women’s Day (IWD) on
8 March to launch a month-long series of initiatives
in Italy aimed at bridging the gender gap and raising
women’s financial literacy levels.
An IWD open day for women in over 100 branches
of the bank throughout Italy kicked off our women’s
financial advisory month. Over 30,000 customers
were invited to complete a wealth questionnaire
to determine their personal requirements around
financial planning, wealth management
and insurance.
A woman’s goals and financial needs change
throughout her life, and her investment
strategy can adapt to reflect this.
Our wealth questionnaire helps us provide our
female clients with the tools and information
they need for a profitable and flexible investment
strategy over time, via a transparent approach to
consciously manage their assets and provide
long‑term oversight of their finances.
March
Italy
Effective financial management is
a key lever in empowering women and
enhancing their independence. Mastering
money management is crucial, as it can
significantly impact their ability to make
autonomous decisions and foster both
personal and professional development.
Marianna Plafoni
Head of Retail at UniCredit in Italy
Strategic focus areas Empowerment and trust continued
36
UniCredit 2024 Annual Reports and Accounts
UniCredit supports Education
Academy project in Austria
Together with the UniCredit Foundation (UCF), UniCredit
Bank Austria now provides long-term financial support
for an outstanding education project in Vienna’s most
culturally and linguistically diverse district.
The bank supports two projects by the CAPE 10 social
and health facility in Favoriten – an Education Academy
and a Hobby Lobby education initiative. Its €600,000
contribution is part of our drive to promote equal
educational opportunities for children and young people.
May
Austria
UniCredit Bank Austria is making a sustainable
financial contribution to this outstanding project.
The CAPE 10 initiative is paving the way for
young people to complete school. With the
Education Academy, it offers students in Vienna
a low‑threshold free learning and education
programme as an important supplement to the
regular curriculum. The aim is to provide equal
educational opportunities for all children and
young people in a culturally and linguistically
diverse district.
Ivan Vlaho
UniCredit Bank Austria CEO
37
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
Strategic focus areas continued
Simplification
and streamlining
A new way of working in a leaner and more efficient
organisation, with decisions closer to the clients. Simplifying
and harmonising processes to deliver a seamless experience
and focus our people on what creates value.
Our progress this year
At UniCredit, we continuously rethink our
organisation, questioning every process,
operation and capability to ensure we are
focused on what truly adds value for both
our clients and the Bank.
2024 was a year of significant achievements –
we accelerated our simplification and
streamlined initiatives, reducing layers between
us and our clients and creating a leaner
organisational structure for faster and
more efficient delivery.
We reviewed numerous key processes also
leveraging technology and AI to automate
and reduce complexity, improving our ways of
working while enhancing the most impactful
steps, driving greater efficiency and value.
Read more on page 40
c.-35%
Reduction in
organisational
structures
c.-50% in Holding
2k
Simplification proposals
c.50% in implementation
across 10 countries
106
AI use cases
-5
Fewer layers to the client
(4 from 9)
>530
Apps decommissioned
38
UniCredit 2024 Annual Reports and Accounts
39
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
UniCredit 2024 Annual Reports and Accounts
39
Strategic focus areas Simplification and streamlining continued
Group
Consumer
lending simplified
Today, 95% of consumer loans in Italy are
processed in this new, efficient and faster way.
Clients are experiencing a faster experience with
quicker loan approval – from over 24 hours to just
25 minutes – in a redesigned and a seamless
journey, consistent across all channels.
Our people are reducing their task load to
focus on higher-value and client-facing activities.
Our business is benefiting from lower operating
costs and high scalability across segments and
countries, and our shareholders are enjoying
the benefits of our improved performance.
Giving our clients a streamlined
and more efficient experience
UniCredit has moved from a top-heavy, centralised
organisation to a leaner, faster and more effective
structure, with a significant reduction in
organisational complexity.
This transformation is down to our focus on
simplification. We do it by applying a “blank sheet
approach” to everything we do – across all countries
and functions. We question every process from
scratch, ensuring that we focus on what truly
adds value.
In Italy, we’ve successfully applied this approach
and redesigned consumer lending process, and
in doing so we created a Group benchmark
and a common new way of working.
40
UniCredit 2024 Annual Reports and Accounts
New UNA App improves
business processes
for customers and colleagues
UniCredit has launched its new UNA App in Bosnia and
Herzegovina, simplifying everyday business processes
and providing a faster service for customers.
Our customers enjoy 1.6 times faster interactions
with the system, thanks to a user-friendly interface
and streamlined features. We estimate that some
business process tasks in the new application
will run 40% faster, helping colleagues focus
on delivering better experiences for clients.
Built using a microservice architecture, the new
UNA App benefits from greater flexibility, scalability
and easier maintenance, as well as robust security
measures. Updates and new features are delivered
more quickly.
This project is being developed in collaboration with
colleagues from UniCredit in Mostar and Banja Luka,
highlighting the power of cross-team co-operation
and the shared commitment to excellence found
across our network in Bosnia and Herzegovina.
Bosnia and Herzegovina
September
41
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
Leading the way for digital
corporate banking in Germany
HypoVereinsbank (HVB) was awarded third place in
the FINANCE magazine 2024 Banks Survey of the best
corporate banks in Germany, repeating our success in
2023’s survey.
The FINANCE Banks Survey is one of the key indicators
of performance and customer orientation in German
corporate banking and gives a comprehensive insight
into the developments and trends in the industry.
HVB came first in the “Digitalisation of Corporate
Customer Business” category, recognising the successful
implementation of our digital transformation strategy
and the value to corporate clients of our strategic
investments in digital solutions. This underlines the
growing need for broad digital platform solutions
in corporate banking.
In the last three years, we have reduced over 1,000
individual processes and achieved significant efficiency
gains, including reducing the time between application
and disbursement of consumer loans by 30%.
We also achieved a productivity gain of over 10%
in mortgage loan applications thanks to process
automation and simplification. In wealth management,
we managed to reduce processing times by more than
30%. Additionally, we worked intensively on our product
catalogue, adapting and simplifying it according to our
customers’ needs.
HVB is popular with German SMEs: more than half of
the survey’s SME respondents placed HVB in top place.
We were second in the “Most Common House Banks”
category, with particularly strong support from
companies with a turnover of less than €250 million,
two-thirds of whom list HVB as their principal bank.
HVB also came second in the “Best Service Level”
and “Advice on Sustainable Financing/ESG” categories.
Since 2023 we have organised 111 events at our
Innovation Hub, with participation from over 12,517
people across all divisions. With the Regional Innovation
Days, we addressed topics ranging from AI and digital
platforms to security, leadership, and entrepreneurship.
33% of the sessions were co-organised with external
partners, contributing to the promotion of digital
innovation and knowledge sharing. Additionally,
our Democracy Hub Campaign hosted five events
focused on democracy and our Bank’s engagement,
with participation from over 1,180 people.
For the coming year, HVB has set itself the goal of
defending our leading position in digitalisation
and further improving our overall position.
October
Germany
These pleasing rankings are a great
confirmation that we are on the right
track with our Strategy. They underline
the importance of continuous change
and our ability to adapt. They motivate
us to constantly improve and offer our
customers the best possible service.
Martin Brinckmann
Head of Small and Medium Corporates
Strategic focus areas Simplification and streamlining continued
42
UniCredit 2024 Annual Reports and Accounts
UniCredit supports Europe’s largest
liability management operation
UniCredit has played a pivotal role in structuring the
finance for the transfer of TIM Group’s NetCo business
to Kohlberg Kravis Roberts & Co. LP (KKR) – including
a huge liability management operation that allows TIM
to compete more effectively in its key Italian markets.
Earlier, in April, we supported TIM in the closure of the
sale of NetCo, acting as bookrunner, mandated lead
arranger, documentation bank and facility agent
for a financing term loan of €1.5 billion with an
18-month maturity.
We also acted as joint lead manager for one of the
largest liability management operations ever carried
out in Italy, and the largest carried out in Europe for a
corporate issuer. This was for a €5.5 billion equivalent
“par-to-par” exchange to enable a significant portion
of TIM bonds to be contributed to NetCo.
The operation allows TIM to adopt a new business
model that will enable the Group to compete more
effectively in the Consumer and Enterprise markets
in Italy, thanks to a greater focus on industrial and
commercial components and a solid financial structure.
July
Italy
Enhanced Zaba AI saves time
for clients and colleagues
Zagrebačka banka (Zaba)’s virtual assistant – Mia –
was introduced in October 2023 to shorten waiting
times for clients and free up time for contact centre
agents to provide a better service. A year later, Mia
is handling over 20% of all calls.
Almost 70% of Zaba’s clients bank digitally, with
95% of all transactions carried out online. Mia is
a key feature of the bank’s digital service, filtering
calls and answering the most frequently asked
questions around card and online payments as
well as general information about our services.
The introduction of Mia resulted in agents handling
22.3% fewer calls, making them available to deal
promptly with more complex client enquiries.
Mia’s accuracy is paramount: the answers given
are always consistent and verified, and customer
feedback is helping to develop and improve the
service. We are working with leaders in AI technology
to further increase functionality and ensure Mia
remains the leading virtual assistant in the
Croatian banking sector.
~70%
Zagrebačka banka (Zaba)
clients bank digitally
>20%
Calls handled by Mia
after a year of operation
22.3%
Reduction in calls handled by
agents since Mia’s introduction
August
Croatia
43
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
Pre-approved
loans for small-
sized clients
Small companies are the backbone of many
economies, so we must create innovative banking
initiatives to support their growth.
In Slovenia, we launched an exclusive pre-approved
loan service for smaller clients. UniCredit Bank
Slovenija selects companies with a solid strategy,
clear vision and an excellent credit rating. The bank’s
advisors then offer them pre-approved credit when
opening and using a transaction account with
a small business package.
Using targeted communications and repeated
contact, the bank has retained its existing
customers and attracted new ones, increasing
business volumes by meeting individual
customer needs.
April
Slovenia
Strategic focus areas Simplification and streamlining continued
44
UniCredit 2024 Annual Reports and Accounts
Launch of Bank iD brings seamless
online verification to Czech clients
It allows customers to verify their identity via our
smart banking app using their normal UniCredit
pin code, fingerprint or Face ID, and then log
into a third‑party service in the usual way.
To activate Bank iD, UniCredit clients just need an
active online bank account, smart key activation
and the latest version of our banking app.
A range of useful public and private sector
services can be accessed with Bank iD:
> submitting tax returns
> checking the validity of personal documents
> accessing the vehicle registry
> viewing property records
> accessing the Citizen Portal
> checking pension details
> obtaining e-prescriptions
> applying for housing or family subsidies
> changing health insurance provider
> registering with a doctor
> signing contracts with mobile
operators or energy suppliers
> signing rental agreements
> signing employment contracts
or work-related document
> signing enrolment agreements for studies.
Bank iD continues to integrate with other services and
is becoming one of the most popular methods of online
identification – a clear example of UniCredit providing
simple solutions for clients and supporting the broader
needs of the communities in which we operate.
UniCredit Bank is giving clients in the Czech Republic
an easier way to interact with key public and private
services, from submitting tax returns to getting a
prescription. Bank iD is a new app allowing people
to verify their identity using the same credentials
across a range of applications.
Bank iD is a secure mobile identity checker
that integrates with the online portals of many
government services, authorities, health and
insurance providers and private companies.
January
Czech Republic and Slovakia
45
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
Strategic focus areas continued
Leveraging
common strengths
One Group with a common Vision, Strategy and
Culture. Leveraging scale and scope of best-in-class
product factories, common Procurement, Digital and
Operations serving all, fully empowered, local banks.
Our progress this year
While our banks manage day-to-day
operations, the Group provides overarching
direction and harmonises scalable activities.
In 2024, we continued investing in our
product factories, reinforcing talent, and
making significant progress in our solution
offerings. We selectively partnered with top
industry leaders to complement our in-house
capabilities and deliver best-in-class solutions.
All our product factories marked significant
growth this year, demonstrating the potential
of our Group; combining high-quality products
from the centre with the distribution power
of our network in the countries.
Additionally, our centralised procurement and
converging digital and operational efforts protect
long-term priorities and serve the entire Group,
offering solutions with quality and speed that
individual banks would likely find difficult
to achieve on their own.
Read more on page 48
€14.5bn
onemarkets funds
#44 funds in 10 countries
Payments
Built a Group global factory and
strengthened key partnerships
1 Group
Procurement
Taking back control and safeguarding
our long-term interests
>100 vendors discontinued
Insurance
Setting the foundation
for internalisation of Life
Insurance and partnership
with Alpha Life in Greece
>91%
FX and commodities trades
executed E2E digitally
46
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
47
UniCredit 2024 Annual Reports and Accounts
Strategic focus areas Leveraging common strengths continued
Group
Expansion of our
onemarkets Fund portfolio
and launch in Greece
In October, it was launched in Greece, empowering
local Alpha Bank clients with sophisticated actively
managed investment products, while leveraging
UniCredit’s scale.
“The onemarkets Fund portfolio opens a window
to international investment opportunities for
our clients and gives them the option of
investing in mutual funds managed by asset
managers. It offers innovative products and
strategies covering all investment profiles,
leveraging UniCredit’s expertise combined with
the extensive experience and strong performance
of Alpha Bank’s Asset Management teams.”
Vassilios Psaltis
Alpha Bank CEO
In addition, our partnership with Azimut means
that Nova, a second fully-fledged funds business,
is at the heart of our open platform to support the
continuous launch of new funds in Italy. Part of the
onemarkets funds, 13 Nova funds are available
with €3.3 billion AUM*.
A new approach to investment solutions, putting
our clients firmly at the centre of all we do.
We’ve continued to develop our asset management
strategy, bringing innovation to our regions as we
expand our onemarkets Fund portfolio, which
provides clients with access to a growing
selection of actively managed funds.
The onemarkets Fund portfolio offers a
comprehensive fund proposition in terms
of asset classes, geographies and investment
themes to respond to the investment strategies
of all our clients.
Through the onemarkets Funds, UniCredit offers
an exclusive selection of bespoke investment
opportunities, managed by a team of experts,
under a framework that ensures quality and
specific risk-return profiles.
The platform offers 44 funds distributed in 10
countries and €14.5 billion AUM, with a growing
selection of actively managed options. It’s a
best‑in‑class investment solution, developed
in‑house with UniCredit’s Investment Strategy and
Product Management teams across countries, and
through partnering with experienced asset managers.
October
*data accurate as of 31 December 2024.
48
UniCredit 2024 Annual Reports and Accounts
buddy named Davis Cup 2024
Official Banking Partner
The International Tennis Federation’s appointment of
buddy, UniCredit’s new online branch, as the new official
banking partner of the famous Davis Cup has served up
opportunities to present the new digital and remote
service model to customers.
buddy is a complementary, not an alternative, service
model to the physical one. Customers can choose
where, how, and when to be served, with the
same service level.
In September, UniCredit presented buddy to customers
in Bologna during the group-stage Davis Cup finals,
which also took place in Manchester, Valencia and
Zhuhai. We also stayed close to customers in Bologna
when the final eight teams played in November.
Several other initiatives since buddy’s launch, such
as Roma 2024 European Athletics Championships and
local projects related to universities, have underlined
the focus on innovation, and commitment to stay
close to our territories.
“With buddy as Official Banking Partner of the
Davis Cup we confirm our commitment to promote
sport as a powerful means of inclusion and personal
growth, encouraging the development of the
communities and territories in which we operate.”
Annalisa Areni
Head of Client Strategies at UniCredit in Italy
June
Group
49
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
UniCredit gets on board the America’s Cup
The famous America’s Cup set sail with UniCredit on
board for the first time as its Global Partner and Global
Banking Partner, reflecting our belief in teamwork and
relentlessly pursuing success. UniCredit also sponsored
the inaugural UniCredit Youth America’s Cup Regatta,
enabling us to support young people’s sailing talent
and promote sustainable development.
Our overall sponsorship served as a platform to engage
and inspire existing and future client relationships.
We reserved spaces for clients on a dedicated boat
to watch the races. 20 UniCredit structures included a
stand where we welcomed 50,000 visitors and a photo
booth that racked up 10,000 360° video experiences.
We didn’t miss the opportunity to engage with
colleagues, including 70 who exemplified teamwork
in the project team. We offered free hospitality passes
for the AC37 Preliminary Regatta in Vilanova i la Geltrú,
near Barcelona, so our people could experience the
event first-hand.
We also had a stand at the Race Village at the Louis
Vuitton 37th America’s Cup and Puig Women’s Cup,
with engaging activities for colleagues.
“We are proud to be partnering with an event that
showcases talent and prioritises environmental
and sustainable practices. This is fully aligned
with UniCredit’s Strategy.”
Andrea Orcel
UniCredit Group CEO
Group
February
Strategic focus areas Leveraging common strengths continued
50
UniCredit 2024 Annual Reports and Accounts
UniCredit advances its technology with
Vodeno and Aion Bank acquisition
UniCredit has entered into a binding agreement to
acquire the entire share capital of Belgium’s Aion
Bank and its digital partner Poland’s Vodeno for
around €370 million. The acquisition will amplify
our digital capabilities with next-generation, scalable
and flexible cloud-based banking technology, without
depending on third-party core banking providers.
The companies include banking-as-a-service
products via Vodeno’s cloud platform and 200
engineers, developers, and data scientists who can
help us innovate and develop a seamless offering
for clients. It will allow UniCredit to embed financial
solutions directly into the customer journeys of
fintechs, retailers, e-commerce marketplaces,
banks and technology providers, and to pursue
new, targeted client segments and European
market expansion.
“Aion and Vodeno represents a strategic
investment for our Group, unlocking the full
potential of entering new markets thanks to a
highly flexible and scalable business model, fully
in line with UniCredit growth goals and ambitions.
A&V will contribute to generate further excess
cash and capital in the medium term and
enhancing our Group profitability and value
for our shareholders and stakeholders.”
Fiona Melrose
Head of Group Strategy & ESG at UniCredit
Group
July
51
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
UniCredit acquires majority share
in Alpha Bank Romania
“This is a decisive step in our strategic
partnership with Alpha, allowing us to further
enhance our presence in the country for the
benefit of clients and our wider stakeholders.
The resulting bank will be well positioned for
growth opportunities in the Romanian market, as
well as for the development of the potential of all
employees in Romania and across the wider Group”
Andrea Orcel
CEO of UniCredit
“Together with UniCredit, we are building
a leading bank in the Romanian market –
reflecting Alpha Bank’s longstanding presence
in the country – while actively collaborating
across multiple areas to deliver top-tier services
to Greek companies expanding into Europe and
to European groups looking to invest in Greece.”
Vassilios Psaltis
CEO of Alpha Services and Holdings
“We are happy to collaborate with the Alpha
Bank Romania team. During this transition
period, we are ensuring business development,
quality service to our customers and the best
possible work environment for employees.”
Mihaela Lupu
CEO of UniCredit Bank Romania
“I am confident that today’s step towards
a merger lays the groundwork for one of
the most important, dynamic and customer-
focused banking institutions in Romania. This
institution resulted will stand as a modern,
leading force in the industry – one that not
only meets but anticipates the evolving needs
of our customers and all stakeholders in an
increasingly competitive and fast-changing
business landscape.”
Sergiu Oprescu
Executive President of Alpha Bank Romania
UniCredit has acquired a 90.1% stake in Alpha Bank,
creating the third largest banking group by assets
in Romania.
This is the start of a gradual integration of Alpha
Bank Romania into UniCredit Group, which will be
completed with the merger through absorption of
Alpha Bank Romania S.A. within UniCredit Bank S.A.,
estimated to take place in the second part of 2025.
The merger will bring together two complementary
banks, both with longstanding relationships and
expertise in the Romanian market. The corporate
and retail experience of UniCredit Romania and
Alpha Bank Romania will strengthen the position
of the resulting bank.
November
Romania
Strategic focus areas Leveraging common strengths continued
52
UniCredit 2024 Annual Reports and Accounts
UniCredit provides
€15 million social impact loan
In line with our ESG Strategy, UniCredit has provided
a social impact loan of €15 million over eight years
to Nuova Assistenza, a cooperative working in the
socio‑health, welfare and educational sectors in Italy.
The loan is to support the construction of new
long‑term care facilities (RSAs) in Tuscany and
Sardinia and the acquisition of a number of facilities
already managed by the organisation. This will enable
Nuova Assistenza to increase the number of beds it
offers by over 300 – with 144 in the new facilities
and 177 in the facilities already managed by
the organisation.
The investment is backed by SACE’s Garanzia Futuro
and is subsidised due to the social impact generated,
in terms of the wellbeing of guests, the reduction of
waiting lists and respite afforded to caregivers.
October
Italy
53
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
Digital unlocked:
Our updated
Digital Strategy
Our determined efforts to accelerate transformation
through simplification and centralisation have paid
off. We are now taking back control of our technology
and talent, building an operating model based on
end-to-end ownership of our core technology,
products and processes.
Progressive transformation
With our technology and talent in-house, we can accelerate our evolution
and reach our potential as a top-tier digital and data-driven bank.
November
Group
Transitioning
our infrastructure
Modernising our infrastructure
to make it more resilient and
suited to our evolving needs,
with a standardised architecture
for managing Group-wide
applications and data.
Enhancing our
way of working
Streamlining our
organisation and investing
in our people to improve
efficiency, foster growth and
drive innovation.
Elevating our application
landscape
Upgrading our application landscape with
a cloud‑first approach to accelerate
development, foster synergies, and
enhance infrastructure.
Embracing Data
and AI
Becoming a data-driven
bank leveraging AI and
analytics to boost profitability
and create a better, more tailored
customer experience.
Four strategic areas comprise the next phase:
Strategic focus areas Leveraging common strengths continued
01
03
02
04
54
UniCredit 2024 Annual Reports and Accounts
Key achievements
Digital onboarding on buddy and all channels
The optimised flow minimises steps and user
inputs, making it faster than ever to become a
UniCredit customer. This onboarding process has
now also been extended to cards and new current
account products for UniCredit and buddy.
Rolling out GenAI solutions with UniAsk
A new way for colleagues to search the Bank’s
knowledge base of regulatory, policy and product
information using a generative-AI-powered chatbot.
Developing AI tools to classify M&A clients
Assessing their status as likely buyers or sellers, and
finding matches between compatible companies.
Expansion of our Global Bank Insurance platform
Providing customers with a more flexible, modern
and paperless experience that can bundle together
banking and insurance products.
Implementation of AI for previously
manual processes
An average of 5,000 cheques a day
are now processed using AI.
55
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
A significant deal with a cloud service
provider, bringing major benefits
of scale and accelerating our
transition to the cloud.
A single integration platform
across the Group.
A single AI platform
across the Group.
A single vendor strategy
across the Group.
Potential catalysts to accelerate our Digital machine:
Looking ahead
> Supporting the Bank’s industrial plan by
enabling the digitalisation of our factories,
franchise and governance functions
> Fulfilling the latest regulatory requirements
and future-proofing our business
> Empowering the workforce of the future
by bringing technology expertise into the
Bank and reducing reliance on third parties
> Delivering a single, consistent and ubiquitous
technology ecosystem to harmonise our
user experience across channels
> Optimising run and change processes –
driving greater efficiency in the daily running
of our Digital machine while streamlining and
standardising development of new products
and services
> Improving the monitoring of our digital
ecosystem through automated KPI
measurements, capacity planning and
project tracking, as well as improved
governance around third parties.
Driving positive impact:
Strategic focus areas Leveraging common strengths continued
56
UniCredit 2024 Annual Reports and Accounts
UniCredit’s ability to leverage its collective strengths
across markets is exemplified by its success in Germany,
where HypoVereinsbank (HVB) has positioned itself
as a key partner for the country’s most promising
start-ups. Through a dedicated Tech Team and
deep expertise in digital business models, HVB
has played a crucial role in fostering innovation
and supporting high-growth companies from
inception to global expansion.
A prime example of this approach is the collaboration
with GetYourGuide, a global online marketplace to
book travel experiences and tours, and one of
Germany’s most successful start-ups. Since its
early stages, UniCredit has been instrumental in
the company’s growth, acting as the sole private
placement agent for its secondary equity private
placement. The transaction, led by a new institutional
investor, was oversubscribed despite challenging
market conditions, underscoring GetYourGuide’s
strong trajectory.
This partnership reflects UniCredit’s broader strategy
to empower tech-driven businesses, particularly
in future-oriented fields such as AI, technology, and
resilient digital infrastructure. By offering tailored
financial solutions – including convertible bonds,
green financing, and international expansion support
– we ensure that companies like GetYourGuide can
continue scaling successfully.
Looking ahead to 2025, we remain committed to
fostering growth in the tech sector. The expansion
of the German Tech Team with two additional key
hires will further enhance its ability to support clients
with specialised expertise. By leveraging its European
network and deep local market knowledge, we
continue to set industry benchmarks in strategic
guidance and financial solutions, reinforcing Germany’s
role as a model of excellence within the Group.
April
Germany
UniCredit’s Strategic Support
for German Start-Ups
57
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
Launch of UniCredit for CEE boosts
competitiveness for micro and small enterprises
The launch of UniCredit for Central and Eastern
Europe has brought €2 billion of tailored financing
to help micro and small enterprises become more
competitive, including third sector organisations.
UniCredit for CEE brings concrete financial, accounts
management and advisory solutions to small
businesses across the CEE region, helping them grow
and transition to more sustainable business practices.
Finance
60 different finance solutions were made available
during 2024, including targeted programmes in
specific markets to support innovation, digitalisation,
competitiveness and sustainability. Local programmes
for certain economic sectors such as agriculture, tourism
or exporters were also made available.
In four markets, subsidised credit facilities for
microbusinesses will support new companies
with financing solutions, including digital
payments and financial education.
Accounts management
In some markets and under certain conditions,
fee‑free periods are offered to third sector
organisations and newly onboarded clients.
Advisory
We support micro, small and SME clients as they
transition towards more sustainable business models.
13 ESG financing programmes help clients invest in
sustainable practices and green technologies.
August
Group
Strategic focus areas Leveraging common strengths continued
58
UniCredit 2024 Annual Reports and Accounts
My Advisory: the brand-new advisory service
dedicated to private banking and wealth
management clients in Italy
UniCredit has launched a new advisory service
for high net worth clients, combining advanced
portfolio analysis methodologies with the expertise
of UniCredit’s investment strategy experts.
My Advisory leverages on a newly developed
platform designed to help Bankers identify clients’
needs and share tailored investment proposals
with them, supported by advanced portfolio
and risk analysis.
With its multichannel approach, My Advisory
combines traditional and digital channels,
ensuring clients can count on the personal
attention of their Banker, while monitoring
their financial assets remotely.
Furthermore, the new platform allows clients
to receive complete and detailed reporting,
both periodic and on-demand, allowing them
to monitor the performance of investments
in a timely, simple and intuitive way.
The result is a service that stands out for its
quality, customised reporting and tailor-made
investment advisory.
March
Italy
59
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Strategic Review
Financial Review
A transformed bank delivering
three years of outstanding results
Three years of cultural, industrial and financial
transformation have elevated UniCredit to the position
of the leading pan-European bank. UniCredit has
consistently delivered outstanding financial results
quarter after quarter, whilst setting a new benchmark
for banking.
We have successfully completed the first phase
of UniCredit Unlocked as a transformed bank that
delivered sixteen consecutive quarters of profitable
growth, crowning our best year ever and with all
regions contributing.
We beat our Unlocked targets set in 2021,
reaching a new sustainable run rate
2024 Target
2024 Actual
Quality
Growth
Gross Revenue
c.€19bn
€24.8bn
Net Revenue
CAGR FY21-FY24
+2%
+14%
Fee growth
CAGR FY21-FY24
+4%
+6%
Net NPEr
c.1.8%
1.4%
Operational
Excellence
Cost-to-income ratio
c.50%
37.9%
Total Costs
€9.4bn
€9.4bn
Capital
Excellence
Net-revenue-to-RWA
ratio
5.3%
8.7%
CET1r
12.5-13%
15.9%
Read more about our Strategy on pages 16-23
Notwithstanding higher-
than-expected inflation
Exceeded target
60
UniCredit 2024 Annual Reports and Accounts
Our strong quality revenue growth was achieved
with discipline. Our best-in-the-industry NII ROAC
increased from 4% to 19%, with fees increasing at
a 6% CAGR, well ahead of our peers, to 33% of
total revenues. The impact of our investments
in our factories has just started to show.
Despite high levels of inflation in the countries where
we operate, we reduced costs by around €1.7 billion,
while reinvesting c.€1.4 billion to strengthen our Group
– a testament of our continuous focus on operational
excellence. As a result, our cost-to-income ratio reached
37.9% notwithstanding our complexity, beating our
peers by a significant margin.
We also demonstrated outstanding capital efficiency,
beating all targets on net revenue to RWA and CET1r.
This supported €26 billion of distributions – 65% more
than the original €16 billion target – while building
excess capital of €6.5 billion (taking €3.6 billion of
integration costs and €700 million of additional
overlays).
Our 2024 Net Profit is now more than double what
we planned in 2021.
This excess capital will enable us to further boost
our distributions going forward or provide us with
strategic flexibility.
Our RoTE at 17.7% is also significantly ahead of
the c.10% UniCredit Unlocked target despite our
excess capital.
This performance maintains a balance between
achieving excellence in the short-term and establishing
a solid foundation for the future. It is proof of the
consistency of UniCredit and its people.
>€4.5bn1
€9.3bn
c.10%
c.21%
150
bps
444bps2
(€12.6bn)
>€16bn
13% CET1r
>€26bn
15.9% CET1r
NET PROFIT1
OCG
RoTE @13% CET1r
TOTAL DISTRIBUTIONS
FY21-FY24
Strongly exceeding profitability and distribution ambitions
2024 target 2024 Actual
Distribution subject to supervisory, Board of Directors and
shareholder approvals.
1. Net Profit underlying refers to Net Profit adjusted for integration
costs and RCA case. The €4.5bn Unlocked target was referred to
«Net Profit after AT1 and cashes coupons», i.e. c.€5.0bn before
AT1 and cashes coupons, comparable with the actual FY24
Net Profit at €9.3bn (before AT1 and CASHES coupons).
2. Before considering the impact of strategic investments.
3. vs target CET1r at 12.5-13%.
Taxing P&L to protect our future.
€10.3bn underlying1
With >€6.5bn excess3 capital for the future
61
UniCredit 2024 Annual Reports and Accounts
Other
Company Report
Consolidated Report
ESG Review
Strategic Review
Financial Review
0.8
0.7
Eurozone
Average
UniCredit
Countries
0.9
1.2
Financial Review continued
Surpassing our peers across all relevant metrics
UniCredit remains a leader in the industry across all KPIs, beating peers by a significant margin. We delivered
the highest total shareholder return which is four times our European peers1, the best share price performance
and the most generous distributions, whilst building our excess capital.
We are beginning the next phase of our journey from a position of significant strength able to offset the
normalisation of the macro environment.
Uniquely positioned to deliver true differential value,
especially within a more challenging macro environment
While we are realistic with respect to the challenges
from a macro environment that will normalise,
we believe that we are best placed to deliver the
differential value and growth necessary to offset it.
UniCredit is strategically positioned in regions with
higher-than-average economic growth, where the
banking sector is expanding at an accelerated pace.
This provides us with a compelling advantage over
our peers to further build on the foundations we’ve
established over past three years and to continue
to grow.
Prepared for shifting macro...
> NII normalisation
> Uncertain European growth outlook
> CoR normalisation
> Inflationary Costs pressure
> Digital Evolution
> Russia compression.
GDP growth (2022-24)4
GDP growth across our geographic footprint
is expected to be approximately 30 basis
points higher than the eurozone average.
1. Peers include BBVA, BNP, Crédit Agricole S.A., Commerzbank, Deutsche Bank, ING, Intesa Sanpaolo, Santander, Société Générale.
2. Actual disclosed distributions accrued to FY24.
3. Considering core EU peers with market cap above €30bn as of 31/12/2024, i.e. BBVA, BNP, Crédit Agricole S.A., Deutsche Bank, ING,
Intesa Sanpaolo, Santander.
4. GDP actual up to 9M24; 4Q24 Bloomberg data; FY25 UC scenario, Loans actual up to 2023; 2024 and 2025 UC scenario.
From Laggard... to Leader
FY24 vs FY21 (Ranking)
Outstanding value generation
FY24 vs FY20 (compared to EU peers)
#1 from #9
Net-revenue-to-RWA ratio
#1 from #8
RoTE @13%
4x
TSR
c.2x
Total Distribution growth
among the peer group3
#1 from #5
Cost-to-income ratio
#1 from #4
Total Distributions2
>5x
Share price
62
UniCredit 2024 Annual Reports and Accounts
GDP Loan growth
0.8
0.7
0.9
2.2
2.8
1.0
1.8
2.0
5.0
6.7
Italy
Germany
Austria
CE5
EE6
Unlocking Acceleration in 2025 and beyond
The first phase of UniCredit Unlocked was focused to
unlock trapped potential – UniCredit has surpassed
our own ambitions set at the end of 2021, resetting
the bar higher each year. We have moved from laggard
to leader in our sector, and are now poised to enter the
next chapter of growth.
As we look ahead, we are evolving our Strategy
to Unlock Acceleration of our performance while
completing our transformation. Leveraging our lines
of defence, we will build on our structural strengths
and accelerate our quality growth trajectory through
clear managerial initiatives.
Loan growth vs. GDP3 (2025) %4
In many of our markets, loan growth is projected
to exceed GDP growth, serving as a powerful
catalyst for continued top-line expansion.
Furthermore, we have built unique lines of defence
including €1.7 billion of overlays to insulate us from the
cost of risk cycle. We have also front-loaded non‑operating
items and extraordinary charges equal to €1.3 billion in
2024 alone which should also trend to zero.
Together with the strength of our transformed Group
and our alpha initiatives in flight, these lines of defence
will de-risk the achievement of our Net Profit ambitions.
The same, evolving Strategy
UniCredit Unlocked
Win. The Right Way. Together.
Unlocked
Potential
2021 to 2024
Laying the foundations
to release our trapped
potential.
Read more on pages 22-23
Unlocking
Acceleration
2025 and beyond
Building on our structural
strengths with new alpha
initiatives to widen our
competitive gap.
5. Excluding Austria
6. Excluding Russia
UniCredit 2024 Annual Reports and Accounts
Other
Company Report
Consolidated Report
ESG Review
Strategic Review
Financial Review
63
Financial Review continued
Leveraging our structural advantages
Leveraging our structural strengths
…with a clear roadmap…
…to become the Bank that…
Attractive
Geographic
Footprint
Profitable and diversified franchise
Italy – Quality Earnings Powerhouse
Germany and Austria – Resilient Anchors
CEE – Profitable Growth Engine
Direct capital allocation
and investments to higher
growth opportunities
Clients recognise and trust us
as the leading pan-European
bank, firmly embedded in
our communities
Quality
Client Mix
High quality base
c.60% of revenues in
most profitable segments
(SMEs1, Private, Wealth and Affluent)
Increase focus on targeted
client segments
Offers clients a superior
experience with people
and banks that care and
understand their needs
Superior
Business Mix
NII RoAC at 16% in 2027
Fee-to-revenue ratio2 towards 40%
With above market fee growth driven
by product factories and superior
lending products
Enhance product offering and
how we grow in high‑value
segments
Offers clients best‑in‑class
products for all their business
and individual needs
Connecting clients with superior
integrated distribution channels
offering them choice and flexibility
Move towards an
omnichannel offering
Offers clients the flexibility
to access when, where
and how they want
A new roadmap to navigate as the leading pan-European Bank
We are optimally positioned to execute on this acceleration phase and solidify our position as a leading
pan‑European bank and a benchmark for the sector. We have strong competitive edge thanks to our unique
structural advantages and will build on these through alpha initiatives and investments in our business.
Our Operating
Machine
Our Linchpin
Our
Commercial
Machine
Unlocking
Acceleration
Organisation
& Processes
Continue empowering,
simplifying, delayering
and streamlining.
Geographies
Technology & Data
Finalise taking
back control and
boost business
acceleration and
efficiency initiatives.
Clients
Products
People
Continue
empowering,
training and
investing in
our people.
Channels
1. Including Microbusiness in SMEs.
2. Fees including insurance results.
64
UniCredit 2024 Annual Reports and Accounts
Alpha initiatives
Alongside our structural strengths,
our targeted alpha initiatives will
drive our quality growth over
the next three years.
This exciting organic growth,
together with the results of our
transformation, will allow us to
absorb expected future headwinds
in full, and significantly grow without
diluting profitability.
Our exciting story:
the emergence of our
true differential value
We aim to achieve c.€10 billion of Net Profit by 2027,
and to distribute in each of the next three years1 more
than in FY24: of which cash dividends at 50% of Net Profit.
This is supported by a greater than 17% RoTE, an average organic
capital generation broadly in line with Net Profit, and the return
of our excess capital2.
We continue to target strong EPS and DPS growth.
This will result in six years of improving performance and growth at
an increasing margin over our cost of equity, which, coupled with an
outsized yield, should also lead to a significant re-rating of our stock.
We are excited about the challenge
and determined to meet it.
Leading Financial
Performance
Superior Lines
of Defence
1. Subject to inorganic opportunities and delivery of financial ambitions.
2. vs target CET12 12.5-13%.
65
UniCredit 2024 Annual Reports and Accounts
Other
Company Report
Consolidated Report
ESG Review
Strategic Review
Financial Review
1
5
Our
ESG Strategy
Our ESG Foundations
At UniCredit we are committed
to embedding Sustainability
in everything we do
ESG Review
We lead by example, which is why ESG (Environmental,
Social and Governance) is at the heart of our strategic
framework. Our Purpose is to Empower Communities
to Progress, guided by three Principles:
> Holding ourselves to the highest possible standards
to do the right thing by our clients and our
communities
> Being fully committed to playing our part in
supporting our clients in a just and fair transition
> Respecting and balancing the perspectives and
priorities of all our stakeholders throughout
our business and decision-making.
Promoting ESG
awareness across
our organisation
and beyond
Read more on page 78
Strengthening
our ESG business
proposition
Read more on page 68
66
UniCredit 2024 Annual Reports and Accounts
2
3
4
Over recent years
we have built
strong ESG
foundations by:
Advancing
a distinctive
social approach
with tangible results
Read more on page 70
Ensuring a just and
fair transition through
clear commitments
Read more on page 72
Guaranteeing accountability
and transparency, along with
a robust risk framework
Read more on page 76
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
67
UniCredit 2024 Annual Reports and Accounts
ESG Review continued
1
Our strengthened ESG business proposition
Enhanced ESG business
functions:
> Dedicated ESG Advisory team,
complemented by industry specialists
> Local ESG teams providing technical
support across the Group.
Enriched ESG
client offerings:
> ESG-focused products
> ESG factors integrated into the credit process.
A supporting
ESG ecosystem of
strategic partners:
> Open-es to assess clients’ ESG maturity
and develop tailored plans
> Regional partnerships in specific
sectors (e.g., real estate).
Read more about our ESG Strategy
68
UniCredit 2024 Annual Reports and Accounts
Our ESG offer
Supporting
Italian companies
with “Finanziamento
Futuro Sostenibile Plus”
We want to support companies
committed to improving their
sustainability profile through dedicated
financing tied to tailored Sustainability
objectives – based on a company’s
Sustainability and transition strategy.
In Italy, thanks to our partner, Cerved Rating Agency,
our new product, Finanziamento Futuro Sostenibile
Plus, also offers a free and fast ESG assessment
through the Open-es platform.
Financing the transition
with “Transizione 5.0”
UniCredit has allocated a new €5 billion
plafond to support companies taking
part in “Transizione 5.0”, a public
initiative offering tax credit for
energy efficiency projects.
This allocation is part of the third edition of
“UniCredit for Italy”, our broader programme
supporting families, individuals and businesses
since 2022. With this new plafond, the total amount
made available to Italian companies in 2024 has
reached €15 billion, for a total value of €35 billion
earmarked for individuals and businesses since 2022.
€15bn
Increased funding available to
the Italian production system
Our ESG offer
Open-es
In March 2023, we partnered with Open-es to better support
our clients in measuring and improving their ESG performance.
Open-es unites entrepreneurs, financial
institutions and associations through
an innovative digital platform.
22
Partners
29,000
Companies
Launched in 2021 and involving more than
29,000 companies and 22 partners, Open‑es is an
inclusive and collaborative ecosystem committed
to achieving ESG targets and implementing
innovative solutions. In this alliance, our role as
a value-chain leader partner is to facilitate the
sustainable development of the Italian corporate
sector with initiatives and solutions aimed at
companies of every size.
69
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
UniCredit 2024 Annual Reports and Accounts
Social finance
Support to
employees
Direct social
contribution
ESG Review continued
A distinctive social approach
2
We have a suitable, accessible, fair, and equitable
(SAFE) financial offer:
> We developed new social products, tailored to local needs,
including Futuro Sostenibile Sociale, UniCredit per l’Italia and
UniCredit for CEE, and two new current accounts, Imprendo
Sociale and Imprendo Sociale Più, for non-profit organisations
> We signed partnerships in the social sector.
We support communities through social projects
and donations:
> We contribute to youth and financial education, through
initiatives such as the Banking Academy in Italy and UniCredit
Foundation programmes (Teach for All, Junior Achievement)
across the Group
> We promote volunteering initiatives, encouraging our
employees to directly support their communities.
We promote flexibility, well-being and people care,
enhancing Diversity, Equity and Inclusion (DE&I):
> We foster a culture of continuous learning through initiatives such as
Culture Bootcamps, mentoring programmes, reskilling opportunities,
and well-being workshops
> We cultivate an inclusive and diverse workplace through employee
networks, bias-free processes and equal opportunities
> We prioritise employee well-being and quality of life through
initiatives such as “Ask for Help” resources, flexible working
arrangements, mental health awareness activities, prevention
programmes, and local welfare benefits.
70
UniCredit 2024 Annual Reports and Accounts
Caring for our people
Holistic well-being approach
Our commitment to well-being is embedded
in our Caring culture and ESG framework.
In February 2024, we introduced a Group holistic
approach to support our colleagues across
all stages of their lives, integrating mental,
physical, social, career, and financial
well‑being into daily practices.
We mapped 365 well-being initiatives across
the Group – one for each day of the year. We
gave access to dedicated courses and an
interactive guide with practical tips and
suggestions, empowering each of us to
take charge of our own well-being journey.
365
Well-being initiatives
c.40
Internal well-being trainers
Additionally, we trained c.40 internal well‑being
trainers and delivered well‑being workshops
across the Group.
Recognising our efforts, UniCredit has been
awarded Diversity and Inclusion Initiative of
the Year EMEA 2024 in the influential magazine
Environmental Finance’s annual Sustainable
Company Awards for its “Group holistic
well‑being approach”.
71
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
2019
2021
2022
2024
ESG Review continued
In 2019:
Signed the UNEP FI Principles for Responsible
Banking (PRB), which support banks in aligning
their business strategy with society’s goals and
promote financial inclusion.
In 2022:
Signed the Sustainable Steel
Principles, a climate-aligned
finance agreement for the
steel industry.
In 2021:
Became a member of the Net
Zero Banking Alliance, with
a clear commitment to reduce
emissions of our lending portfolio.
In 2022:
Joined Finance for Biodiversity Pledge
(FfBP) Foundation, the only international
pledge dedicated to financial institutions,
calling on global leaders to protect and restore
biodiversity through their finance activities.
In 2022:
Became a member of the Ellen MacArthur
Foundation, an international charity that
supports the acceleration of the circular
economy across our countries.
Clear commitments to support
a just and fair transition
3
72
UniCredit 2024 Annual Reports and Accounts
In May 2024, we published our Statement on Natural
Capital and Biodiversity. This new statement
represents UniCredit’s first comprehensive Natural
Capital Framework, in which biodiversity and climate
issues are interconnected.
Alongside our Net Zero targets and Transition Plan,
our Natural Capital Framework also considers the
circular economy as a key lever for change. We have
already addressed nature-related issues, including
adopting the Equator Principles and publishing
policies on sensitive sectors alongside commitments
on human rights.
Our first step for our Natural Capital Framework was
to evaluate sources, methodologies and frameworks
to effectively address key challenges related to
biodiversity and nature, in coherence with the
Kunming-Montreal Global Biodiversity Framework.
We then developed a sector-level heatmap of our
loan portfolio, to assess which sectors are most
exposed to nature-related risks by gauging their
impact on nature.
Finally, we have set up a specific training programme
to build awareness around the emergent topics of
biodiversity and nature, which will be available
to all employees in 2025.
We engage with the circular transition by integrating
circular economy considerations into our business
operations, alongside climate-related initiatives. We
were the first Italian bank to have signed up to the
Finance for Biodiversity Pledge (FfBP), calling for
and committing to taking ambitious action on
biodiversity to reverse nature loss in this decade
through collaboration, engagement and assessing
our own biodiversity impact.
In addition, we are a member of the Working Group
on Nature within the United Nations Environment
Programme Finance Initiative (UNEP FI), related to
Principles for Responsible Banking (PRB). We are the
only Italian bank to have contributed, together with
34 international banks, to the publication of the
‘PRB Nature Target Setting Guidance’, which aims
to help the banking sector align with the Kunming-
Montreal Global Biodiversity Framework and halt
biodiversity loss.
Launch of our Statement on
Natural Capital and Biodiversity
May
Group
73
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
ESG Review continued
UniCredit has provided a development loan of
€8.3 million to Agroloop, a Hungarian business
that produces animal feed components using
insect farm technology.
Part of an investment signed with the European
Investment Fund’s InvestEU Sustainability guarantee,
the innovative greenfield finance totals €28 million
and includes a bank guarantee of €1.5 million.
Agroloop is one of the SMEs supported by UniCredit
Bank Hungary as part of our UniCredit for Enterprises
service. The funds will be used to develop Agroloop’s
technology and expand production at the region’s
most significant insect farming and processing
facility on the outskirts of Budapest. Approximately
60 tonnes of feedstock is processed here daily.
Agroloop’s approach to sustainable animal feed
production is a sustainable, circular model, using
food industry by-products in the form of organic
waste from the bottom of the feed value chain.
It creates high value-added, premium quality
feed protein, feed oil and soil improver compost
that minimises emissions and has a reduced
environmental impact.
The process uses black soldier fly larvae to recycle
feed-grade food industry by-products with minimal
water and soil use. It can use 30% of the world’s food
production, which would otherwise go to waste, and
is pioneering sustainable animal feed production in
the Hungarian market.
November
Hungary
UniCredit supports
investment in sustainable
animal feed production
74
UniCredit 2024 Annual Reports and Accounts
Our commitment to Net Zero
Promoting sustainable
steel in Germany
UniCredit acted as Mandated Lead
Arranger and lender of the SACE-covered
green loan financing for steel producer
Salzgitter Group.
> The transaction contributed to the financing
of its €2.3 billion decarbonisation project
SALCOS®, to convert its blast furnace steel
production to DRI and electric arc furnaces
powered by green electricity and green hydrogen.
> Once completed in 2033, SALCOS® will enable
a 95% abatement of Salzgitter Group’s CO2
emissions in steel manufacturing, reducing
Germany’s aggregate CO2 emissions by around 1%.
> The financing facility was among the first ECA-
covered Corporate Green Loans in the steel
sector worldwide and the first in Germany.
Fostering energy-efficient
real estate in Italy
UniCredit has financed a number
of projects in the commercial
real estate sector.
One of these involves Coima Group and is related
to P39, a real estate office and residential complex
located in Milan. It applies the most effective
sustainable building practices with constant
focus on energy saving, allowing the building to
meet the Nearly Zero Energy Building standard.
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
UniCredit 2024 Annual Reports and Accounts
75
ESG Review continued
Full accountability and transparency,
along with a robust risk framework
4
We set a comprehensive policy
framework to manage environmental
and social risks in controversial sectors,
such as Coal, Oil & Gas, Human Rights
and others.
We keep integrating climate and
environmental factors into our
risk management processes
and procedures.
We continue to enhance our ESG
Product Guidelines ensuring
homogeneous classification and
reporting of our ESG financial offer,
to prevent greenwashing and
social washing risks.
We provide disclosure on our
ESG activities, through reports
in line with sector guidelines
and recommendations.
76
UniCredit 2024 Annual Reports and Accounts
UniCredit Bulbank has signed a new three-year
contract to accelerate its renewable energy use
and significantly reduce its carbon footprint.
It will now purchase electricity from a photovoltaic
power plant, so around 75% of the bank’s total
energy consumption will be from green energy
generation.
Bulbank will purchase green energy monthly, with
an annual supply of 7,000 MWh. The origin of the
energy purchased will be guaranteed in the form of
certificates from the Sustainable Energy Development
Agency (AUER).
The new agreement encompasses all of the bank’s
locations across Bulgaria, except for some leased
premises where electricity is invoiced by the landlord.
This partnership aligns with UniCredit Group’s
goals. We were the first bank in Italy to commit
to a corporate power purchase agreement (PPA)
with a green energy producer. UniCredit Bulbank
is a pioneer within the CEE region, following Italy
in signing a corporate PPA and reflecting the
Group’s commitment to Sustainability and
green energy solutions.
Other Sustainability initiatives from UniCredit
Bulbank include:
> Installing photovoltaic panels on the roof of
Sveta Nedelya. In the first seven months of
operation, they produced 23 MWh of electricity.
> Replacing its fleet with hybrid cars. Since the
beginning of 2024, 26 more hybrid cars have
been delivered, and 40% of its fleet is now
made up of electric and hybrid cars.
> Installing additional charging stations
in the Central Office garages. Up to eight
cars can now be charged simultaneously.
UniCredit Bulbank uses
75% green energy
November
Bulgaria
77
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
ESG Review continued
Our ESG Day: promoting ESG awareness internally and
outside our organisation
5
Our flagship initiative is our ESG Day. At this popular and eagerly-awaited event –
involving employees and clients – we brainstormed on key ESG-related issues
and potential solutions, as well as developing concrete actions.
We considered topics such as:
How do we resolve
relevant trade-offs?
How can we prioritise
social issues in our
approach?
How can we better
support our ESG-
focused clients?
78
UniCredit 2024 Annual Reports and Accounts
Success story
ESG Day 2024 tackles
pressing challenges head-on
UniCredit’s second ESG Day emphasised
the urgency of addressing critical social and
environmental challenges and the need for
collective action and behavioural change
to create a sustainable future, for a just and
fair transition.
ESG Day 2024, centred around the theme
“A challenged future: choosing the path ahead”,
putting clients at the centre and designing
a customer journey to define concrete actions
to solve trade-offs and open points.
It included a live event at the UniCredit Tower
Hall in Milan with corporate clients and strategic
partners. In parallel, local side events in various
countries included colleagues and external guests
joining the main event via live streaming, into four
languages of the Group countries (Italian, Bulgarian,
Hungarian and German) and broadcasted in
English. We also broadcasted externally on
LinkedIn and Facebook.
13,243
Total number of participants
vs first edition
+9%
79
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
ESG Review continued
Success story
Panels and key takeaways
A zero-sum game?
Solving Sustainability trade-offs
> Manage conflicting interests as part of
the transition, with balancing act between
environmental, social and biodiversity issues
> No silver bullet for this difficult situation; firms
will have to take a nuanced approach, drive
gradual progress with clear governance
> Be realistic about what is being sacrificed
for what.
The social dilemma:
how climate change and technology
are reshaping society
> Recognition of the “S” component as a
fundamental lever for a just and fair transition
> Eco-anxiety can be channelled into concrete
community actions to build resilience.
Companies must define clear ecological
values reflecting those of their workers.
> AI is an amplification of thinking to find solution
to the social and environmental challenges.
The way forward:
from responsibility to response-ability
> Importance of fostering more sustainable
ways of doing business
> Examples included service providers tracking
consumer behaviour and offering rewards,
same approach could be applied to investors,
with creditors who contribute to a company’s
Sustainability goals earning a better return.
80
UniCredit 2024 Annual Reports and Accounts
The crucial nexus between climate and nature
Following the second panel, the Head of
Biodiversity and Natural Capital at Iberdrola
and Convener of the Nature Positive Initiative
discussed the connection between climate
and nature.
Key takeaways from the double interview
were that the world agreed at COP15 to halt
and reverse nature loss, putting nature onto
international agendas. The financial sector’s
wider presence signals increasing attention.
Moving ESG discussions forward
The Group ESG team, with support from
UniCredit Group Investment Strategy and Group
Stakeholder Engagement launched a white paper
on the need to tackle issues faced by society and
the environment. “A challenged future: choosing
the path ahead” provides context and insights
into key topics, including the effects of the green
transition on society and how financial institutions
and corporate clients can play their part.
407
Number of downloads
Everyone has a part to play in saving our planet
– clients, colleagues, competitors, governments
and other influential bodies and organisations.
We change our behaviour if we stand up
together and make a concerted effort.
Read more about our ESG Day 2024, here
81
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
E
n
v
i
r
o
n
m
e
n
t
a
l
S
o
c
i
a
l
G
o
v
e
r
n
a
n
c
e
15%
15%
20%
15%
53%
50%
ESG Review continued
Our progress
to date
In 2024 we fully achieved our ESG targets across products
From ESG volumes to ESG penetration
Focus on ESG share over total
business for a more transparent
view on UniCredit’s ESG performance.
Three indicators netting out overall market
effects unrelated to ESG.
Environment
Sustainable financial
instruments and Net Zero
commitments.
Read more
on page 83
Social
Social financing for
initiatives in our
communities.
Read more
on page 84
Governance
ESG-aligned remuneration,
solid DE&I framework.
Read more
on page 85
1. KPI calculated as ESG new production Including Environmental, Social and sustainability-linked lending, divided by MLT loans new production in given year.
2. Based on Art. 8 and 9 SFDR regulation.
3. LT Credit. KPI calculated as ESG all regions’ bonds, including Sustainability-linked bonds, divided by all regions’ bonds for given year.
ESG lending1
Good performance on
environmental lending with
€26.9bn, while outperforming
on social lending with €13.2bn
since January 2022.
ESG Investment Products2
Positive year with improved
ESG penetration rate at 53%
(c.€106bn stock) at FY24 vs
48% at December 2023.
Sustainable Bonds3
Good performance with €32.9bn
issuance since January 2022 with
focus on Corporates and Financial
Institutions in alignment with
Group Strategy.
ESG penetration (FY24)
FY24 Actual
FY24 Target
82
UniCredit 2024 Annual Reports and Accounts
11
Green Bonds issued
€6.5bn
Total amount of financing
from Green Bonds
2030
New targets set for key
carbon-intensive sectors
Environment
We advanced our sustainable financial
instruments, reaching a total of €26.9 billion
in cumulative green lending since January 2022
In 2024, we continued to turn our
Net Zero commitment into action:
We disclosed our first Transition Plan,
which outlines the implementation of
key enablers to embed Net Zero into our
organisation for the three priority sectors.
We set new 2030 targets for key
carbon‑intensive sectors (Steel, Shipping,
Commercial Real Estate), and defined an
emissions baseline for Residential Real Estate.
We extended our Net Zero Transition Plan
deliverables (e.g., client clustering, supporting
tools) to the new sectors for which the targets
have been disclosed.
We issued 11 Green Bonds,
totalling €6.5 billion in financing:
Senior Green Bonds
3 (Jun 21, €1bn; Nov 22, €1bn; Nov 23, €0.75bn)
Green Mortgage Covered Bonds
2 (May 22, €0.5bn; Sep 22, €0.5bn)
3 (May 22, €0.5bn; Feb 23, €0.75bn;
Jan 24, €0.75bn)
2 (Sep 21, €0.06bn; Sep 23, €0.047bn)
1 (Jun 23, €0.5bn)
Read more on Net Zero in E1 Climate change
in our Sustainability Statements.
83
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
ESG Review continued
Social
Since 2022, we have provided €13.2 billion
in social financing via micro-credit, impact
financing and lending to disadvantaged areas
€35bn
UniCredit per l’Italia,
including +€5bn credit
“Piano Transizione 5.0”1
€155m
Issued in our
own social bond
€78.1m
Social contribution2
€30m
Enhanced funding to
UniCredit Foundation
c.15,000
hours dedicated to
volunteering by
our colleagues
>700,000
Financial education
beneficiaries reached
Our efforts included local initiatives to support
communities such as UniCredit per l’Italia, adding
up to €35 billion (including additional €5 billion
to support corporates with “Piano Transizione 5.0”)1.
We also joined the Venice Sustainability Foundation to
promote local Sustainability and issued a €155 million
social bond to support communities.
In 2024, our social contribution2 rose to €78.1 million
(€60 million in 2023), of which in 2024, €30 million was
allocated to UniCredit Foundation (€20 million in 2023).
Around 50% of our social contribution is dedicated to
youth and education.
Since 2022 we have invested in financial education
and ESG awareness initiatives, reaching over 700,000
financial education beneficiaries across our countries,
focusing on priority targets such as the young, women
and vulnerable individuals. In 2024, we launched our
Skills for Transition programme to deliver training
to young people and businesses that are expected
to be the most affected by climate change.
1. As of 31 December 2024.
2. Gross monetary amount paid in support of communities
and projects, including Sponsorship & Donation.
84
UniCredit 2024 Annual Reports and Accounts
Governance
CEO and top management remuneration saw
a 20% weighting of long-term performance
related to ESG business, DE&I and climate
risk priorities. Furthermore, a relevant link
to Group’s Values and Culture – “Winning.
The Right Way. Together” goal – is also
part of the short‑term scorecard.”1
+1,500
Colleagues across the Group
part of Culture Network
+1,000
Active members in our
Employee Networks
In 2024:
> 7 Culture Roadshows were held reaching 3,000
colleagues across the Group’s Countries
> c.20,000 colleagues joined Annual Culture Day
Group-wide
> In the context of our well-being framework:
> 365 initiatives mapped across the Group
> c.40 internal trainers trained to deliver
dedicated workshops
> Dedicated courses and an interactive guide
with practical tips and suggestions are
available to every employee in our Group
> Raised ESG awareness through dedicated
training sessions and our second ESG Day
> Over 1,000 active members in our Employee
Networks, focused on various diversity traits
across the Group
> Significant share of women in our governing
bodies and leadership teams (as of 4Q24):
> 50% Board of Directors
> 50% Group Executive Committee
> 34% Leadership Team
> Strong international presence (as of 4Q24
36% BoD, 67% GEC, 38% Leadership Team).
Strengthening internal processes
and collaboration for our CSRD aligned reporting
Transitioning to Corporate Sustainability Reporting
Directive (CSRD) compliant reporting required a significant
enhancement of our internal systems, processes, and
capabilities. In 2023, a joint ESG and CFO working group
analysed requirements and created a 2024 adaptation plan.
We invested in enhanced data collection, analysis, and
reporting, leveraging automation for efficiency and risk
reduction. Extensive cross-functional collaboration,
including senior management oversight, ensured accurate
identification and reporting of key Sustainability topics.
Close alignment with local legal entities across our
operating countries guaranteed consistent compliance.
This commitment underscores our dedication to Sustainability,
transparency, and accountability, establishing a strong
foundation for continuous improvement.
1. 20% of our CEO’s short-term scorecard.
85
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
ESG Review continued
Going forward: evolving our ESG Strategy
UniCredit’s evolving ESG Strategy supports our
Purpose of Empowering Communities to Progress
It is based on strong fundamentals and a set of
interrelated elements to deliver value. Guided by
our Principles, we implement key enablers required
to support strategic levers, which in turn allow us to
achieve the ESG goals underlying our ambition. This
interconnected framework ensures alignment and
cohesion across all ESG initiatives, maximising
our impact.
Read more on each element of our ESG Strategy,
in section “SBM-1 Strategy, business model and
value chain” of our Sustainability Statements
Our Principles-based approach, aligns with our Group
Values and guides our actions, enabling us to embed
Sustainability in everything we do. It also allows us
to continuously adapt our ESG Strategy to a changing
external environment, address regulatory expectations,
rising geopolitical tensions and evolving customer needs.
In this context, we have evolved our ESG strategic
framework to ensure it includes all key enablers and
levers needed to effectively support our communities.
The key changes are:
Goals
> Updated ESG business targets with a focus on ESG
penetration for transparent performance tracking
> Integrated Net Zero emissions targets into ESG goals.
Levers
> Broadened social focus to address new
challenges like an ageing population.
Read more in the dedicated section
Strengthening Our Social Focus
> Elevated Net Zero from commitment
to action to support clients’ transition
> Expanded focus beyond climate to assess
nature‑related risks and opportunities
> Prioritised transparency to inform stakeholders
and mitigate green and social washing risk.
Enablers
> Enhanced client offerings with ESG-related
products to support their transition
> Lean governance to embed Sustainability
efficiently across roles
> Dedicated ESG risk framework to
bolster strategic levers
> Leveraged organisational Culture to engage
employees in ESG implementation.
Our ESG penetration targets
We updated our ESG penetration targets
on total business volumes for 2025-2027
15%
ESG lending
15%
Sustainable bonds
50%
ESG investment products1
1. Based on Art. 8 and 9 SFDR regulation.
86
UniCredit 2024 Annual Reports and Accounts
Leading by example
Fulfilling our Purpose of Empowering
Communities to Progress.
Ambition
Evolving in step with regulation and market forces
ESG penetration targets allowing for a more transparent and
meaningful view on our ESG performance while also aligning
our lending portfolio with Net Zero emissions by 2050.
Goals
Championing Social
Backing our communities,
our people and our wider society.
Enhanced Client Support
Leveraging Net Zero Strategy
and Transition Plan.
Beyond Climate
Weighing and evaluating natural
capital risks and opportunities.
Evidencing Accountability
Providing transparency in disclosure
and impact assessment.
Levers
Enriched Client Offering
Expanding and diversifying
our ESG business portfolio.
Lean Governance
Clear ESG roles and responsibilities,
embedding agency and ownership.
Robust Framework
Effective and enhanced monitoring of our ESG risk
and lending portfolio.
Empowered Culture
Common Vision, Strategy, and Principles to
Win. The Right Way. Together.
Enablers
Our Principles guide our ESG Strategy,
in line with our Group Values.
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
UniCredit 2024 Annual Reports and Accounts
87
ESG Review continued
Strengthening our Social Focus
We are adapting our social strategy to reinforce our efforts on youth,
education and on a just and fair transition, while exploring new emerging
social topics like health – an increasingly important issue in the context
of an aging population
The evolving strategy includes fulfilling our social
role through social finance with projects supporting
youth and balancing environmental and social risks.
We are also exploring how we can best support our
communities in addressing emerging social challenges,
such as health. We continue to support our communities
through social contributions, focusing on education,
financial inclusion, and expanding our Skills for
Transition programme. We will support our people
by fostering a learning culture, building an inclusive
and diverse workplace and ensuring well-being and
quality of life.
Read more about our Skills for Transition programme here
88
UniCredit 2024 Annual Reports and Accounts
Double Materiality
Analysis
Our strategic approach
Every year, we conduct a materiality analysis to identify key
stakeholder issues, including business impacts, risks, and
opportunities (IROs) across ESG matters
In 2024, we performed our first Double Materiality Analysis (DMA), considering
both impact and financial materiality to gain a comprehensive ESG perspective.
Double
materiality
process
Methodology
2024 results
and progress
Way forward
03
01
02
04
89
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
03
01
02
04
ESG Review continued
Methodology
For our 2024 DMA, we:
> Engaged internal and external stakeholders to identify material topics
> Assessed materiality through top management and Group Risk Management
> Informed the Board and finalised key issues
Read more about our methodology in section ESRS 2 General information
of our Sustainability Statements
2024 results and progress
Our DMA identified material impacts, risks, and opportunities, strengthening financial
oversight. The Group Executive Committee plays an active role, and findings will
guide policy and target improvements.
Read more about our List of Material IROs in section SBM-3 – Material impacts, risks and opportunities
and their interaction with Strategy and business model of our Sustainability Statements.
Way forward
We are refining our governance framework to align with CSRD requirements,
ensuring Sustainability is fully integrated into strategic oversight.
Double materiality process
As part of the EU Corporate Sustainability Reporting Directive (CSRD), our double materiality
process integrates into UniCredit Group’s due diligence system.
> Impact materiality assesses a business’s potential or actual impacts on people and the
environment, considering severity and likelihood
> Financial materiality evaluates risks and opportunities affecting economic performance.
90
UniCredit 2024 Annual Reports and Accounts
About our
Sustainability
Statements
This year, we present our Sustainability Statements,
which we have prepared in alignment with the new
Corporate Sustainability Reporting Directive (CSRD)
The CSRD introduces a new era of Sustainability
reporting, emphasising greater transparency,
standardisation and accountability in how
organisations report on their environmental,
social and governance (ESG) performance
and impacts.
In previous years, we used the Global Reporting
Initiative (GRI) standards to disclose our material
topics in our Integrated Report. In 2024, we have
made significant efforts to ensure our Sustainability
Statements comply fully with CSRD requirements,
in particular their emphasis on double materiality.
We have undertaken an extensive double materiality
assessment to identify the most pressing ESG issues
relevant to our business and stakeholders. This process
included aligning with the European Sustainability
Reporting Standards (ESRS), which serve as the
foundational framework for the CSRD.
Additionally, we have incorporated quantitative
performance metrics, detailed qualitative narratives
and forward-looking commitments, enabling readers
to gain a deeper appreciation of our progress,
challenges and ambitions.
As a result of this new section, UniCredit will no
longer publish a separate Integrated Report.
While meeting CSRD requirements is a regulatory
necessity, we view this as a broader opportunity
to drive value creation for all stakeholders, build
trust, enhance our reputation and strengthen our
position as a responsible and forward-thinking
organisation. Furthermore, the CSRD framework
provides us with a roadmap to assess and mitigate
risks related to critical ESG challenges, ensuring
that we remain resilient and competitive in an
evolving global landscape.
Read more on the actions, impacts and aspirations
set out in these Statements as we advance toward
a more sustainable tomorrow.
91
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Setting
the benchmark
for excellence
See our microsite for more
information on how we have
progressed against our
UniCredit Unlocked plan
across our key focus areas
92
UniCredit 2024 Annual Reports and Accounts
Preliminary notes
Preliminary notes
UniCredit prepares a single document called “Annual report and accounts” replacing the two documents relating to the UniCredit group consolidated
financial statements and the UniCredit S.p.A. company financial statements.
The integration of the contents of the two financial statements documents into a single one leads to the elimination of duplications of the qualitative
information presented in both files and, in order to facilitate the reading, the adoption of a system of cross-references between the chapters
dedicated to the consolidated financial statements and the company ones; pursuant to these references the contents of the each referenced
paragraph is entirely reported in the paragraph containing the reference.
The chapter “Incorporations of qualitative information by reference” reports the list of the references.
General aspects
The UniCredit group’s Consolidated financial statements and UniCredit S.p.A. financial statements as at 31 December 2023 were drafted in
accordance with the IAS/IFRS international accounting standards, in compliance with the instructions of Banca d’Italia with the Circular 262 of 22
December 2005 (and subsequent amendments). These instructions define binding requirements for the related fulfilling methods as well as
regarding the minimal contents of the Notes to the accounts.
In accordance with the (EU) directive 2022/2464, Corporate Sustainability Reporting Directive (CSRD), starting from 31 December 2024 the
Sustainability statements are part of the Consolidated report on operations.
The Consolidated financial statements are made up of the Balance sheet, the Income statement, the Statement of Other comprehensive income, the
Statement of changes in Shareholders’ Equity, the Cash flow statement, the Notes to the accounts, as well as the Report on operations, the
economic results achieved, the Group’s financial situation and Annexes.
A section dedicated to Corporate Governance is also included within the document.
The Consolidated financial statements include:
• the Consolidated financial statements certification;
• the Sustainability statements certification;
• the Auditor’s Report on the Consolidated financial statements;
• the Auditor’s Report on Sustainability statements.
UniCredit S.p.A. financial statements are made up of the Balance sheet, the Income statement, the Statement of other comprehensive income, the
Statement of changes in Shareholder’s Equity, the Cash flow statement, the Notes to the accounts as well as the Report on operation, the economic
results achieved, the Bank’s financial situation and Annexes.
UniCredit S.p.A. financial statements include:
• the Annual financial statements certification;
• the Report of the Audit Committee1;
• the Auditor’s Report on the Separate financial statements.
UniCredit’s group website also contains the press releases concerning the main events of the period and the market presentation of Group results.
1 Starting from 12 April 2024, UniCredit has adopted the one-tier corporate governance system based on the existence of a Board of Directors, which is in charge of the strategic supervision and management of the
Company, and of an Audit Committee, established within the Board itself, performing specific control functions, both appointed by the Shareholders’ Meeting.
93
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
94
UniCredit 2024 Annual Reports and Accounts
Setting
the benchmark
for excellence
Setting
the benchmark
for excellence
Cononsolilidated R Reporort an
and A Accounts
2024 of Un
UniCredit G Group
Company Report
Other
Strategic Review
Financial Review
ESG Review
UniCredit 2024 Annual Reports and Accounts
95
Consolidated Report
c
96
UniCredit 2024 Annual Reports and Accounts
Consolidated report and accounts 2024 of UniCredit Group
CONSOLIDATED REPORT AND ACCOUNTS 2024 OF UNICREDIT GROU P
Consolidated report on operations
103
Introduction and Group highlights
103
Introduction to the Consolidated report on operations of UniCredit group
103
Group highlights, alternative performance indicators and other measures
103
Reclassified consolidated accounts
106
Summary results by business segments
113
Group and UniCredit share historical data series
114
Group results
117
Macroeconomic situation, banking and financial markets
117
Main results and performance for the period
120
Capital and value management
126
Principles of value creation and capital allocation
126
Capital ratios
127
Capital strengthening
127
Shareholders’ equity attributable to the Group
127
Reconciliation parent company UniCredit S.p.A. - Consolidated accounts
128
Contribution of the sector of activity to the results of the Group
129
Sustainability statements
133
Other information
319
Report on corporate governance and ownership structure
319
Report on remuneration
319
Research and development projects
319
Group activities development operations and other corporate transactions
319
Organisational model
326
Conversion of Deferred tax assets (DTAs) into tax credits
327
Certifications and other communications
327
Information on risks
327
Subsequent events and outlook
328
Subsequent events
328
Outlook
329
Corporate Governance
331
Governance structure
331
Group Executive Committee (GEC)
346
Board of Directors
348
Consolidated financial statements
351
Consolidated accounts
351
Consolidated balance sheet
351
Consolidated income statement
353
Consolidated statement of comprehensive income
354
Statement of changes in the consolidated shareholders’ equity
355
Consolidated cash flow statement
359
Notes to the consolidated accounts
363
Part A - Accounting policies
363
A.1 - General
363
Section 1 - Statement of compliance with IFRS
363
Section 2 - General preparation criteria
364
Section 3 - Consolidation scope and methods
370
Section 4 - Subsequent events
391
Section 5 - Other matters
392
A.2 - Main items of the accounts
398
A.3 - Information on transfers between portfolios of financial assets
420
A.4 - Information on fair value
420
A.5 - Information on “day one profit/loss"
434
97
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report and accounts 2024 of UniCredit Group
Part B - Consolidated balance sheet
435
Assets
435
Section 1 - Cash and cash balances - Item 10
435
Section 2 - Financial assets at fair value through profit or loss - Item 20
436
Information about the units of Atlante Fund and Italian Recovery Fund
440
Information about the investments in the “Schema Volontario” (Voluntary
Scheme)
440
Section 3 - Financial assets at fair value through other comprehensive income - Item
30
441
Information about the shareholding in Banca d'Italia
441
Section 4 - Financial assets at amortised cost - Item 40
443
Section 5 - Hedging derivatives - Item 50
446
Section 6 - Changes in fair value of portfolio hedged items - Item 60
447
Section 7 - Equity investments - Item 70
448
Section 8 - Insurance assets - Item 80
454
Section 9 - Property, plant and equipment - Item 90
455
Section 10 - Intangible assets - Item 100
460
Section 11 - Tax assets and tax liabilities - Item 110 (Assets) and Item 60 (Liabilities)
462
Section 12 - Non-current assets and disposal groups classified as held for sale and
Liabilities associated with assets classified as held for sale - Item 120 (Assets) and
Item 70 (Liabilities)
468
Section 13 - Other assets - Item 130
470
Liabilities
472
Section 1 - Financial liabilities at amortised cost - Item 10
472
Section 2 - Financial liabilities held for trading - Item 20
475
Section 3 - Financial liabilities designated at fair value - Item 30
476
Section 4 - Hedging derivatives - Item 40
477
Section 5 - Value adjustment of hedged financial liabilities - Item 50
478
Section 6 - Tax liabilities - Item 60
478
Section 7 - Liabilities associated with assets classified as held for sale - Item 70
478
Section 8 - Other liabilities - Item 80
479
Section 9 - Provision for employee severance pay - Item 90
480
Section 10 - Provisions for risks and charges - Item 100
481
Section 11 - Insurance liabilities - Item 110
485
Section 12 - Redeemable Shares - Item 130
485
Section 13 - Group shareholders’ equity - Items 120, 130, 140, 150, 160, 170 and 180
485
Section 14 - Minority shareholders‘ equity - Item 190
488
Other information
489
Part C - Consolidated income statement
492
Section 1 - Interests - Items 10 and 20
492
Section 2 - Fees and commissions - Items 40 and 50
494
Section 3 - Dividend income and similar revenue - Item 70
496
Section 4 - Gains (Losses) on financial assets and liabilities held for trading - Item 80
497
Section 5 - Fair value adjustments in hedge accounting - Item 90
497
Section 6 - Gains (Losses) on disposals/repurchases - Item 100
498
Section 7 - Net gains (losses) on other financial assets/liabilities at fair value through
profit or loss - Item 110
499
Section 8 - Net losses/recoveries on credit impairment - Item 130
500
Section 9 - Gains/Losses from contractual changes with no cancellations - Item 140
501
Section 10 - Insurance service result - Item 160
501
Section 11 - Insurance finance net revenues/costs - Item 170
501
98
UniCredit 2024 Annual Reports and Accounts
Consolidated report and accounts 2024 of UniCredit Group
Section 12 - Administrative expenses - Item 190
502
Contributions to Resolution and Guarantee funds
505
Guarantee fees for DTA conversion
506
Fees paid to the auditing firm
506
Section 13 - Net provisions for risks and charges - Item 200
507
Section 14 - Net value adjustments/write-backs on property, plant and equipment -
Item 210
508
Section 15 - Net value adjustments/write-backs on intangible assets - Item 220
508
Section 16 - Other operating expenses/income - Item 230
509
Section 17 - Gains (Losses) of equity investments - Item 250
510
Section 18 - Net gains (losses) on property, plant and equipment and intangible assets
measured at fair value - Item 260
511
Section 19 - Goodwill impairment - Item 270
511
Section 20 - Gains (Losses) on disposals on investments - Item 280
512
Section 21 - Tax expenses (income) for the period from continuing operations - Item
300
513
Section 22 - Profit (Loss) after tax from discontinued operations - Item 320
515
Section 23 - Minority profit (loss) of the year - Item 340
515
Section 24 - Other information
516
Section 25 - Earnings per share
518
Part D - Consolidated comprehensive income
519
Part E - Information on risks and related hedging policies
521
Introduction
521
Section 1 - Risks of the accounting consolidated perimeter
528
Quantitative information
528
A. Credit quality
528
A.1 Impaired and non-performing credit exposures: stocks, value adjustments,
dynamics and economic
528
B. Structured entities (other than entities for securitisation transaction)
529
B.1 Consolidated structured entities
529
B.2 Non-consolidated for accounting purposes structured entities
529
Information on Sovereign Exposures
532
Section 2 - Risks of the prudential consolidated perimeter
536
2.1 Credit risk
536
Qualitative information
536
1. General aspects
536
2. Credit risk management policies
538
3. Non-performing credit exposures
550
4. Financial assets subject to commercial renegotiations and forborne
exposures
553
Quantitative information
555
A. Credit quality
555
B. Distribution and concentration of credit exposures
569
C. Securitisation transactions
571
D. Sales transactions
590
E. Prudential perimeter - Credit risk measurement models
596
99
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report and accounts 2024 of UniCredit Group
2.2 Market risks
597
Risk management strategies and processes
597
Structure and organisation
601
Risk measurement and reporting systems
602
Hedging policies and risk mitigation
603
Internal model for price, interest rate and exchange rate risk of the regulatory
trading book
604
2.2.1 Interest rate risk and price risk - Regulatory trading book
609
Qualitative information
609
Quantitative information
610
2.2.2 Interest rate risk and price risk - Banking book
612
Qualitative information
612
Quantitative information
614
2.2.3 Exchange rate risk
618
Qualitative information
618
Quantitative information
619
Credit spread risk
620
Stress test
621
2.3 Derivative instruments and hedging policies
623
2.3.1 Trading financial derivatives
623
A. Financial Derivatives
623
B. Credit derivatives
626
2.3.2 Hedging policies
628
Qualitative information
628
Quantitative information
630
2.3.3 Other information on derivatives instruments (trading and hedging)
635
A. Financial and credit derivatives
635
2.4 Liquidity risk
636
Qualitative information
636
Quantitative information
643
2.5 Operational risks
646
Qualitative information
646
A. General aspects, operational processes and methods for measuring
operational risk
646
B. Legal risks
651
C. Risks arising from employment law cases
655
D. Risks arising from tax disputes
656
E. Other claims by customers
657
Quantitative information
658
2.6 Other risks
659
Other risks included in Economic Capital
659
1. Business risk
659
2. Real estate risk
659
3. Financial investments risk
659
Reputational risk
661
Top and emerging risks
662
1. Ongoing conflicts
662
2. Macroeconomic and (geo-)political challenges
662
3. Cyber security risk
663
4. Developments in the European regulatory framework
663
The climate-related and environmental risks
665
100
UniCredit 2024 Annual Reports and Accounts
Consolidated report and accounts 2024 of UniCredit Group
Part F - Consolidated shareholders’ equity
685
Section 1 - Consolidated Shareholders’ Equity
685
A. Qualitative information
685
B. Quantitative information
686
Section 2 - Own funds and banking regulatory ratios
688
Part G - Business combinatios
690
Section 1 - Business combinations completed in the year
690
Section 2 - Business combinations completed after year-end
694
Section 3 - Retrospective adjustments
694
Part H - Related-party transactions
695
Introduction
695
1. Details of Key management personnels’ compensation
696
2. Related-party transactions
697
Part I - Share-based payments
700
Qualitative information
700
1. Description of payment agreements based on own equity instruments
700
Quantitative information
701
1. Annual changes
701
2. Other Information
702
Part L - Segment reporting
703
Organisational structure
703
A - Primary segment
704
B - Secondary segment
706
Part M - Information on leases
707
Section 1 - Lessee
707
Qualitative information
707
Quantitative information
707
Section 2 - Lessor
708
Qualitative information
708
Quantitative information
708
Certifications
711
Consolidated Financial Statements Certification
711
Sustainability Statements Certification
713
715
Auditor’s Report on the Consolidated financial statements
715
Auditor’s Report on Sustainability statements
725
Annexes
731
Annex 1 - Reconciliation between reclassified balance sheet and income statement
accounts and mandatory reporting schedules
731
Annex 2 - Audit fees and other non-audit services
736
Annex 3 - Securitisations - qualitative tables
737
Annex 4 - Sales of financial assets to investment funds, receiving as consideration units
issued by the same funds – qualitative tables
796
Annex 5 - Country by Country
815
Reports of the External Auditors
101
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Setting
the benchmark
for excellence
See our microsite for more
information on how we have
progressed against our
UniCredit Unlocked plan
across our key focus areas
102
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Introduction and Group highlights
Consolidated report on operations
Introduction and Group highlights
Introduction to the Consolidated report on operations of UniCredit group
The Consolidated report on operations illustrates the performance of UniCredit group and the related amounts and results. It includes financial
information such as Group highlights, Reclassified Consolidated accounts and their Quarterly figures, Summary results by business segment, Group
and UniCredit share historical data series as well as comments on “Group results”.
To further illustrate the results of the period, the Consolidated report on operations includes Reclassified Consolidated accounts prepared using the
same criteria of previous quarterly reports.
The information included in this report is supported, in order to provide further information about the performance achieved by the Group, by some
Alternative Performance Indicators (API) such as: Cost/Income ratio, Economic Value Added (EVA), Return On Tangible Equity (RoTE), Net bad
loans to customers/Loans to customers, Net non-performing loans to customers/Loans to customers, Absorbed capital, Return On Allocated Capital
(ROAC), Return On Assets (ROA), Cost of risk.
Although some of this information, including certain APIs, is neither extracted nor directly reconciled with the Consolidated financial statements, in
the Consolidated report on operations, the Annexes and the Glossary provide explanatory descriptions of the contents and, in case, the calculation
methods used, in accordance with European Securities and Markets Authority Guidelines (ESMA/2015/1415) of 5 October 2015.
In particular in the Annex 1 is included the reconciliation between the reclassified accounts and the mandatory reporting schedule, as required by
Consob Notice No.6064293 of 28 July 2006.
The amounts related to year 2023 Reclassified consolidated income statement and to Profitability ratios differ from the ones published at that time.
For further details refer to “Reconciliation principles followed for the Reclassified consolidated income statement”.
For information on relations and transactions with related-party, it shall be referred to the Notes to the consolidated accounts, Part H - Related-party
transactions.
For a complete description of risks and uncertainties that the Group has to face in the current market situation, it shall be referred to the specific
paragraph of this Consolidated report on operations and to the Notes to the consolidated accounts, Part E - Information on risks and related hedging
policies and paragraph “Risks and uncertainty relating to the use of estimates”, Part A - Accounting policies, A.1 - General, Section 2 - General
preparation criteria
Group highlights, alternative performance indicators and other measures
Income statement figures
(€ million)
YEAR
2024
2023
% CHANGE
Revenue
24,844
23,826
+ 4.3%
of which:
- Net interest
14,358
14,005
+ 2.5%
- Dividends
470
459
+ 2.4%
- Fees
8,139
7,565
+ 7.6%
Operating costs
(9,405)
(9,460)
- 0.6%
Gross operating profit (loss)
15,439
14,366
+ 7.5%
Loan Loss Provisions (LLPs)
(641)
(560)
+ 14.4%
Net operating profit (loss)
14,798
13,806
+ 7.2%
Profit (Loss) before tax
12,860
11,451
+ 12.3%
Group stated net profit (loss)
9,719
9,507
+ 2.2%
The figures in this table refer to the Reclassified consolidated income statement.
103
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Introduction and Group highlights
Balance sheet figures
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
% CHANGE
Total assets
784,004
784,974
- 0.1%
Financial assets held for trading
55,083
57,274
- 3.8%
Loans to customers
418,378
429,452
- 2.6%
Financial liabilities held for trading
31,349
38,022
- 17.6%
Deposits from customers and debt securities issued
590,213
585,561
+ 0.8%
of which:
-
- deposits from customers
499,505
495,716
+ 0.8%
- debt securities issued
90,709
89,845
+ 1.0%
Group shareholders' equity
62,441
64,079
- 2.6%
The figures in the table above refer to the reclassified consolidated balance sheet.
Profitability ratios
YEAR
2024
2023
CHANGE
EPS (€)
5.841
5.105
0.736
Cost/Income ratio
37.9%
39.7%
- 1.8%
EVA (€ million)
4,800
4,157
643
RoTE
17.7%
16.6%
+ 1.1%
ROA
1.2%
1.2%
+ 0.0%
Notes:
EPS: Earnings Per Share. For further details refer to the Notes to the consolidated accounts, Part C - Consolidated income statement - Section 25 Earning per shares.
Risk ratios
AS AT
31.12.2024
31.12.2023
% CHANGE
Net bad loans to customers/Loans to customers
0.23%
0.18%
0.05%
Net non-performing loans to customers/Loans to customers
1.44%
1.44%
0.01%
For the amounts, refer to the table “Loans to customers - Asset quality” reported in the paragraph “Net write-downs on loans and provisions for
guarantees and commitments” of this Consolidated report on operations of the UniCredit group.
104
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Introduction and Group highlights
Staff and Branches
AS AT
31.12.2024
31.12.2023
CHANGE
Number of employees
69,722
70,752
-1,030
Number of branches
3,039
3,082
-43
of which:
- Italy
1,943
1,950
-7
- Other countries
1,096
1,132
-36
Notes:
Number of employees counted for the rate of presence (FTEs - Full Time Equivalent).
Number of branches includes only Retail branches.
Group transitional capital ratios
DESCRIPTION
AS AT
31.12.2024
31.12.2023
CHANGE
Total Own Funds (€ million)
56,554
59,472
(2,918)
Total RWEA (€ million)
277,093
284,548
(7,454)
Common Equity Tier 1 Capital ratio
15.96%
16.14%
-0.18%
Total Capital ratio
20.41%
20.90%
-0.49%
Notes:
Transitional own funds and capital ratios including all transitional adjustments according to the yearly applicable percentages.
Furthermore, starting from 30 June 2020, UniCredit group has decided to apply the IFRS9 transitional approach as reported in article 473a of the Regulation (UE) No.873/2020 that amends the Regulation (EU) No.575/2013
and Regulation (EU) No.876/2019. Therefore the values here reported reflect the impact of the transitional arrangements provisioned in such Regulation.
For further details refer to the paragraph "Capital and value management - Capital ratios" of this Consolidated report on operations.
Ratings
SHORT-TERM
MEDIUM AND
STANDALONE
DEBT
LONG-TERM
OUTLOOK
RATING
Fitch Ratings
F2
BBB+
positive
bbb+
Moody's Investors Service
P-2
Baa1
stable
baa3
Standard & Poor's
A-2
BBB
stable
bbb+
Ratings updated as at 31 January 2025.
105
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Reclassified consolidated accounts
Reclassified consolidated accounts
Changes occurred in the scope of consolidation
During 2024, with reference to the consolidation perimeter, the following changes were recorded:
• the number of fully consolidated companies, including those ones classified as non-current assets and asset disposal groups based on the
accounting principle IFRS5, decreases overall for 13 (4 in and 17 out) changing from 325, as at 31 December 2023, to 312 as at 31 December
2024;
• the number of companies consolidated by using the equity method, including those ones classified as non-current assets and asset disposal
groups, presents a decrease of 3 (3 out) changing from 27, as at 31 December 2023, to 24 as at 31 December 2024.
For additional information, reference is made in Notes to the consolidated accounts, Part A - Accounting Policies, A.1 - General, Section 3 -
Consolidation scope and methods and in Part B - Consolidated balance sheet - Assets, Section 7 - Equity investments - Item 70.
Non-current assets and disposal groups classified as held for sale
As at 31 December 2024, the main assets which, based on the application of IFRS5 accounting standard, were reclassified as non-current assets
and asset disposal groups, regard the following individual assets and liabilities held for sale and groups of assets held for sale and associated
liabilities which do not satisfy IFRS5 requirements for the classification as discontinued operations:
• the associated company Risanamento S.p.A. and the controlled companies Weicker S.A.R.L. and Monnet 8 - 10 S.A R.L.;
• the loans included in some sale’s initiatives of portfolios;
• the real estate properties held by certain companies in the Group.
For additional information, reference is made in Notes to the consolidated accounts, Part B - Consolidated balance sheet - Assets, Section 12 - Non-
current assets and disposal groups classified as held for sale - Item 120 (Assets) and Item 70 (Liabilities).
Reconciliation principles followed for the reclassified consolidated balance sheet
The main reclassifications, whose amounts are provided analytically in the tables enclosed with this report, involve:
• the inclusion in “Loans to banks” of item “Financial assets at amortised cost: a) loans and advances to banks”, net of debt securities reclassified in
“Other financial assets”, and of loans related to item “Financial assets at fair value through profit or loss: c) other financial assets mandatorily at fair
value”;
• the inclusion in “Loans to customers” of item “Financial assets at amortised cost: b) Loans and advances to customers”, net of debt securities and
of IFRS16 leasing assets reclassified in “Other financial assets”, and of loans related to item “Financial assets at fair value through profit or loss: c)
other financial assets mandatorily at fair value”;
• the aggregation as “Other financial assets” of items (i) “Financial assets at fair value through profit or loss: b) financial assets designated at fair
value and c) other financial assets mandatorily at fair value”, net of loans reclassified in “Loans to banks and to customers”, of (ii) “Financial assets
at fair value through other comprehensive income”, of (iii) “Equity investments”, besides reclassifications of (iv) debt securities from item “Financial
assets at amortised cost: a) loans and advances to banks and b) loans and advances to customers” and of (v) IFRS16 leasing assets from item
“Financial assets at amortised cost: a) loans and advances to banks and b) loans and advances to customers”;
• the inclusion in “Other financial liabilities” of leasing liabilities pursuant to accounting standard IFRS16 relating to item “Financial liabilities at
amortised cost: a) deposits from banks and b) deposits from customers”;
• grouping under “Hedging instruments”, both assets and liabilities, of items “Hedging derivatives” and “Changes in fair value of portfolio hedged
items” in the assets and “Value adjustment of hedged financial liabilities” in the liabilities;
• the inclusion of items “Provision for employee severance pay” and “Provisions for risks and charges” under “Other liabilities”.
106
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Reclassified consolidated accounts
Reclassified consolidated balance sheet
(€ million)
AMOUNTS AS AT
CHANGE
ASSETS
31.12.2024
31.12.2023
AMOUNT
%
Cash and cash balances
41,442
61,000
- 19,558
- 32.1%
Financial assets held for trading
55,083
57,274
- 2,191
- 3.8%
Loans to banks
50,678
39,434
+ 11,244
+ 28.5%
Loans to customers
418,378
429,452
- 11,074
- 2.6%
Other financial assets
183,118
162,953
+ 20,165
+ 12.4%
Hedging instruments
(351)
(1,340)
+ 989
- 73.8%
Property, plant and equipment
8,794
8,628
+ 166
+ 1.9%
Goodwill
38
-
+ 38
-
Other intangible assets
2,191
2,272
- 81
- 3.6%
Tax assets
10,273
11,818
- 1,545
- 13.1%
Non-current assets and disposal groups classified as held for
sale
394
370
+ 24
+ 6.6%
Other assets
13,966
13,112
+ 854
+ 6.5%
Total assets
784,004
784,974
- 970
- 0.1%
(€ million)
AMOUNTS AS AT
CHANGE
LIABILITIES AND SHAREHOLDERS' EQUITY
31.12.2024
31.12.2023
AMOUNT
%
Deposits from banks
67,903
71,042
- 3,139
- 4.4%
Deposits from customers
499,505
495,716
+ 3,788
+ 0.8%
Debt securities issued
90,709
89,845
+ 864
+ 1.0%
Financial liabilities held for trading
31,349
38,022
- 6,673
- 17.6%
Other financial liabilities
15,228
13,751
+ 1,477
+ 10.7%
Hedging instruments
(8,134)
(10,573)
+ 2,439
- 23.1%
Tax liabilities
1,708
1,483
+ 226
+ 15.2%
Liabilities included in disposal groups classified as held for sale
0
(0)
+ 0
n.m.
Other liabilities
22,895
21,445
+ 1,451
+ 6.8%
Minorities
400
164
+ 235
n.m.
Group shareholders' equity
62,441
64,079
- 1,637
- 2.6%
of which:
- capital and reserves
52,722
54,572
- 1,850
- 3.4%
- Group stated net profit (loss)
9,719
9,507
+ 212
+ 2.2%
Total liabilities and shareholders' equity
784,004
784,974
- 970
- 0.1%
107
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Reclassified consolidated accounts
Reclassified consolidated balance sheet - Quarterly figures
(€ million)
AMOUNTS AS AT
AMOUNTS AS AT
ASSETS
31.12.2024
30.09.2024
30.06.2024
31.03.2024
31.12.2023
30.09.2023
30.06.2023
31.03.2023
Cash and cash balances
41,442
38,425
50,029
65,433
61,000
87,357
76,069
126,377
Financial assets held for trading
55,083
58,286
55,674
55,472
57,274
62,938
66,942
62,293
Loans to banks
50,678
61,221
54,447
53,205
39,434
54,309
66,895
71,905
Loans to customers
418,378
430,941
433,997
434,834
429,452
436,512
450,846
453,754
Other financial assets
183,118
180,569
171,620
167,130
162,953
152,793
150,468
148,239
Hedging instruments
(351)
(946)
(2,387)
(1,425)
(1,340)
(3,711)
(3,334)
(3,679)
Property, plant and equipment
8,794
8,818
8,958
9,151
8,628
8,849
8,936
9,095
Goodwill
38
-
(0)
-
-
(0)
(0)
(0)
Other intangible assets
2,191
2,157
2,194
2,210
2,272
2,230
2,255
2,300
Tax assets
10,273
9,929
10,470
11,068
11,818
11,337
12,003
12,560
Non-current assets and disposal groups
classified as held for sale
394
471
610
356
370
1,198
1,410
1,126
Other assets
13,966
13,638
13,313
13,145
13,112
11,832
11,016
11,357
Total assets
784,004
803,509
798,925
810,578
784,974
825,644
843,506
895,327
(€ million)
AMOUNTS AS AT
AMOUNTS AS AT
LIABILITIES AND SHAREHOLDERS' EQUITY
31.12.2024
30.09.2024
30.06.2024
31.03.2024
31.12.2023
30.09.2023
30.06.2023
31.03.2023
Deposits from banks
67,903
86,971
82,916
87,099
71,042
96,928
97,781
148,933
Deposits from customers
499,505
493,506
499,492
502,120
495,716
510,626
514,138
522,514
Debt securities issued
90,709
90,116
91,656
90,942
89,845
92,551
92,987
88,980
Financial liabilities held for trading
31,349
36,185
36,858
38,277
38,022
44,162
50,769
50,061
Other financial liabilities
15,228
15,480
15,039
14,332
13,751
13,005
12,983
12,705
Hedging instruments
(8,134)
(8,711)
(13,114)
(11,782)
(10,573)
(17,316)
(17,343)
(17,240)
Tax liabilities
1,708
2,050
1,778
1,748
1,483
1,698
1,773
1,804
Liabilities included in disposal groups
classified as held for sale
0
0
0
-
(0)
500
524
490
Other liabilities
22,895
24,055
22,128
22,250
21,445
20,608
27,865
23,276
Minorities
400
166
158
172
164
157
148
163
Group shareholders' equity
62,441
63,691
62,013
65,420
64,079
62,726
61,881
63,641
of which:
- capital and reserves
52,722
55,941
56,777
62,862
54,572
56,030
57,507
61,577
- Group stated net profit (loss)
9,719
7,750
5,236
2,558
9,507
6,696
4,374
2,064
Total liabilities and shareholders' equity
784,004
803,509
798,925
810,578
784,974
825,644
843,506
895,327
108
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Reclassified consolidated accounts
Reconciliation principles followed for the reclassified consolidated income statement
The main reclassifications, whose amounts are provided analytically in the tables enclosed with this report, involve:
• the inclusion in the “Net interest” of (i) the interest component of the DBO (Defined Benefit Obligation), TFR (Trattamento di Fine Rapporto) and
Jubilee deriving from “Staff costs”, (ii) the costs of issued Credit Linked notes guaranteeing the performance of Loan portfolios from item “Net fees
and commissions” (iii) interest component on derivatives related to the economical hedging on banking book positions from item “Net gains
(losses) on trading”;
• the inclusion in “Dividends” of “Profit (Loss) of equity investments valued at equity”;
• the inclusion in the “Fees” (i) of the structuring and mandate fees on certificates and the connected derivatives, issued or placed by the Group and
(ii) of Mark-up fees on client hedging activities;
• the inclusion among “Trading income” (i) of the net gains (losses) on trading, (ii) of the net gains (losses) on hedge accounting, (iii) of the net
gains/losses on other financial assets/liabilities at fair value through profit or loss, (iv) of the gains/losses on disposal or repurchase of financial
assets at fair value through other comprehensive income, (v) of gains/losses on disposal and repurchase of financial assets at amortised cost
represented by debt securities, (vi) of gains/losses on disposal and repurchase of financial liabilities at amortised cost, (vii) of the interest income
and expenses deriving from Trading Book instruments, (viii) of the gain/losses on commodities held with a trading intent from “Other operating
expenses/income”, (ix) dividends from held for trading equity instruments and (x) dividends on equity investments, shares and equity instruments
mandatorily at fair value;
• the inclusion in the “Other expenses/income” of (i) “Other operating expenses/income”, excluding recovery of expenses not related to credit card
distribution agreement, (ii) result of industrial companies, (iii) gains/losses on disposal and repurchase of financial assets at amortised cost
represented by performing loans, (iv) net value adjustments/write-backs of tangible in operating lease assets;
• the inclusion in the “Non HR costs” (i) of tax recovery reclassified from “Other operating expenses/income” (ii) the costs for net value adjustments
on leasehold improvements from “Other operating expenses/income” and (iii) the component of discount associated with the accrual of the right to
require specific services recognized in the context of agreements for credit card distribution and payment services from “Net fees and
commissions”;
• the presentation under its own item of “Recovery of expenses” different than the tax recovery and not related to credit card distribution agreement
from “Other operating expenses/income”;
• in “Loan Loss Provisions”, the inclusion (i) of net losses/recoveries on financial assets at amortised cost and at fair value through other
comprehensive income net of debt securities, (ii) of the gains (losses) on disposal and repurchase of financial assets at amortised cost net of debt
securities and of performing loans, (iii) of the net provisions for risks and charges related to commitments and financial guarantees given, (iv) of
credit recovery expenses for the variable portion of the outsourced NPE recovery costs not recovered from the clients and charged to the bank
based on the recovered volumes, reclassified from item “Other administrative expenses”;
• the inclusion in the “Other charges and provisions” of contributions to the resolution funds (SRF), the deposit guarantee schemes (DGS), the Bank
Levy, the life insurance Guarantee Fund and the Guarantee fees for DTA reclassified from item “Other administrative expenses”;
• the inclusion in the “Integration costs” of impact relating to the reorganization operations of “Other expenses/income”, “HR costs”, “Non HR costs”,
“Amortisations and depreciations” and “Other charges and provisions”;
• the inclusion in “Net income from investments” of (i) net losses/recoveries on financial assets at amortised cost and at fair value through other
comprehensive income - debt securities, (ii) gains (losses) on tangible and intangible assets measured at fair value, (iii) gains (losses) of equity
investments and on disposal on investments, including impacts from evaluation arising from IFRS5 non-current assets and disposal groups related
to equity investment consolidated line by line and at net equity method not presented to item “Profit (Loss) after tax from discontinued operations”,
(iv) net Result on Financial Assets mandatorily at fair value related to debt securities referred to non-performing loans (included securitizations), (v)
inventories assets (IAS2) obtained from recovery procedures of NPE and (vi) impairment/write backs of rights of use of land and buildings used in
the business.
Figures of Reclassified consolidated income statement relating to 2023 have been restated, starting from March 2024, with the effects of the:
• extension of shift from Trading Income to Fees of the client hedging mark-up for some additional derivatives non-linear product: Equity derivatives,
FX derivatives and prepaid forward carbon trades;
• shift from Non HR Costs to Loan Loss Provisions of Credit recovery expenses for the variable portion of the outsourced NPE recovery costs not
recovered from the clients and charged to the bank based on the recovered volumes;
• shift from Other charges and provision to Other expenses/income of amounts related to asset management distribution agreements.
Figures of Reclassified consolidated income statement have been restated starting from June 2024, with reference to 2023 and first quarter 2024,
for the reclassification of “Tax Recovery” from Recovery of expenses to Non HR Costs.
109
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Reclassified consolidated accounts
Reclassified consolidated income statement
(€ million)
YEAR
CHANGE
2024
2023
P&L
%
% AT CONSTANT
FX(*) RATES
Net interest
14,358
14,005
+ 353
+ 2.5%
+ 3.5%
Dividends
470
459
+ 11
+ 2.4%
+ 2.4%
Fees
8,139
7,565
+ 573
+ 7.6%
+ 8.2%
Trading income
1,739
1,743
- 4
- 0.2%
+ 3.1%
Other expenses/income
139
54
+ 84
n.m.
n.m.
Revenue
24,844
23,826
+ 1,018
+ 4.3%
+ 5.3%
HR costs
(5,853)
(5,861)
+ 8
- 0.1%
+ 0.2%
Non HR costs
(2,596)
(2,603)
+ 7
- 0.3%
+ 0.3%
Recovery of expenses
106
81
+ 24
+ 29.7%
+ 29.8%
Amortisations and depreciations
(1,062)
(1,078)
+ 16
- 1.5%
- 0.9%
Operating costs
(9,405)
(9,460)
+ 55
- 0.6%
- 0.1%
GROSS OPERATING PROFIT (LOSS)
15,439
14,366
+ 1,073
+ 7.5%
+ 8.8%
Loan Loss Provisions (LLPs)
(641)
(560)
- 81
+ 14.4%
+ 5.3%
NET OPERATING PROFIT (LOSS)
14,798
13,806
+ 992
+ 7.2%
+ 9.0%
Other charges and provisions
(1,069)
(1,023)
- 45
+ 4.4%
+ 18.7%
of which: systemic charges
(515)
(955)
+ 440
- 46.1%
- 45.7%
Integration costs
(841)
(1,060)
+ 219
- 20.7%
- 19.6%
Net income from investments
(29)
(272)
+ 243
- 89.4%
- 94.9%
PROFIT (LOSS) BEFORE TAX
12,860
11,451
+ 1,409
+ 12.3%
+ 13.1%
Income taxes
(3,085)
(1,914)
- 1,172
+ 61.2%
+ 61.2%
Profit (Loss) of discontinued operations
-
-
-
-
n.m.
NET PROFIT (LOSS) FOR THE PERIOD
9,775
9,537
+ 237
+ 2.5%
+ 3.4%
Minorities
(55)
(27)
- 29
n.m.
n.m.
NET PROFIT (LOSS) ATTRIBUTABLE TO THE
GROUP BEFORE PPA
9,719
9,510
+ 209
+ 2.2%
+ 3.2%
Purchase Price Allocation (PPA)
-
(4)
+ 4
- 100.0%
- 100.0%
Goodwill impairment
-
-
-
-
-
GROUP STATED NET PROFIT (LOSS)
9,719
9,507
+ 212
+ 2.2%
+ 3.2%
Note:
(*) Foreign Exchange.
110
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Reclassified consolidated accounts
Reclassified consolidated income statement - Quarterly figures
(€ million)
2024
2023
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Net interest
3,652
3,564
3,565
3,578
3,610
3,600
3,497
3,298
Dividends
93
151
118
108
93
113
129
124
Fees
1,975
1,943
2,120
2,100
1,814
1,790
1,928
2,033
Trading income
270
441
470
558
339
478
462
463
Other expenses/income
13
43
56
27
105
(14)
(48)
11
Revenue
6,002
6,142
6,328
6,371
5,962
5,967
5,967
5,930
HR costs
(1,572)
(1,427)
(1,424)
(1,429)
(1,576)
(1,437)
(1,426)
(1,422)
Non HR costs
(694)
(622)
(649)
(632)
(695)
(637)
(641)
(631)
Recovery of expenses
28
19
36
23
30
20
16
16
Amortisations and depreciations
(272)
(261)
(260)
(268)
(237)
(270)
(286)
(284)
Operating costs
(2,510)
(2,292)
(2,298)
(2,306)
(2,478)
(2,324)
(2,337)
(2,322)
GROSS OPERATING PROFIT (LOSS)
3,492
3,851
4,031
4,065
3,484
3,643
3,630
3,608
Loan Loss Provisions (LLPs)
(357)
(165)
(15)
(103)
(311)
(139)
(12)
(98)
NET OPERATING PROFIT (LOSS)
3,135
3,686
4,016
3,962
3,173
3,505
3,619
3,510
Other charges and provisions
(385)
(109)
(228)
(346)
99
(285)
(92)
(745)
of which: systemic charges
(40)
(70)
(45)
(360)
(35)
(232)
(48)
(640)
Integration costs
(753)
(34)
(35)
(18)
(788)
(41)
(214)
(17)
Net income from investments
13
(19)
(24)
1
(134)
(11)
(109)
(17)
PROFIT (LOSS) BEFORE TAX
2,010
3,523
3,728
3,599
2,349
3,168
3,204
2,731
Income taxes
(7)
(1,003)
(1,043)
(1,033)
468
(837)
(883)
(661)
Profit (Loss) of discontinued operations
-
-
-
-
-
-
-
-
NET PROFIT (LOSS) FOR THE PERIOD
2,003
2,520
2,685
2,566
2,817
2,331
2,320
2,070
Minorities
(34)
(7)
(7)
(8)
(6)
(9)
(6)
(6)
NET PROFIT (LOSS) ATTRIBUTABLE TO
THE GROUP BEFORE PPA
1,969
2,513
2,679
2,558
2,810
2,322
2,314
2,064
Purchase Price Allocation (PPA)
-
-
-
-
-
(0)
(4)
-
Goodwill impairment
-
-
-
-
-
-
-
-
GROUP STATED NET PROFIT (LOSS)
1,969
2,513
2,679
2,558
2,810
2,322
2,310
2,064
111
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Reclassified consolidated accounts
Reclassified consolidated income statement - Comparison of Q4 2024/2023
(€ million)
Q4
CHANGE
2024
2023
P&L
%
% AT CONSTANT
FX(*) RATES
Net interest
3,652
3,610
+ 41
+ 1.1%
+ 2.0%
Dividends
93
93
- 1
- 0.8%
- 0.8%
Fees
1,975
1,814
+ 161
+ 8.9%
+ 9.7%
Trading income
270
339
- 69
- 20.5%
- 15.3%
Other expenses/income
13
105
- 92
- 87.6%
- 87.1%
Revenue
6,002
5,962
+ 40
+ 0.7%
+ 1.8%
HR costs
(1,572)
(1,576)
+ 3
- 0.2%
+ 0.1%
Non HR costs
(694)
(695)
+ 1
- 0.2%
+ 0.4%
Recovery of expenses
28
30
- 1
- 4.8%
- 4.8%
Amortisations and depreciations
(272)
(237)
- 35
+ 14.7%
+ 15.2%
Operating costs
(2,510)
(2,478)
- 32
+ 1.3%
+ 1.7%
GROSS OPERATING PROFIT (LOSS)
3,492
3,484
+ 8
+ 0.2%
+ 1.9%
Loan Loss Provisions (LLPs)
(357)
(311)
- 46
+ 14.8%
+ 6.5%
NET OPERATING PROFIT (LOSS)
3,135
3,173
- 38
- 1.2%
+ 1.4%
Other charges and provisions
(385)
99
- 484
n.m.
n.m.
of which: systemic charges
(40)
(35)
- 5
+ 14.6%
+ 15.8%
Integration costs
(753)
(788)
+ 36
- 4.5%
- 2.9%
Net income from investments
13
(134)
+ 147
n.m.
n.m.
PROFIT (LOSS) BEFORE TAX
2,010
2,349
- 339
- 14.4%
- 15.4%
Income taxes
(7)
468
- 475
n.m.
n.m.
Profit (Loss) of discontinued operations
-
-
-
-
n.m.
NET PROFIT (LOSS) FOR THE PERIOD
2,003
2,817
- 814
- 28.9%
- 29.2%
Minorities
(34)
(6)
- 27
n.m.
n.m.
NET PROFIT (LOSS) ATTRIBUTABLE TO THE
GROUP BEFORE PPA
1,969
2,810
- 841
- 29.9%
- 30.2%
Purchase Price Allocation (PPA)
-
-
-
-
n.m.
Goodwill impairment
-
-
-
-
n.m.
GROUP STATED NET PROFIT (LOSS)
1,969
2,810
- 841
- 29.9%
- 30.2%
Note:
(*) Foreign Exchange.
112
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Summary results by business segments
Key figures by business segment
ITALY
GERMANY
CENTRAL
EUROPE
EASTERN
EUROPE
RUSSIA
GROUP
CORPORATE
CENTRE(*)
CONSOLIDATED
GROUP TOTAL
Income statement
Revenue
2024
11,354
5,462
4,320
2,872
1,292
(456)
24,844
2023
10,904
5,417
4,261
2,591
1,185
(532)
23,826
Operating costs
2024
(3,914)
(2,220)
(1,604)
(905)
(226)
(537)
(9,405)
2023
(3,917)
(2,400)
(1,622)
(850)
(226)
(446)
(9,460)
GROSS OPERATING PROFIT (LOSS)
2024
7,440
3,242
2,716
1,967
1,067
(993)
15,439
2023
6,987
3,017
2,639
1,741
959
(978)
14,366
PROFIT (LOSS) BEFORE TAX
2024
6,173
2,787
2,449
1,834
719
(1,102)
12,860
2023
5,612
2,119
2,230
1,713
888
(1,110)
11,451
Balance sheet
CUSTOMERS LOANS(**)
as at 31 December 2024
144,590
125,773
91,988
40,614
1,192
162
404,319
as at 31 December 2023
152,120
125,107
95,367
33,570
3,152
162
409,478
CUSTOMERS DEPOS(**)
as at 31 December 2024
183,922
138,266
96,899
53,338
3,480
(5)
475,900
as at 31 December 2023
188,434
138,192
93,450
47,104
7,208
(5)
474,383
TOTAL RWEA
as at 31 December 2024
101,083
64,989
58,559
34,710
10,819
6,933
277,093
as at 31 December 2023
108,073
69,473
60,492
28,743
14,283
3,484
284,548
EVA
2024
2,606
869
918
889
(206)
(276)
4,800
2023
2,208
698
861
896
108
(614)
4,157
Cost/income ratio
2024
34.5%
40.6%
37.1%
31.5%
17.5%
n.m.
37.9%
2023
35.9%
44.3%
38.1%
32.8%
19.0%
n.m.
39.7%
Employees
as at 31 December 2024
26,902
8,983
9,844
14,641
2,590
6,762
69,722
as at 31 December 2023
27,528
9,819
10,191
13,019
3,153
7,041
70,752
Notes:
(*) The item "Group Corporate Centre" comprehend Corporate Centre Global Functions, inter-segment adjustments and consolidation adjustments not attributable to individual segments.
(**) The Customer loans and the Customers depos are net of repos, intercompany transactions.
The amounts related to year 2023 differ from the ones published at that time. For further details refer to “Reconciliation principles followed for the
Reclassified consolidated income statement”.
Figures as of 2023 were recast, where necessary, on a like-to-like basis to consider changes in scope of business segment and methodological
rules.
With reference to perimeters of business sectors refer to paragraph “Organisational structure” - Notes to the consolidated accounts, Part L -
Segment reporting.
Summary results by business segments
113
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Group and UniCredit share historical data series
Group figures 2014 - 2024
IAS/IFRS
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Reclassified income statement (€ million)
Revenue
24,844
23,843
20,343
17,954
17,140
18,839
19,723
19,619
18,801
22,405
22,513
Operating costs
(9,405)
(9,471)
(9,560)
(9,797)
(9,805)
(9,929)
(10,698)
(11,350)
(12,453)
(13,618)
(13,838)
Gross operating profit (loss)
15,439
14,372
10,782
8,158
7,335
8,910
9,025
8,268
6,348
8,787
8,675
Profit (Loss) before tax
12,860
11,451
7,289
1,236
(1,546)
3,065
3,619
4,148
(10,978)
2,671
4,091
Net profit (loss) for the period
9,775
9,537
6,473
1,570
(1,842)
3,559
4,112
5,790
(11,061)
2,239
2,669
Group stated net profit (loss)
9,719
9,507
6,458
1,540
(2,785)
3,373
3,892
5,473
(11,790)
1,694
2,008
Reclassified balance sheet (€ million)
Total assets
784,004
784,974
857,773
916,671
931,456
855,647
831,469
836,790
859,533
860,433
844,217
Loans to customers
418,378
429,452
455,781
437,544
450,550
482,574
471,839
447,727
444,607
473,999
470,569
of which: bad exposures
944
753
601
1,121
1,645
2,956
5,787
9,499
10,945
19,924
19,701
Deposits from customers and debt
securities issued
590,213
585,561
594,300
596,402
600,964
566,871
560,141
561,498
567,855
584,268
560,688
Group shareholders’ equity
62,441
64,079
63,339
61,628
59,507
61,416
55,841
59,331
39,336
50,087
49,390
Profitability ratios (%)
Gross operating profit (loss)/Total assets
1.97
1.83
1.26
0.89
0.79
1.04
1.09
0.99
0.74
1.02
1.03
Cost/Income ratio
37.9
39.7
47.0
54.6
57.2
52.7
54.2
57.9
66.2
60.8
61.5
The figures here reported refer to the information published in the reference year.
Group and UniCredit share historica l data series
114
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Group and UniCredit share historical data series
Share information
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Share price (€)
- maximum
42.840
25.565
15.850
13.576
14.174
13.494
18.212
18.350
25.733
32.824
34.427
- minimum
24.850
13.446
8.021
7.420
6.213
9.190
9.596
12.160
8.785
24.605
25.583
- average
35.166
20.463
11.087
10.088
8.650
11.193
14.635
15.801
13.820
29.509
30.015
- end of period
38.525
24.565
13.272
13.544
7.648
13.020
9.894
15.580
13.701
25.733
26.735
Number of outstanding shares (million)
- at period end
1,551
1,712
1,935
2,211
2,237
2,233
2,230
2,226
6,180
5,970
5,866
- shares cum dividend
1,542
1,703
1,926
2,201
2,228
2,224
2,220
2,216
6,084
5,873
5,769
of which: savings shares
-
-
-
-
-
-
-
0.25
2.52
2.48
2.45
- average
1,631
1,838
2,079
2,231
2,236
2,233
2,229
1,957
6,110
5,927
5,837
Dividend
- total dividends (€ million)
-
3,015
1,875
1,170
268
-
601
726
-
706
697
- dividend per ordinary share
-
1.803
0.987
0.538
0.120
-
0.270
0.320
-
0.120
0.120
- dividend per savings share
-
-
-
-
-
-
-
-
-
0.120
1.065
Notes:
Due to extraordinary corporate operations involving the detachment of rights, splitting or grouping of shares, demerger operations as well as distributions of extraordinary dividends, share prices might systematically change
being no longer comparable with each other. The historical series of share prices have been therefore adjusted to restore price continuity.
The number of shares, existing at the end of the reference period, is net of treasury shares and included No.9,675,640 of shares held under a contract of usufruct signed with Mediobanca S.p.A. supporting the issuance of
convertible securities denominated “Cashes”. The shares held under a contract of usufruct are excluded from the shares cum dividend highlighted at the row “shares cum dividend”.
With reference to the dividend amount for the year 2024, subject to approval by the Shareholders' Meeting scheduled for 27 March 2025, refer to the paragraph “Capital and value management - Capital ratios” of this
Consolidated report on operations.
It’s reported below detailed information concerning shares capital changes and dividends pay-out paid during the year 2024.
On 16 January 2024, the cancellation of No.72,239,501 treasury shares was carried out without reducing the share capital pursuant to the
resolutions adopted by the Shareholders' Meeting of 31 March and 27 October 2023. The cancellation refers to the total number of treasury shares
held in the portfolio at the end of the 2023 financial year resulting from the purchases made to complete the 2022 Buy-Back Program
(No.14,059,665) and from the purchases made under the "First Tranche of the 2023 Buy-Back Program" from the start date of the program (30
October 2023) to the end of the financial year (No.58,179,836).
On 16 February 2024, the capital increase of 90 million resolved by the Board of Directors on 4 February 2024 was carried out with the free issue of
No.7,227,514 ordinary shares for the execution of the Group's incentive plans.
On 7 March 2024, the “First Tranche of the 2023 Buy-Back Program” launched on 30 October 2023 was completed with the total purchase of
No.95,995,258 treasury shares for a total value of €2,500 million equal to the total authorized disbursement. On 26 March 2024, the cancellation of
the additional No.37,815,422 treasury shares purchased in the current financial year to complete the program was ordered.
On 12 April 2024, the Company's Shareholders' Meeting authorized the share buyback program as part of the distributions to shareholders: a first
distribution for a maximum disbursement of €3,085 million to be realized also in several tranches during the 2024 financial year relating to the
residual part of the overall payout for the 2023 financial year (the "2023 SBB Residual") and a second distribution as an advance on the expected
distributions for the 2024 financial year ("2024 SBB Advance") which was defined on the basis of the Company's results for the first half of 2024.
The new remuneration policy defined by the Board of Directors on the occasion of the approval of the 2023 financial year results and disclosed to
the market on 5 February 2024 also provides for the distribution of an interim cash dividend which was paid on 20 November 2024 and whose
amount was defined by the Board of Directors on 23 October 2024.
On 24 April 2024, the cash dividend approved by the Shareholders' Meeting of 12 April 2024 was paid for a total amount of €3,015 million from the
allocation of the 2023 financial year profit, equal to a unit dividend of €1.8029 for each outstanding share entitled on the dividend date.
On 9 May 2024, the execution of the "Second Tranche of the Buy-Back Program 2023" was started for a maximum disbursement of €1,585 million
as part of the amount of the "SBB Residual 2023" approved by the Shareholders' Meeting of 12 April 2024 for a total of €3,085 million and fully
authorized by the ECB. The second tranche of the share purchase program was completed on 20 June 2024 with the purchase of a total of
No.44,859,171 treasury shares, equal to 2.67% of the share capital and for a total value equal to the maximum authorized disbursement (€1,585
million). The purchased shares were cancelled without reduction of the share capital on 26 June 2024 in implementation of the resolution adopted by
the Shareholders' Meeting of 12 April 2024.
On 24 June 2024, the third and final tranche of the share buyback program (the Third Tranche of the 2023 Buy-Back Program) was launched for a
maximum disbursement of €1,500 million, equal to the residual amount of the total payout of €3,085 million approved for the 2023 financial year
(“SBB Residual 2023”).
115
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Group and UniCredit share historical data series
The third tranche of the share buyback program was completed on 19 August 2024 with the purchase of a total of No.42,242,975 own shares, equal
to 2.58% of the share capital and for a total value equal to the maximum authorized disbursement (€1,500 million). The purchased shares were
cancelled on 18 December 2024 without reduction of the share capital in implementation of the resolution adopted by the Shareholders' Meeting of
12 April 2024.
On 16 September 2024, the execution of the first part of the advance of the Buy-Back Program 2024 (the SBB advance 2024) was started for a
maximum disbursement of €1,700 million approved by the Shareholders' Meeting of 12 April 2024 and fully authorised by the ECB on 13 September
2024.
The first part of the advance of the Buy-Back Program 2024 was completed on 14 November 2024 with the overall purchase of No.43,313,675
treasury shares, equal to 2.65% of the share capital for a total value equal to the maximum authorized disbursement (€1,700 million).
The treasury shares in the portfolio at the end of the 2024 financial year have been entirely cancelled.
On 5 November 2024, the Board of Directors, based on the financial situation as at 30 June 2024, resolved to distribute to shareholders an account
dividend to be paid on the results of the 2024 financial year for a total of €1,440 million, equal to a unit dividend of €0.9261 entitled as of 4 November
2024.
The account dividend was paid on 20 November 2024 for a value of €1,366 million, a portion of the shareholders did not choose the advance option
for a value of €62 million, while the shares that the Company repurchased after 4 November and held in the portfolio at the record date are not
entitled to the account dividends, the value of which, equal to €12 million, has been allocated to the statutory reserve.
Earnings ratios
IAS/IFRS
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Shareholders' equity (€ million)
62,441
64,079
63,339
61,628
59,507
61,416
55,841
59,331
39,336
50,087
49,390
Net profit (loss) attributable to the Group (€
million)
9,719
9,507
6,458
1,540
(2,785)
3,373
3,892
5,473
(11,790)
1,694
2,008
Shareholders' equity per share (€)
40.25
37.42
32.73
27.87
26.60
27.50
25.04
26.65
6.36
8.39
8.42
Price/Book value
0.96
0.66
0.41
0.49
0.29
0.47
0.40
0.58
0.43
0.61
0.63
Earnings per share (€)
5.841
5.105
3.085
0.680
(1.306)
1.462
1.712
2.794
(1.982)
0.27
0.34
Payout ratio (%)
-
31.7
29.0
76.0
-
-
15.4
13.3
-
41.7
34.7
Dividend yield on average price per
ordinary share (%)
-
8.81
8.90
5.33
1.39
-
1.84
2.03
-
2.04
2.00
Notes:
For further details on Earnings per share (EPS) refer to Part C - Section 25 Earnings per share.
The amounts shown in the table are "historical figures" published in different periods and they should be read taking into account the context of the
period at which they refer to.
The net profit for the period used to calculate EPS is reduced for the following amounts related to the cash-out, charged to equity, related to the
usufruct contract signed with Mediobanca S.p.A. on UniCredit shares for supporting the issuance of convertible securities denominated “Cashes”:
€35 million for 2014, €100 million for 2015, €128 million for 2016, €32 million for 2017, €93 million for 2018, €124 million for 2019, €122 million for
2020 and €30 million for 2021, related to the last payment referred to 2019 results, €74 million for 2022, referred to 2021 results, €175 million for
2023, referred to 2022 results, and €247 million for 2024, referred to 2023 results.
0,34
0,27
-1,982
2,794
1,712
1,462
-1,306
0,680
3,085
5,105
5,841
-7,00
-5,00
-3,00
-1,00
1,00
3,00
5,00
7,00
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
116
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Group results
Group results
Macroeconomic situation, banking and financial markets
International situation
Global economic activity remained subdued in 2024, expanding at pace like that of the previous year. However, broad stabilization in GDP growth
reflected differences in economic performance across regions: firmer - than - expected GDP growth in the US barely offsetting disappointing growth
in some Asian and European economies. The return of inflation to near central-bank targets led major central banks in advanced economies to
begin cutting policy rates and moving toward a neutral stance in June. In the second half of the year, amid a context of weakening demand, this
reduction in interest rates supported orderly normalization of labor markets.
The Chinese economy continued to disappoint last year as the country’s transition from a closed state-planned economy toward a more open and
market - driven one remains uncomplete. The supply - side performed well thanks to industrial policies aimed at channeling economic resources into
new sectors and away from the real estate sector. However, consumer confidence remained at rock bottom, primarily because Chinese households’
wealth tends to be tied to the value of homes, which has depreciated in recent years. As a result, China’s share of global exports remained above
pre Covid-19 levels in 2024, but a substantial amount of production capacity stood idle due to domestic demand weakness. To address these
challenges, starting from September, Chinese authorities enacted a multi-tiered stimulus package to stoke demand. It included monetary and fiscal
easing measures as well as housing and stock-market support measures. However, evidence indicates that, as the prices of homes and some
goods have been falling, the expectation of lower prices induced consumers to delay purchases, thereby limiting the impact of the measures
announced, at least up to December.
In Japan, GDP contracted mildly last year owing to temporary supply disruptions that weighed on output in the first half of 2024. In the second half of
the year, a recovery in semiconductor-related product markets and the resumption of automobile shipments, following certification test issues,
supported a pickup in exports. The Bank of Japan ended negative interest rates in March and raised its short-term-rate to 0.25% in July as a result
of its views that Japan was on track to sustainably meet the central bank's 2% inflation target.
In the UK, economic growth remained subdued in 2024, with some recovery in the first half of the year, followed by stagnation in the second half.
The first half was marked partly by a recovery from a mild recession in second half of 2023 and partly by a reflection of a fillip from pre-election tax
cuts from the then-ruling Conservative party. The Labor party won a majority in the 4 July 2024 general election and decided to raise taxes (mostly
on businesses) by GBP 40 billion in its Autumn Budget. This affected business confidence, employment, and economic activity.
Economic activity in the eurozone remained trapped in a low-growth environment, as private consumption remained subdued despite positive growth
in real wages, while private investment spending continued to struggle amid weak demand, reduced profitability and still-tight financing conditions.
Uncertainty surrounding geopolitical risk, such as that stemming from Russia’s war against Ukraine and conflict in the Middle East; trade tariffs and
economic policy further contributed to dampening investment, as firms feared disruption to global trade and energy-price increases. Starting in
September, PMIs revealed fresh signs of economic weakness amid a slowdown in services activity from an already-subdued pace and a stronger
contraction in manufacturing due to weak domestic and global demand and the lagged impact from the transmission of higher interest rates.
On another note, the impact of weaker growth on labor markets remained contained. This probably reflected companies’ higher reluctance to let staff
go than in the previous cycles amid unfavorable demographic trends.
A decline in prices for energy, goods and food, which was amplified by base effects, contributed to reducing inflationary pressure in the eurozone,
bringing, albeit temporarily, headline CPI inflation below 2% in September. Disinflationary pressure reflected weaker demand amid tighter monetary
policy, repaired supply chains in global manufacturing and a moderation of demand-supply mismatches in contact-intensive sectors. Underlying
inflation also eased, although stickiness in service-price inflation prevented a major decline - the core rate declined to 2.7% in December. With the
pace of disinflation gaining traction, the European Central Bank (ECB) started to cut its policy rate in June, bringing it to 3% by December, 100bp
below its peak for this cycle.
The recalibration of the terms and conditions of the third series of Targeted Long-Term Refinancing Operations (TLTRO III) maintained pressure on
banks to repay outstanding loans, contributing to the draining of excess liquidity from the system. In the second half of 2024, the Eurosystem no
longer reinvested all the principal payments from maturing securities purchased under the pandemic emergency purchase program (PEPP),
targeting a reduction of the PEPP portfolio by €7.5 billion per month on average. The ECB’s Governing Council discontinued reinvestments under
the PEPP at the end of 2024.
117
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Group results
In the US, economic growth last year was more resilient than previously anticipated but moderated towards the end of year. This moderation
reflected a softening of the labor market, the rundown of household savings buffers, subdued consumer confidence, increasing delinquency rates on
consumer credit and still-tight credit conditions. Progress on disinflation quickened, with both headline and core consumer inflation easing, moving
towards 3%. Starting in September, the Fed cut its reference interest rate by a cumulative 100bp, bringing the federal funds rate to 4.25-4.50% by
December. At the Fed’s December meeting, the central bank announced it would keep reducing the size of its balance sheet by allowing its asset
holdings to mature up to monthly caps of $25 billion for USTs and $35 billion for mortgage-backed securities.
Banking and financial markets
Lending to the private sector in the eurozone gradually picked up from low levels during 2024 and increased by 2.0% yoy in December, compared to
its broad stabilization towards the end of 2023. Financing conditions remained tight over the year but gradually improved, supporting the first signs of
a recovery in loan demand, despite subdued economic growth and high geopolitical uncertainty. According to the European Central Bank’s bank
lending survey, eurozone banks reported a modest net increase in loan demand from firms in the fourth quarter 2024, while net demand for housing
loans rebounded strongly.
In 2024, growth in loans to the private sector remained weak in the main reference countries of UniCredit group (Austria, Germany and Italy), and
particularly so in in Italy, where lending to non-financial corporations was stuck in negative territory (it contracted by around 2.0% on an annual
basis). Loan demand was still hampered by weak fixed investment. Loans to households showed a gradual recovery, which had broadly stabilised
by the end of 2024, after declining by more than 1% yoy in December 2023. In Germany, loans to the private sector showed modest expansion,
decelerating after they showed 1% yoy growth at the end of 2023, against a backdrop in which the German economy contracted once again in 2024
and in which there was a significant decline in fixed investment. In Austria, corporate loans continued to grow, albeit at a slower pace compared to
2023, while loans to households contracted for most of the year at a pace of about 1.0% yoy, compared to almost -2% at the end of 2023.
With respect to bank funding at a system level, growth in deposits from households and non-financial corporations in the euro area recovered from
their slowdown observed in 2023. The increase in deposits was also supported by a recovery in overnight deposits. This was also the case in Italy,
where the growth rate of deposits from households stopped slowing (compared to 2023), benefiting from improvement in real disposable income and
savings. In Germany, the stock of deposits from both households and non-financial corporations continued to grow at a decent pace, also driven by
a recovery in overnight deposits.
Cuts to the reference rates by the ECB have been gradually transmitted into bank interest rates in the three reference countries of UniCredit group.
Interest rates applied to bank loans to non-financial corporations moved below 5% in Germany and Italy, one percentage point below their peak a
year earlier and their lowest level since April 2023, while they declined to slightly above 4% in Austria. Interest rates applied to loans for house
purchases also moved along a downward trend, declining well below 4% in all the reference countries of the Group. Given broad stabilisation in the
interest rates applied to bank deposits, the bank spreads (i.e. the difference between the average interest rate applied to loans and the average rate
applied to deposits) showed a moderate decline over the course of 2024.
During 2024, market movements reflected a constructive approach by investors, supported by expectations of interest-rate cuts by central banks.
Strong market performance especially characterized the second part of the year despite intensification of geopolitical risks (the latter was also
related to the worsening of the conflict in the Middle East) and expectations regarding the outcome of US elections in November, which was overall
positively welcomed by financial markets. Generally positive results were observed in the bond segment, despite high volatility in medium- and long-
term returns. Credit spreads remained low, and stock markets performed well. The Italian stock market and the German stock market achieved
double-digit gains, respectively up by 19% and 13%, compared to December 2023, while the Austrian stock market showed improvement of around
6%.
118
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Group results
CEE countries
Economic growth in all EU - CEE2 and the Western Balkans picked-up in most countries in 2024, following the significant slowdown in 2023. In EU -
CEE, growth is estimated at 1.8% in 2024, after 0.7% 2023, with some differentiation across countries. We estimate growth was stronger in Croatia,
Slovakia, Poland and Bulgaria, with rates ranging between 2.0% and 3.5%, and weaker in the other countries, with rates ranging from 0.0% and
1.5%. The most open economies such as Czechia and Hungary experienced the lowest growth rates, below 1%, as they were more affected by
weak external demand. In the Western Balkans, Serbia experienced the highest growth in the region, 3.9%, thanks to the strength in domestic
demand, while in Bosnia and Herzegovina it is estimated at 2.3%.
The overall improvement in economic growth in 2024 in EU - CEE and the Western Balkans was in most cases mainly driven by the recovery in
private consumption, which was supported by higher real wage growth, thanks to disinflation and increases in nominal wages. Wages increases
reflected still tight labour markets and, in various countries, significant increases in public sector salaries. Public investment was supported by EU
funds, while private investment was negatively affected by weak external demand and uncertainty. Persisting weak external demand weighed on
exports performance, which affected in particular the manufacturing sector. In Russia growth is estimated at 3.7%.
We expect growth to pick to 2% - 3% in most CEE countries in 2025. Growth will likely be mainly driven by domestic demand. Consumption will be
supported by still-tight labor markets. Public investment will be an important driver of growth, also thanks to the pickup in EU Recovery and
Resilience Facility (RRF) utilization, as well as the acceleration in the absorption of 2021-27 budget funds, which play an important role in CEE.
External demand will likely remain sluggish. There is limited fiscal space to offset external weakness, as governments face fiscal adjustment needs
due to the high fiscal deficits in the region.
Inflation continued to slow in 2024 but, with the exception of Serbia, it remained above the target range in all countries. Disinflation stalled during the
summer as the supportive impact of food prices started to fade. The domestic demand-driven component of inflation has even edged higher in some
countries, especially in those that run loose fiscal balances. The CEE region also experienced the global phenomenon of the growing gap between
decelerating core goods price inflation and still elevated service price inflation. In CEE, this phenomenon has been also driven by the convergence
process of services prices towards EU levels. Moderate disinflation will likely bring the headline figure inside the target range in CEE countries in
2025.
Most CEE central banks reduced the policy rate in 2024. The largest reduction took place in Hungary, where the rate was cut from 10.75% to 6.50%
during 2024, and Czechia, where the reduction was from 6.75% to 4.00%. Less pronounced cuts took place in in Serbia (from 6.50% to 5.75%) and
Romania (from 7.00% to 6.50%). In Russia, the central bank increased the policy rate from 16.00% to 21.00%. Disinflation is slowing, but there is
still room for cautious rate cuts in 2025.
2 Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia.
119
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Group results
Main results and performance for the period
Introduction
The results achieved in the 2024 financial year demonstrate once again that the guidelines dictated by the UniCredit Unlocked Strategic Plan
represent the right strategy for the Group because they have made it possible to achieve strengthened, constant and sustainable profitability by
leveraging the ability to adapt and flexibility in a changing external environment.
The Group's strategy is and remains entirely customer-centric; the lean and flexible internal organization with simplified processes, the offer of best-
in-class products and services that leverage the size of the Group, the use of new and reliable digital technologies supported by new investments
allow to better serve customers through fully integrated channels.
Profitability in 2024 is supported by resilient net interest income net of loan loss provisions, solid fee generation and the high operating and capital
efficiencies achieved. The commercial focus on business segments and products with a better combination of risk and return, the geographical
diversification that characterizes the Group's activities, the continuous and careful management of pass-through as well as the discipline in the
lending policies and prudence in the management of credit assets characterize the quality of the net interest margin; the growth recorded in the
various categories of commissions reflects the investments made in the last 3 years in the Group's product factories as well as the commercial
acceleration of the network, supported by the new initiatives undertaken.
In 2024, the Group recorded a stated net profit of €9,719 million, up by €212 million (2.2% at current exchange rates, 3.2% at constant exchange
rates) compared to €9,507 million in 2023.
Group net profit3 for the current year amounted to €9,314 million, up €700 million from €8,614 million in the previous year (8.1% at current exchange
rates, 9.1% at constant exchange rates). The figure includes a positive result of €577 million attributable to Russia4, which in 2023 had recorded a
net profit of €666 million.
Operating income
In 2024, the Group continued to grow in revenues, amounting to €24,844 million, up 4.3% compared to 2023 (5.3% at constant exchange rates)
mainly thanks to the positive contribution of net interest income and commissions.
The Group's net interest income amounted to €14,358 million, up 2.5% (€353 million) compared to the previous year (3.5% at constant exchange
rates); this performance was positively impacted by the selective commercial development activity, the careful management of the beta on deposits5
as well as the market rate environment, which on an annual basis is still favourable (despite the decline recorded in the second half of the year, the
average 3-month Euribor of 2024 is 14 basis points higher than that of 2023). In detail, the commercial initiatives implemented to improve the
risk/return ratio of credit assets have led to a further increase in the average rate on loans to customers; the cost of deposits from customers has
also progressively increased but to a lesser extent than the rate on loans. Compared to 2023, the greater weight of term deposits determined by the
growing propensity of customers towards these more profitable forms of funding contributed to the increase in the average rate on deposits.
However, this dynamic was contained through the careful repricing policy on deposits made possible thanks also to the Bank's solid liquidity
position, the granularity of the stock of outstanding deposits, as well as the prevalence of sight components.
Overall, these dynamics favoured a further widening of credit spreads which, together with higher interest on securities in the portfolio, supported the
Group's net interest income.
The Group's loans to customers decreased by €11.1 billion, or 2.6% (2.4% at constant exchange rates), from €429.5 billion at 31 December 2023 to
€418.4 billion at 31 December 2024. This performance was affected by the repurchase agreement component, recording a decrease of €5.9 billion,
while other customer loans decreased by €5.2 billion, or 1.3% (1.1% at constant exchange rates), reaching €404.3 billion. In detail, Italy loans
recorded a decrease of 5.0% or 7.5 billion; the decrease in stock is mainly linked to the general reduction in customer demand for credit resulting
from the increase in interest rates together with the progressive maturity of mortgages issued under Covid guarantee schemes, partially offset by
commercial development actions on the sEva positive customers. Germany recorded a positive change of €0.7 billion (0.5%) while Austria recorded
a contraction of €3.4 billion or 5.3% with the Large Corporate segment leading the decline. In the other Central Europe countries, loans to customers
remained substantially stable (€0.0 billion) compared to 31 December of last year (0.0% at current exchange rates, corresponding to a growth of
2.7% at constant exchange rates, with the Czech Republic recording growth of 3.9% at constant exchange rates). Finally, the contribution of Eastern
Europe was positive, with annual growth in loans net of repurchase agreements of €7.0 billion (21.0% at current exchange rates or 21.0% at
constant exchange rates); this growth was explained for €3.1 billion6 by the acquisition of Alpha Bank Romania S.A. which took place in the fourth
quarter of the year and can be seen in Romania (up by €4.3 billion) as well as by the positive contribution of Bulgaria, Serbia and Croatia.
3 Group net profit (loss) net of DTAs write-up or cancellations on losses carried forward deriving from the update of sustainability tests.
4 Russia includes AO UniCredit Bank with other local legal entities and cross-border exposures accounted for in UniCredit S.p.A.
5 The Beta on deposits is the percentage of the short-term interbank rate returned to customers and is expressed as the ratio between the cost of deposits and the 3-month Euribor or equivalent market rate depending on
the geographical.
6 For further information on the transaction, please refer to the Notes to the Consolidated Financial Statements, Part G - Combinations concerning companies or business units.
120
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Group results
Russia, with a loan portfolio of €1.2 billion as at 31 December 2024, recorded a year-on-year contraction of €2.0 billion, reflecting the Group's
strategies.
The Group customer deposits stood at €499.5 billion at 31 December 2024, up €3.8 billion compared to last year; excluding the repurchase
agreement, up by €2.3 billion, the positive change was €1.5 billion (equal to an increase of 0.3% at current exchange rates and 0.5% at constant
exchange rates). In terms of geographies, Italy recorded a decrease of 2.4% or €4.5 billion compared to the 2023 financial year; this deviation is
explained by the Retail and Small and Medium Enterprises segments and mainly reflects the Bank's attention to pricing, the greater diversification of
savings by customers with a rotation towards other forms of assets under management and, in the Retail segment, the placements of government
bonds carried out. In Germany, the stock of deposits was almost unchanged on an annual basis (0.1%, equal to an increase of €0.1 billion), while
Austria recorded a positive change of €1.0 billion (1.6%); the other Central Europe countries recorded an increase of 7.3% or €2.5 billion (equivalent
to an increase of 10.5% at constant exchange rates) with the Czech Republic increasing by €2.5 billion (equal to an increase of 11.1% at current
exchange rates or 13.1% at constant exchange rates) supported by the Corporate segment. Eastern Europe increased by 13.2% (13.2% at constant
exchange rates) equal to €6.2 billion, of which €3.6 billion from the acquisition of Alpha Bank Romania S.A.; all the countries of the division
contributed positively to growth, driven by Bulgaria (up by €0.8 billion, equal to an increase of 6.4% at current and constant exchange rates) and
Serbia (up by €0.7 billion, equal to 20.3% at current exchange rates and 20.1% at constant exchange rates). Finally, Russia recorded a decrease of
51.7%, equal to €3.7 billion at current exchange rates (42.5% measured at constant exchange rates).
Dividends and other income on Group equity investments (which include the profits of companies valued at equity) as at 31 December 2024
amounted to €470 million, up €11 million or 2.4% (2.4% at constant exchange rates) compared to 31 December 2023. The 2024 figure is mainly
explained by the profits of the following companies valued at equity: Bank Fuer Tirol Und Vorarlberg Aktiengesellschaft (€100 million), Oberbank AG
(€80 million), UniCredit Allianz Vita S.p.A. (€78 million), Bks Bank AG (€51 million), Cnp UniCredit Vita S.p.A. (€33 million), Oesterreichische
Kontrollbank Aktiengesellschaft (€31 million), UniCredit Allianz Assicurazioni S.p.A. (€19 million).
The Group's commissions in 2024 amounted to €8,139 million, up €573 million or up 7.6% (8.2% at constant exchange rates) compared to 2023;
this performance benefited primarily from the greater commercial boost on asset management products, investment funds first and foremost, the
increase in commissions on loans and the growth recorded on payment systems and cards, which more than offset the higher costs associated with
securitisation transactions in line with the Group's strategic choices and the lower contribution of commissions on current accounts, penalised in the
year-on-year comparison by the repricing manoeuvres resulting from the changed market interest rate scenario.
In detail, commissions on investment services recorded sustained growth compared to 2023 of €363 million, up 17.9%, (18.0% at constant
exchange rates) driven primarily by higher investment fund placements thanks to positive commercial momentum and a more favorable
macroeconomic environment, as well as fund management fees, which also progressed compared to the previous year.
Commissions on insurance products increased by 5.4%, to €45 million compared to 2023, mainly supported by the property and casualty insurance
as well as the positive result of loan protection insurance.
The financing and advisory component grew by €90 million, equal to a change of 5.3% compared to 2023 (5.5% at constant exchange rates); this
trend was characterised by an increase in commissions on loans only partially offset by lower commissions on capital markets operations.
Commissions on payments and current accounts increased by €49 million (2.0% compared to 2023, equal to a positive change of 2.8% at constant
exchange rates) despite the decrease in commissions on current accounts for the reasons mentioned above; this is thanks to the progress of fees
from cards and payment services which show a marked increase on an annual basis.
Commission expenses related to securitisation operations (mainly in Italy) increased by €30 million compared to 31 December 2023, in line with the
Group's strategic choices.
Finally, commissions on hedging products for customers amounted to €690 million, up €56 million year-on-year, equal to 8.9% at current exchange
rates and 12.2% at constant exchange rates. This performance was positively affected by the result of Russia foreign exchange business. Overall,
the Group continued to support its customers in protecting the results of their businesses.
The Group's trading profit as at 31 December 2024 was substantially stable compared to the previous year, down by €4 million, equal to 0.2% at
current exchange rates, or up 3.1% at constant exchange rates, from €1,743 million in 2023 to €1,739 million in the current year. This trend was
positively impacted by the increase in profits from foreign exchange hedging activities in Russia, offset by the decrease in Italy mainly explained by
lower profits from the sale of securities.
Finally, in 2024 the Group other expenses and income were positive for €139 million, compared to the balance of €54 million in the same period of
2023; the figure for the 2024 financial year includes, among other things, the positive effects of new commercial agreements.
121
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Group results
Revenue
(€ million)
YEAR
%
CHANGE
2024
Q4
% CHANGE
ON Q3 2024
2024
2023
Net interest
14,358
14,005
+ 2.5%
3,652
+ 2.5%
Dividends
470
459
+ 2.4%
93
- 38.5%
Fees
8,139
7,565
+ 7.6%
1,975
+ 1.7%
Trading income
1,739
1,743
- 0.2%
270
- 38.9%
Other expenses/income
139
54
n.m.
13
- 70.1%
Revenue
24,844
23,826
+ 4.3%
6,002
- 2.3%
Operating costs
The Group operating costs amounted to €9,405 million in 2024 down 0.6% (0.1% at constant exchange rates), equal to €55 million compared to the
previous year, confirming the Group's proven track record in pursuing operating efficiency. This result was achieved thanks to the constant discipline
and rigor adopted in the management of expenses, the targeted cost reductions as well as the significant investments and integration costs
previously recorded; all this has allowed the Group to mitigate the impact of inflation, salary increases mainly linked to collective agreements in Italy,
Austria and Germany as well as the higher costs deriving from Alpha Bank Romania S.A. which has had an impact of €24 million.
In detail, HR costs in the twelve months of 2024 amounted to €5,853 million, down €8 million, or 0.1%, compared to the previous year, equal to an
increase of 0.2% at constant exchange rates. This result was mainly achieved thanks to the positive effects generated by the continuing trend of
staff reductions, which made it possible to offset the higher costs associated with salary increases. In detail, the number of employees recorded,
compared to 2023, a decrease of 1.5% equal to 1,030 units with average FTEs down by 3,348 units; this dynamic was impacted, among other
things, by the acquisition of Alpha Bank Romania S.A. in the fourth quarter of 2024 with the contribution of approximately 1,900 FTEs within the
Group perimeter.
NHR costs in the current period amounted to €2,596 million, down 0.3% compared to 2023 (€7 million); the annual trend was significantly impacted
by the actions to rationalise buildings aimed at freeing up space, lower energy costs as well as the structural efficiency actions of the cost base
implemented; in fact, these made it possible to significantly counteract inflation-related increases as well as the higher expenses for Information &
Technology mainly related to new projects.
Expense recoveries in 2024 amounted to €106 million, up from €81 million in 2023 (29.7%) mainly due to higher recoveries of administrative
expenses incurred on behalf of customers as well as higher recoveries from third parties related to commercial agreements.
Finally, in 2024, depreciation, amortization and write-downs amounted to €1,062 million, down €16 million, or 1.5%, compared to €1,078 million in
the same period of 2023. It should be noted that these amounts are mostly made up of depreciation. The annual trend was mainly impacted by the
rationalization of real estate, especially in the headquarters, which more than offset the growth in depreciation and amortization on Information &
Technology linked to new investments.
Operating costs
(€ million)
YEAR
%
CHANGE
2024
Q4
% CHANGE
ON Q3 2024
2024
2023
HR costs
(5,853)
(5,861)
- 0.1%
(1,572)
+ 10.2%
Non HR costs
(2,596)
(2,603)
- 0.3%
(694)
+ 11.5%
Recovery of expenses
106
81
+ 29.7%
28
+ 50.6%
Amortisations and depreciations
(1,062)
(1,078)
- 1.5%
(272)
+ 4.2%
Operating costs
(9,405)
(9,460)
- 0.6%
(2,510)
+ 9.5%
Thanks to sustained revenue growth (up 4.3%) and cost containment (down 0.6%), the Group gross operating income of €15,439 million is up 7.5%
compared to the previous year (8.8% at constant exchange rates).
The Group's cost income ratio, benefiting from this dynamic, fell to 37.9%, down 1.8 percentage points compared to 2023.
122
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Group results
Net write-downs on loans and provisions for guarantees and commitments
The Group provisions for loan losses amounted to €641 million as at 31 December 2024, compared to €560 million as at 31 December 2023.
Excluding Russia segment, provisions amounted to €785 million, compared to €552 million in 2023.
The amount of provisions as at 31 December 2024 was determined by the combined effect of the following events: (i) write-downs related to flows to
defaults of €1,334 million (ii) write-backs related to outflow from default to performing of €278 million (iii) write-backs related to other portfolio
dynamics of €415 million, including provisions related to the update of the macroeconomic scenarios for IFRS9 purposes.
The amount of provisions related to other portfolio dynamics includes:
• Write-backs of €8 million arising from the update of the macroeconomic scenarios for IFRS9 purposes, which was carried out in the second and
fourth quarters as part of the ordinary process of adjusting provisions for credit losses to the most recent macroeconomic projections;
• Write-backs of €126 million arising from the new Transfer Logic approach implemented in the first half of the year;
• Write-backs of €20 million arising from the update of selling scenario to adjust disposal probabilities on a specific portfolio;
• Write-downs of €106 million arising from the inclusion of climate risk in the calculation of loan loss provisions
The Group cost of risk in 2024 was 15 basis points, slightly increasing compared to 13 basis points of 2023. Excluding Russia segment, the cost of
risk stood at 18 basis points, higher than 13 basis points of 2023.
More specifically, the Italy division records a cost of risk of 29 basis points, higher than the 22 basis points of 2023 mainly due to higher write-downs
for flows to default. Germany recorded a cost of risk of 21 basis points, higher than the 14 basis points in 2023 due to higher write-downs for flows to
default; Central Europe recorded a cost of risk of 4 basis points, in line with 2023 result; Eastern Europe recorded a negative cost of risk of -6 basis
points, compared to the -22 basis points of 2023 mainly due to the lower write-backs in the non-performing portfolio.
The Group's gross non-performing loans as at 31 December 2024 amount to €11.2 billion, down compared to the amount as at 31 December 2023.
The ratio of gross non-performing loans to total loans moved from 2.66% in December 2023 to 2.61% in December 2024, thanks to the reduction of
non-performing loans and despite the decrease of performing loans at the denominator.
The Group's gross non-performing loan coverage ratio as at 31 December 2024 is equal to 45.9%, reducing in comparison with the value as at 31
December 2023.
Gross bad loans as at 31 December 2024 amount at €3.1 billion, representing the 28% of total gross impaired loans, with a coverage ratio of 69.3%.
Loans to customers - Asset quality
(€ million)
BAD
EXPOSURES
UNLIKELY
TO PAY
NON-
PERFORMING
PAST-DUE
TOTAL
NON-
PERFORMING
PERFORMING
TOTAL
LOANS
As at 31.12.2024
Gross exposure
3,077
7,275
806
11,158
416,387
427,545
as a percentage of total loans
0.72%
1.70%
0.19%
2.61%
97.39%
Writedowns
2,133
2,724
262
5,118
4,049
9,167
as a percentage of gross value
69.33%
37.44%
32.47%
45.87%
0.97%
Carrying value
944
4,552
544
6,040
412,339
418,378
as a percentage of total loans
0.23%
1.09%
0.13%
1.44%
98.56%
As at 31.12.2023
Gross exposure
2,894
7,842
958
11,693
427,955
439,648
as a percentage of total loans
0.66%
1.78%
0.22%
2.66%
97.34%
Writedowns
2,141
3,110
272
5,523
4,673
10,196
as a percentage of gross value
73.97%
39.67%
28.35%
47.23%
1.09%
Carrying value
753
4,731
686
6,171
423,282
429,452
as a percentage of total loans
0.18%
1.10%
0.16%
1.44%
98.56%
Note:
Total loans to customers exclude the receivables arising from subleases recognised due to the application of IFRS16.
123
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Group results
From net operating profit to profit before tax
The improvement in gross operating income (equal to €15,439 million in 2024 compared to €14,366 million in 2023) and the low level of provisions
for credit losses (equal to €641 million, up €81 million) produced a Group net operating profit of €14,798 million, up €992 million compared to the
previous year, up 7.2% (9.0% at constant exchange rates).
The Group's other charges and provisions amounted to -€1,069 million, up from -€1,023 million in 2023.
The item includes net provisions for legal proceedings and estimated liabilities of various kinds of -€554 million in 2024, compared to -€68 million in
2023. The figure for the current year includes, among other things, provisions relating to a lawsuit relating to claims for payment of a guarantee, filed
by a Russian energy company in a court in St. Petersburg. The same item also includes systemic charges, which amounted to -€515 million, down
€440 million from -€955 million in 2023, mainly due to the termination of the contribution to the Single Resolution Fund (SRF) for Group banks
operating in European Union countries this year following the achievement of the target level system-wide.
Group integration costs in 2024 amounted to -€841 million, compared to -€1,060 million in 2023; the 2024 figure mainly consists of provisions for
staff leavers as part of the update of the Group's strategic plan; these provisions are concentrated in Italy and, secondly, in Germany and Austria.
The Group's net investment income in 2024 amounted to -€29 million, compared to -€272 million registered in the same period of the previous year.
The negative result for 2023 had been mainly impacted by the update of the valuation of the real estate portfolio measured at fair value, by the figure
related to Russia, which had recorded a loss of -€31 million, mainly due to the effects of the sale of RN Bank by the associate company Barn BV
(-€37 million), as well as by the result of the valuation of the investee company CNP UniCredit Vita, which had resulted in a loss of -€61 million.
As a result of the items described above, the Group pre-tax profit of €12,860 million was recorded in the current year, €1,409 million higher than the
€11,451 million recorded last year, representing a growth of 12.3% (13.1% at constant exchange rates).
Profit (loss) before tax by business segment
(€ million)
REVENUE
OPERATING
COSTS
LOAN LOSS
PROVISIONS (LLPs)
NET OPERATING
PROFIT
PROFIT (LOSS) BEFORE TAX
YEAR
2024
2023
Italy
11,354
(3,914)
(501)
6,939
6,173
5,612
Germany
5,462
(2,220)
(273)
2,969
2,787
2,119
Central Europe
4,320
(1,604)
(33)
2,683
2,449
2,230
Eastern Europe
2,872
(905)
22
1,989
1,834
1,713
Russia
1,292
(226)
144
1,211
719
888
Group Corporate Centre
(456)
(537)
0
(993)
(1,102)
(1,110)
Group Total
24,844
(9,405)
(641)
14,798
12,860
11,451
124
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Group results
Profit (Loss) attributable to the Group
In 2024, the Group income tax item amounted to -€3,085 million, up by €1,172 million compared to -€1,914 million in 2023. The increase reflects the
higher economic result for the period as well as the lower recognition of new deferred tax assets on tax losses carried forward.
In detail, the figure for the current year was positively impacted by €405 million relating to the recognition of new deferred tax assets on residual tax
losses carried forward as a result of the update of the sustainability test of the Italian Tax Perimeter and UniCredit S.p.A. on the basis of the
forecasts resulting from the 2025 budget, approved by the Board of Directors (BoD) at its meeting of 12 December 2024, and the projections for
2026-2027, presented to the Board of Directors at the same meeting.
Similarly, taxes for the previous year had a positive impact of €893 million relating to the recognition of new deferred tax assets on tax losses
incurred in Italy.
Profit after tax from discontinued operations in 2024 amounted to €0 million, unchanged compared to the previous year.
The net result for the period of 2024 amounted to €9,775 million, up €237 million from €9,537 million in 2023.
The result attributable to minority interests, conventionally shown with a negative sign, was -€55 million compared to -€27 million in the previous
year. The higher amount is mainly attributable to UniCredit Bank S.A. and is due to the increase in the minority stake for 9.90% as part of the price
for the acquisition of Alpha Bank Romania S.A. by UniCredit S.p.A.
The Purchase Price Allocation was €0 million compared to -€4 million in the previous year.
The 2024 financial year was not impacted by goodwill adjustments, in line with the previous year.
As a result, in 2024 the Group stated net profit was €9,719 million, up €212 million compared to €9,507 million in 2023.
Group stated net profit (loss)
(€ million)
YEAR
%
CHANGE
2024
Q4
% CHANGE
ON Q3 2024
2024
2023
Revenue
24,844
23,826
+ 4.3%
6,002
- 2.3%
Operating costs
(9,405)
(9,460)
- 0.6%
(2,510)
+ 9.5%
GROSS OPERATING PROFIT (LOSS)
15,439
14,366
+ 7.5%
3,492
- 9.3%
Loan loss provisions (LLPs)
(641)
(560)
+ 14.4%
(357)
n.m.
NET OPERATING PROFIT (LOSS)
14,798
13,806
+ 7.2%
3,135
- 14.9%
Other charges and provisions
(1,069)
(1,023)
+ 4.4%
(385)
n.m.
Integration costs
(841)
(1,060)
- 20.7%
(753)
n.m.
Net income from investments
(29)
(272)
- 89.4%
13
n.m.
PROFIT (LOSS) BEFORE TAX
12,860
11,451
+ 12.3%
2,010
- 42.9%
Income taxes
(3,085)
(1,914)
+ 61.2%
(7)
- 99.3%
Profit (loss) of discontinued operations
-
-
-
-
-
NET PROFIT (LOSS) FOR THE PERIOD
9,775
9,537
+ 2.5%
2,003
- 20.5%
Minorities
(55)
(27)
n.m.
(34)
n.m.
NET PROFIT (LOSS) ATTRIBUTABLE TO THE GROUP
BEFORE PPA
9,719
9,510
+ 2.2%
1,969
- 21.6%
Purchase Price Allocation (PPA)
-
(4)
- 100.0%
-
n.m.
Goodwill impairment
-
-
-
-
-
GROUP STATED NET PROFIT (LOSS)
9,719
9,507
+ 2.2%
1,969
- 21.6%
125
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Group results
Capital and value management
Principles of value creation and capital allocation
In order to create value for the shareholders, the Group’s strategic guidelines aim at optimising the composition of the business portfolio.
This goal is pursued through a process of capital allocation to each business line in relation to its specific risk profile and ability to generate
sustainable earnings measured as EVA (Economic Value Added), a performance indicator correlated to TSR (Total Shareholder Return). The capital
allocated to business segments is quantified applying internal capitalization targets to Risk Weighted Exposure Amounts (RWEA).
The development of Group operations with a view to value creation requires a process of allocating and managing capital governed by different
phases in the process of planning and control, articulated as:
• formulation of the proposed risk propensity and capitalisation targets;
• analysis of the risks associated with the value drivers and resulting allocation of capital to the different businesses of the Group;
• assignment of risk adjusted performance targets;
• analysis of the impact on the Group’s value and of the creation of value for shareholders;
• drafting and proposal of the financial plan, capital plan and dividend policy.
The Group dynamically manages its capital base by monitoring regulatory capital ratios, anticipating the appropriate changes necessary to achieve
its defined targets, and optimising the composition of its assets and equity. Planning and monitoring refer, on the one hand, to the total Own Funds
(Common Equity Tier 1, Additional Tier 1 and Tier 2 Capital), Leverage Ratio, and Minimum requirement for eligible liabilities (MREL) and, on the
other hand, to the Risk Weighted Exposure Amounts (RWEA) and Total Exposures. The RWEA, for credit portfolios managed using the internal
models, do not only depend on the nominal value of the assets but also on the relevant credit parameters. Besides volume dynamics, it is also
crucial to monitor and forecast the change in the asset quality of the portfolio in view of the macroeconomic scenario (the so-called pro-cyclical
effect).
Following the financial crisis that unfolded in 2007-2008, the European Union implemented a substantial reform of the financial services regulatory
framework to enhance the resilience of its financial institutions. This reform was largely based on international standards agreed in 2010 by the
Basel Committee on Banking Supervision, known as the Basel 3 framework. Among its many measures, the reform package included the adoption
of Regulation (EU) 575/2013 of the European Parliament and of the Council and Directive 2013/36/EU of the European Parliament and of the
Council, which strengthened the prudential requirements for credit institutions and investment firms.
These rules have been modified by Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019 (so-called CRR2),
amending Regulation (EU) 575/2013 and by Directive (EU) 2019/878 of the European Parliament and of the Council of 20 May 2019 (so-called
CRDV), amending Directive 2013/36/EU.
126
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Group results
Capital ratios
Group transitional Own Funds and capital ratios
DESCRIPTION
AS AT
31.12.2024
31.12.2023
Common Equity Tier 1 Capital (€ million)
44,221
45,913
Tier 1 Capital (€ million)
49,176
50,756
Total Own Funds (€ million)
56,554
59,472
Total RWEA (€ million)
277,093
284,548
Common Equity Tier 1 Capital ratio
15.96%
16.14%
Tier 1 Capital ratio
17.75%
17.84%
Total Capital ratio
20.41%
20.90%
Notes:
Transitional own funds and capital ratios including all transitional adjustments according to the yearly applicable percentages.
Furthermore, starting from 30 June 2020, UniCredit group has decided to apply the IFRS9 transitional approach as reported in article 473a of the Regulation (UE) 873/2020 that amends the Regulation (EU) 575/2013 and
Regulation (EU) 876/2019. Therefore, the values here reported reflect the impact of the transitional arrangements provisioned in such Regulation.
For further information refer to the Notes to the consolidated accounts, Part F - Consolidated shareholders’ equity, Section 2 - Own funds and
banking regulatory ratios.
Capital strengthening
During 2024 UniCredit S.p.A. carried out the following transactions on the instruments Additional Tier 1 (so-called “Non-Cumulative Temporary
Write-Down Deeply Subordinated Fixed Rate Resettable Notes”) accounted for in the item “Capital Instruments” of Equity Instruments:
• on 19 April 2024 Unicredit S.p.A. exercised at first call date its option to fully redeem in whole the Additional Tier 1 instruments issued in 2014 in
accordance with the terms and conditions of the securities; the called notes for a total of $1,250 million (gross of charges) have been redeemed at
par together with accrued and unpaid interest.
• on 9 September 2024, Unicredit S.p.A. placed an issue of equity instruments Additional Tier 1 for a total amount of €1,000 (gross of charges),
targeted to institutional investors, contributing to strengthen its regulatory capital. The securities are perpetual (with maturity linked to the corporate
duration of UniCredit S.p.A.) and may be called by the Issuer on any calendar day in the six-month period starting on 3 December 2031 and
ending on 3 June 2032 and thereafter on any interest payment date, subject to Regulatory approval. Notes pay fixed rate coupons of 6.5% per
annum up to June 2032 on a semi-annual basis; if not called, coupon will be reset every 5 years to the aggregate of the then 5-Years Mid-Swap
rate plus 421.2 basis points, calculated on an annual basis and then converted to a semi-annual rate in accordance with market conventions. In
line with the regulatory requirements, the coupon payments are fully discretionary.
For details on the changes in capital and dividends paid during the year, both in cash and through share buyback programs, please refer to the
chapter “History of the Group and UniCredit share” of this Consolidated Report on Operations.
Shareholders’ equity attributable to the Group
The Shareholders’ equity of the Group, including the result for the year equal to €9,719 million, amounts to €62,441 million as at 31 December 2024,
compared to €64,079 million as at 31 December 2023.
127
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Group results
The following table shows the main changes occurred in 2024.
Shareholders' equity attributable to the Group
(€ million)
Shareholders' equity as at 31 December 2023
64,079
Dividends and other allocations
(4,485)
Equity instruments
(163)
Share buyback
(5,871)
Change in reserve related coupon on AT1 instruments
(196)
Charges related to transaction denominated "Cashes"
(247)
Changes in reserve for the unsustainable amount of Deferred Tax Assets relating to tax losses carried forward linked to shareholders' equity
items
113
Change in the valuation reserve relating to the financial assets and liabilities at fair value
133
Change in the valuation reserve relating to cash flow hedges
100
Change in the valuation reserve relating to exchange differences
(570)
Change in the valuation reserve relating to the actuarial gains/losses on defined benefit plans
(161)
Other changes
(10)
Profit (loss) for the year
9,719
Shareholders' equity as at 31 December 2024
62,441
Notes:
The change in equity instruments is comprehensive of refunds for -€898 million (gross of transaction costs for -€10 million and including exchange differences for €-248 million) and new issuings for +€993 million.
The change in the valuation reserve relating to exchange differences is mainly due to the impact of Russian Ruble for -€458 million, Hungarian Forint for -€87 million and Czech Crown for -€63 million.
For further information, refer to section Consolidated accounts - Statement of changes in the consolidated shareholders’ equity.
Reconciliation parent company UniCredit S.p.A. - Consolidated accounts
The following table reconciles the Parent Company’s shareholders’ equity and Net profit to the corresponding consolidated figures.
Reconciliation of parent company UniCredit S.p.A. to Consolidated accounts
(€ million)
SHAREHOLDERS'
of which:
EQUITY
NET PROFIT
Balance as at 31 December 2024 of parent company UniCredit S.p.A.
57,729
8,106
Consolidated contribution:
4,736
7,701
- fully consolidated subsidiaries
2,179
7,218
- investments valued at equity method
2,557
483
Reverse of ordinary dividends approved in the period:
-
(5,459)
- fully consolidated subsidiaries
-
(5,302)
- investments valued at equity method
-
(157)
Other consolidation adjustments
376
(574)
Balance as at 31 December 2024 (minorities included)
62,841
9,774
of which Group
62,441
9,719
of which minorities
400
55
128
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Group results
Contribution of the sector of activity to the results of the Group
For the description of the organizational structure, refer to Notes to consolidated account, Part L - Segment reporting.
Italy
Income statement, key ratios and indicators
(€ million)
ITALY
YEAR
%
CHANGE
2024
Q4
% CHANGE
ON Q3 2024
2024
2023
Revenue
11,354
10,904
+ 4.1%
2,750
- 1.3%
Operating costs
(3,914)
(3,917)
- 0.1%
(990)
+ 3.6%
Loan loss provisions (LLPs)
(501)
(403)
+ 24.2%
(137)
+ 16.1%
NET OPERATING PROFIT (LOSS)
6,939
6,584
+ 5.4%
1,623
- 5.3%
PROFIT (LOSS) BEFORE TAX
6,173
5,612
+ 10.0%
1,165
- 29.1%
Customers loans (net Repos and IC)
144,590
152,120
- 5.0%
144,590
- 1.0%
Customers depos (net Repos and IC)
183,922
188,434
- 2.4%
183,922
+ 1.5%
Total RWEA Eop
101,083
108,073
- 6.5%
101,083
- 1.5%
EVA (€ million)
2,606
2,208
+ 18.0%
460
- 38.2%
Absorbed Capital (€ million)
13,602
14,975
- 9.2%
13,360
- 0.9%
ROAC
+ 30.8%
+ 25.4%
+ 5.4 p.p.
+ 25.5%
- 8.3 p.p.
Cost/Income
34.5%
35.9%
- 1.4 p.p.
36.0%
1.7 p.p.
Cost of Risk
29 bps
22 bps
7 bps
34 bps
6 bps
Full Time Equivalent (eop)
26,902
27,528
- 2.3%
26,902
- 0.8%
Germany
Income statement, key ratios and indicators
(€ million)
GERMANY
YEAR
%
CHANGE
2024
Q4
% CHANGE
ON Q3 2024
2024
2023
Revenue
5,462
5,417
+ 0.8%
1,235
- 9.2%
Operating costs
(2,220)
(2,400)
- 7.5%
(553)
+ 1.6%
Loan loss provisions (LLPs)
(273)
(183)
+ 49.3%
(86)
+ 64.7%
NET OPERATING PROFIT (LOSS)
2,969
2,835
+ 4.8%
597
- 22.0%
PROFIT (LOSS) BEFORE TAX
2,787
2,119
+ 31.5%
461
- 39.2%
Customers loans (net Repos and IC)
125,773
125,107
+ 0.5%
125,773
+ 0.3%
Customers depos (net Repos and IC)
138,266
138,192
+ 0.1%
138,266
+ 6.3%
Total RWEA Eop
64,989
69,473
- 6.5%
64,989
+ 1.0%
EVA (€ million)
869
698
+ 24.4%
73
- 72.5%
Absorbed Capital (€ million)
8,705
9,695
- 10.2%
8,409
- 2.0%
ROAC
+ 19.6%
+ 16.0%
+ 3.6 p.p.
+ 13.2%
- 8.9 p.p.
Cost/Income
40.6%
44.3%
- 3.7 p.p.
44.7%
4.8 p.p.
Cost of Risk
21 bps
14 bps
7 bps
27 bps
11 bps
Full Time Equivalent (eop)
8,983
9,819
- 8.5%
8,983
- 4.8%
129
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Group results
Central Europe
Income statement, key ratios and indicators
(€ million)
CENTRAL EUROPE
YEAR
%
CHANGE
2024
Q4
% CHANGE
ON Q3 2024
2024
2023
Revenue
4,320
4,261
+ 1.4%
1,053
- 3.1%
Operating costs
(1,604)
(1,622)
- 1.1%
(410)
+ 3.3%
Loan loss provisions (LLPs)
(33)
(41)
- 19.7%
(58)
n.m.
NET OPERATING PROFIT (LOSS)
2,683
2,598
+ 3.3%
585
- 15.1%
PROFIT (LOSS) BEFORE TAX
2,449
2,230
+ 9.8%
526
- 18.0%
Customers loans (net Repos and IC)
91,988
95,367
- 3.5%
91,988
- 1.4%
Customers depos (net Repos and IC)
96,899
93,450
+ 3.7%
96,899
+ 4.3%
Total RWEA Eop
58,559
60,492
- 3.2%
58,559
- 0.1%
EVA (€ million)
918
861
+ 6.6%
162
- 31.8%
Absorbed Capital (€ million)
7,656
7,873
- 2.8%
7,592
- 0.2%
ROAC
+ 22.9%
+ 21.0%
+ 1.9 p.p.
+ 19.5%
- 4.0 p.p.
Cost/Income
37.1%
38.1%
- 0.9 p.p.
39.0%
2.4 p.p.
Cost of Risk
4 bps
4 bps
- 1 bps
25 bps
25 bps
Full Time Equivalent (eop)
9,844
10,191
- 3.4%
9,844
- 0.9%
Eastern Europe
Income statement, key ratios and indicators
(€ million)
EASTERN EUROPE
YEAR
%
CHANGE
2024
Q4
% CHANGE
ON Q3 2024
2024
2023
Revenue
2,872
2,591
+ 10.8%
755
+ 6.5%
Operating costs
(905)
(850)
+ 6.5%
(264)
+ 22.4%
Loan loss provisions (LLPs)
22
72
- 69.0%
(67)
n.m.
NET OPERATING PROFIT (LOSS)
1,989
1,813
+ 9.7%
425
- 12.0%
PROFIT (LOSS) BEFORE TAX
1,834
1,713
+ 7.1%
334
- 29.0%
Customers loans (net Repos and IC)
40,614
33,570
+ 21.0%
40,614
+ 11.1%
Customers depos (net Repos and IC)
53,338
47,104
+ 13.2%
53,338
+ 9.5%
Total RWEA Eop
34,710
28,743
+ 20.8%
34,710
+ 12.2%
EVA (€ million)
889
896
- 0.8%
91
- 62.0%
Absorbed Capital (€ million)
3,830
3,540
+ 8.2%
4,080
+ 3.6%
ROAC
+ 35.2%
+ 36.9%
- 1.8 p.p.
+ 21.1%
- 15.4 p.p.
Cost/Income
31.5%
32.8%
- 1.3 p.p.
34.9%
4.5 p.p.
Cost of Risk
- 6 bps
- 22 bps
16 bps
70 bps
57 bps
Full Time Equivalent (eop)
14,641
13,019
+ 12.5%
14,641
+ 14.5%
130
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Group results
Russia
Income statement, key ratios and indicators
(€ million)
RUSSIA
YEAR
%
CHANGE
2024
Q4
% CHANGE
ON Q3 2024
2024
2023
Revenue
1,292
1,185
+ 9.1%
329
- 14.2%
Operating costs
(226)
(226)
- 0.0%
(57)
+ 0.1%
Loan loss provisions (LLPs)
144
(8)
n.m.
(9)
n.m.
NET OPERATING PROFIT (LOSS)
1,211
952
+ 27.2%
263
- 23.5%
PROFIT (LOSS) BEFORE TAX
719
888
- 19.0%
(32)
n.m.
Customers loans (net Repos and IC)
1,192
3,152
- 62.2%
1,192
- 34.5%
Customers depos (net Repos and IC)
3,480
7,208
- 51.7%
3,480
- 26.8%
Total RWEA Eop
10,819
14,283
- 24.2%
10,819
- 11.7%
EVA (€ million)
(206)
108
n.m.
(191)
n.m.
Absorbed Capital (€ million)
1,716
1,922
- 10.7%
1,499
- 13.4%
ROAC
+ 6.0%
+ 21.8%
- 15.8 p.p.
- 32.8%
- 59.7 p.p.
Cost/Income
17.5%
19.0%
- 1.6 p.p.
17.2%
2.5 p.p.
Cost of Risk
- 612 bps
16 bps
- 628 bps
246 bps
551 bps
Full Time Equivalent (eop)
2,590
3,153
- 17.9%
2,590
- 12.4%
131
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Group results
132
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Sustainability statements
ESRS 2 - General information
135
Basis for preparation
135
Governance
137
Strategy
150
Impact, risk and opportunity management
165
Environmental information
191
Disclosure pursuant to Article 8 of Regulation 2020/852 (EU Taxonomy Regulation)
191
E1 - Climate change
243
Strategy
243
Impact risk and opportunity management
251
Metrics and targets
259
E3 - Water and marine resources
270
Impact risk and opportunity management
270
Metrics and targets
272
E4 - Biodiversity and ecosystems
272
Strategy
272
Impact risk and opportunity management
272
E5 - Resource use and circular economy
275
Impact risk and opportunity management
275
Social Information
276
S1 - Own workforce
276
Impact risk and opportunity management
276
Metrics and targets
284
S2 - Workers in the value chain
291
Impact risk and opportunity management
291
Metrics and targets
292
S3 - Affected communities
292
Impact risk and opportunity management
292
Metrics and targets
302
S4 - Consumers and end users
302
Impact risk and opportunity management
302
Metrics and targets
313
Governance information
314
G1 - Business conduct
314
Impact risk and opportunity management
314
Metrics and targets
318
133
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
134
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
ESRS 2 - General information
Basis for preparation
BP-1 - General basis for preparation of sustainability statement
The sustainability statements have been prepared on a consolidated basis. This report is the first one prepared in compliance with ESRS
standards, replacing the previous Integrated Report, which was drafted in accordance with GRI standards.
The perimeter adopted for the consolidated sustainability statements is the same as for the financial statements. All legal entities consolidated
line-by-line in the consolidated financial statements have been included in the sustainability perimeter.
The details of the subsidiaries in the Sustainability Statements’ perimeter are included in the Notes to the consolidated accounts, Part A - Accounting
policies, Section 3 - Consolidation scope and methods, paragraph 1. Investment in subsidiaries.
Furthermore, we carried out an analysis on all the controlled not consolidated companies and the final result is that they are not material from a
sustainability point of view and therefore they are not consolidated even in this perspective (for further details reference is made to the Notes to the
consolidated accounts, Part A - Accounting policies, Section 3 - Consolidation scope and methods).
According to art.7 par.1 of the Legislative Decree 125/2024, the following subsidiaries are exempted from the preparation of their individual or
consolidated sustainability reporting under art.3 and 4 of the Decree, as they are included in the consolidated sustainability statements of the parent
company: UniCredit Bank DD, UniCredit Bulbank AD, UniCredit Bank Hungary Zrt, AO UniCredit Bank, UniCredit Bank Serbia Jsc, UniCredit Banka
Slovenija DD.
The following subsidiaries, even if included in the consolidated sustainability statements of UniCredit S.p.A., shall prepare and publish their own
reporting on a sub-consolidated basis, as they are large entities with more than 500 employees and with financial instruments listed on European
Union-regulated markets: Zagrebacka Banka DD, UniCredit Bank Czech Republic and Slovakia AS, UniCredit Bank SA, UniCredit Bank Austria AG
and UniCredit Bank GmbH. Despite the fact that local transposition of the EU Directive was not approved before end of 2024, UniCredit Bank
Austria AG and UniCredit Bank GmbH decided to publish their sustainability reporting covering the full perimeter of their operations also for 2024.
UniCredit group’s Sustainability Statements cover both upstream and downstream value chain segments.
On one hand, the upstream value chain segment mainly covers tier 1 suppliers and business partners (reference is made to “BP-2 Disclosures in
relation to specific circumstances” for reasonable effort specification). In particular, UniCredit group assesses its sustainability impacts, risks and
opportunities, focusing on responsible sourcing, environmental impacts and social practices. This includes the GHG emissions associated with
purchased goods and services (for example categories 1, 2 and 7- Scope 3) and promoting sustainable procurement practices.
On the other side, the downstream value chain segment mainly covers direct clients, investees and business partners.
The disclosure of information about the value chain as at 31 December 2024 includes quantitative metrics related to Scope 3 GHG emissions and
qualitative information about material impacts, risks and opportunities (reference is made to the “List of Material IROs” in section “SBM-3 Material
impacts, risks and opportunities and their interaction with strategy and business model” and to “IRO-1 Description of the processes to identify and
assess material impacts, risks and opportunities”) and PATs (policies, actions, targets).
UniCredit group has not omitted any specific information related to relevant topics, such as intellectual property, know-how or the results of
innovation.
BP-2 - Disclosures in relation to specific circumstances
For UniCredit group, the time horizons are classified as:
• Short term: <1 year
• Medium-term: >1-5 years
• Long-term: 5-10 years or more.
These definitions prove to be coherent and concretely implemented across multiple levels and more details are available under the sections that
cover ESG (Environmental, Social and Governance) strategy, risk management and governance.
The definition of medium and long-term horizons is aligned with financial reports, ensuring consistency in the communication. It is also aligned
with our business model, industry standards, and ESG-related risks and opportunities. In particular, the defined time horizons are linked to our
strategic goals, such as climate targets (e.g., net-zero emissions by 2050) and transition plans in response to regulatory changes.
135
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Moreover, decision-making procedures are affected by the identified time-horizons, particularly around lending practices, investment strategies, and
risk assessments. These definitions align with stakeholders’ expectations: for instance, investors, regulators and other key parties have been
engaged to confirm time horizons, which also align with initiatives such as the Task Force on Climate-related Financial Disclosures (TCFD).
As indicated before, topical standards require to include value chain quantitative data only for some metrics. Such metrics for the Group include
Scope 3 GHG emissions from each significant Scope 3 category (reference is made to the paragraph “E1-6 – Gross Scopes 1, 2, 3 and Total GHG
emissions”). These emissions typically require data directly provided from clients, suppliers, business partners and other counterparties involved
with specific business relationships with the Group. According to the standard, when primary information related to the value chain, after making
reasonable efforts cannot be collected, such information shall be estimated, using proxies, sector data and other information from indirect sources.
The following factors contributed to UniCredit decision on using estimated data:
• the size of the Group involves a large number of actors for multiple different services offered, and mapping all actors and business relationships
(direct and indirect) is a very complex exercise;
• sector-specific standards with specific references to data and information on the value chain for financial institutions are still not available;
• the availability of efficient tools to access and share value-chain information is limited;
• the Group has a large number of counterparties, including not only large international companies but also SMEs, which may not have the
necessary resources to easily and quickly provide the information of interest to the reporting;
• the information on the value chain could not have the qualitative characteristics required by the standard due to the possible lack of technical
readiness of the actor in the value chain.
UniCredit decided to use estimation processes based on proxies and sector data to estimate the value chain quantitative metrics (scope 3 GHG
emissions) and to consider only first-tier counterparties in mapping its value chain.
In particular, the information subject to the estimation process includes scope 3 emissions (both financed and own emissions).
Financed emissions have been estimated for Non-Financial Corporations and Households counterparties while excluding data and information on (i)
financial institutions, (ii) other financial corporations and (iii) government and administrative corporations, considering that no reliable data are
available for the first year sustainability reporting. Reference is made to the paragraph “E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions” for
more detailed information on methodologies.
Given the complexity of measuring sustainability impacts across the bank’s entire value chain, UniCredit employed a range of techniques to ensure
that the reporting aligns with recognised standards while providing transparency about the limitations and estimations involved.
The preparation of value chain metrics follows globally recognised frameworks, ensuring consistency and comparability across reporting periods.
The primary frameworks used included:
• Greenhouse Gas (GHG) Protocol for calculating Scope 3 emissions, covering both upstream and downstream activities;
• Partnership for Carbon Accounting Financials (PCAF) for estimating Scope 3 emissions related to loans and investments in the financial
portfolio.
These methodologies provide structured approaches for collecting, estimating, and reporting data where direct measurements are not available.
In the absence of primary data from stakeholders, UniCredit relies on estimation techniques that involve assumptions based on the best available
information. These techniques include:
Emissions factors: for Scope 3 GHG emissions, as indicated by PCAF and the GHG Protocol, emissions factors from recognised sources are
applied to financial data (e.g. loan amount, expenses, etc.) to estimate carbon emissions. Reference is made to the paragraph “E1-6 Gross Scopes
1, 2, 3 and Total GHG emissions”;
Proxy data: when client-specific data is missing, proxies are used. For example, carbon intensity averages from similar industries are applied to
estimate emissions;
Scenario analysis: UniCredit uses scenario analysis based on future regulatory and environmental changes to estimate potential impacts for
metrics such as climate-related risks. The scenarios used are baseline, delayed transition, and energy disorder (reference is made to Part E of the
Notes to consolidated accounts).
When quantitative metrics, including upstream and downstream value chain information, cannot be measured directly and can only be estimated,
measurement uncertainty may arise. The use of reasonable assumptions and estimates, including scenario analysis, proxies and sector
data, is an essential part of preparing sustainability-related information and does not undermine its usefulness, provided that the assumptions and
estimates are accurately described and explained. Reference is made to the paragraph “E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions”.
136
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
While UniCredit strives to use the most accurate data, such as primary data provided directly by clients or suppliers, some metrics rely on estimates
derived from indirect sources, for example, data derived from industry averages or secondary sources and proxy data or assumptions based on
broader sectoral information.
Potential estimates are based on the best available information. Data and assumptions in preparing the sustainability statements are consistent
with the corresponding financial data and assumptions used in the Group consolidated financial statements.
Information related to the use of estimation and the connected level of accuracy are clearly stated in the reporting and the metrics are subject to
specific controls to ensure accuracy.
To improve the accuracy of value chain metrics, UniCredit engages with clients and suppliers and, where not possible, with external information
providers, to encourage more direct reporting and refine the estimation processes over time. Additionally, UniCredit regularly reviews and updates
the methodologies used, in line with the latest standards and market developments.
By applying these estimation techniques and methodologies, UniCredit ensures that the sustainability metrics provide a meaningful representation of
the bank’s impact across the value chain, supporting the commitment to transparent and responsible reporting.
Changes in preparation and presentation of sustainability information, resulting comparisons of information with prior periods, as well as disclosures
of prior period material errors and corrections cannot be presented for reporting periods before the first year of application of ESRS.
These Sustainability Statements do not include additional disclosures stemming from applicable legislations, except for the disclosures pursuant to
Article 8 of Regulation (EU) 2020/852 of the European Parliament (reference is made to Disclosure pursuant to Article 8 of Regulation 2020/852 -EU
Taxonomy Regulation). The only requirements incorporated by reference in the Sustainability Statements are the IRO-1 - Description of the
processes to identify and assess material impacts, risks and opportunities, in particular on Climate topics. Reference is made to the Notes to the
consolidated accounts, Part E - Information on risks and related hedging policies, section 2 Climate and Enrvironmental risks.
Governance
GOV-1 - The role of the administrative, management and supervisory bodies
Information about members
Governance model
UniCredit is an Italian company with shares listed on the Milan, Frankfurt and Warsaw regulated markets adopting the one-tier management and
control system. As a bank, parent company of the UniCredit banking group, it carries out, pursuant to the provisions of Section 61 of the Italian
Legislative Decree 385, dated 1 September 1993, in addition to banking activities, governance and coordination ones, as well as control functions
vis-à-vis the subsidiary banking, financial and instrumental companies within the banking Group itself.
The overall corporate governance framework of UniCredit has been defined in compliance with current Italian and European provisions, as well as
the recommendations of the Italian Corporate Governance Code approved by the Italian Corporate Governance Committee, made up of ABI, Ania,
Assogestioni, Assonime, Confindustria and Borsa Italiana S.p.A.
Moreover, UniCredit is subject to the provisions contained in the Supervisory Regulations issued by the Banca d’Italia and, specifically with regards
to corporate governance issues, to the regulations on banks’ corporate governance (Circular 285/2013).
As an issuer of shares also listed on the Frankfurt and Warsaw regulated markets, UniCredit also fulfils the legal and regulatory obligations related
to listings on said markets, as well as the provisions on corporate governance contained in the Polish Corporate Governance Code issued by the
Warsaw Stock Exchange.
Corporate bodies composition
Starting from 12 April 2024, UniCredit has adopted the one-tier corporate governance system based on the existence of a Board of Directors, which
is in charge of the strategic supervision and management of the Company, and of an Audit Committee, established within the Board itself,
performing specific control functions, both appointed by the Shareholders’ Meeting.
Legal accounting supervision is entrusted by the Shareholders’ Meeting to an external audit firm, upon proposal of the Audit Committee, in
compliance with applicable provisions.
Pursuant to the Articles of Association, the Board of Directors of UniCredit is composed of between a minimum of 9 and a maximum of 19 members,
of whom at least 3 Directors and, in any case, no more than 5, make up the Audit Committee.
137
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
In addition to the Audit Committee, in compliance with the applicable laws and regulations, other Board Committees are provided for supporting the
Board of Directors, vested with research, advisory and proposal-making powers, and diversified by sector of competence. In line with the provisions
of the Board and Board Committees Regulation of UniCredit, the Committees consist of at least 3 and no more than 5 Directors. The members of
each Committee, and among them the Chair, are appointed and dismissed by the Board of Directors.
The Articles of Association also provide for the Board of Directors to appoint within its members a Chief Executive Officer, who is given not only the
specific powers needed to run the Company, but also the general task of ensuring the execution of the Board resolutions.
At the approval date of this document, the Board of Directors is made up of 14 Directors, of whom 1 is an executive and 13 are non-executive
Directors (with a quota equal to 93%). The Chief Executive Officer, also covering the role of General Manager, is the only UniCredit Director with
management powers.
The Audit Committee, established within the Board of Directors, is made up of 4 non-executive Directors, one of whom is Chair. All the members of
the Audit Committee are independent pursuant to the applicable provisions and the Articles of Association and their term in office is the same as that
of the Board of Directors to whom they were elected. The Chair of the Audit Committee is appointed by the Shareholders’ Meeting among the
Directors elected by minorities.
Also in line with the provisions of the Italian Corporate Governance Code, the Board of Directors has established the following other five committees:
the Governance and Sustainability Committee, the Risk Committee, the Nomination Committee, the Remuneration Committee and the Related-
Parties Committee. Their duties are carried out in accordance with the rules set by the Board.
With reference to the composition of the above Board Committees, the Board of Directors, appointed by the Shareholders’ Meeting held on 12 April
2024, set respectively:
• at 4 the number of the members of the Governance and Sustainability Committee and of the Risk Committee, and
• at 3 the number of the members of the Nomination Committee, the Remuneration Committee and the Related-Parties Committee.
Both the Italian legislation and the UniCredit Articles of Association, by which the Company’s corporate bodies are defined, do not foresee the
representation of employees and other workers within the corporate bodies.
Members of the Board of Directors, including the members of the Audit Committee, are appointed by the Shareholders’ Meeting on the basis of a
slate voting mechanism (voto di lista). This voting system features lists of competing candidates to ensure the election of minority shareholders’
representatives.
Such an appointing process guarantees that they are gender-balanced in compliance with current regulations and provisions.
In line with the applicable regulations and the provisions of the Italian Corporate Governance Code, the Board of Directors establishes its qualitative
and quantitative composition deemed to be optimal for the effective fulfilment of the duties entrusted to it by law, by the provisions of the Supervisory
Authority and by the UniCredit Articles of Association. The Board of Directors also establishes the requirements that its members shall meet, in
addition to those envisaged under current provisions.
Prior to the appointment of its members, the Board of Directors informs shareholders on the composition deemed to be optimal (the theoretical
profile) in order that the expertise required may be taken into consideration in the choice of candidates. However, shareholders may carry out their
own assessment on the best composition of the corporate bodies and file candidacies consistent with that assessment, providing reasons for any
difference vis-à-vis the analyses carried out by the Board of Directors.
The outcomes of the check on the matching between the qualitative and quantitative composition deemed to be optimal and the one resulting from
the appointment process done by each corporate body as per current regulatory provisions are disclosed to shareholders in due time before the first
Shareholders’ Meeting called for the approval of the financial statements following their renewal.
In particular, in the run-up to the Board of Directors renewal for the 2024-2026 financial years, the outgoing Board made available to shareholders a
theoretical profile in which specific recommendations were formulated to ensure a balanced composition of knowledge, skills and technical
experience that also allows them to understand the activities and main risks to which the UniCredit group is exposed to.
138
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Regarding professional experience requirements, subject to compliance with existing regulations, the Board also selected some areas of
competence, with the recommendation that they are all represented at Board level, as the presence of a diverse range of skills and experience
ensures that all professional profiles are represented, encourages dialogue and helps achieving the efficient functioning of the Board.
Among such competences, to ensure that the Board of Directors can properly supervise any risk that may affect the sustainability of the Bank’s
business in a medium-long term perspective, including relevant impacts and opportunities, the Board selected as areas of competence respectively:
• sustainability (ESG), to be intended as experiences gained in contexts characterised by a strong attention to ESG issues, including ESG risks, as
substantial elements of the long-term strategy of the company's business, acquired over an appropriate number of years (at least three years
dating back not more than 10 years) in top-executive roles (Chief Executive Officer, General Manager, and CEO/GM -1 level) in companies
operating in different sectors. Alternatively, experience acquired in the public-institutional sector or in the consulting sector is relevant only if strictly
related to sustainability issues;
• legal, regulatory, AML and compliance, achieved through an appropriate number of years (at least three years dating back not more than 10
years) as a lawyer/attorney or in top executive roles (Chief Executive Officer, General Manager, and CEO/GM -1 level) in relevant functions in a
financial services institution. Experience gained in the public sector or in the advisory sector/academia is relevant only if acquired in specific
subjects related to regulatory and legal frameworks in connection with banking and financial fields.
With reference to professional expertise gained in the areas of competence envisaged by the theoretical profile, all core areas of competence are
represented, and the experience possessed by all the Directors, including the members of the Audit Committee, is in line with the requirements of
the theoretical profile.
Furthermore, also training on sustainability related topics plays an important role in ensuring the effectiveness of the ESG Strategy and the oversight
of related matters.
With regard to induction initiatives and recurring training, at UniCredit a permanent induction programme is active for the Board members, based on
three-year cycles connected to the Board’s mandate, with the aim of ensuring ad hoc training on a continuous basis by taking into account both
individual and collective needs.
The induction programme and recurrent training respectively include sessions aimed at fostering the integration of new Directors and training to
preserve over time the expertise needed for the proper fulfilment of their duties.
In addition, individual training plans will be activated, should they be deemed necessary, to strengthen specific individuals’ technical knowledge and
expertise and to increase the level of diversity and the collective experience of the Board of Directors.
In 2024, a dedicated session was held for the Board of Directors on ESG matters (our approach, key regulatory priorities, path to Net Zero).
139
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
The table below shows, for each Director in office at the approval date of this document, the relevant skills and expertise in line with the provisions of
the theoretical profile. The skills and expertise embedded in the UniCredit Board of Directors are suitable for managing impacts, risks and
opportunities related to ESG matters.
Theoretical and practical experience of the Board of Directors' members
INTERNATIONAL
EXPERIENCE
FINANCIAL AND
INTERNATIONAL
MARKETS
BANKING
GOVERNANCE
BANKING
BUSINESS
LEGAL,
REGULATORY,
AML,
COMPLIANCE
STRATEGIC
PLANNING
RISK AND
CONTROL
ACCOUNTING
AND AUDIT
SUSTAINABILITY
(ESG)
DIGITAL &
TECHNOLOGY
Pietro Carlo
Padoan
- Chair of the Board
X
X
X
X
X
X
X
- Chair of the Governance
and Sustainability
Committee
Elena Carletti
- Deputy Vice Chair
X
X
X
X
X
X
X
X
- Chair of the Risk
Committee and member
of the Governance and
Sustainability Committee
Andrea Orcel
- CEO
X
X
X
X
X
X
X
X
X
X
Paola
Bergamaschi
- Director
X
X
X
X
X
X
X
X
X
- Member of the Risk
Committee and of the
Remuneration Committee
Paola Camagni - Director and member of
the Audit Committee
X
X
X
X
X
X
Vincenzo
Cariello
- Director
X
X
X
X
X
X
X
X
X
- Member of the
Governance and
Sustainability Committee
and the Related-Parties
Committee
António
Domingues
- Director
X
X
X
X
X
X
X
X
X
X
- Chair of the
Remuneration Committee
and member of the
Nomination Committee
Julie Birgitte
Galbo
- Director and member of
the Audit Committee
X
X
X
X
X
X
X
X
Jeffrey Alan
Hedberg
- Director
X
X
X
X
X
X
- Chair of the Nomination
Committee and member
of the Governance and
Sustainability Committee
Beatriz Lara
Bartolomé
- Director
X
X
X
X
X
X
- Member of the
Nomination Committee
Maria Pierdicchi
- Director
X
X
X
X
X
X
X
X
X
- Chair of the Related-
Parties Committee and
member of the
Remuneration Committee
Marco Rigotti
- Director and Chair of the
Audit Committee
X
X
X
X
X
X
X
X
X
- Member of the Risk
Committee
Francesca Tondi
- Director
X
X
X
X
X
X
X
X
X
X
- Member of the Risk
Committee and of
Related-Parties
Committee
Gabriele Villa
- Director and member of
the Audit Committee
X
X
X
X
X
140
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Diversity
The composition of the Board of Directors, including the members of the Audit Committee, as resulting from the appointing process, qualitatively and
quantitatively corresponds to the theoretical profile and meets the suitable requirements established by current provisions. The Directors’ personal
qualities and the diversity requirements (including age, geographical mix and gender diversity) comply with the principles of the theoretical profile.
Specifically, with regard to the collective composition of the Board at the approval date of this document:
• it presents an adequate diversity in terms of gender (with a quota equal to 50% of women, exceeding the minimum threshold of 40% envisaged by
applicable provisions, and a ratio of female to male equal to 1), age (79% of the Directors are in the 50-65 years age range and 21% are over 65
years old) and geographical mix (36% of them come from countries other than Italy);
• 93% of the Directors meet the independence requirements provided by the Legislative Decree 58/1998 and the Italian Civil Code, the Ministry of
Economy and Finance Decree 169/2020, as well as the Italian Corporate Governance Code;
• 93% of the Directors have international experience and skills in legal, regulatory, AML and compliance;
• 86% of the Directors have skills in financial and international markets, in banking business as well as in risk and control;
• 79% of Directors have skills in banking governance, strategic planning and accounting and audit, as well as expertise in sustainability (ESG);
• 43% of the Directors have skills in digital and technology.
With reference to the Audit Committee composition:
• 3 members are enrolled with the Legal Auditors Register and have practiced legal auditing of accounts according to the applicable provisions;
• all members meet the independence requirements provided by the Legislative Decree 58/1998 and the Italian Civil Code, the Ministry of Economy
and Finance Decree No.169/2020, as well as the Italian Corporate Governance Code (with a quota equal to 100%);
• its composition presents an adequate diversity in terms of gender (with a quota equal to 50% of women and a ratio of female to male equal to 1),
and geographical mix (25% of its members come from countries other than Italy);
• all members have skills in legal, regulatory, AML and compliance, in risk and control as well as in accounting and audit (with a quota equal to
100%). Furthermore, 50% have skills in sustainability (ESG).
With regard to the composition of the Governance and Sustainability, Risk, Nomination, Remuneration and Related-Parties Committees:
• all members meet the independence requirements provided by the Legislative Decree 58/1998 and the Italian Civil Code, the Ministry of Economy
and Finance Decree No.169/2020, as well as the Italian Corporate Governance Code (with a quota equal to 100%);
• their members have the necessary knowledge, skills and experience to perform the roles, duties and tasks assigned to them; in particular, at least
one member of the Risk Committee and of the Remuneration Committee have appropriate experience (i) in finance and risk assessment and
management and (ii) in finance or remuneration policies, respectively.
In particular, as per diversity in terms of gender, age and geographical mix at the approval date of this document:
• in the Governance and Sustainability Committee the quota of women is equal to 25% of its members with a ratio of female to male equal to 0.33;
75% of its members are in the 50-65 years age range and 25% are over 65 years old; 25% come from countries other than Italy;
• in the Risk Committee the quota of women is equal to 75% of its members, with a ratio of female to male equal to 3; 100% of its members are in
the 50-65 years age range; 25% come from countries other than Italy;
• in the Remuneration Committee the quota of women is equal to 67% of its members, with a ratio of female to male equal to 2; 33% of its members
are in the 50-65 years age range and 67% are over 65 years old; 67% come from countries other than Italy;
• in the Nomination Committee the quota of women is equal to 33% of its members, with a ratio of female to male equal to 0.5; 67% of its members
are in the 50-65 years age range and 33% are over 65 years old; 100% come from countries other than Italy;
• in the Related-Parties Committee the quota of women is equal to 67% of its members, with a ratio of female to male equal to 2; 67% of its
members are in the 50-65 years age range and 33% are over 65 years old; 100% come from Italy.
141
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Responsibilities of the bodies charged with strategic supervision, management and controlling functions
The UniCredit bodies charged with strategic supervision, management and controlling functions are responsible for overseeing impacts, risks and
opportunities, according to their respective areas of competence.
The UniCredit Board of Directors (i) defines the overall strategy of the Bank and the Group, of which the Group’s ESG Strategy and its associated
KPIs are an important pillar, and oversees its implementation over time, and (ii) establishes policies to govern the risks to which the Group may be
exposed, risk targets and tolerance thresholds, as well as reviewing them periodically in order to ensure that they remain effective over time, and
monitoring that risk management and control processes tangibly work, in compliance with applicable legal and regulatory provisions.
The Board approves the Group Risk Appetite Framework (RAF), which establishes the desired risk profile vis-à-vis its short and long-term strategic
objectives and business plan, ensuring that the way the RAF has been implemented complies with approved risk objectives and tolerance
thresholds, periodically evaluating the adequacy and efficacy of the RAF and compatibility between actual and target risks. For monitoring purposes,
dedicated Climate Risk KPIs have been included in the Risk Appetite Framework, enabling the Bank to oversee the evolution of transition and
physical risks it is exposed to.
The Audit Committee assesses the suitability of periodic financial and non-financial information to correctly represent the Company’s strategy and its
sustainability, also with reference to the ESG factors.
The Risk Committee supports the Board of Directors in risk management related matters, performing all the activities instrumental and necessary for
the Board to make a correct and effective determination of the Risk Appetite Framework and of the risk management policies. In particular, the Risk
Committee supports the Board (i) in defining and approving the risk management strategic guidelines, framework and policies, including those
regarding climate and environmental risks, non-compliance risk, and risk data quality; and (ii) in verifying that risk strategies, management policies
and the RAF are correctly implemented.
The Governance and Sustainability Committee provides advice and support to the Board on matters related to corporate governance and in fulfilling
its responsibilities, while pursuing sustainable success as an integral component of the Group’s business strategy and long-term performance. In
particular, it supports the Board on sustainability and ESG-related matters (with the exception of all risk-related ESG components, such as climate
and environmental risks, which fall under the remit of the Risk Committee). To this purpose, the Committee, upon the evaluation of its Chair and the
Chief Executive Officer, carries out preliminary activities, analyses and submits proposals regarding the sustainability and ESG framework, policies
and guidelines.
Notwithstanding the Board of Directors’ responsibilities, the Chief Executive Officer, also leveraging on the Company’s competent functions:
• identifies the Company’s risks submitting them to the Board. To that end, the Chief Executive Officer must have in-depth knowledge about all
corporate risks and, as part of an integrated management-oriented approach, their reciprocal relationships, taking into account how external
circumstances (including macroeconomic risks) evolve;
• identifies the strategies regarding the overall steering of the Bank and of the Group to be submitted to the Board;
• ensures the implementation of the strategic guidelines, the RAF and the risk management policies defined by the Board also by planning,
managing and monitoring the internal controls and risks management system;
• establishes the internal information flows necessary to ensure that the corporate bodies have the information necessary to fully understand and
govern risk factors and verify compliance with the RAF.
In addition to the expertise in sustainability-related matters already embedded in the Board of Directors, both the Board and its Committees in
performing their duties have access to the financial resources necessary to guarantee their operational independence and, within the limitations of
the relevant budget, may consult external experts.
The responsibilities of the Board of Directors and its Committees are described and formalised in the Board and Board Committees Regulation,
adopted by the Board of Directors according to applicable laws and the Company’s Articles of Association. The responsibilities of the Chief
Executive Officer are described and formalised in the UniCredit Organisational Book, adopted by the Company in accordance with the applicable
provisions.
According to national provisions, also of a regulatory nature, the roles and responsibilities assigned to the bodies charged respectively with
supervisory strategic functions and with management (executive) functions within the internal control system could not be delegated. Within the
internal control systems, specific controls and monitoring activities are carried out specifically in relation to the assessment of impacts, risks and
opportunities, in order to ensure the consistency with the requirements of the European Sustainability Reporting Standards on double materiality.
142
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Role of management in business conduct
At UniCredit, the Board of Directors plays a crucial role in shaping and overseeing the company's business conduct. In particular, the Board
approves the Group Code of Conduct, which entails principles that all employees and partnering third parties must comply with to ensure high
standards of professional conduct and integrity related to their activity in, or on behalf of, UniCredit.
The Code of Conduct has been written in line with UniCredit Group values, integrity, ownership and caring, that drive our purpose to deliver
exceptional performance and have a positive impact on our customers, shareholders, communities and our people. At UniCredit, our mindset is to
“win in the right way and together”, putting our values at the heart of our decision-making and everything we do.
UniCredit’s business conduct is also driven by top management through the implementation of a yearly “Tone from the top” programme. The
programme emphasises the promotion of compliance and risk awareness across the bank. Each year, top managers select a set of topics based on
risk drivers which are sponsored and cascaded throughout the Group population.
In 2024 following topics were presented and cascaded: Conduct - Unfair Commercial Practices, Financial Sanctions, ESG - Sensitive sectors, AML -
Confidential & Inside Information, Data Protection and Digital Risk.
143
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Board
Management
Information on impact, risks and opportunities reflected in board mandates and other related policies
Roles and responsibilities of the management bodies in exercising oversight of the process to manage material impacts,
risks and opportunities
Board Committees*
Board of Directors
Chair
Internal Audit
Audit Committee
Risk Committee
Governance and
Sustainability
Committee
Group Executive Committee
CEO
Group Non-Financial Risks and
Controls Committee
Group Financial and Credit
Risk Committee
Group Risk Management
Group Client Solutions
ESG advisory
Group ESG
Climate Risk and Risk
Governance
Credit Risk Strategies,
Monitoring and Controls
CEO Office
Group Stakeholder Engagement
Group Strategy & ESG
* The full suite of Board Committees includes also the Remuneration Committee, the Nomination Committee, and the Related-Parties Committee.
144
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
The Group Executive Committee (GEC) is the Group’s most senior executive committee and is chaired by the CEO. Its mission includes
establishing the banks’ comprehensive ESG strategy, including the formulation of initiatives related to ESG topics, setting targets and guidelines at
the Group level. It also ensures the efficient steering, coordination and control of the Group’s business, as well as the alignment between the parent
company and the various businesses and geographies regarding strategic topics such as ESG issues, including the development of strategies and
initiatives related to climate change, and setting relevant targets and guidelines at the Group level. Furthermore, the GEC acts as risk council of the
Group with overall responsibility for risk management and control. In dedicated Risk sessions, which have approval as well as consulting and
proposal powers, the GEC supports the CEO in coordinating and monitoring all categories of risks and in steering ESG-related matters, thereby
ensuring a dedicated focus on Climate and Environmental risks, among others. This year the GEC was involved to assess the Double Materiality
Assessment to collect their perspectives on Impacts, Risks and Opportunities. The members performed the evaluation of impacts and opportunities
and reviewed the evaluation of risk performed by Group Risk Management.
The Group Executive Committee is also responsible for target setting in ESG matters. Specifically, GEC members contribute to targets based on
the expertise of their respective functions in the context of specific processes [multiyear plan, annual budget, …]. Once defined, these targets are
submitted to the Board (e.g., net zero targets). Subsequently, the relevant function takes responsibility for monitoring and overseeing the progress
toward achieving the target and provide regular update to top management and the Board.
The Chief Executive Officer is supported by dedicated managerial committees and specialized functions, below described, to ensure the
implementation of the Group’s strategy while effectively assessing and managing ESG-related impacts, opportunities and risks, including climate-
related risks in accordance with the approved RAF.
The Group Non-Financial Risks and Controls Committee (GNFRC) is the risk managerial committee that supports the CEO in steering and
monitoring non-financial risks. For example, it approves governance policies and guidelines for the management of reputational risk regarding
sensitive sectors.
The Group Financial and Credit Risk Committee (GFRC) supports the CEO in the steering, coordination and control of the credit and financial
risks (including Climate & Environmental risks) at Group level, defining strategies, policies, operational limits and methodologies for Credit risk,
Market risks and Financial risks.
The Group Strategy & ESG and Group Stakeholder Engagement (with the Group CEO Staff) functions work together as a CEO Office, handling
all important initiatives for the CEO. These initiatives include strategy development, M&A, the integration of ESG criteria into our business
operations, stakeholder management and dealing with regulatory affairs.
The Group ESG function, part of Group Strategy & ESG, steers the definition and implementation of the Group’s ESG strategy. It ensures the ESG
framework is consistent with the Group’s principles and Purpose and with relevant international standards and practices. The function is tasked with,
inter alia, developing the social agenda and related proposition, monitoring and disclosing the Group’s ESG impacts and results, and with
overseeing the adoption of relevant policies and standards.
The Group Risk Management function supports the CEO in defining the Group Risk Appetite proposal, to be shared with the Group Executive
Committee and Risk Committee, and submitted for approval to the Board of Directors.
This process occurs in coordination and in alignment with the yearly budget plan. The function ensures the overall climate risk framework definition
at Group level and supports local implementation. Within the various risk areas, dedicated employees and functions have been devoted to the
integration of climate topics within risk management activities and the effective dissemination of the relative knowledge. Such functions include
Climate Risk and Risk Governance which oversees climate-related and environmental risks, acting central steering and coordination role to
ensure alignment with ECB guidelines on climate and related implementation plans, and Climate & Environmental Credit Analysis team which
manages the integration of climate and environmental factors within the credit risk cycle. Furthermore, Group Risk Management functions issue, for
relevant ESG topics, credit risk opinions to support the Group Transactional Committee sessions in the discussion and approval (based on the
delegated powers) of credit transactions.
The Group Risk function has defined specific guidelines to embed Climate and Environmental considerations within the Corporate origination/annual
credit review process with the aim to complement the creditworthiness assessment with climate aspects, identifying then the proper strategy to be
applied and, therefore, relevant categories of banking products and services that the Business can offer to clients. Although the main driver for the
strategy identification is the Transition Risk score attributed to the counterparty, there are other information (i.e., outcome of reputational risk
assessment, Net zero trajectory, counterparty’s physical risk) to be taken into consideration since they may have impacts in terms of strategy to be
adopted. The entire process is mainly governed by the Relationship Manager (RM) in proponent business function and follows the standard approval
path.
145
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
On the business opportunity side, ESG Advisory, part of Group Client Solutions, is a multi-disciplinary solutions team focused on enabling
clients to create long-term stakeholder value by integrating sustainability into their strategic decisions, including by:
• providing independent first-class advisory services aimed at building resilience and adaptability to climate change while exploiting transition
opportunities;
• assessing the impact of applicable regulations, sustainable finance market principles and practices, market trends and stakeholders’ expectations
on clients’ business models;
• steering the company’s strategy communications with investors, advising on ESG Ratings and reporting;
• identifying the most suitable solutions based on the defined strategic positioning.
Furthermore, ESG matters are embedded across our Group through dedicated teams and experts in several Group functions which manage ESG
topics in line with their areas of competency. Examples include, ESG offices supporting business divisions in the main Group geographies, the Risk
& ESG Solutions within the Group Digital Solutions department and Group Real Estate Portfolio & Transactions also developing the Group strategy
related to ESG for Group Real Estate. Other functions, e.g. Compliance, have resources dedicated to ESG-related topics.
In addition to the expertise in sustainability-related matters already embedded in the Board of Directors, both the Board and its Committees in
performing their duties have access to the financial resources necessary to guarantee their operational independence and, within the limitations of
the relevant budget, may consult external experts.
GOV-2 - Information provided to and sustainability matters addressed by the undertaking’s
administrative, management and supervisory bodies
The year 2024 marks the company’s first experience in performing a double materiality analysis fully aligned with the requirements of the CSRD
framework. As a result, the processes for determining the frequency and methodologies for the supervision of material IROs (Impact and Risk
Opportunities) by the Board and its Committees are still under development. During this initial phase, the focus has been on setting the foundation
for effective oversight, and the Board has already been actively involved. Specifically, in November 2024, the Board was informed about the
outcomes of the double materiality analysis, including the identification of material IROs.
Moving forward, the company acknowledges the need to strengthen and institutionalize the supervision of material IROs, ensuring that both the
Board and the relevant Committees dedicate greater attention to these aspects. The intention is to implement a more structured and frequent review
process that aligns with the company’s long-term commitment to embedding double materiality principles into its governance and decision-making
framework.
UniCredit’s Bodies work together to ensure that stakeholder engagement and UniCredit group’s strategy are fully integrated into the Bank’s goals.
As already stated, this year represents the company’s first application of a double materiality analysis in accordance with the CSRD framework.
Given the novelty of this process, the company is still in the process of defining the frequency and mechanisms through which material IROs (Impact
and Risk Opportunities) will be monitored and supervised by the administrative, management, and supervisory bodies. At this stage, significant
progress has been made, as the Top Management was actively involved in the double materiality assessment conducted this year, including the
identification of key material IROs. Specifically, beyond evaluating impacts and opportunities, Top Management played a decisive role in the risk
assessment. Following an additional qualitative review conducted by internal experts, both climate risk (E1) and cybersecurity risks (S4) were
deemed material, reflecting the Bank’s dedicated attention and in line with strong external attention and expectations.
Looking ahead, the company is committed to refining and formalizing its approach to governance in this area. A higher degree of engagement is
anticipated, with material IROs receiving more frequent and systematic attention from the administrative, management, and supervisory bodies. This
evolving process reflects the company’s dedication to aligning its governance structures with the principles and expectations set forth by the CSRD,
ensuring that sustainability and material impacts are fully integrated into strategic oversight practices.
The list of material impacts, risks and opportunities addressed by administrative, management and supervisory bodies or their relevant committees
is available in chapter SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model.
146
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
GOV-3 Integration of sustainability-related performance in incentive schemes
The principles of sustainable conduct and performance define the key pillars of the Group Remuneration Policy, which ensures competitiveness
and effectiveness of remuneration, transparency and internal equity. Its framework is designed to ensure the consistency of the remuneration
elements and systems while also conforming to our Group’s long-term strategies and principles of sound risk management.
The Group Incentive System 2025 has been confirmed as a Sustainable Performance Plan, based on both short-term and long-term performance
conditions, to support the Group’s strategic direction by fostering a strong link between remuneration, risk and sustainable profitability.
Through the Incentive System, UniCredit seeks to retain and motivate each beneficiary by providing incentives that aim to reward contributions to
the long-term growth, profitability and financial success of the Group - with a focus on reputation and overall sustainability which contributes to the
achievement of business goals over time.
The Incentive System aims to provide an appropriate balance of variable compensation elements, align the interests of employees, shareholders
and other stakeholders, strengthen the Group’s position as a leading European bank and achieve effective compensation practices in compliance
with the regulatory environment.
In addition, the Incentive System aims to align top and senior management interests with long-term value creation for shareholders, share price and
Group performance and to sustain a sound and prudent approach to risk management, combining annual goals with additional long-term conditions
to steer the performance management measurement toward sustainable results over time. The System also has the characteristics to be considered
a “retention” tool for retaining key players and achieving strategic priorities.
The 2025 variable remuneration framework continues to be based on a “bonus pool” approach ensuring an overall performance assessment both at
Group/Division/Country level and at the individual level. This is fully in line with regulatory requirements and consistent with risk appetite and
compliance standards.
The incentive plan (“Sustainable Performance Plan”) has been structured to best support the delivery of the Strategic Plan on a yearly basis while
ensuring that results delivered are sustainable over time via long-term performance conditions, considering the significant transformational effort of
the Strategic Plan.
The key design principles of the incentive system remain unchanged, as follows:
• rolling structure: to allow for a yearly verification of the adequacy of the compensation arrangements;
• double-assessment of performance: combined system that requires the reconfirmation of short-term performance (2025) over the long-term (2026-
2028) to guarantee the sustainability of the results in the context of a transformation of the operating model;
• shareholders’ alignment: pay out 100% in shares for the CEO, Group Executive Committee (GEC) members and Group Chief Audit Executive
(CAE), and primarily in shares for the other executives, with a long deferral period (total plan duration eight years);
• Pay for performance: providing clear performance conditions anchored to UniCredit Strategic Plan pillars, with ambitious targets and rigorous pay-
for-performance correlation to ensure meritocracy and fairness. The scorecards are based on a combination of financial targets and non-financial
goals, supported by a structured goal-setting framework based on the “KPI Bluebook”, a catalogue of certified KPIs set by relevant group key
functions and specific goal-setting guidelines in line with regulatory provisions.
The Group Remuneration Policy and the Group Incentive System as proposed by the Remuneration Committee are submitted for approval to the
Board of Directors and, subsequently, to shareholders at the Annual General Meeting. They have been developed to support the achievement of our
strategic plan, in which the Group’s ESG strategy plays a crucial role7.
Following a proposal of the Remuneration Committee, which was subsequently approved by the Board of Directors, we formulated comprehensive
scorecards for the CEO and top management that include a core set of our ESG targets to foster the alignment of management with the Group’s
current and future ESG ambitions. The inclusion of these KPIs is also intended to promote the alignment of management’s interests with those of
shareholders.
The overall 2025 variable remuneration for the CEO and the other Executives with Strategic Responsibilities will depend on the degree of
achievement of the short-term performance scorecard.
7 Refer to the Group Remuneration Policy and Report available in the Governance section of our website (www.unicreditgroup.eu) for more information.
147
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
With reference to 2025 and in line with the 2025 Group Remuneration Policy provisions, the CEO will receive a variable remuneration, determined
by the Board of Directors on the basis of % targets achievement of the KPIs embedded in the CEO’s 2025 scorecard, composed by a financial
section (80% overall weight where all KPIs were equally weighted) and a non-financial section (20% overall weight)8.
For the CEO and selected individuals belonging to the GEC and their first reporting line, 60% of the bonus will be deferred and subject to
additional long-term performance conditions, defined at Group level and covering the three years following the 2025 annual performance (i.e.
from 2026 to 2028).
Among the long-term performance conditions, Sustainability (non-financial section of the scorecard), including climate-related KPIs, is weighted to
account for 20% of the overall long-term scorecard.
As part of the additional long-term performance conditions, the sustainability goal primarily aims to support clients in their green and social transition
while also embedding sustainability and diversity, equity and inclusion (DE&I) priorities into the UniCredit culture. This goal includes a specific focus
on climate risk through Net Zero commitments.
The above-mentioned goal is subject to a qualitative assessment based on specific evidence derived from both current and future ESG and DE&I
strategies9.
The current strategy envisages:
• ESG business penetration: support our clients in their sustainability journey offering ESG related products and services to ensure a fair share of
ESG business over total (lending new production, sustainable bonds, stock of AuM10), starting from 2025 ESG targets11 and successive updates
as per ESG strategy;
• DE&I priorities: progress towards gender parity at all levels in line with best market practices; ensure equal pay for equal work; expand DE&I
efforts and foster corporate Culture and Well-being through dedicated initiatives;
• “Net Zero” commitments: progress vs. Net Zero 2030 targets disclosed to the market, related to Oil & Gas, Power Generation, Automotive, and
Commercial Real Estate on which yearly Tier 1 RAF targets are defined and monitored.
To align the Group’s management structure and reinforce management’s commitment to our ESG strategy, these objectives are cascaded to the
CEO’s reporting line and extended to the organisational levels below.
In particular, the long-term sustainability goal is assigned to the entire Group Material Risk Takers (GMRT) population (i.e. those categories of
employees whose professional activities have a material impact on an institution’s risk profile) belonging to business functions up to the level of
Group Executive Committee -1.
All other GMRT scorecards for assessing short-term performance include at least one ESG goal. These goals can be selected from a cluster of ESG
KPIs included in the KPI Bluebook, a catalogue of performance indicators reviewed annually by the relevant key functions within the Group. ESG
Strategy and Net Zero are among the ESG KPIs defined in the Bluebook.
The CEO is the only Executive Director who sits on the Board of Directors.
All other Board members are non-executive directors and are not beneficiaries of incentive plans utilizing stock options or, more generally, any
incentive plan that uses financial instruments. The remuneration for members of the administrative and auditing bodies of UniCredit is represented
only by a fixed component, determined on the basis of the importance of the position held and the time required for the performance of the assigned
tasks.
The approach to compensation for UniCredit’s top managers, as detailed in the Group Remuneration Policy, is connected to performance and
market awareness and aligns with UniCredit’s business strategy and shareholders’ interests.
The Group Remuneration Policy provides more details on the compensation of top management and members of UniCredit’s administrative and
auditing bodies.
8 For further details refer to the Group Remuneration Policy and Report.
9 Refer to the 2024 Group Remuneration Policy and Report available in the Governance section of our website (www.unicreditgroup.eu) for more information.
10 Subject to current regulations on ESG Investment Products.
11 Defined according to ESG strategy. The current strategy foresees: Defined according to ESG strategy. Current ESG strategy foresees: Percentage of ESG lending new production (including Environmental, Social and
Sustainability linked lending) on overall medium/long term lending new production: group 2025-27 target set at 15% (yearly % to be achieved); percentage of Sustainable bonds (for corporates and financial institutions,
excluding Sovereign, Supranational and Agency Long Term Credit) on all bonds (For corporates and financial institutions, excluding Sovereign, Supranational and Agency Long Term Credit): group 2025-27 target set at 15%
(yearly % to be achieved); percentage of ESG assets under management stock (subject to current regulations on ESG Investment Products) on Total of assets under management stock: group 2025-27 target set at 50%
(yearly % to be achieved).
148
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
GOV-4 - Statement on due diligence
UniCredit’s due diligence process is not a standalone, formalised procedure but is fully integrated within its strategic and business model framework.
This embedded approach ensures that due diligence is part of the Bank’s ongoing operations, specifically in identifying and managing negative
impacts. According to the 2024 double materiality assessment, the Bank compiled a list of both positive and negative impacts to focus on and,
following the steps of double materiality, subjected this list to thorough assessment by top management and external stakeholders to determine
relevance and materiality. The assessment results were then communicated to the Board of Directors.
As identified in the table “List of material IROs” (reference is made to “SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model”) the material negative impacts are associated with climate change, circular economy, and consumers and end-users
topics. In particular, the environmental-related impacts refer to the generation of GHG emissions and the employment of high resource inflows and
waste production; the social-related impact refers to potential breaches and loss of customers’ data. The management of impacts is addressed by
UniCredit and embedded in its strategy and business model.
Furthermore, for each matter, the Bank has developed specific policies, actions, targets, and metrics (described in the dedicated sections) to
effectively monitor and manage these negative impacts over time.
GOV-5 - Risk management and internal controls over sustainability reporting
The internal control system for sustainability reporting has been defined and implemented to ensure the integrity, completeness, reliability
and accuracy of sustainability data and information subject to external disclosure, and to comply with the requirements provided by law.
At this purpose, in accordance with the provisions of Section 154-bis of Italian Legislative Decree 58/1998, par. 5 ter, the delegated control bodies
and the manager charged with preparing the company’s financial documents (or another manager specifically competent in sustainability reporting)
shall confirm, in a proper attestation, that the sustainability reporting included in the management report has been drawn up in compliance with the
reporting standards applied pursuant to Directive 2013/24/EU of the European Parliament and of the Council of 26 June 2013, the Legislative
Decree adopted in accordance with Article 13 of Law 15 of 21 February 2024 and the specifications adopted in accordance with Article 8, paragraph
4 of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020.
For the abovementioned attestation, with reference to 2024 financial year, a Sustainability Reporting Manager has been designated in UniCredit
S.p.A. by the Board of Directors, after receiving the mandatory opinion of the Audit Committee.
The internal control system framework for sustainability matters has been designed by mirroring the existing framework for financial reporting
adopted by the Parent Company and aligning it with the characteristics of ESG reporting. This approach includes the application of a common
methodological framework, based on:
• using a consistent, centrally-developed internal control system model inspired by internationally-acknowledged methodological standard
issued by Committee of Sponsoring Organization of Treadway Commission (CoSO) and updated on March 2023 by introducing the “Internal
Control over sustainability reporting”, that recalls the “Internal Control-Integrated Framework” referring to the financial reporting;
• updating and broadcasting within the Group on the basis of centrally-established parameters.
The pillars of the abovementioned model and Company framework, implemented with regard to sustainability reporting, consist of:
• Entity Level Controls, which are normally structural elements of the control system; specifically, in such context, they are referred to the
alignment of governance policies with ESG topics;
• Process-level controls, including the description of the organizational model (roles, processes and controls) to produce sustainability reporting
and control testing in performing operational activities to obtain the evidence for assessing the effectiveness of internal controls environment over
sustainability reporting.
Operational implementation of the adopted model envisages:
• the identification, for the Parent Company and subsidiaries involved, of processes (i.e., perimeter of Group Entities in scope for the reporting,
value chain analysis, double materiality assessment, data information collection and output disclosure, reconciliation of ESG information between
financial and sustainability disclosures) that have a significant impact on sustainability reporting through the risk and control assessment in terms
of completeness, relevance, faithful representation also including the accuracy of the estimation results, verifiability, understandability and
comparability;
• the detection for such processes of the controls and the owners in charge of first-level controls at individual companies, formalised in procedure
narratives that also include the risk and control matrix and any proposed remediation action. Owners are required first and foremost to ensure
assessment of the effectiveness of controls, pointing out any possible action necessary to reduce levels of associated risk.
Therefore, every procedure and control is documented, assessed, tested and validated, and individual managerial responsibility is defined for
carrying out the activities involved.
149
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Risk assessments and internal controls regarding the sustainability reporting process have therefore been integrated into relevant internal
functions and processes with periodic reporting to administrative, management and supervisory bodies; specifically, at the Holding level, the
Sustainability Reporting Manager provides:
• to the Board of Director meeting, where consolidated annual financial statements are presented, the report on the internal control system on
Sustainability Reporting, including the description of findings and any remediation action, and the text of the attestation to be signed to ensure
compliance with the requirements laid down in the regulations;
• to the Audit Committee, the report and the update on the internal control system on Sustainability Reporting also including the description of
findings and the status of any identified remediation action.
For the Group subsidiaries, a flow of internal certifications is required for the internal controls system following the approach adopted by the Parent
Company. This entails:
• giving the governing bodies of companies responsibility for certifying adequacy and the effective application of procedures and controls linked to
Sustainability Reporting to the Parent Company and for attesting that such reporting has been drawn up in line with the instructions received by the
Parent Company compliant to the law requirements;
• setting roles within the companies involved and assigning them responsibility for systematically reporting to their respective governing bodies on
the status of the internal controls system on Sustainability Reporting, along with any improvement action plan.
Strategy
SBM-1 - Strategy, business model and value chain
Products, services, sectors and markets
UniCredit is a pan-European Commercial Bank. We serve circa 15 million clients with 13 leading banks in 4 European regions: Italy, Germany,
Central and Eastern Europe.
UniCredit is the partner of choice for our clients' increasingly sophisticated demands in financing, advisory, investments and insurance. We deliver
tailored solutions in advisory, financing, risk management, trade and working capital for our corporate clients; a rich offering of investment and
protection products for individuals; payments solutions supporting corporates, financial institutions, and individual customers in all their payments
and liquidity management needs.
UniCredit total headcount of 75,265 employees is divided as follows: Italy 35,317, Germany 9,995, Central Europe 10,218, Eastern Europe
19,668, Others 80.
UniCredit is not operating in any of the sectors listed in ESRS2 SBM-1 Strategy, business model and value chain, par. 40(d) (fossil fuels, chemical
productions, controversial weapons, cultivation and production of tobacco), consequently there are no revenues related to such activities.
Sustainability-related goals in terms of products, services, customers and markets
ESG principles are embedded in all we do and at UniCredit we are committed to deliver our ESG framework in line with our stakeholders’
expectations:
• We put our Clients back at the centre, providing them a best in class product offering;
• We value and empower our People, strengthening their competences and fostering diversity and inclusion;
• We remunerate our Shareholders, delivering sustainable quality growth across all regions and offering attractive opportunities for our investors,
while preserving capital strength and propelling the future.
We offer a wide range of products and services to meet our client needs in Italy, Germany, Central and Eastern Europe.
Our ESG proposition for corporates consists of:
• ESG financing products: use of proceeds, sustainability linked, off-the-shelf products, including:
- Green finance solutions for investment in renewable sources and energy efficiency activities to support corporates in their decarbonization path;
- Social finance solutions to support specific sectors (education, health, social infrastructures) or SME in disadvantaged areas;
• Dedicated ESG advisory, supporting our clients with strategic and tactical advice (e.g. investor engagement, transition plans, ESG structuring and
coordination, origination of sustainable bonds);
• Strategic partnerships on ESG (e.g., Open-es to assess ESG clients’ maturity and define a sustainable development path);
• Specific clients’ risk management solutions, such as derivatives or commodities supporting our clients to navigate the transition.
150
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Our ESG proposition for individuals includes:
• ESG Financing products, such as:
- Environmental finance solutions to support house renovation activities and energy efficiency interventions (also based on national and
supranational guarantees programmes);
- Social finance solutions: such as inclusive finance solutions for vulnerable categories (e.g. Mortgage for Young Families);
• Dedicated ESG catalogue for assets under management.
Our product offering supports the achievement of our ESG penetration targets across total business volumes for 2025-2027: 15% for ESG lending12,
15% for sustainable bonds13, and 50% for ESG investment products14.
Strategy that relates to sustainability matters, value chain and business model
UniCredit ESG strategy supports, above all, the fulfillment of the Group purpose of empowering communities to progress. A principles-based
approach guides our actions, enabling us to embed sustainability in everything we do while constantly adapting our strategy to the mutable external
context.
Our ESG strategy is based on a set of interrelated elements that build upon each other: guided by our principles, we work to implement the key
enablers, which support selected strategic levers that, in turn, allow us to achieve the goals underlying our ESG ambition. This interconnected
framework ensures alignment and cohesion across all ESG initiatives, maximizing our impact.
Our Principles: As mentioned, our ESG strategy is rooted in the guiding principles aligned with our Group Values. These principles drive everything
we do, ensuring that sustainability is embedded in all aspects of our operations:
• we hold ourselves to the highest possible standards, ensuring that we always do the right thing for our clients and communities;
• we are fully committed to playing our part in supporting our clients through a just and fair transition to a sustainable future;
• we respect and balance the perspectives and priorities of all our stakeholders, ensuring these are reflected in our business and decision-making
processes.
These principles form the foundation of our approach to Environmental, Social, and Governance (ESG) initiatives, supporting the fulfillment of our
ambition to lead by example in Empowering Communities to Progress.
Goals: We are constantly evolving our approach to ESG target-setting, driven by regulatory changes and market forces. This has led us to set ESG
penetration targets to create a transparent and meaningful view of our ESG performance. Furthermore, we work to align our lending portfolio with
our net-zero targets, as part of our commitment to supporting the global transition to a sustainable future.
Strategic levers:
• Championing Social: We place a strong emphasis on backing our communities, people, and society, striving to create lasting social value
through initiatives that support and uplift those around us.
• Enhanced Client Support: Through our Net Zero Strategy and Transition Plan, we offer clients the tools and resources to achieve their own
sustainability goals, enabling them to transition to a low-carbon economy.
• Beyond Climate: We go beyond climate by assessing natural capital risks and opportunities-recognizing the critical need to protect the
environment and manage natural resources responsibly, while exploring sustainable opportunities.
• Evidencing Accountability: Transparency is at the heart of our strategy. We provide clear disclosures and conduct impact assessments to
measure and demonstrate the outcomes of our ESG actions, reinforcing our commitment to accountability.
Enablers:
• Enriched Client Offering: We are expanding and diversifying our offer of ESG products, services and advisory enhancing our ability to provide
comprehensive and tailored solutions to clients, helping them meet their sustainability objectives in a dynamic business environment and achieve
their just and far transition.
• Lean Governance: We ensure clear ESG roles and responsibilities, embedding agency and ownership at all levels of the organization. By
empowering teams to take initiative, we foster a culture of accountability and effective decision-making in driving ESG outcomes.
• Robust Risk Framework: Our ESG efforts are underpinned by a robust risk framework that allows for effective monitoring of ESG risks and the
lending portfolio. This ensures we remain proactive in managing risk while meeting our sustainability targets.
• Empowered Culture: We are united by a common vision, strategy, and principles to Win. The Right Way. Together. By fostering an empowered
culture, we ensure that every team member is aligned with our ESG goals and committed to making a positive impact.
12 Percentage defined as Environmental, Social and Sustainability linked lending new production on overall medium/long term lending new production (yearly % to be achieved)
13 Percentage of Sustainable bonds (for corporates and financial institutions, excluding Sovereign, Supranational and Agency Long Term Credit) on all bonds (for corporates and financial institutions, excluding Sovereign,
Supranational and Agency Long Term Credit). Yearly % to be achieved
14 Percentage of ESG assets under management stock (subject to current regulations on ESG Investment Products) on Total of assets under management stock (yearly % to be achieved)
151
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Our integrated and sustainable business model is based on local excellence, inspired by our principles and values. We are organised across four
regions supported by central structures, with three product factories and a lean competence centre embedding digital and data.
While clients access our services through local banks, our comprehensive offering to meet their needs is created by our three global product
factories, Corporate, Individual and Payment Solutions. These factories each deliver best-in-class solutions, developed internally or through our
dynamic ecosystem of trusted partners.
Corporate solutions
We have an extensive corporate client base and we provide them with seamless access to value-added services through three product lines –
Advisory & Financing, Client Risk Management, Trade & Correspondent Banking. Combining deep local expertise and a strong cross-border
presence, we support our clients with the broader array of products and services that they require, facilitating their growth ambitions.
Individual solutions
Clients benefit from a large and attractive range of products for Retail, Wealth Management and Private Banking across all our markets.
By combining our in-house capabilities with external top industry expertise, we provide them with greater choice and access to our global solutions
and platforms. We have launched and we are progressing with our in-house brand (onemarkets) and are seamlessly integrating Insurance into our
offering, with a unique client base for cross-selling.
Payment solutions
Our unique pan-European footprint, cross-border positioning, payments expertise and advanced data technology supports our Vision of becoming
the first choice for payments in Europe. In 2024 we formed a multi-market partnership with Mastercard, while our new Group Payments solutions
factory expanded our international offering and nearly doubled the number of corporates accessing our digital portal since 2021.
Our model puts the client at the centre of all that we do and leverages our five capitals (financial, human, social and relationship, intellectual and
natural capital) as inputs to create sustainable value.
Understanding how the company’s capitals, strategic pillars and business model are interconnected and interact is essential for the correct
development of our value-creation process over time. This means being able to detect changes in the external environment, including evolving
stakeholder concerns, in order to find internal responses to address expectations, generate value and make the organisation more resilient. We take
into account the constant evolution of the market context in which we operate (including key macroeconomic, industry and regulatory trends) and the
changing needs of our stakeholders. We use our knowledge of the external context to manage risks and capture opportunities effectively, while
maximising the value we create through the successful execution of our strategy.
In this process, listening to stakeholders is of the utmost importance. Intercepting their needs and expectations can orient us towards making the
right decisions regarding our offer of responsible lending products, savings, payment and investment products, thus enabling individuals to improve
their quality of life and financial stability. We also provide funding to small, medium and large businesses and contribute to financing transition plans
and the development of key sectors, contributing to economic growth, job creation and innovation in the countries where we operate.
The core of our business is to support customers and stakeholders in managing social and environmental challenges and financing their
investments for a sustainable future. We believe that working towards the delivery of our purpose of empowering communities to progress will give
us the financial strength to achieve our ambition to be the bank for Europe’s future.
UniCredit’s value chain can be divided into two main segments: upstream and downstream. These represent different stages of activities and
relationships that contribute to the bank’s value-creation process (reference is made to “BP-2 Disclosures in relation to specific circumstances” for
reasonable effort specification).
UniCredit’s upstream value chain consists of the inputs and activities that enable the bank to provide its products and services. It includes:
• Capital providers such as customer deposits, interbank loans, or funding from capital markets. These funds are the primary input for lending and
investment operations;
• Suppliers, such as technology providers, for core functions like transaction processing, Customer Relationship Management (CRM), risk
management, and compliance; data providers, because banks rely on third-party data providers for credit assessments, market insights, and
customer profiling to make informed decisions about lending, investments, and risk management;
• Regulators and compliance entities: banks must operate within strict regulatory frameworks. Inputs from regulatory bodies (e.g. central banks,
financial authorities) shape how banks manage risks, capital adequacy, and liquidity.
152
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
UniCredit’s downstream value chain encompasses the distribution and delivery of the Bank’s services to end users. It includes:
• Retail customers: individuals who use the bank’s products such as savings accounts, loans, mortgages, and credit cards;
• Corporate clients: businesses and institutions that use services like corporate banking, loans, treasury management, and advisory;
• Wealth management and investment services: high-net-worth individuals and institutional clients seeking portfolio management, investment
advisory, and other asset management services;
• Business partners: UniCredit collaborates with fintechs, payment processors, and other service providers to deliver better financial solutions to
customers as well as asset management and insurance companies.
UniCredit acts as an intermediary in the value chain, linking capital providers (depositors, markets) with borrowers and investors. It also acts as a
service provider to businesses and individuals by offering financial solutions that help manage money, investments, and risks. The bank’s position in
the value chain is unique because it facilitates the flow of capital, manages risk, and supports economic activity.
UniCredit creates value through a well-coordinated value chain, where upstream inputs enable efficient operations and risk management, while
downstream relationships drive revenue through customer acquisition, loyalty, and service innovation. The bank's position as an intermediary and
service provider allows it to balance risk, efficiency, and customer needs, ensuring long-term profitability and market competitiveness.
SBM-2 - Interests and views of stakeholders
General
By remaining steadfast to our commitment and taking decisive actions, we strive to understand our stakeholders' expectations. They contribute to
much more than financial success, providing our clients with support during the transition, enhancing corporate citizenship and, in line with our role
as a bank, integrating social purpose into everyday business and offers.
We believe that close relationships with our main stakeholders create long-term value and support individual and collective growth. Listening to the
full range of our stakeholders is central to how we work. We continually seek their feedback to strengthen stakeholder relationships and improve
how we meet their needs.
We encourage our stakeholders to share their views and concerns and work hard to respond quickly and accurately. Gathering and analysing
stakeholder feedback not only provides us with valuable insights into their needs, but it also helps us manage the risks and opportunities we face
and underpins our drive to achieve long-term sustainability.
Our key stakeholders include clients, colleagues, investors/shareholders, regulators, and communities. We leverage a broad range of stakeholder
engagement tools, more specifically:
• Clients: client satisfaction and brand reputation assessments, mystery shopping, instant feedback and focus group/seminars;
• Colleagues: Group Intranet Portal, department online communities; internal clients’ perceptions of headquarters services;
• Investors/shareholders quarterly webcasts and conference calls to present results, one-on-one and group meetings, calls, hareholders’ meeting;
• Regulators: one-on-one and group meetings, calls;
• Communities: surveys; social media.
We developed several major initiatives aimed at ensuring we put our stakeholders at the centre of our thinking and processes. For example, for our
client engagement, our strategic plan uses the Net Promoter Score (NPS) as a key performance indicator. NPS is fundamental to understanding the
degree of clients’ recommendation and experience of our banking services and this guides our interventions. Starting with key client journeys and
touchpoints, the NPS is regularly measured, monitored, analysed and discussed and any written feedback from clients on specific areas is
examined.
With regulators, we continued our proactive communication and engagement at national, European and international levels in order to enhance the
EU sustainable finance framework, increase its usability and facilitate the transition to a low-carbon economy. We have offered our contributions to
the discussions held by EU institutions (EC, EP, EBA and ECB), both on a standalone basis and jointly with banking trade associations, and also
contributed to the development of a sustainable financial framework that can meet the needs of all stakeholders.
For investor engagement, we hold dedicated meetings with ESG investors and ESG rating agencies to increase disclosure, increase understanding
of our ESG approach and improve the Group’s positioning. The proactive management of ESG rating agencies has been achieved through
comprehensive and regular disclosure tracking of the progress of ESG strategies.
153
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Finally, we have also strengthened our engagement with NGOs and society at large. During the year, we continuously engaged with them to
receive their feedback to update our sector policies, share our targets on official commitments before disclosure (for example, Net Zero), participate
in and contribute to banking surveys and engagement questionnaires, interact on relevant reports and roundtables and involve them in our
stakeholder engagement initiatives (in particular the ESG Day).
The materiality analysis remains a fundamental tool for listening to our stakeholders, supporting our business strategy, and helping value
creation over the long term. It takes a dynamic and forward-looking view of ESG topics, allowing us to take regular action on emerging risks and
relevant issues.
This process helps us to identify and address the issues that are most material to stakeholders, including emerging risks. Every year, we carry out
our materiality analysis by taking into consideration a variety of sources to ensure that we are encompassing all the material topics in the banking
industry for our stakeholders. We assess sustainability impacts, risks, and opportunities (IRO) across the environmental, social, and governance
matters deemed to be material from a double materiality perspective: impact materiality and financial materiality.
Moreover, starting in 2023, another fundamental tool in our Stakeholder Engagement process is the ESG Day. At its core, the event is an
opportunity to stimulate stakeholder dialogue while continuing to raise awareness of climate change, social inequalities, biodiversity and the circular
economy, as well as our own role in fostering the necessary change in mindset. Attendees included colleagues, clients and partners, alongside a
host of renowned experts who dived into a series of engaging discussions covering the full spectrum of ESG topics.
Acknowledging stakeholders' expectations and efficiently managing risks and opportunities attached to them is essential when it comes to
developing strategies to increase the positive impact and minimise negative impact - key to long-term value creation.
Our goal is to understand the views and interests of stakeholders and to align them with our strategic approach. At the core of the approach lies
a commitment to promote the respect of human rights, as outlined in our Human Rights Commitment. This commitment extends to all individuals
impacted by our business, including employees, customers, suppliers, and local communities.
Stakeholder engagement has always been a valuable activity for us, as it represents a key step in the definition of our ESG strategy. While defining
our UniCredit Unlocked strategy, we interviewed our key stakeholder groups to obtain their opinions on UniCredit group’s ESG ambitions: from
internal stakeholders, such as employees and business heads, to external stakeholders, such as institutional investors, corporate clients, civil
society NGOs, and green NGOs.
For instance, our key stakeholders focused on themes such as climate risk, circular economy, ESG training, transition plans, financial education,
and strong governance. In accordance with what our stakeholders are focused on, we developed a dedicated service model for our corporate clients
with ESG products, integrating innovative schemes; we set up Net Zero commitments; we broadened our ESG-related training programmes for all
employees (according to working areas, roles and responsibilities); we support vulnerable clients pursuing a positive impact on society; we created a
strong link between ESG strategy, goals and commitments, actions and disclosure.
With a uniquely pan-European footprint, we deliver overall best-in-class performance while respecting our ESG framework. In that framework, we
are identifying and valuing the latest trends our stakeholders care about: climate change and environmental-related risks for our consumers; nature
commitments beyond carbon and science-based targets for corporate clients; impact on the environment and society (inside-out perspective) as well
as power generation topics for our investors; EBA Pillar III and the GAR for regulators.
Taking a strategic approach, we carefully gather and analyse the views and concerns shared by our stakeholders and promptly address their
observations. Indeed, the creation of long-lasting value depends not only on an awareness of our own business impact but also on clear insights into
our stakeholders’ needs.
In particular, the importance of stakeholders has been cemented during their engagement in the Double Materiality Assessment process.
Our senior management is informed about the relevant outcomes of our stakeholder involvement activities. In particular during the double materiality
assessment, top management carefully considered the feedback and insights provided by relevant external stakeholders concerning the IROs. By
incorporating diverse viewpoints, our management ensured a more comprehensive understanding of what could be deemed material and relevant
for the bank’s long-term strategy and sustainability efforts.
Through the outcome of stakeholder engagement for the double materiality assessment, the Board of Directors gains insights into stakeholders'
views and interests. Specifically, the Board of Directors is annually informed about the results of the double materiality assessment and final
list of material IROs, including the view of the external stakeholders and whether and how their indications are incorporated within the identification
and assessments of material IROs.
154
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business
model
Embedding sustainability in all that we do is one of the five strategic imperatives of UniCredit Unlocked strategy. This plan builds on our strong
foundations to unlock the potential of our Group, paving the way for the future of our Bank and of all our stakeholders, while ensuring that we always
lead by example and fulfil our purpose of empowering communities to progress.
Our strong corporate governance underpins the integration of ESG factors in our strategy, business and operations. We will constantly work on
raising awareness on ESG topics across the organisation and cascading knowledge to drive change.
Environmental topics:
UniCredit’s approach to natural capital is based on tangible actions that generate direct and indirect impacts. We are committed to limiting negatives
and generating positive impacts to preserve natural capital for the benefit of the communities in which we operate and ourselves.
Our strategic approach is based on the double materiality concept which considers both an inside-out and an outside-in perspective.
Inside-out perspective: manage the direct and indirect impacts that our operations and lending have on the environment:
• Indirect impacts - accompany our clients on their green transition journey by:
- assessing and monitoring our portfolio exposure towards most climate-related sectors;
- identifying and evaluating the impacts on climate;
- adopting a sector policy framework;
- defining the journey towards Net Zero on portfolio emissions.
• Direct impacts - reduce our environmental footprint by:
- steering our behaviour towards Net Zero on our own emissions;
- procuring electricity from renewable sources;
- improving energy and space efficiency;
- fostering the efficient use of resources.
Outside-in perspective - prepare to measure the business consequences of climate stress and the associated socio-economic transition and take
advantage of emerging opportunities by:
• executing our Group strategy;
• correctly managing climate and environmental risks, in line with the agreed Risk Appetite Framework (RAF) and the ECB climate stress test
requirement.
UniCredit’s strategy incorporates identifying and understanding climate and environmental risks (C&E) and opportunities that the Bank may
encounter. C&E factors are related to the quality and functioning of the natural environment and its systems (Natural Capital) and include factors
such as climate change, biodiversity, energy consumption, pollution and waste management.
Climate Change:
Climate change is one of the biggest challenges that the world faces, impacting every person on the planet through weather events such as extreme
heat, forest fires, severe rainfall and flooding.
Acknowledging the growing importance of Climate & Environmental topics and in continuous dialogue with the competent authorities, UniCredit
group is progressively and continuously developing the internal modelling capabilities with the aim to properly manage new risk that may arise from
climate change.
Impairment provisions recognized in 2024 financial reporting were estimated considering a full coverage of C&E risk type (transition, physical), all
credit risk parameters (PD, LGD), asset class (corporate, retail secured) and Legal Entities. Future adjustments in impairment provisions will be
driven by updates in scenario assumptions (e.g. Transition policies) and portfolio composition.
For more details in relation to the inclusion of climate risk in provisioning Expected Credit Loss (ECL), reference is made to the Notes to the
consolidated accounts, Part E - Information on risks and related hedging policies.
In this context, the financial system has an important role in the Net Zero journey, with more than $80 billion in climate finance commitments agreed
in COP28.
At UniCredit, we are committed to playing our part. We are striving to reduce our direct and indirect environmental impacts while supporting
Europe’s green transition. In this context, we committed to Net Zero in October 2021 when we joined the Net Zero Banking Alliance (NZBA),
targeting Net Zero on our own emissions by 2030 and on financed emissions by 2050.
155
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
For further information, reference is made to “E1-4 Targets related to climate change mitigation and adaptation”, as well as to “SBM-1 Strategy,
business model and value chain”.
In addition to our path towards NetZero, UniCredit group integrated climate risk into risk framework measuring short (1 year, i.e., 2025), medium (2
to 5 years, i.e., 2030) long term (up to 2050) impacts through an annual materiality analysis aimed at assessing the relevance of climate related risk
drivers with respect to the various risk families considered and their potential impact for the Group, using scenario Analysis. Furthermore, an
analysis of the capital resilience against climate risk drivers is performed within ICAAP, envisaging the full coverage of risk types and the integration
of forward-looking elements. The resulting estimates show that the Bank’s resilience is ensured in the short-,medium- and long-term horizons. For
further details on the materiality analysis, reference is made to the “Notes to the consolidated accounts, Part E - Information on risks and related
hedging policies, Section 2 Climate and environmental risks”.
Within the bank’s risk management function, the management of C&E risks have become increasingly significant and strategically important and has
been undergoing a substantial transformation in recent years, e.g. in the beyond-climate topic a recent progress in the analysis of the nature-related
assessment has been achieved, by defining impact on natural capital and dependency from ecosystem services.
UniCredit adopts policies and procedures relating to direct and indirect engagement with new or existing counterparties taking into account their
strategies to mitigate and reduce environmental risks. Over the last few years, we have introduced sector-specific policies that commit us to
stopping financing controversial carbon-intensive activities, such as energy production from thermal coal and the most impactful oil and gas
operations.
Alongside safeguarding our portfolios and assets from climate-related risks, we actively engage and support corporate clients in transitioning to a
lower-carbon business model, fully exploiting green business opportunities. We aim to help our clients achieve a just transition, ensuring fairness
throughout the process. In fact, we are aware and conscious that our positive impacts can affect people's quality of life. Our ESG Advisory Team is a
multi-disciplinary solutions team focused on enabling clients to create long-term stakeholder value by integrating sustainability into their strategic
decisions and assessing the impact of sustainable finance market principles and practices, as well as applicable regulations.
Moreover, we have established well-defined objectives to contain our environmental footprint due to the material negative impacts related to the
generation of both direct and indirect emissions, which affect both the environment and people. Our objectives include procuring electricity from
renewable sources, improving the energy and water efficiency of our premises and data centres, adopting circular economy solutions in resource
management, promoting sustainable mobility solutions, and sourcing responsibly.
Beyond climate-related topics:
Nature-related assessment is at an early stage for the whole banking industry, with significant limitations in terms of data availability across drivers
and sectors, lack of commonly agreed metrics and methodologies (e.g., scenarios). In this context, in 2024 the Bank has defined an assessment to
identify which industries are most exposed to nature-related risks in terms of impact on natural capital and dependency from ecosystem
services.
For the assessment on impact the Bank has enhanced the 2023 analysis, by computing 18 granular KPIs (at industry or at counterparty level) for
the identification of 4 Environmental Factors being Biodiversity, Pollution, Water usage, Waste management. The analysis leverages on
recognized and recommended global sources (e.g. Exiobase, Globio, Natura 2000, Encore) and on banking industry initiative guidance (e.g.,
TNFD, Nature Target Setting Guidance)
In 2024 the Bank has integrated the Nature-related assessment with a new analysis to identify the dependency level from ecosystem services. The
analysis leverages mainly on ENCORE15 tool and Ecosystem services that represent the link between nature and economic activities and the benefit
that nature provides to enable or facilitate business production processes.
To have a comprehensive overview on the Nature-related assessment, the outcomes of Impact and Dependency analysis have been aggregated at
industry level to create a portfolio heatmap.
Moreover, as described in E1, to determine the extent to which the Bank’s credit counterparties are exposed to Climate and Environmental risks, the
C&E questionnaire is used and includes qualitative and quantitative current and forward-looking key indicators (including also on beyond climate
factors). With regards to the nature-related factors the Group will evaluate to selectively adjust the C&E Questionnaire to include a more
comprehensive assessment of the clients’ nature-related factors
Concerning water resources, UniCredit contributes to raising awareness of water consumption and withdrawals: the Bank can promote more
responsible water consumption and withdrawals by its clients, reducing overall water use. It also encourages a deeper understanding of water as a
scarce resource, promoting sustainable practices and positively impacting public health.
15 ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure): opensource tool suggested by regulators as a standard to assess corporates dependency from ecosystem services.
156
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Regarding biodiversity, we have signed, and are the first Italian Bank to do so, the Finance for Biodiversity Pledge (FfBP) and are members of the
permanent working group on Nature in the United Nations Environment Programme Finance Initiative (UNEP FI). Through our membership of the
FfBP Foundation, we contributed to the publication of the paper “Unlocking the biodiversity-climate nexus”.
This paper outlines the synergies and trade-offs between climate and nature of a sample of investment/lending solutions that are key to solving the
nature and climate crises we face. The paper also presents recommendations on how to deal with the biodiversity and climate nexus. It is written by
financial institutions for financial institutions, including banks, insurers, asset managers and asset owners. Within the UNEP FI Biodiversity Working
Group, we have also contributed, alongside 34 international banks, to the publication of the Principles for Responsible Banking “Nature Guidance for
Banks”. This aims to help the banking industry align with the Kunming-Montreal Global Biodiversity Framework (GBF)8 and address nature and
biodiversity loss.
Regarding the circular economy, UniCredit’s negative impact is generated by the value chain and refers to resource inflows and resource use
degrading local environments, negatively impacting the quality of life due to issues such as waste accumulation, noise, and exacerbating social and
economic inequalities. In addition, considering the possible effect on the environment, the high resource inflow leads to over-extraction of materials
(e.g. water, minerals, and fossil fuels, etc.) accelerating the depletion of finite natural resources. For this reason, UniCredit has also become a
member of the Ellen MacArthur Foundation international charity network in support of our efforts to accelerate the circular economy transition across
our countries. The Foundation is committed to creating a global circular economy driven by design to eliminate waste and pollution, circulate
products and materials and regenerate nature.
Moreover, in an effort to prevent and mitigate various potential negative environmental impacts, alongside energy efficiency, we have introduced
measures to optimise the use of limited natural resources and to foster a circular economy.
We have started monitoring Water Usage Effectiveness (WUE), the ratio between the use of water in data centre systems (e.g. water loops,
adiabatic towers, humidification), and the energy consumption of IT equipment. We have also launched several projects aimed at reusing and
rethinking our redundant furniture.
Through these actions, UniCredit contributes to increasing clients’ awareness of their waste generation habits, leading to more sustainable choices.
Own workforce:
Our people are our greatest asset and constitute a fundamental element of our ESG Strategy and business model. They compose the internal and
external staff categories, including non-employes (leased workers and contractors).
We empower our people to progress throughout their professional lives by:
• listening to their needs and promoting their rights;
• investing in a skill-based organisation and designing training and development plans;
• promoting diversity, equity, inclusion and welfare offers.
The relationship between our people and our strategy creates a virtuous cycle: positive impacts on our workforce stem from these three pillars of the
people strategy, while contributing to the continuous refinement and improvement of the strategy itself. This connection between people and positive
impacts experienced also paves the way for new opportunities to be pursued: UniCredit has the opportunity to become an employer of choice while
improving its employees’ productivity, through the promotion of positive impacts on people.
We are creating an engaging and positive work environment to build employee awareness and set the tone for our culture across all our
geographies. We are committed to building a workplace of equal opportunities and a positive environment.
Caring for our people is vital for unlocking our fullest potential. By providing the right support and resources, we nourish our collective wellbeing and
build a truly positive, inclusive, and collaborative workplace where everyone is empowered to succeed.
To pursue our Diversity, Equity and Inclusion (DE&I) commitment and address our people’s needs, we have tailored global and local initiatives
available in every country where our Group is present, offering support and the right knowledge equipment.
At UniCredit, Diversity, Equity and Inclusion (DE&I) is a business imperative.
A dedicated DE&I strategy is fully integrated in our ESG framework and business agenda, and in place in all the 13 countries where we operate. It
aims to ensure a more cohesive approach to developing a positive work environment focused on productivity, personal and professional well-being,
and the continuous engagement of our people.
Our solid DE&I governance is empowered by:
• shared workplace policies, principles and best practices;
• a passionate DE&I network across the Group to create synergies and business opportunities.
157
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Maintaining proactive and regular dialogue with our workforce strengthens UniCredit’s spirit of collaboration and helps us unlock value creation. We
have a proud track record of consistent engagement with our people at both national and international levels across the Group, which has enabled
us to manage the many market challenges we have faced over the years.
At the heart of our drive to maintain effective and mutually beneficial industrial relations is our unwavering commitment to respecting local laws and
the terms and conditions of collective agreements, including employees’ rights to exercise freedom of association and collective bargaining. We
continually monitor our engagement processes and outcomes Group-wide, sharing best practices to strengthen social dialogue across all Group
countries.
Nationally, employees’ interests can be represented by trade unions, works councils or other representatives in line with the applicable labour laws
and local industrial relations systems. At an international level, employees are represented by the European Works Council (EWC). Since it was first
established in 2007, the EWC has ensured that our workforce has the right to information and consultation on trans-national Group topics that could
significantly affect employees’ interests.
Through the double materiality assessment, UniCredit has identified only material positive impacts and opportunities related to its own workforce,
without references to specific categories of workers. In addition, no material impacts have arisen from our transition plan (Ref. to the table below
“List of material IROs”).
For more information on own workforce, reference is made to the paragraph “S1-Own workforce”.
Workers in the value chain:
UniCredit conducts its operations in accordance with the Universal Declaration of Human Rights: as stated in our Human Rights Commitment, “We
are aware that every economic and business activity can potentially generate both positive and negative impacts on human rights”. Therefore, we
are constantly working to establish a reliable and inclusive approach that enables our Group to spread positive human rights impacts, with respect to
both internal workers and workers in our value chain, including our clients’ workforce.
To this extent, listening to the full range of our stakeholders is central to how we work. We encourage them to share their views and concerns and
work hard to respond quickly and accurately, in order to align their perceptions with our activities and strategy.
We have strengthened our support for human rights in the following key ways:
• Engaging and supporting stakeholders through participation in international working groups and forums;
• Compliance with section 54 of the UK’s Modern Slavery Act 2015.
For more information on workers in the value chain, reference is made to the paragraph “S2 Workers in the value chain”.
Affected communities and consumers and end users:
The financial industry plays a vital role in improving our economies and societies. We are willing to contribute to unlocking the potential of people,
businesses and communities throughout Europe: our people constantly work together with the shared purpose of empowering communities to
progress, central to all our actions.
UniCredit is closely tied to their local communities and clients in two respects: on one side, through our business activities, we can have an impact
on people, acting as drivers of growth to enable individuals, groups and communities to reach their potential; on the other side, understanding the
perceptions and concerns of communities and clients is crucial to implement and adapt our business activities to their needs, while reaching new
opportunities.
The categories of people mainly impacted by our business mainly refer to communities along our value chain and clients that benefit from our
solutions:
• Low-income people;
• People at risk of social and financial exclusion;
• Young and students;
• People with disabilities;
• Microentrepreneurs and start-ups;
• Vulnerable people (e.g. women and the elderly);
• NGOs and social organisations.
Our goal is to grow by offering development opportunities to communities, clients and the local area and by building financial and social inclusion
through our offering, corporate citizenship and philanthropic initiatives. We offer a broad range of customised solutions to enable individuals and
businesses to gain ready access to financial products and services. At the same time, we are strongly committed to helping people and businesses
improve their financial skills, enabling them to make responsible choices.
158
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
In December 2021, we signed the Commitment on Financial Inclusion and Health under the Principles for Responsible Banking (PRB), participating
in the UNEP FI working group for setting common indicators to measure financial health and financial inclusion.
In this context, we have set new targets for 2025 related to the group of clients we have identified as the most relevant strategic target, namely
young people.
Our customised solutions offer is addressed to low-income and vulnerable individuals and families, young people, people with disabilities and
microcredit. Moreover, we continue to carry out several financial education and awareness initiatives across our countries, focusing on priority target
beneficiaries such as the young, women and vulnerable individuals, while also using new communication channels such as social networks and web
platforms.
Regarding the privacy, we are committed to improving our approach to data security and cybersecurity, reinforcing our capabilities to prevent, detect
and respond to increased cyber threats, while focusing on three key areas: strengthening governance and oversight, increasing employees’ and
customers’ risk awareness and enhancing threat identification and management. Through the measures and safeguards implemented, risks related
to customers data are mitigated, and we expect data breaches and cybersecurity attacks to be potential negative impacts related to individual cases,
rather than systemic impacts.
For responsible marketing practices, UniCredit follows the Code of Marketing Communication.
Self-Regulation (www.iap.it) disseminated by the Istituto dell’Autodisciplina Pubblicitaria (IAP) ensures subscribers follow transparent and honest
advertising practices.
UniCredit is also a member of the Utenti Pubblicità Associati (UPA), which supports the IAP. All UniCredit entities follow the regulations
disseminated by these bodies, particularly when local codes do not provide guidance on topics covered by the UPA.
All advertising and communication activities at UniCredit are internally ruled by our Group Marketing & Communication department, which is
responsible for assuring the effective application of the IAP code as well as coordinating with the Group Legal and Group Compliance departments
in their own areas of competence. With regard to advertising investment products, all texts are submitted to the Commissione Nazionale per le
Società e la Borsa (CONSOB) in Italy so they can be evaluated for regulatory compliance and consistency with the principles of truth and
transparency.
For more information on local communities and clients reference is made to the paragraphs “S3 Affected communities” and “S4 Consumers and end
users”.
159
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Business conduct:
We believe that working every single day towards the delivery of our purpose will give us the financial strength to achieve our ambition to be the
bank for Europe’s future.
By acting as the engine of social progress, we are building a culture that puts our values at the heart of our decision-making and everything we do.
Our profound journey of cultural transformation continues at pace and has been marked by many achievements. We have further demonstrated our
commitment by empowering a significant number of our employees to reflect on what our values mean as an identity, and to explore how that
translates into improving the way we serve our clients and communities.
Having initiated our cultural transformation in 2022, we are now executing our comprehensive plan to bring our values to life and shape our
behaviour to enable cultural change.
A specific global policy sets out the Group’s approach to whistleblowing. The policy governs reports of unacceptable conduct by employees within
the group to promote a corporate culture based on ethical behaviour and good corporate governance.
The policy is intended to:
• create a corporate environment where employees feel free to report any unacceptable conduct;
• define adequate communication channels for the receipt, analysis and use of the reports.
The management of this process is designed to ensure the greatest possible protection and confidentiality of the identity of the whistleblower and
the accused individual, and to prevent any possible retaliatory or discriminatory behaviour in response to the report.
Our suppliers are required to comply with the standards of the International Labour Organization and our Environmental Policy.
UniCredit has a zero-tolerance approach towards acts of corruption. The Bank’s approach to anti-bribery and corruption is laid out in the dedicated
Global Rules, which set minimum standards of anti-corruption compliance throughout the Group. Each Legal Entity is responsible for the
development and implementation of an effective Local Anti-Corruption Programme.
Moreover, Italian Group Legal Entities have also implemented an Organisational and Management Model (hereinafter the Model) pursuant to Italian
Legislative Decree 231/01 (Administrative liability of Legal Entities, companies, and associations hereby L.D. 231/01) that foresees specific protocols
aimed at avoiding bribery and corruption issues.
The Code of Conduct (CoC), reviewed in 2022, contains a specific section dedicated to bribery and corruption risks, and provides behaviour rules
and tips on how to manage and prevent such risks.
Material impacts, risks and opportunities (IROs) resulting from materiality assessment:
Regarding the impacts considered to be material (See Table below), UniCredit considered its own operations and upstream and downstream value
chain. Particularly, UniCredit took into account the geographical areas, primarily in Central and Eastern Europe, where it operates and provides
loans and financing to companies. In the identification of lists of IROs, UniCredit has also outlined the typical distribution channels it uses to deliver
loans and financing, including direct interactions through its legal entities network and digital banking services, which ensure that the Bank could
effectively meet the financing demands of different businesses, offering a consistent and diversified service experience.
The Double Materiality Assessment was performed in 2024 according to the new framework set up by the European Standards ESRS.
The 2024 material topics have been enhanced and evolved, as have the material-related IROs been identified, although no entity-specific IROs have
been identified for 2024 reporting period.
160
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
List of Material IROs
ESRS TOPIC
SUB-TOPIC
SUB-SUB-TOPIC
IROS
TYPE OF IROS
TYPE OF
IMPACT POSITIVE/NEGATIVE
OWN
OPERATIONS/VALUE
CHAIN
VALUE
CHAIN
LOCATION
TIME-
HORIZON
E1 Climate
Change
Climate change
mitigation (own
operations/value
chain)
Climate change
adaptation (own
operations/value
chain)
Energy (own
operations)
N/A
Fostering awareness and commitments
related to climate change and
accelerating the green transition through
the support towards energy efficiency
initiatives and renewable sources
financial projects across counterparties
for the next years.
IMPACT
Actual
Positive
Value chain
Across
Medium-
term
Generation of direct and indirect energy
GHG emissions (Scope 1 and 2).
IMPACT
Actual
Negative
Own operations
Short-term
Generation of indirect GHG emissions
produced in the value chain as a result
of the business activities performed by
actors in the downstream value chain
(Scope 3 - Only 15 category).
IMPACT
Actual
Negative
Value chain
Downstream
(clients)
Short-term
Generation of indirect GHG emissions
produced in the value chain as a result
of the business activities performed by
actors in the upstream and downstream
value chain (Scope 3 - All categories
except financed).
IMPACT
Actual
Negative
Both
Across
Short-term
Investments in the implementation of
green/environmental projects
OPPORTUNITY
Both
Downstream
(Clients)
Medium-
term
Creation of new products and services
to support clients in their transition
journey towards their decarbonization
targets
OPPORTUNITY
Both
Downstream
(Clients)
Medium-
term
Invest in/finance green tech (start-ups)
and also access new markets (e.g.,
carbon emissions trading)
OPPORTUNITY
Both
Across
Medium-
term
Physical Risk
Credit risk: impact on credit risk portfolio
due to deterioration of the counterparty’s
creditworthiness due to damage, caused
by acute and chronic events, to the
counterparty’s plants and production
sites and decrease in the recoverable
amount/market values of collateral due
to damage, caused by acute and chronic
events
RISK
Own operations
Medium-
term
E3 Water and
marine
resources
Water
Water consumption
Water withdrawals
Fostering awareness and commitments
related to water consumption,
withdrawal by UniCredit clients.
IMPACT
Actual
Positive
Value chain
Downstream
(clients)
Medium-
term
E4
Biodiversity
and
ecosystems
Direct impact
drivers of
biodiversity loss
Impacts on the
extent and
condition of
ecosystems
Climate change
Land-use change, fresh
water-use change and
sea-use change
Example: Land
degradation
Creation and promotion of innovative
financial products/services focused on
green and sustainable investments,
thereby contributing to the protection of
natural capital, biodiversity and
conservation of land use
OPPORTUNITY
Value chain
Downstream
(Clients)
Medium-
term
E5 Resource
use and
circular
economy
Resources
inflows,
including
resource use
Resources
outflows related
to products and
services
Waste
N/A
Contribution to high inflow and use of
resources, and to high waste by sectors
such as construction, power generation,
manufacture, and waste-intensive
sectors in which Unicredit clients
operate.
IMPACT
Actual
Negative
Value chain
Downstream
(clients)
Short-term
Fostering awareness and commitments
related to waste production and waste
management from UniCredit clients.
IMPACT
Actual
Positive
Value chain
Downstream
(clients)
Medium-
term
161
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Continued: List of Material IROs
ESRS TOPIC
SUB-TOPIC
SUB-SUB-TOPIC
IROS
TYPE OF IROS
TYPE OF
IMPACT POSITIVE/NEGATIVE
OWN
OPERATIONS/VALUE
CHAIN
VALUE
CHAIN
LOCATION
TIME-
HORIZON
S1 Own
workforce
Working
conditions
Work-life balance
Promotion of employee well-being
through the implementation of dedicated
well-being activities and benefits within a
healthy and stimulating working
environment.
IMPACT
Actual
Positive
Own operations
Medium-
term
Becoming an employer of choice with
widespread diversity, a culture of
inclusion and concrete work-life balance
solutions which encompass a new,
flexible approach
OPPORTUNITY
Own operations
Short-term
Equal treatment
and
opportunities
for all
Employment and inclusion
of persons with disabilities
Measures against violence
and harassment in the
workplace
Gender equality and equal
pay for work of equal
value
Diversity
Short-term
Working
conditions
Secure employment
Adequate wages
Social dialogue
Freedom of association,
the existence of work
councils and the
information, consultation
and participation rights of
workers
Collective bargaining,
including rate of workers
covered by collective
agreement
Positive contribution to the objectives of
ensuring equal opportunities, secure
employment, generation of quality
employment, the payment of adequate
wages also through the promotion of
social dialogue, collective bargaining
agreements and workers' associations.
IMPACT
Actual
Positive
Own operations
Medium-
term
Equal treatment
and
opportunities
for all
Gender equality and equal
pay for work of equal
value
Medium-
term
Training and skills
development
Improved workers’ skills through training
and professional development activities,
general and technical programmes, also
linked to personalised growth and
evaluation objectives (e.g. career
development plans).
IMPACT
Actual
Positive
Own operations
Medium-
term
Improvement of employees’ productivity
through the implementation of efficient
training programs, anticipating future
trends
OPPORTUNITY
Own operations
Short-term
Ensure a guarantee transparent
performance review systems and
professional growth plans for the
Group's entire population, allowing all
employees to work to the best of their
abilities
OPPORTUNITY
Own operations
Short-term
Employment and inclusion
of persons with disabilities
Contribution to the development of
young talents through partnerships with
national and international Universities,
collaborations with communities in the IT
and tech sector, often with a focus on
women and creation of networks on
several diversity traits.
IMPACT
Actual
Positive
Own operations
Medium-
term
Diversity
Medium-
term
Respect for diversity and promotion of
an inclusive corporate climate through
anti-discrimination activities and
corporate initiatives.
IMPACT
Actual
Positive
Own operations
Medium-
term
Measures against violence
and harassment in the
workplace
IMPACT
Actual
Positive
Own operations
Medium-
term
Other work-
related rights
Privacy
Increase in digital skills, knowledge and
opportunities of employees.
IMPACT
Actual
Positive
Own operations
Medium-
term
162
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Continued: List of Material IROs
ESRS TOPIC
SUB-TOPIC
SUB-SUB-TOPIC
IROS
TYPE OF IROS
TYPE OF
IMPACT POSITIVE/NEGATIVE
OWN
OPERATIONS/VALUE
CHAIN
VALUE
CHAIN
LOCATION
TIME-
HORIZON
S2 Workers in
the value
chain
Other work-
related rights
Child labour
Forced labour
Awareness and dissemination of the
culture of ethics and human rights (child
and forced labour) by business partners
and other stakeholders increases
responsibility and fair practices across
value chains.
IMPACT
Actual
Positive
Value chain
Downstream
(clients)
Medium-
term
S3 Affected
communities
Communities'
economic,
social and
cultural rights
Adequate housing
Adequate food
Contributions to various social causes
with positive socioeconomic impacts
such as education, health, and
community development programmes.
IMPACT
Actual
Positive
Value chain
Downstream
(clients)
Medium-
term
Security-related impacts
Improving access to credit and
disseminating financial culture in the
communities, with a focus on supporting
younger and more vulnerable and/or
low-income groups through dedicated
products and services in order to
enhance economic development and
investor confidence.
IMPACT
Actual
Positive
Value chain
Downstream
(clients)
Medium-
term
Adequate housing
Adequate food
Security-related impacts
Strategic community partnerships,
collaborations with local organisations,
industry and professionals' associations
and community groups to create
sustainable and impactful programmes.
OPPORTUNITY
Value chain
Downstream
(Clients)
Medium-
term
Improvement of relationships /
consolidation of positioning within
territories and communities of reference
through the promotion of initiatives of
financial inclusion targeting vulnerable
groups.
OPPORTUNITY
Value chain
Downstream
(Clients)
Medium-
term
Establish and promote employee
volunteering programmes that
contribute to the well-being and
development of local communities and
support associations and projects in the
area.
OPPORTUNITY
Value chain
Downstream
(Clients)
Short-term
Communities'
civil and
political rights
Freedom of expression
Increase in market share through the
expansion of product offerings with
positive social impact, such as those
related to the third sector.
OPPORTUNITY
Value chain
Downstream
(Clients)
Medium-
term
Opportunities for the Bank to gain an
improved image among competitors and
attract socially conscious investors, if it
is able to anticipate and react to political
and societal changes.
OPPORTUNITY
Value chain
Downstream
(Clients)
Medium-
term
163
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Continued: List of Material IROs
ESRS TOPIC
SUB-TOPIC
SUB-SUB-TOPIC
IROS
TYPE OF IROS
TYPE OF
IMPACT POSITIVE/NEGATIVE
OWN
OPERATIONS/VALUE
CHAIN
VALUE
CHAIN
LOCATION
TIME-
HORIZON
S4
Consumers
and end-users
Information-
related impacts
for consumers
and/or end-
users
Privacy
Creation of a long-term relationship with
customers through a strong and safe
ICT systems
OPPORTUNITY
Value chain
Downstream
(Clients)
Medium-
term
Privacy
Breach and loss of customer data and
poor cybersecurity management.
IMPACT
Potential
Negative
Value chain
Downstream
(Clients)
Medium-
term
Privacy
Operational risk: Risk of operating
losses due to unauthorized access to
customer data (data Breach) with the
purpose of obtaining a personal
advantage and due to cyber attacks
RISK
Own operations
Privacy
Reputational risk: failure to meet the
consumers and end-user’ needs and/or
to guarantee the customers' data
integrity that may lead to negative
impacts
RISK
Own operations
Privacy
Freedom of expression
Access to (quality)
information
Ensure the UniCredit transformation of
the distribution and production model,
making it more sustainable through
greater digitalisation, the creation of
new technologies, the access to
information, the adoption of cloud
solutions, the use of AI.
IMPACT
Potential
Positive
Value chain
Downstream
(clients)
Medium-
term
Privacy
Freedom of expression
Expansion of market shares and
improvement of retention thanks to the
implementation of solutions, products
and digital / innovative services
OPPORTUNITY
Value chain
Downstream
(Clients)
Medium-
term
Privacy
Access to (quality)
information
Enhance client loyalty and retention
through the optimization of corporate
assets in terms of privacy and data
security and quality information
OPPORTUNITY
Value chain
Downstream
(Clients)
Short-term
Freedom of expression
Access to (quality)
information
Informed decisions to customers
through transparent, neutral and fair
advice, also providing the possibility to
express their feedbacks.
IMPACT
Actual
Positive
Value chain
Downstream
(clients)
Medium-
term
Social inclusion
of consumers
and/or end-
users
Responsible marketing
practices
Enhancement of relationships with
clients and shareholders through clear
and transparent communication
OPPORTUNITY
Actual
Value chain
Downstream
(clients)
Short-term
Non-discrimination
Access to products and
services
Increased and improved customer
satisfaction and end-users experience
by meeting their expectations.
IMPACT
Actual
Positive
Value chain
Downstream
(clients)
Medium-
term
164
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Continued: List of Material IROs
ESRS TOPIC
SUB-TOPIC
SUB-SUB-TOPIC
IROS
TYPE OF IROS
TYPE OF
IMPACT POSITIVE/NEGATIVE
OWN
OPERATIONS/VALUE
CHAIN
VALUE
CHAIN
LOCATION
TIME-
HORIZON
G1 Business
conduct
Corporate
culture
N/A
Contribution to the creation of an
environment of fair competition,
encouraging businesses to compete based
on innovation and efficiency rather than
aggressive tax practices and reducting
national tax evasion.
IMPACT
Actual
Positive
Value chain
Upstream
Medium-
term
Maximum generation of value and its
distribution to shareholders/stakeholders
IMPACT
Actual
Positive
Both
Across
Medium-
term
Protection of
whistle-blowers N/A
Awareness and dissemination of the
culture of ethics, by management,
employees, business partners and other
stakeholders in own operations.
IMPACT
Actual
Positive
Own operations
Medium-
term
Management of
relationships
with suppliers
including
payment
practices
N/A
Ensure solid relationships with its suppliers
and respect of agreed terms
IMPACT
Actual
Positive
Value chain
Upstream
Medium-
term
Improvement in the quality of products and
services purchased through a more
sustainable supply chain and certified
products (incorporating minimum
environmental criteria)
OPPORTUNITY
Actual
Both
Upstream
Medium-
term
Corruption and
bribery
Prevention and detection
including training
Incidents
Prevent the possible events of corruption
and/or bribery through the training
activities involving employees, top
management and other relevant
stakeholder
IMPACT
Actual
Positive
Value chain
Upstream
Operational Risk: The risk of money
laundering, sanctions violations, bribery
and corruption, and KYC failure
RISK
Both
Across
Medium-
term
Enhancement of reputation through
investing in the development of innovative
tools to manage, monitor and prevent
corruption and bribery
OPPORTUNITY
Both
Both
Medium-
term
Impact, risk and opportunity management
IRO-1 - Description of the processes to identify and assess material impacts, risks and
opportunities
The process to identify impacts, risks and opportunities was based on a top-down approach: UniCredit Holding identified a list of material IROs
which has been shared with Legal Entities, and compared to their list, in order to guarantee coherence along the entire Group. The process was
carried out following a logic that prioritized UniCredit group’s primary activity, namely the banking sector. While all entities included in the
Sustainability Statement perimeter were included in the analysis, the focus has remained on the fact that the core business is banking.
The UniCredit group’s double materiality assessment started with an initial phase of understanding the context in which UniCredit group operates.
In particular, UniCredit group carried out both internal and external analyses, identifying dependencies, resources, geographic presence, and
mapping affected stakeholders. In this phase, external stakeholders were actively engaged through the various channels and engagement methods
(questionnaires, workshops, forums, interviews, surveys etc.), and their perceptions view considered throughout the process.
In parallel with the context analysis, UniCredit group screened the list of matters on ESRS 1 - AR 16, reconciling topics, sub-topics and sub-sub-
topics with the outcomes emerging from the first phase. Then, each impact of the long-list was associated with the location of occurrence (own
operations and/or value chain), the time-horizon (short-, medium-, or long-term), the strategic actors involved (e.g., employees, customers,
shareholders etc.).
In assessing impacts, both actual and potential, UniCredit group considered gross impacts (i.e., before any mitigating actions); this is done to
provide users of the sustainability information with information that allows for the distinction between the gross impact and the management of the
impacts (i.e., policies, actions and targets). In addition, impacts were assessed without taking into account other impacts; hence, positive impacts on
the environment and people cannot be netted against negative impacts.
Also, when evaluating negative impacts, UniCredit group considered its embedded approach on due diligence and its outcomes. For more
information on due diligence reference is made to GOV-4 Statement on due diligence.
165
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
The process took into account the most relevant stakeholders throughout the entire value chain, carefully considering factors such as UCI’s
exposure towards the stakeholder and the specific industry in which they operate. By doing so, it has been possible to gain a comprehensive
understanding of the sectors that are most exposed to potential risks, ensuring that all critical elements are thoroughly evaluated in order to provide
a clear picture of the vulnerabilities present across different industries. Reference is made to the paragraph BP-1 of these Statements.
As indicated above, the process to identify impacts has included the association of each impact to its location of occurrence: UniCredit group's
operations or along its value chain (upstream and/or upstream). In particular, UniCredit group's impacts can affect its own activities, its upstream
value chain, its downstream value chain or both its activities and value chain. Also, relevant UniCredit group’s actors have been associated to each
segment of the entire value chain: employees are the main actors of IROs correlated to UniCredit group’s own operations; suppliers and business
partners are the main actors of IROs correlated to the upstream value chain; clients and financial assets are the main actors of IROs correlated to
downstream value chain.
This aspect has been submitted to both internal and external stakeholders directly involved in the identification and assessment of the IROs.
Internal stakeholders involved included:
• ESG and Group Financial & Regulatory Reporting Management, in providing on the ground perspective into the determination of the materiality;
• Group ESG, Group Financial & Regulatory Reporting and other relevant internal functions (i.e., Risk Management, Compliance, etc.), in identifying
and assessing the impacts, risks and opportunities;
• Senior management (GEC Members): responsible for final sign-off and oversight of materiality assessment;
• Board of Directors: responsible for the final approval of the double materiality assessment.
External stakeholders were engaged to provide feedback on the impacts, risks and opportunities, and to corroborate the organization’s
determination of materiality. In particular, UniCredit group identifies two different categories: affected stakeholders, and users.
Affected stakeholders are individuals or groups whose interests are affected or could be affected, positively or negatively, by UniCredit group’s
activities and its direct and indirect business relationships across its value chain; while users are primary users of general-purpose financial reporting
(existing and potential investors, lenders and other creditors, including asset managers, credit institutions, etc.), and other users of sustainability
statements, including the client’s business partners, trade unions and social partners, civil society and non-governmental organisations,
governments, analysts and academics experts, etc.
Affected stakeholders include employees, clients, communities, consumers, suppliers and specific users; while users include investors, academic
experts, NGOs, ESG raters, regulators, industry associations, media, and Government Agencies.
A representative sample of the aforementioned stakeholders were actively involved in the process of identifying the IROs. Among the affected
stakeholders, employees were engaged through interviews, while clients were engaged through both interviews and specific surveys. Among the
users, investors and NGOs were engaged through interviews and specific surveys; academic experts were engaged through specific surveys.
Regulators and ESG raters were engaged through an ESG desktop analysis.
The process for identifying impacts is centered on a numerical assessment of two dimensions: “severity” and “likelihood”. For positive
impacts, the severity is evaluated on the scale and the scope of the impact. The scale refers to the seriousness of the impact on people or the
environment; the scope measures the reach or the extent of the impact. For negative impacts, in addition to scale and scope, a third criterion is
added in assessing the severity: the irremediable character, which assesses how difficult or impossible it is to reverse the impact. In line with the
ESRS framework, severity is viewed through a holistic lens, considering all three criteria altogether. If an impact is intense (high scale), affects a
broad population (large scope), and is difficult to reverse (high irremediability), it would be considered highly severe. Conversely, if an impact is less
intense, localised and remediable, it would be rated as less severe.
The second dimension evaluated along with severity is likelihood, which refers to the probability or chance that a particular impact will occur. Each
impact has been numerically assessed on a score from 1 to 4, through the product of the two dimensions of severity and likelihood, evaluated on a
qualitative scale. In addition, in case of a potential negative human rights impact, the severity of the impact takes precedence over its likelihood
through a multiplier which will achieve a higher score and a higher relevance in the final list.
Considering the results obtained from management assessment, UniCredit group has considered a threshold in order to define the materiality of
each impact. In particular, the selected threshold ensures that only the most relevant impacts are addressed, focusing efforts on areas with
substantial effects on people and the environment. Furthermore, this threshold of the impact materiality is consistent with UniCredit group’s strategic
objectives: it ensures that the identified material impacts are related to the topics representing the Bank’s mission and values, enhancing coherence
between ESG targets and overall business strategy. Also, setting this threshold ensures UniCredit group concentrates its resources and investments
on addressing the most critical issues that emerge from double materiality analysis, reflecting impacts resulting as key elements of the Group’s
strategy, critical solutions and projects to be put in place.
Finally, impact scores have been reconducted at the sustainability matter level using the maximum score of impacts.
166
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
This numerical assessment process has helped UniCredit group to prioritise and address the most significant sustainability impacts in its reporting
and management practices, in line with the ESRS standards.
The process employed by UniCredit group to identify risks and opportunities has followed the same steps of impacts’ identification described above.
Following the identification of impacts, risks and opportunities, impacts and opportunities have been analysed and confirmed by UniCredit
group’s Top Management (which mainly includes GEC Members); while risks have been reviewed by Group Risk Management in order to
guarantee applicability and coherence with UniCredit group's reality and its Risk Inventory.
Parallel to the impact materiality process, the process for assessing risks and opportunities is centered on a numerical evaluation of two dimensions:
magnitude and likelihood. However, UniCredit group’s financial materiality has followed a dual assessment process, as risks and opportunities have
been valued and prioritised in a different way.
Firstly, risks have been assessed by Group Risk Management; while opportunities have been assessed by UniCredit Group’s Top Management.
In parallel with UniCredit group’s internal stakeholders, external stakeholders (investors, academics, clients, corporate and private, and NGOs) have
provided their views and perspectives on risks and opportunities through a questionnaire.
In the assessment of financial materiality, UniCredit group has evaluated the magnitude of the risks and opportunities, and their likelihood,
considering that both risks and opportunities could have financial effects on the Bank’s financial position, financial performance, cash flows, access
to finance or cost of capital over the short, medium and long-term and may be applicable to both own operations and/or value chain. When a
quantification of the financial effects is available, the financial materiality considers the time horizon in which this quantification is the highest.
During the identification phase, UniCredit group considered the dependencies that its impacts have on resources and business relationships.
In particular, UniCredit group identified whether a specific impact is strictly correlated with natural resources (e.g., water or air) or with relationships
with relevant actors (e.g., employees, customers or other counterparties). Such analysis has constituted the starting point for the identification of
connections of negative and positive impacts with risks and opportunities.
On one hand, through the examination of the consequences of negative impacts, UniCredit group was able to anticipate risks that might emerge,
allowing for more informed decision-making and preventive measures. On the other hand, by examining the positive impacts, UniCredit group was
able to uncover new possibilities and opportunities for growth.
UniCredit group has assessed the financial materiality of risks and opportunities adopting a numerical assessment (a score from 1 to 4) to
evaluate the magnitude and the likelihood of each risk and opportunity.
• Regarding risks: The risk assessment is performed according to a gross approach and it is generally based on empirical evidence. GRM
(Group Risk Management) have adopted a quantitative approach for E1 (Climate Change), while for E2-E4 and S and G topics, a qualitative
assessment has been performed considering quantitative evidence as a starting point based on UniCredit group Risk framework, portfolio analysis
(market/credit risk related to E2-E4) or historical loss data (operational risk related to ESG issues), considering the highest available exposure
level as the materiality threshold.
• Related to opportunities: The opportunities have been assessed on a qualitative parameter (which could have a brand reputational and/or
competitiveness effect) and a quantitative parameter related to the financial effect of the net profit that may produce.
A numerical assessment (on a score from 1 to 4) of the likelihood for the risks and opportunities to occur, linked to the sustainability topic.
In addition, considering the results obtained from management assessment, a threshold has been considered in order to define the materiality of
each risk and opportunity. This threshold allows for a balance between sensitivity (ability to detect relevant low values) and specificity (avoiding
including values too close to zero that could be considered not relevant).
For risks, the threshold defining the materiality of each risk driver has been selected in order to properly consider and prioritise:
• the unlikely risks which could have a very high magnitude in terms of financial effects (magnitude equal to 4);
• the already existing risks, even if their magnitude is low (likelihood equal to 4);
• the risks which are likely and which could imply low-to-medium financial effects.
For opportunities, the threshold has been selected consistently with the general view of stakeholders and with the thresholds already applied for
risks.
167
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Sustainability-related risks have been prioritised relative to other types of risks considering their relevance for all the stakeholders participating
to the internal risk identification process and the results of the risks financial materiality assessment. As such, the process to identify, assess and
manage sustainability-related risks has been fully embedded into overall risk management process and used to evaluate overall risk profile and risk
management processes. The integration considers the Risk Appetite, the ICAAP, the credit and market risk strategies, the impact on liquidity, credit
risk models and provisioning and, on non-financial risk side, controversial sectors policies, business continuity assessments, reputational
assessments, as well as future litigation liabilities evaluations.
The integration of opportunities into the management process is a key focus for UniCredit, particularly as these opportunities have been identified as
material during the double materiality assessment. Specifically, the material opportunities relate to the innovation of products and services within the
ESG domain, reflecting UniCredit’s commitment to sustainability-driven growth.
These opportunities are strategically embedded into UniCredit’s portfolio of strategic offerings, particularly in the area of financing solutions. By
aligning material ESG opportunities with the development and delivery of innovative financial products and services, the company ensures that its
strategic offerings not only address emerging market demands but also support broader environmental and social goals. This approach underscores
UniCredit’s dedication to leveraging ESG innovation as a driver of long-term value creation for both stakeholders and society at large.
In the decision-making process, the Top Management has followed a structured and control-focused approach to ensure the robustness of the
analysis and its alignment with the Standards. This has involved verifying the consistency between the topics identified during the contextual
analysis and the list of potentially relevant IROs for the Group.
The completeness of the list was also scrutinized, ensuring that all relevant stakeholders along the value chain were properly included. Special
attention was given to the Double Materiality Assessment phase, where the completeness, accuracy, and consistency of the IROs were cross-
checked, including comparisons with previous years when applicable. Furthermore, the process involved reviewing the accuracy and coherence of
the disclosures in the Sustainability Statement, confirming their compliance with the ESRS 2 requirements and the topical standards concerning
material sustainability matters (for managerial upgrade information reference is made to “GOV2 - Information provided to and sustainability matters
addressed by the undertaking’s administrative, management and supervisory bodies”).
Then, feedback from all Legal Entities regarding the Double Materiality Analysis was evaluated to ensure a complete and consistent assessment,
providing a thorough foundation for the Group’s sustainability reporting.
Finally, the list of material IROs was presented to the Board of Directors.
UniCredit group has used different input parameters for the identification, assessment, and management phases of material IROs.
Related to IROs identification, UniCredit group took into consideration (for internal analysis) various elements, such as the Bank's business strategy,
activities, market trends and client solutions. The analysis was based on Annual and Statutory Reports, UniCredit group's website, previous
Integrated Reports, and the Bank's ESG policies and other documents such as Group Inventory Risk. It also considered ESG ratings and indices
(e.g. FTSE4Good, Dow Jones Sustainability Indices, etc.), European regulations and media opinions.
External analysis was based on various dimensions: Datamaran, which monitors over 100 ESG topics by analysing financial and sustainability
reports of peers, mandatory and voluntary regulations for the financial sector, and social media news on ESG issues; a benchmark analysis has
been conducted by reviewing annual and sustainability reports of peer banks; frameworks and reports (the Principles for Responsible Banking, the
World Economic Forum's Global Risks Report 2024, the S&P Yearbook 2023, the UNEP FI Impact Radar, and the OECD Guidelines for
Multinational Enterprises).
In addition to internal and external analysis, stakeholders were actively engaged through the various channels and engagement methods that
UniCredit group employs, ensuring the consideration of their perceptions throughout the process.
During the IROs assessment phase, UniCredit group used ICAAP framework, management control, strategic planning, business model, and the
available budget to ensure a comprehensive evaluation.
The process conducted in 2024 builds on last year's analysis and marks the first year of the CSRD-aligned double materiality process that is more
complex and detailed, especially in relation to financial materiality following ESRS standards requirements. Hence, the two years are not
comparable, as they are based on different principles and approaches.
168
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Climate Change:
UniCredit acknowledges that its activities and business generate greenhouse gas (GHG) emissions, both directly through its own energy
consumption (Scope 1 and 2) and indirectly across its upstream and downstream activities (Scope 3). However, the Bank is also actively
contributing to the green transition by fostering awareness and commitments related to climate change. Through financial support for energy
efficiency initiatives and renewable energy projects, UniCredit aims to mitigate its environmental impact and drive sustainable progress in the years
to come. For instance, building on positive impacts, UniCredit has identified key opportunities to further support the green transition. These include
investing in and financing green and environmental projects, developing new products and services to help clients achieve their decarbonization
targets, and supporting green technology start-ups. Additionally, the bank sees potential in expanding into new markets, such as carbon emissions
trading, reinforcing its commitment to sustainable innovation and environmental responsibility.
Reference is made to Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 Climate and
environmental risks. For the disclosure on how climate scenarios used are compatible with critical climate-related assumptions made in financial
statements, reference is made to the Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 -
Risks of the prudential consolidated perimeter, Paragraph 2.6 - Other risks (Climate and environmental risks).
Pollution; Water and Marine resources; Biodiversity and ecosystems; Resource use and circular economy:
Beyond climate, UniCredit has conducted a thorough screening of its operations and site locations to assess actual and potential impacts, risks and
opportunities related to other environmental factors: pollution, water consumption, biodiversity and waste management. While the core business
activities of the Bank are not inherently highly emitting in terms of pollution, water use, or waste generation, UniCredit remains committed to
monitoring its environmental impact.
The screening process considered various factors, including pollution derived from employee travel using vehicles, potential improper water
management (both in terms of consumption and withdrawal), the use of resources and raw materials, waste generation, and potential ecosystem
contamination or biodiversity loss. The latter was particularly relevant for the Group's limited activities in sectors such as construction and
agriculture, which are, by definition, dependent on ecosystems, although they represent a small portion of UniCredit’s operations. Nevertheless, the
Group does not own sites located in or near biodiversity-sensitive areas and therefore it is not necessary to implement biodiversity mitigation
measures.
Building on the identified impacts, the analysis also revealed opportunities, such as potential economic savings through initiatives and projects
focused on efficient resource and raw material use, recycling, reuse and dematerialisation, as well as consistent monitoring of water consumption
and compliance with water regulations. Overall, the screening concluded that the environmental impact of the Group's operations on these non-
climate-related factors is not significant, and no significant risks were identified, neither in relation to biodiversity-related transition, physical or
systemic risks.
In addition to UniCredit’s own operations, the Bank has conducted a screening of its business activities, based on the development of a sector-level
heatmap of the loan portfolio, aimed at evaluating which sectors are most exposed to nature-related risks by analysing their impacts and
dependencies on nature. Reference is made to paragraphs “E3 - Water and marine resources”, “E4 - Biodiversity and ecosystems”, “E5 - Resource
use and circular economy”.
Negative impacts were identified, including the financing of polluting sectors, water-intensive industries and sectors contributing to significant inflows
and consumption of resources, as well as high waste generation and biodiversity loss. These negative impacts are all non-material except for the
standard E5 - Circular Economy.
Nevertheless, through UniCredit's effort and commitment, positive impacts have also been identified, particularly in the willingness to promote
heightened awareness of these environmental aspects among financed clients. This proactive engagement underscores the Group’s dedication to
fostering sustainable practices across its client base.
Building on these impacts, business opportunities have been recognised, including the creation and promotion of innovative financial products and
services centered on green and sustainable investments. Such initiatives not only support the Group’s strategic objectives but also contribute to the
protection and preservation of natural capital.
On the other hand, risks have also been identified, primarily related to the possibility of counterparties financed by or invested in by the Group failing
to comply with environmental laws and regulations, and to a potential decline in the creditworthiness of counterparties operating in environmentally
sensitive sectors, which could pose financial challenges to the Bank. These risks resulted non-material.
An integral part of the process for identifying IROs related to environmental factors was the organisation of the ESG Day. This event provided a
valuable opportunity to foster dialogue among stakeholders on environmental topics, consulting them and gathering their views and perceptions.
Once identified, the IROs were further evaluated by external stakeholders, including NGOs, academics, investors, and clients, to collect their
feedback and insights, ensuring a comprehensive and inclusive assessment process.
169
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
The double materiality assessment highlighted that all environmental topics are material, except for pollution.
Business Conduct:
To identify impacts related to business conduct matters, UniCredit has conducted an in-depth analysis of its internal structure, policies, and business
model. The process specifically considered factors such as internal corporate culture, the approach to combating corruption and bribery, supplier
relationships and payment practices, as well as adherence to whistleblowing procedures. The analysis incorporated relevant criteria, including the
location and activity of the operations, the sectoral context, and the structure of transactions, ensuring a comprehensive approach to assessing
business conduct matters.
From this analysis, several opportunities were identified, including the enhancement of reputation through investments in the development of
innovative tools to manage, monitor and prevent corruption and bribery. Additionally, opportunities were recognized in improving the quality of
products and services purchased by fostering a more sustainable supply chain and prioritising certified products that meet minimum environmental
criteria. However, the assessment also identified risks such as the potential for fraud, money laundering, sanctions violations, bribery and corruption
and failures in Know Your Customer (KYC) compliance.
Disclosure requirements in ESRS covered by the undertaking’s sustainability
statement
IRO-2 List of disclosure requirements complied with
Through the DMA process, key topics, sub-topics and sub-sub topics were identified, and based on these (sub-) sub-topics, material aspects were
determined for each IRO. Specific information and detailed Data Points (DPs) to report were then selected and disclosed accordingly. Therefore,
only the DPs related to material PATs (policies, actions, and targets) and metrics associated with the identified (sub-)sub-topics are reported.
The following sections (ESG) reflect the double materiality results through the material information that UniCredit group will be disclose in the
Sustainability Statement 2024.
IRO-2 - Content index
SECTION
TOPIC
SUB-TOPIC - SUB-SUB-TOPIC
DISCLOSURE REQUIREMENT
PAGE NUMBER
General
disclosure
BP-1 General basis for preparation of sustainability statements
135
BP-2 Disclosures in relation to specific circumstances
135
GOV-1 The role of the administrative, management and supervisory bodies
137
GOV-2 Information provided to and sustainability matters addressed by the
undertaking’s administrative, management and supervisory bodies
146
GOV-3 Integration of sustainability-related performance in incentive schemes
147
GOV-4 Statement on due diligence
149
GOV-5 Risk management and internal controls over sustainability reporting
149
SBM-1 Strategy, business model and value chain
150
SBM-2 Interests and views of stakeholders
153
SBM-3 Material impacts, risks and opportunities and their interaction with strategy
and business model
155
IRO-1 Description of the processes to identify and assess material impacts, risks
and opportunities
165
IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s
sustainability statement
170
MDR-P Policies adopted to manage material sustainability matters
182
170
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: IRO-2 - Content index
SECTION
TOPIC
SUB-TOPIC - SUB-SUB-TOPIC
DISCLOSURE REQUIREMENT
PAGE NUMBER
Environmental
information
ESRS E1 Climate change
Climate change mitigation
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive
schemes
147
E1-1 Transition plan for climate change mitigation
243
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
ESRS 2 IRO-1 Description of the processes to identify and assess material
climate-related impacts, risks and opportunities
165
E1-2 Policies related to climate change mitigation and adaptation
251
E1-3 Actions and resources in relation to climate change policies
251
E1-4 Targets related to climate change mitigation and adaptation
259
E1-5 - Energy Consumption and mix
265
E1-6 Gross Scopes 1, 2, 3 and total GHG emissions
266
E1-7 GHG Removals and GHG mitigation projects financed through carbon
credits
270
E1-8 Internal carbon pricing
278
E1-9 - Anticipated financial effects from material physical and transition risks
and potential climate-related opportunities
Phased-in
Climate change adaptation
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
ESRS 2 IRO-1 Description of the processes to identify and assess material
climate-related impacts, risks and opportunities
165
E1-2 Policies related to climate change mitigation and adaptation
251
E1-3 Actions and resources in relation to climate change policies
251
E1-4 Targets related to climate change mitigation and adaptation
259
E1-9 - Anticipated financial effects from material physical and transition risks
and potential climate-related opportunities
Phased-in
Energy
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
ESRS 2 IRO-1 Description of the processes to identify and assess material
climate-related impacts, risks and opportunities
165
E1-2 Policies related to climate change mitigation and adaptation
251
E1-3 Actions and resources in relation to climate change policies
251
E1-4 Targets related to climate change mitigation and adaptation
259
E1-5 - Energy Consumption and mix
265
E1-9 - Anticipated financial effects from material physical and transition risks
and potential climate-related opportunities
Phased-in
ESRS E3 Water and marine
resources
Water - Water consumption
ESRS 2 IRO-1 Description of the processes to identify and assess material
water and marine resources-related impacts, risks and opportunities
165
E3-1 Policies related to water and marine resources
270
E3-2 Actions and resources related to water and marine resources policies
271
E3-3 Targets related to water and marine resources
272
Water - water withdrawal
ESRS 2 IRO-1 Description of the processes to identify and assess material
water and marine resources-related impacts, risks and opportunities
165
E3-1 Policies related to water and marine resources
270
E3-2 Actions and resources related to water and marine resources policies
271
E3-3 Targets related to water and marine resources
272
171
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
continued: IRO-2 - Content index
SECTION
TOPIC
SUB-TOPIC - SUB-SUB-TOPIC
DISCLOSURE REQUIREMENT
PAGE NUMBER
Environmental
information
ESRS E4 Biodiversity and ecosystems
Direct impact drivers of biodiversity
loss
E4-1 Transition plan and consideration of biodiversity and ecosystems in
strategy and business model
272
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
ESR2 IRO-1 Description of processes to identify and assess material
biodiversity and ecosystem-related impacts, risks, dependencies and
opportunities
165
E4-2 Policies related to biodiversity and ecosystems
272
E4-3 Actions and resources related to biodiversity and ecosystems
273
E4-4 Targets related to biodiversity and ecosystems
274
E4-6 Anticipated financial effects from biodiversity and ecosystem-related risks
and opportunities
Phased-in
Impacts on the extent and
condition of ecosystems
E4-1 Transition plan and consideration of biodiversity and ecosystems in
strategy and business model
272
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
ESR2 IRO-1 Description of processes to identify and assess material
biodiversity and ecosystem-related impacts, risks, dependencies and
opportunities
165
E4-2 Policies related to biodiversity and ecosystems
272
E4-3 Actions and resources related to biodiversity and ecosystems
273
E4-4 Targets related to biodiversity and ecosystems
274
E4-6 Anticipated financial effects from biodiversity and ecosystem-related risks
and opportunities
Phased-in
ESRS E5 Resource use and circular economy
Resources inflows, including
resource use
ESRS 2 IRO-1 Description of the processes to identify and assess material
resource use and circular economy-related impacts, risks and opportunities
165
E5-1 Policies related to resource use and circular economy
275
E5-2 Actions and resources related to resource use and circular economy
275
E5-3 Targets related to resource use and circular economy
276
Resource outflows related to
products and services
ESRS 2 IRO-1 Description of the processes to identify and assess material
resource use and circular economy-related impacts, risks and opportunities
165
E5-1 Policies related to resource use and circular economy
275
E5-2 Actions and resources related to resource use and circular economy
275
E5-3 Targets related to resource use and circular economy
276
Waste
ESRS 2 IRO-1 Description of the processes to identify and assess material
resource use and circular economy-related impacts, risks and opportunities
165
E5-1 Policies related to resource use and circular economy
275
E5-2 Actions and resources related to resource use and circular economy
275
E5-3 Targets related to resource use and circular economy
276
172
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: IRO-2 - Content index
SECTION
TOPIC
SUB-TOPIC - SUB-SUB-TOPIC
DISCLOSURE REQUIREMENT
PAGE NUMBER
Social
information
ESRS S1 Own workforce
Working conditions - Secure
employment
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S1-1 Policies related to own workforce
276
S1-2 Processes for engaging with own workers and workers’ representatives
about impacts
279
S1-4 Taking action on material impacts and approaches to mitigating material
risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions and approaches
280
S1-5 Targets related to managing material impacts, advancing positive impacts,
as well as to risks and opportunities
284
S1-6 Characteristics of the Undertaking’s Employees
285
S1-7 Characteristics of non1employee workers in the undertaking’s own
workforce
287
S1-11 Social protection
288
S1-17 Incidents, complaints and severe human rights impacts
290
Working conditions - Adequate
wages
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S1-1 Policies related to own workforce
276
S1-2 Processes for engaging with own workers and workers’ representatives
about impacts
279
S1-4 Taking action on material impacts and approaches to mitigating material
risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions and approaches
280
S1-5 Targets related to managing material impacts, advancing positive impacts,
as well as to risks and opportunities
284
S1-6 Characteristics of the Undertaking’s Employees
285
S1-7 Characteristics of non employee workers in the undertaking’s own
workforce
287
S1-10 Adequate wages
288
S1-17 Incidents, complaints and severe human rights impacts
290
Working conditions - Social
dialogue
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S1-1 Policies related to own workforce
276
S1-2 Processes for engaging with own workers and workers’ representatives
about impacts
279
S1-4 Taking action on material impacts and approaches to mitigating material
risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions and approaches
280
S1-5 Targets related to managing material impacts, advancing positive impacts,
as well as to risks and opportunities
284
S1-6 Characteristics of the Undertaking’s Employees
285
S1-7 Characteristics of non employee workers in the undertaking’s own
workforce
287
S1-8 Collective bargaining coverage and social dialogue
287
S1-17 Incidents, complaints and severe human rights impacts
290
173
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
continued: IRO-2 - Content index
SECTION
TOPIC
SUB-TOPIC - SUB-SUB-TOPIC
DISCLOSURE REQUIREMENT
PAGE NUMBER
Social
information
ESRS S1 Own workforce
Working conditions - Freedom of
association, works councils and the
information, consultation and
participation rights of workers
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S1-1 Policies related to own workforce
276
S1-2 Processes for engaging with own workers and workers’ representatives
about impacts
279
S1-4 Taking action on material impacts and approaches to mitigating material
risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions and approaches
280
S1-5 Targets related to managing material impacts, advancing positive impacts,
as well as to risks and opportunities
284
S1-6 Characteristics of the Undertaking’s Employees
285
S1-7 Characteristics of non employee workers in the undertaking’s own
workforce
287
S1-8 Collective bargaining coverage and social dialogue
287
S1-17 Incidents, complaints and severe human rights impacts
290
Working conditions - Collective
bargaining, including the rate of
workers covered by collective
agreements
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S1-1 Policies related to own workforce
276
S1-2 Processes for engaging with own workers and workers’ representatives
about impacts
279
S1-4 Taking action on material impacts and approaches to mitigating material
risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions and approaches
280
S1-5 Targets related to managing material impacts, advancing positive impacts,
as well as to risks and opportunities
284
S1-6 Characteristics of the Undertaking’s Employees
285
S1-7 Characteristics of non employee workers in the undertaking’s own
workforce
287
S1-8 Collective bargaining coverage and social dialogue
287
S1-17 Incidents, complaints and severe human rights impacts
290
Working conditions - Work-life
balance
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S1-1 Policies related to own workforce
279
S1-2 Processes for engaging with own workers and workers’ representatives
about impacts
279
S1-4 Taking action on material impacts and approaches to mitigating material
risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions and approaches
280
S1-5 Targets related to managing material impacts, advancing positive impacts,
as well as to risks and opportunities
284
S1-6 Characteristics of the Undertaking’s Employees
285
S1-7 Characteristics of non employee workers in the undertaking’s own
workforce
287
S1-15 Work-life balance metrics
289
S1-17 Incidents, complaints and severe human rights impacts
290
174
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: IRO-2 - Content index
SECTION
TOPIC
SUB-TOPIC - SUB-SUB-TOPIC
DISCLOSURE REQUIREMENT
PAGE NUMBER
Social
information
ESRS S1 Own workforce
Equal treatment and opportunities
for all - Gender equality and equal
pay for work of equal value
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S1-1 Policies related to own workforce
276
S1-2 Processes for engaging with own workers and workers’ representatives
about impacts
279
S1-4 Taking action on material impacts and approaches to mitigating material
risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions and approaches
280
S1-5 Targets related to managing material impacts, advancing positive impacts,
as well as to risks and opportunities
284
S1-6 Characteristics of the Undertaking’s Employees
285
S1-7 Characteristics of non employee workers in the undertaking’s own
workforce
287
S1-16 Remuneration metrics (pay gap and total remuneration)
290
S1-17 Incidents, complaints and severe human rights impacts
290
Equal treatment and opportunities
for all - Training and skills
development
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S1-1 Policies related to own workforce
276
S1-2 Processes for engaging with own workers and workers’ representatives
about impacts
279
S1-4 Taking action on material impacts and approaches to mitigating material
risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions and approaches
280
S1-5 Targets related to managing material impacts, advancing positive impacts,
as well as to risks and opportunities
284
S1-6 Characteristics of the Undertaking’s Employees
285
S1-7 Characteristics of non employee workers in the undertaking’s own
workforce
287
S1-13 Training and skills development metrics
288
S1-17 Incidents, complaints and severe human rights impacts
290
Equal treatment and opportunities
for all - Employment and inclusion
of persons with disabilities
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S1-1 Policies related to own workforce
276
S1-2 Processes for engaging with own workers and workers’ representatives
about impacts
279
S1-4 Taking action on material impacts and approaches to mitigating material
risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions and approaches
280
S1-5 Targets related to managing material impacts, advancing positive impacts,
as well as to risks and opportunities
284
S1-6 Characteristics of the Undertaking’s Employees
285
S1-7 Characteristics of non employee workers in the undertaking’s own
workforce
287
S1-12 Persons with disabilities
288
S1-17 Incidents, complaints and severe human rights impacts
290
175
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
continued: IRO-2 - Content index
SECTION
TOPIC
SUB-TOPIC - SUB-SUB-TOPIC
DISCLOSURE REQUIREMENT
PAGE NUMBER
Social
information
ESRS S1 Own workforce
Equal treatment and opportunities
for all - Measures against violence
and harassment in the workplace
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S1-1 Policies related to own workforce
276
S1-2 Processes for engaging with own workers and workers’ representatives
about impacts
279
S1-4 Taking action on material impacts and approaches to mitigating material
risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions and approaches
280
S1-5 Targets related to managing material impacts, advancing positive impacts,
as well as to risks and opportunities
284
S1-6 Characteristics of the Undertaking’s Employees
285
S1-7 Characteristics of non employee workers in the undertaking’s own
workforce
287
S1-17 Incidents, complaints and severe human rights impacts
290
Equal treatment and opportunities
for all - Diversity
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S1-1 Policies related to own workforce
276
S1-2 Processes for engaging with own workers and workers’ representatives
about impacts
279
S1-4 Taking action on material impacts and approaches to mitigating material
risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions and approaches
280
S1-5 Targets related to managing material impacts, advancing positive impacts,
as well as to risks and opportunities
284
S1-6 Characteristics of the Undertaking’s Employees
285
S1-7 Characteristics of non employee workers in the undertaking’s own
workforce
287
S1-9 Diversity metrics
288
S1-17 Incidents, complaints and severe human rights impacts
290
Other work-related rights - Privacy
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S1-1 Policies related to own workforce
276
S1-2 Processes for engaging with own workers and workers’ representatives
about impacts
279
S1-4 Taking action on material impacts and approaches to mitigating material
risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions and approaches
280
S1-5 Targets related to managing material impacts, advancing positive impacts,
as well as to risks and opportunities
284
S1-6 Characteristics of the Undertaking’s Employees
285
S1-7 Characteristics of non employee workers in the undertaking’s own
workforce
287
S1-17 Incidents, complaints and severe human rights impacts
290
176
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: IRO-2 - Content index
SECTION
TOPIC
SUB-TOPIC - SUB-SUB-TOPIC
DISCLOSURE REQUIREMENT
PAGE NUMBER
Social
information
ESRS S2 Workers in the value chain
Other work-related rights - Child
labour
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S2-1 Policies related to value chain workers
291
S2-2 Processes for engaging with value chain workers about impacts
291
S2-3 Processes to remediate negative impacts and channels for value chain
workers to raise concerns
291
S2-4 Taking action on material impacts, and approaches to mitigating material
risks and pursuing material opportunities related to value chain workers, and
effectiveness of those actions and approaches
291
S2-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
292
Other work-related rights - Forced
labour
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S2-1 Policies related to value chain workers
291
S2-2 Processes for engaging with value chain workers about impacts
291
S2-3 Processes to remediate negative impacts and channels for value chain
workers to raise concerns
291
S2-4 Taking action on material impacts, and approaches to mitigating material
risks and pursuing material opportunities related to value chain workers, and
effectiveness of those actions and approaches
291
S2-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
292
177
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
continued: IRO-2 - Content index
SECTION
TOPIC
SUB-TOPIC - SUB-SUB-TOPIC
DISCLOSURE REQUIREMENT
PAGE NUMBER
Social
information
ESRS S3 Affected communities
Communities’ economic, social and
cultural rights - adequate housing
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S3-1 Policies related to affected communities
292
S3-2 Processes for engaging with affected communities about impacts
293
S3-3 Processes to remediate negative impacts and channels for affected
communities to raise concerns
294
S3-4 Taking action on material impacts on affected communities, and
approaches to managing material risks and pursuing material opportunities
related to affected communities, and effectiveness of those actions
294
S3-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
302
Communities’ economic, social and
cultural rights - adequate food
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S3-1 Policies related to affected communities
292
S3-2 Processes for engaging with affected communities about impacts
293
S3-3 Processes to remediate negative impacts and channels for affected
communities to raise concerns
293
S3-4 Taking action on material impacts on affected communities, and
approaches to managing material risks and pursuing material opportunities
related to affected communities, and effectiveness of those actions
294
S3-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
302
Communities’ economic,social and
cultural rights - security-related
impacts
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S3-1 Policies related to affected communities
292
S3-2 Processes for engaging with affected communities about impacts
293
S3-3 Processes to remediate negative impacts and channels for affected
communities to raise concerns
293
S3-4 Taking action on material impacts on affected communities, and
approaches to managing material risks and pursuing material opportunities
related to affected communities, and effectiveness of those actions
294
S3-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
302
Communities’ civil and political rights
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S3-1 Policies related to affected communities
292
S3-2 Processes for engaging with affected communities about impacts
293
S3-3 Processes to remediate negative impacts and channels for affected
communities to raise concerns
293
S3-4 Taking action on material impacts on affected communities, and
approaches to managing material risks and pursuing material opportunities
related to affected communities, and effectiveness of those actions
294
S3-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
302
178
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: IRO-2 - Content index
SECTION
TOPIC
SUB-TOPIC - SUB-SUB-TOPIC
DISCLOSURE REQUIREMENT
PAGE NUMBER
Social
information
ESRS S4 Consumers and end users
Information-related impacts for
consumers and/or end-users
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S4-1 Policies related to consumers and end-users
302
S4-2 Processes for engaging with consumers and end-users about impacts
304
S4-3 Processes to remediate negative impacts and channels for consumers
and end-users to raise concerns
304
S4-4 Taking action on material impacts on consumers and end-users, and
approaches to managing material risks and pursuing material opportunities
related to consumers and end1users, and effectiveness of those actions
304
S4-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
313
Social inclusion of consumers
and/or end users
ESRS 2 SBM-2 Interests and views of stakeholders
153
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model
155
S4-1 Policies related to consumers and end-users
302
S4-2 Processes for engaging with consumers and end-users about impacts
304
S4-3 Processes to remediate negative impacts and channels for consumers
and end-users to raise concerns
304
S4-4 Taking action on material impacts on consumers and end-users, and
approaches to managing material risks and pursuing material opportunities
related to consumers and end1users, and effectiveness of those actions
304
S4-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
313
continued: IRO-2 - Content index
SECTION
TOPIC
SUB-TOPIC - SUB-SUB-TOPIC
DISCLOSURE REQUIREMENT
PAGE NUMBER
Governance
information
ESRS G1 Business conduct
Corporate culture
ESRS 2 GOV-1 The role of the administrative, supervisory and management
bodies
137
ESRS 2 IRO-1 Description of the processes to identify and assess material
impacts, risks and opportunities
165
G1-1 Business conduct policies and corporate culture
314
Protection of whistle blowers
ESRS 2 GOV-1 The role of the administrative, supervisory and management
bodies
137
ESRS 2 IRO-1 Description of the processes to identify and assess material
impacts, risks and opportunities
165
G1-1 Business conduct policies and corporate culture
314
Management of relationships with
suppliers including payment
practices
ESRS 2 GOV-1 The role of the administrative, supervisory and management
bodies
137
ESRS 2 IRO-1 Description of the processes to identify and assess material
impacts, risks and opportunities
165
G1-1 Business conduct policies and corporate culture
314
G1-2 Management of relationships with suppliers
317
G1-6 Payment Practices
318
Corruption and bribery
ESRS 2 GOV-1 The role of the administrative, supervisory and management
bodies
137
ESRS 2 IRO-1 Description of the processes to identify and assess material
impacts, risks and opportunities
165
G1-1 Business conduct policies and corporate culture
314
G1-3 Prevention and detection of corruption and bribery
317
G1-4 Incidents of corruption or bribery
318
179
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
IRO-2 - All the datapoints deriving from other EU legislation
IRO-2 Par. 56 - DPs that derive from other EU legislation
DISCLOSURE REQUIREMENT AND RELATED DATAPOINT
MATERIAL/NOT MATERIAL
PARAGRAPH
ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d)
ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e)
ESRS 2 GOV-4 Statement on due diligence paragraph 30 ESRS 2 SBM-1 Involvement in activities related
to fossil fuel activities paragraph 40 (d) i
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14
material
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g)
material
ESRS E1-4 GHG emission reduction targets paragraph 34
material
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact
sectors) paragraph 38
material
ESRS E1-5 Energy consumption and mix paragraph 37
material
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43
material
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44
material
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55
material
ESRS E1-7 GHG removals and carbon credits paragraph 56
material
ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66
material
subject to phase in
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS
E1-9 Location of significant assets at material physical risk paragraph 66 (c).
material
subject to phase in
ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph
67 (c).
material
subject to phase in
ESRS E1-9 Degree of exposure of the portfolio climate-relate to opportunities paragraph 69
material
subject to phase in
ESRS E2-4 Amount of each pollutant listed in Annex E-PRT II of the Regulation (European Pollutant
Release and Transfer Register) emitted to air, water and soil, paragraph 28
not material
ESRS E3-1 Water and marine resources paragraph 9
material (only water)
ESRS E3-1 Dedicated policy paragraph 13
material
ESRS E3-1 Sustainable oceans and seas paragraph 14
not material
ESRS E3-4 Total water recycled and reused paragraph 28 (c)
not material
ESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph 29
not material
ESRS 2 - IRO 1 - E4 paragraph 16 (a) i
material
ESRS 2 - IRO 1 - E4 paragraph 16 (b)
material
ESRS 2 - IRO 1 - E4 paragraph 16 (c)
material
ESRS E4-2 Sustainable land/agriculture practices or policies paragraph 24 (b)
not material
ESRS E4-2 Sustainable oceans/seas practices or policies paragraph 24 (c) ESRS E4-2 Policies to address
deforestation paragraph 24 (d)
not material
ESRS E5-5 Non-recycled waste paragraph 37 (d)
not material
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39
not material
ESRS 2 - SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f)
not material
ESRS 2 - SBM3 - S1 Risk of incidents of child labour paragraph 14 (g)
not material
ESRS S1-1 Human rights policy commitments paragraph 20
material
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation
Conventions 1 to 8, paragraph 21
material
180
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: IRO-2 Par. 56 - DPs that derive from other EU legislation
DISCLOSURE REQUIREMENT AND RELATED DATAPOINT
MATERIAL/NOT MATERIAL
PARAGRAPH
ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22
not material
ESRS S1-1 Workplace accident prevention policy or management system paragraph 23
not material
ESRS S1-3 Grievance/complaints handling mechanisms paragraph 32 (c)
not material
ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c)
not material
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e)
not material
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a)
material
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)
material
ESRS S1-17 Incidents of discrimination paragraph 103 (a)
material
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a)
material
ESRS 2 - SBM3 - S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b)
material
ESRS S2-1 Human rights policy commitments paragraph 17
material
ESRS S2-1 Policies related to value chain workers paragraph 18
material
ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines
paragraph 19
material
ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation
Conventions 1 to 8, paragraph 19
material
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain
paragraph 36
material
ESRS S3-1 Human rights policy commitments paragraph 16
material
ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines
paragraph 17
material
ESRS S3-4 Human rights issues and incidents paragraph 36
material
ESRS S4-1 Policies related to consumers and end-users paragraph 16
material
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17
material
ESRS S4-4 Human rights issues and incidents paragraph 35
material
ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b)
material
ESRS G1-1 Protection whistle-blower of paragraph 10 (d)
material
ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a)
material
ESRS G1-4 Standards anti-corruption of and anti-bribery paragraph 24 (b)
material
181
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Minimum disclosure requirement on policies and actions
MDR-P - Policies adopted to manage material sustainability matters
UniCredit’s policies represent the tangible expression of our commitment to ESG principles. Specifically, the topics and sub-topics identified as
material through our double materiality assessment are comprehensively addressed within the policies outlined below. Further details on material
IROs covered by each policy are declined under each topic-specific section.
Smart office workplace global policy:
The global policy smart office workplace and its guidelines define internal principles, rules and guidelines for the planning and occupancy of the
Group’s larger offices, to enable efficient and sustainable long-term real estate investments and to provide a state-of-the-art workplace environment
in line with the Group’s culture while respecting workplace ergonomics for the well-being of employees. The policy also aims to support the Group’s
commitment to reduce operational CO2 emissions and to become Net-Zero compliant: it will have an impact on energy consumption and related
emissions of headquarters buildings impacted by space-optimisation projects, since it defines space efficiency KPIs and provides guidelines on
energy efficiency measures.
This policy is applicable in all regions and to all legal entities for head offices and larger corporate offices (generally for 100 headcount or more), and
it should be evaluated, adopted, and reviewed at the following trigger events: office opening/lease extension/relocation decision, major
refurbishment or need for adoption to significant changes in the size of the workforce. Overall, the adoption of this document is subject to monitoring
by Group Real Estate with the support of the real estate department or the reference point of the Group legal entities.
Civil nuclear:
The sector regulation on civil nuclear establishes standards and guidelines that address the risks associated with the Civil Nuclear sector.
Specifically, it defines criteria for identifying subjects and activities in scope; and the process, roles, and responsibilities for performing the
Reputational and ESG Risk Assessment, aiming at assessing the specific situation and characteristics of each civil nuclear-related subject or
activity.
The specific provisions of civil nuclear sector regulation apply to all subjects, defined as prospective or active corporate customers who operate as
owners or operators of Nuclear Power Plants (NPP) and operators of non-commercial civil nuclear activities (i.e. civil nuclear energy research for
improving safety standards). The provisions also apply to any specific purposes/transaction financing or supports, irrespective of the subject, when
related to:
• engineering, construction, maintenance, expansion, upgrading, refurbishment and decommissioning of the NPP and ancillary services, key
components, infrastructure and equipment for auxiliary systems, facilities for the receipt and interim storage of fuel and safeguard systems subject
to safety requirements;
• nuclear waste processing activities;
• civil non-commercial nuclear activities (i.e. fusion nuclear energy research for improving the safety standards of the nuclear energy sector or for
developing advanced technologies (e.g. ITER Project) outside the military field, or research and development in the medical sector).
Guidelines for sensitive sectors policies are approved by Group Non-Financial Risks and Controls Committee, and they apply to UniCredit S.p.A.
and to the Group legal entities according to the Operational Risk Oversight model. A summary of the policy is available on our website.
Coal sector:
The sector regulation on coal establishes standards and guidelines that address the risks associated with the Coal sector. This regulation defines
criteria for identifying subjects and activities in scope; and the process, roles, and responsibilities for performing the Reputational and ESG Risk
Assessment, aimed at assessing the specific situation and characteristics of each coal-related subject or activity.
The specific provisions of coal regulation apply to all subjects, defined as potential or active customers, belonging to corporate or corporate key
clients or large corporates, and operating in the Coal-Fired Power Generation area (CFPPs), as owners, operators, subcontractors or suppliers of
key components/infrastructures, coal traders and energy traders of coal-generated electricity or in the thermal coal mining area, as owners,
operators, subcontractors, suppliers of key components/infrastructures, coal traders/sellers and distributors of coal.
182
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Moreover, the provisions apply to activities related to:
• for CFPPs: design, building (as well as expansion and/or upgrading), maintenance, ordinary operations and distribution (if regarding electricity
directly produced from CFPPs);
• for thermal coal mines: design, building (as well as expansion and/or upgrading), maintenance, ordinary operations and distribution (thermal coal
sale or trading of the commodity);
• for key infrastructures (e.g.: distribution network directly connected to the plant, railway network connected to the mine): design, building (as well
as expansion and/or upgrading), maintenance and ordinary operations.
UniCredit group understands the increasing adverse effects that CFPPs, as well as the thermal coal mining sector, have on the climate system and
is aware of its responsibility towards society and future generations in terms of environmental preservation (resources/ecosystem quality), as well as
human health and pollution. This regulation aims therefore at assessing the potential environmental, social and reputational impacts of the Group’s
involvement in coal sector projects/transactions and, through the implementation of appropriate management and mitigation measures on the Group
clients or counterparts’ side, to limit associated risks for UniCredit. Through this regulation, the Group wants to support and accelerate the coal
sector energy transition and the related improvement of its environmental/social footprint.
Guidelines of sensitive sectors policies are approved by Group Non-Financial Risks and Controls Committee, and they apply to UniCredit S.p.A. and
to the Group legal entities according to the Operational Risk Oversight model. A summary of the policy is available on our website.
Defence/Weapons:
The sector regulation on Defence establishes standards and guidelines that address the risks associated with the defence sector. Specifically, this
regulation defines criteria for identifying subjects and activities in scope; and the process, roles, and responsibilities for performing the Reputational
and ESG Risk Assessment, aimed at assessing the specific situation and characteristics of each defence-related subject or activity.
The specific provisions of Defence regulation apply to all the subjects, defined as potential or effective corporate customers belonging to the
following categories:
• all the companies operating in the defence sector, as designers, producers, traders, distributors or suppliers of weapons, their components, their
infrastructures, and their services;
• all companies whose activity of export of military goods is submitted to specific authorisation from the local authorities;
• all companies whose business is related to dual use products.
The provisions also apply to activities related to design, manufacturing, testing, trading, export, maintenance, ordinary operations related to the
weapons or other products destinated to the Defence (military goods), their key components, or to the related key infrastructures, and key services
requested for their effective and efficient operations.
UniCredit understands the increasing adverse impacts that defence-related activities, controversial and nuclear ones, have on environment, health,
and humanitarian principles violation. The Group is aware of its responsibilities towards society and has a position against the financing of such
weapons, while acknowledging that certain types of weapons are necessary for the effective pursuit of morally sound and internationally accepted
goals, such as peacekeeping and national self-defence.
Guidelines of sensitive sectors policies are approved by Group Non-Financial Risks and Controls Committee, and they apply to UniCredit S.p.A. and
to the Group legal entities according to the Operational Risk Oversight model. A summary of the policy is available on our website.
Mining sector policy:
The sector regulation on Mining establishes standards and guidelines that address the risks associated with the mining sector. This regulation
defines criteria for identifying subjects and activities in scope; and the process, roles, and responsibilities for performing the Reputational and ESG
Risk Assessment, aimed at assessing the specific situation and characteristics of each mining-related subject or activity.
183
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
The specific provisions of mining regulations apply to all the subjects who operate in the mining area for minerals and raw materials which include
(but are not limited to) base metals, precious metals, ferrous and non-ferrous metals, coal, uranium, asbestos, gemstones, salts, and industrial or
agricultural minerals, as owners, operators, subsidiaries, subcontractors or suppliers of key components. The provisions also apply to all the
activities related to:
• prospecting, exploration and mining production of mineral raw materials, which include (but not limited to) base metals, precious metals, ferrous
and non-ferrous metals, coal, uranium, asbestos, gemstones, salts, and industrial or agricultural minerals;
• development, construction, and operation of facilities to mine, process, and transport mineral raw materials, as well as supporting infrastructure;
• all the decommissioning, closure, rehabilitation, and post-closure monitoring activities associated with mines.
This regulation aims to assess the potential environmental and social impacts originating from financing mining sector-related activities and to limit
associated risks to the Group’s reputation through the implementation of appropriate management and mitigation measures.
Guidelines of sensitive sectors policies are approved by Group Non-Financial Risks and Controls Committee, and they apply to UniCredit S.p.A. and
to the Group legal entities according to the Operational Risk Oversight model. A summary of the policy is available on our website.
Oil & Gas sector:
The sector regulation on Oil & Gas establishes standards and guidelines that address the risks associated with the oil and gas sector. This
regulation defines criteria for identifying subjects and activities in scope; and the process, roles, and responsibilities for performing the Reputational
and ESG Risk Assessment, aimed at assessing the specific situation and characteristics of each oil and gas-related subject or activity.
The specific provisions of oil and gas regulation apply to all the subjects, defined as potential or active customers belonging to Corporate or
Corporate Key Clients or Large Corporates business division, when applicable and active in the oil and gas upstream and midstream sectors, as
owners, operators, subcontractors or suppliers of key components/infrastructures/services (e.g. EPC contractors). The provisions also apply to all
the activities (design, building, as well as expansion and/or upgrading, maintenance and ordinary operations) related to upstream and midstream
segments of the oil and gas sector.
UniCredit group understands the increasing adverse impacts that oil and gas-related activities, unconventional and Arctic risks have on the climate
system and is aware of its responsibilities towards society and future generations in terms of environmental preservation (resources/ecosystem
quality), as well as human health and pollution. This regulation aims therefore to assess the potential environmental, social and reputational impacts
of the Group’s involvement in the oil and gas sector projects/transactions and, through the implementation of appropriate management and
mitigation measures on Group clients or counterparties, to limit associated risks for UniCredit. The Group wants to support and accelerate the oil
and gas sector energy transition and the related improvement of its environmental/social footprint.
Guidelines of sensitive sectors policies are approved by Group Non-Financial Risks and Controls Committee, and they apply to UniCredit S.p.A. and
to the Group legal entities according to the Operational Risk Oversight model. A summary of the policy is available on our website.
Tobacco sector commitment:
UniCredit’s public Commitment on Tobacco outlines the position of our Group towards the tobacco sector and our initiatives to play an active role in
addressing global environmental and social priorities. UniCredit committed to exit the industry by the end of 2025: this refers to our exposure to
manufacturers and producers of tobacco products (distributors of tobacco products and producers of packaging for tobacco products are not in
scope) in all countries where we operate.
2022 represented a one-year phase-in period to start our customer engagement: we explained the above reasons to our clients and introduced the
application of our commitment. In this period, UniCredit did not acquire new customers in the tobacco sector and at the same time did not allow any
tobacco-related project financing. From 2026, we will phase out relationships with all manufacturers and producers of tobacco products.
UniCredit has signed the Tobacco Free Finance Pledge with the aim to have an active role in addressing global environmental and social priorities,
as outlined in the Sustainable Development Goals (SDGs), including SDG 3 - Health and Well-Being and SDG 17 - Partnerships for the Goals, and
recognised by the World Health Organization Framework Convention on Tobacco Control. Together with the other institutions who joined the
Pledge, we aim to raise awareness among financial institutions of the essential role the finance sector must play to assist effective tobacco control
and to encourage the transition towards tobacco-free finance policies.
The Commitment applies to all UniCredit business lines, and it was approved by the CEO. The process for monitoring it is the same for all the
sectors where UniCredit operates and it is detailed in the Group Reputational Risk Management Global Policy.
184
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Water infrastructure (Large dams)
The sector regulation on Water Infrastructure establishes standards and guidelines that address the risks associated to the Water Infrastructure
sector. Specifically, this regulation defines criteria for identifying subjects and activities in scope; and the process, roles, and responsibilities for
performing the Reputational and ESG Risk Assessment, aimed at assessing the specific situation and characteristics of each water infrastructure-
related subject or activity.
The specific provisions of Water Infrastructures (Large dams) apply to prospective or active corporate customers who operate as owners or
operators of large dams, and to any specific purposes/transaction financing or supports, irrespective of the subject, when related to engineering,
construction, maintenance, expansion, upgrading, refurbishment, and decommissioning works of large dams and related infrastructure (e.g.
hydropower plant), ancillary services, key components and equipment.
UniCredit is aware of the importance of the water industry and related activities which, if not managed in a responsible way, can have adverse
impacts on the biodiversity, environment and on involved communities. The sector relevance is even more important in the current context, where
climate change remains one of the biggest threats facing the planet, and for the relevant contribution to the Net-Zero targets achievement to which
UniCredit is strongly committed. Therefore, large dams and hydropower plants could play a key role in the energy transition path.
Guidelines of sensitive sectors policies are approved by Group Non-Financial Risks and Controls Committee, and they apply to UniCredit S.p.A. and
to the Group legal entities according to the Operational Risk Oversight model. A summary of the policy is available on our website.
Statement of natural capital and biodiversity:
The statement illustrates UniCredit’s commitment towards natural capital and biodiversity preservation. It represents our first comprehensive Natural
Capital framework in which biodiversity and climate issues are interrelated: we are committed to protecting natural capital by delivering sustainable
financing solutions to clients and reducing the environmental impacts of our direct operations. Avoid operations in areas protected for biodiversity
conservation purpose as well as combat deforestation and forest degradation are fundamental principles for the Group.
The Statement has been developed considering the point of view of stakeholders such as regulators, investors, civil society, NGOs, and it is based
on the following internationally recognized standards and initiatives:
• Equator Principles;
• International Finance Corporation (IFC) Performance Standards on Environmental and Social Sustainability;
• World Bank Group Environmental, Health and Safety (EHS) Guidelines;
• Finance for Biodiversity Pledge (FfBP).
The document represents a positioning paper on the topics of natural capital and biodiversity, and it is published on our institutional website.
ESG product guidelines:
The ESG product guidelines, applicable since end 2022, aim at establishing a consistent and comprehensive methodology for the classification and
reporting of UniCredit’s ESG offering and at preventing the related risks of green washing and social washing.
The ESG product guidelines are based on external regulations:
• EU Taxonomy (Regulation 2020/852) and available Delegated Acts;
• International Capital Market Association (ICMA): Green Bond Principles 2021, Sustainability Bond Guidelines 2021, Social Bond Principles 2023,
Sustainability Linked Bond Principles 2024, Climate Transition Finance Handbook 2023;
• Guidelines ISDA 2021 on Sustainability-Linked Derivatives;
• Loan Market Association (LMA): Green Loan Principles 2023, Social Loan Principles 2023, Sustainability Linked Loan;
• Platform on Sustainable Finance: Transition Finance report 2022;
• EU Transition Finance Recommendation, 2023;
• EU Sustainable Finance Disclosure Regulation 2019/2088 (SFDR);
• Directive 2014/65/EU - MiFID 2;
• European Securities and Markets Authority (ESMA): Guidelines on funds’ names using ESG or sustainability-related terms 2024.
The perimeter of application covers all Group’s legal entities and business lines: lending products, bonds, investment, hedging, capital market,
transactional and insurance products. The ESG Product Guidelines are approved by Group Non-Financial Risks and Controls Committee at Group
Level, and each legal entity is responsible for the policy implementation at local level. Specifically, each legal entity is made responsible to set up
specific processes for the verification of the ESG features of deals and products.
185
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Moreover, the central ESG function supports the legal entities in structuring deals compliant with market standards and guidelines, performing ex-
post checks on a periodical basis on new deals (social/green/transitional/ESG linked).
The policy is meant for internal use and an abstract is also available on the institutional website.
Human rights commitment:
The human rights commitment outlines UniCredit's dedication to upholding human rights across its key stakeholder groups, including employees,
customers, suppliers, and communities. This document summarizes the roles and responsibilities as well as the principles, rules, procedures and
systems adopted by UniCredit to comply with generally accepted international and local standards and regulations for preventing, managing and,
where possible, reducing human rights impacts.
Grounded in international standards and conventions, this commitment contributes to equal opportunities, secure and quality employment, and the
promotion of adequate wages, supported by social dialogue and collective bargaining. It also enhances employee well-being through dedicated
activities and fosters skill development through training and professional growth programmes. Opportunities include positioning UniCredit as an
employer of choice, improving employee performance with forward-thinking training, and ensuring transparent performance reviews and career
development plans.
UniCredit’s human rights commitment leverages on and respects:
• the Universal Declaration of Human Rights;
• the International Covenant on Civil and Political Rights;
• the International Covenant on Economic, Social and Cultural Rights;
• the International Labour Organization's (ILO) Fundamental Human Rights conventions (29, 87, 98, 100, 105, 111, 138 and 182);
• the UN Guiding Principles on Business and Human Rights;
• the OECD Guidelines for Multinational Enterprises;
• the UN Global Compact principles;
• the UN Principles for Responsible Investment;
• the International Finance Corporation (IFC) Performance Standards;
• the World Bank Group Environmental, Health and Safety (EHS) Guidelines;
• the United Nations Environment Programme Finance Initiative (UNEP FI) Principles for Responsible Banking;
• the Equator Principles (EP);
• the Women's Empowerment Principles;
• the UN Declaration on the Rights of Indigenous Peoples;
• the Declaration on Human Rights Defenders.
The Commitment applies to all UniCredit group, while sole legal entities may develop local specific human rights best practices which can be
disseminated across our Group, with a view to promoting continuous improvement.
The current version of the Human Rights Commitment was approved by the Group Non Financial Risk Committee chaired by the Group CEO in
June 2024. The monitoring of the effectiveness of the human rights commitment leverages on existing processes detailed in other Group's policies
and managed by the related functions (for example, the Group Reputational Risk Management Global Policy, the Whistleblowing Global Policy, the
Global Policy against harassment, sexual misconduct, bullying and retaliation).
The Commitment is communicated to all employees through various internal initiatives that include, among others, internal communication and news
on local intranets. The Commitment is also published on the Group website. In addition, the relevant internal and external stakeholders will be
informed about the Human Rights Commitment to collect their feedback and thus consider their expectations in reviewing our improvement plan.
Diversity, equity and inclusion global policy:
The objective of the Diversity, Equity and Inclusion Global Policy is to set out the principles by which UniCredit enhances inclusion throughout the
whole organisation, aiming to ensure that our policies, procedures, and behaviours promote diversity, equity and inclusion and create an
environment where individual differences are valued.
The diversity, equity and inclusion global policy positively impacts UniCredit by fostering equal opportunities, securing employment, and enhancing
employee well-being through dedicated benefits and a healthy work environment. The policy also ensures respect for diversity, advancing an
inclusive corporate climate through initiatives that actively prevent discrimination. Key opportunities include becoming an employer of choice by
cultivating a flexible, inclusive culture and improving employee performance through forward-looking training programmes.
This policy is aligned with all applicable international, national, and local laws and regulations, and it applies to behaviours internally and externally in
all legal entities and to all employees of the Group. All UniCredit employees play an active role and are responsible for its application while specific
functions play key roles in the process, as outlined.
Although the Group cannot control the conduct of Third Parties, it does not condone behaviours not aligned with the principles of this Policy and will
adopt any appropriate consequence management.
186
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
UniCredit will measure and communicate progress towards Group diversity, equity and inclusion strategy through the disclosure of relevant data,
commitments and initiatives leveraging the Sustainability Statements and the Annual diversity, equity and inclusion report, available both internally
and externally.
Group remuneration policy:
The Group remuneration policy defines the principles and standards which UniCredit applies in designing, implementing and monitoring the Group
compensation practices, plans and systems. The policy aligns with UniCredit's long-term strategy and commitment to sustainability by ensuring
compensation is linked to risk-adjusted performance and discourages excessive risk-taking, including in the context of sustainability risks. This policy
positively impacts the promotion of equal opportunities, quality employment, and fair compensation, further reinforced through social dialogue and
collective bargaining. Opportunities arising from this policy include strengthening UniCredit’s position as an employer of choice, promoting diversity,
fostering an inclusive culture, and offering flexible work-life balance solutions that meet evolving employee needs.
The principles of the Group remuneration policy are valid across the entire organisation and shall be reflected in the remuneration practices applying
to employee categories across businesses, including staff belonging to external distribution networks, considering their remuneration peculiarities. In
compliance with the Group remuneration policy and local regulation, legal entities, countries, and divisions apply the compensation framework for all
employees. Furthermore, the elements of the policy are fully applied across the entire Material Risk Taker population, with local adaptations based
on specific regulations and/or business specifics, consistent with the overall Group approach.
On an annual basis, the Group remuneration policy, as proposed by the Remuneration Committee, is defined by the Board of Directors, and then
presented to the shareholders’ Annual General Meeting for approval, in line with regulatory requirements.
People & Culture policy framework:
This People & Culture Framework is meant as a central reference to all People & Culture Global Rules, plans, programmes, processes of UniCredit
S.p.A. and of its Group’s Legal Entities and Foreign Branches; a new, updated version will be soon available. It provides a framework to ensure that
People & Culture management is performed consistently across the Group and to create the conditions for which all persons can have the needed
professional skills for the exercise of the responsibilities attributed to them. The People & Culture Policy Framework establishes a unified approach
to managing human resources across UniCredit group, ensuring consistency in practices, processes, and programmes. It aims to equip all
employees with the necessary skills and competencies to fulfil their responsibilities effectively, aligning with the Company's strategic goals. This
internal framework also ensures compliance with regulatory requirements, promoting a culture of professionalism and accountability across the
organisation.
Recruiting process:
The recruiting process regulation aims to establish a structured framework for UniCredit group’s recruitment and selection processes, promoting
transparency and consistency across all hiring practices. It ensures compliance with relevant labour laws and regulations16 while aligning with the
Company’s core values and Code of Conduct. By fostering a fair and unbiased recruitment process, the regulation guarantees that all candidates
are treated with respect and given equal opportunity based on their skills and qualifications, thereby upholding the integrity and ethical standards of
UniCredit group.
The recruiting process regulation is intended for internal use, and Group People & Culture functions and line managers are responsible for its
implementation.
Training and education guidelines:
The Training and Education Guidelines are meant as a central reference to all People & Culture Global Rules, plans, programmes and processes of
UniCredit S.p.A. and they will be soon extended to Group’s legal entities. It provides a framework aligned with external regulation requirements set
out in Banca d’Italia’s clarification notes to Circular 28517, with the objective to ensure that People & Culture management is performed consistently
across the company and to create the conditions for which all persons can have the needed professional skills for the exercise of the responsibilities
attributed to them.
The policy is published in our dedicated intranet. Actors involved in the review/sharing/validation process have been actively and promptly involved
in the setting of the policy.
16 Including CONSOB Regulation, n.17221 March 2010, See Title V, Chapter 5 of the Banca d’Italia Circular of 27 December 2006, 263 “New prudential supervisory provisions for the Bank” (the “Regulations on Banca
d’Italia”) and pursuant to the art.136 of Legislative Decree of 1 September 1993, 385 “Consolidated Law on banking and credit“ (the “Legislative Decree 385/1993”).
17 Circular 285 of 19 December 2013, First part, Title IV, Chapter 3, 4 and 5.
187
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Global policy against harassment, sexual misconduct, bullying and retaliation:
The policy, aligned with the Universal Declaration of Human Rights and the Group's values, outlines UniCredit’s commitment to fostering a respectful
and professional workplace free from harassment, sexual misconduct, bullying, and retaliation. The aim of this policy is the prevention, detection,
enforcement, and ongoing monitoring of harassment, bullying, sexual misconduct and retaliation, including by providing support for individuals who
report (both employees and third parties) and protecting them from retaliation. The Policy upholds equal treatment and dignity for all, ensuring a safe
work environment where any behaviour undermining these principles is not tolerated, while emphasising the need for employees to be mindful of
how their actions may be perceived.
The policy, published on our website, applies to behaviours internally and externally in all Group legal entities and to all employees of the Group,
and it has positive impacts for the workplace by promoting specific initiatives for diversity and fostering an inclusive working environment. It
increases opportunities for UniCredit to be seen as an attractive employer, confirming diversity and inclusion as central principles.
Statement on Modern Slavery Act and human trafficking:
UniCredit statement demonstrates its commitment on promoting the respect for human rights, and it must be read in conjunction with human rights
commitment. Specifically, the statement describes the measures taken by UniCredit to mitigate the risk of slavery and human trafficking, within our
businesses or our supply chain, in accordance with section 54 of the United Kingdom's Modern Slavery Act 2015, the International Labour
Organization's (ILO) Fundamental Human Rights Conventions, the International Covenant on Economic, Social and Cultural Rights, the International
Covenant on Civil and Political Rights, the UN Guiding Principles on Business and Human Rights, the UNEP FI Principles for Responsible Banking.
UniCredit has been publishing this statement every year since 2016 covering the following contents: Group’s commitment to international norms;
internal policies to ensure employees act with integrity; measures to ensure business and supply chains are slavery and human trafficking free;
trainings available to employees to raise awareness on human rights. In UniCredit, suppliers and contractors must meet certain minimum
requirements and are subject to appropriate review and assessment, both prior to being engaged and on an ongoing basis.
The last statement has been approved by the Board of Directors and signed by the CEO in June 2024, and it applies to those Group companies
(UniCredit S.p.A., UniCredit Bank AG) that are required to have a modern slavery statement.
Group privacy policy:
UniCredit global privacy policy aims at assuring a homogeneous approach at Group level among all Legal Entities for the protection of personal data
of individuals, both employees and clients18. Group guidelines and principles are intended for internal use as they represent the framework adopted
for compliance with (EU) General Data Protection Regulation 2016/679 and local regulations and that, through advisory to business, monitoring and
education, aims at making our Group a reliable counterpart for our customers and stakeholders in assuring utmost commitment in protecting their
personal data. Specifically, it is the Data Controller, through its delegated functions according to their scope of responsibility, who is accountable to
comply with privacy/data protection requirements supported by Data Protection Officer advice.
Customer Protection rules:
The Customer Protection rules relating to the offer of banking products and services define principles and standards for managing the obligations
arising from the regulatory requirements set forth in the external sectorial regulations. Specifically, the regulatory requirements refer to:
• Consumer Credit Directive - Directive 2008/48/EC;
• Mortgage Credit Directive - Directive 2014/17/EU;
• Payment Accounts Directive - Directive 2014/92/EU;
• Payment Services Directive “PSD2” - Directive 2015/2366/EU only for the part relating to banking transparency requirements;
• Deposit Guarantee Schemes Directive - Directive 2014/49/ EU;
• Guidelines on product oversight and governance arrangements for retail banking products, EBA-GL-2015.
The relevant Policy and related internal regulations are approved by the Group Compliance Officer, and apply to all Group companies which offer
banking products and services in the scope of the external regulations mentioned above, of any technical form, to any target customers (consumers,
businesses, etc.), and by any means of offering (at the physical branch/on-site, at a distance - e.g. online, app, by phone, off-site). As for any other
internal rules in the bank, the implementation is monitored through intranet tools and processes.
18 In particular, individuals, individual companies, self-employers and individuals connected to corporates e.g. legal representatives.
188
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Code of conduct:
The code of conduct is available on our website. In line with corporate culture and values (Caring, Ownership, Integrity), the code of conduct entails
principles which all employees and partnering third parties of UniCredit must comply with, to ensure high standards of professional conduct and
integrity related to their activity in, or on behalf of UniCredit. This code provides general principles of conduct about key compliance risk (i.e., client
interest protection, antitrust, market integrity, anti-money laundering and counter-terrorist financing, financial sanctions, anti-bribery and anti-
corruption, data protection), which are periodically monitored by respective functions.
The Code of Conduct is approved by the Board of Directors and applies to all UniCredit’s legal entities. The Board of Directors of UniCredit, the
Chief Executive Officer, as well as the rest of the top management of UniCredit and the Group legal entities are responsible for creating a general
culture of risk management in the organization and ensuring the oversight of the desired conduct. In this regard, they play an active role to enforce
the behavioural standards described in this policy19.
Group tax strategy policy:
UniCredit Group complies, in form and substance, with all domestic, international or supranational tax laws, regulations and practices, and
cooperates with full transparency with the Tax Authorities of all jurisdictions where it operates. In particular, the goal of UniCredit group is to pay all
taxes due and promptly implement all obligations required by applicable tax laws; and at the same time, maintain the Group's global tax efficiency,
avoiding double taxation.
The UniCredit group also seeks to establish good and cooperative relationships and dialogue with the Tax Authorities in the various countries in
which it conducts business. UniCredit S.p.A. in fact, has joined the Italian Tax Cooperative Compliance Regime since 2016.
In addition, given the complexity of tax law, to ensure the achievement of such objectives, the UniCredit group has adopted a comprehensive
monitoring system to verify that its tax obligations are complied with on time and in full.
The tax strategy policy is approved by the Board of Directors, and it is brought to the attention of all the companies in the UniCredit group, also
through its availability on Group intranet and internet website. The policy is subject to periodic review by UniCredit’s internal experts on tax and
compliance. In particular, the Tax Function is in charge of the tax strategy policy implementation and update.
Whistleblowing procedure:
The principal object of the Whistleblowing procedure is to guarantee the protection of the whistleblowers who report misconduct referred or impacted
on the working environment, and to ensure the absence of retaliation, in line with the European Whistleblowing Directive 1937/2019.
The purpose of this rule is to promote a corporate environment where employees and third parties are encouraged to report unacceptable conduct
(through the defined adequate communication channels) within the Group as a valuable contribution to self-correction and excellence. Unacceptable
Conduct refers to any action and/or omission in a work-related context or impacting it, that is or could be harmful to or jeopardise the Group and/or
its Employees, including conduct that is:
• illegal, unfair or unethical;
• a breach of laws and regulations, including but not limited to European Union laws; or
• a failure to comply with internal rules.
The Group respects, and all the employees and the third parties are required to respect, all applicable international, national, and local laws and
regulations. There may be countries where the Group's standards and requirements may exceed the requirements of that jurisdiction. Also, this
policy, approved by the CEO, should be read in conjunction with the global policy code of conduct and the global policy against harassment, sexual
misconduct, bullying and retaliation, as implemented in each legal entity. The policy is available on our website.
Global policy on anti-bribery and anti-corruption:
The Group has adopted a regulation which demonstrates adherence to the values of integrity, transparency and accountability and promotes a
culture of respect for which corruption is never acceptable. The global policy anti-bribery and anti-corruption aims to:
• articulate UniCredit group’s commitment to prohibiting bribery and corruption;
• define principles for identifying and preventing potential bribery and corruption;
• communicate anti-bribery and anti-corruption principles both to internal and external stakeholders;
• provide a framework for a Group-wide anti-corruption programme.
The Policy also covers external regulation requirements: UK Bribery Act, Foreign Corrupt Practices Act, SAPIN II, and OECD Convention on
combating bribery of foreign public officials in international business transactions.
19 UniCredit S.p.A. has established additional rules of conduct in the Code of Ethics 231/2001 as an integral part of the Organization and Management Model pursuant to the Legislative Decree 231/2001 (“Model”). Each
Legal Entity falling within the Group's L.D. 231/2001 perimeter has adopted its own Model and its own Code of Ethics 231/2001 within the Model pursuant to the Legislative Decree 231/2001.
189
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
The Policy, available on the website, was approved by the CEO, and it is addressed to all UniCredit group legal entities and applies to all members
of strategic, control and executive bodies, employees, tied agents (e.g., financial advisors) and temporary employees of UniCredit, and across all
Group business activities, and shall be applied in compliance with legal requirements and regulations locally in force. In case local legal
requirements are more restrictive than the principles of this policy, the more restrictive requirements of local laws in force are to be adopted by the
respective UniCredit group legal entities.
Anti-fraud policy:
The objective of the anti-fraud policy is to ensure that the internal and external fraud risks are adequately identified, understood, and assessed.
Specifically, the purpose of this document is to define the fraud management system that each legal entity of the Group is requested to implement,
in order to establish a proactive environment to effectively deal with the present fraud risks with the aim of protecting its assets; and the main roles
and responsibilities of the functions involved in the fraud governance process.
This policy also covers requirements from the European directive (EU) 2015/2366 and it is directly applicable to UniCredit S.p.A. and addressed to
all the legal entities of the Group. Group Security is responsible for its implementation.
Supplier qualification process:
Aligned with International Labour Organization's (ILO) Fundamental Human Rights Conventions and the UN Global Compact principles, the supplier
qualification process defines the criteria and methods of third-party screening prior to the involvement of the supplier in a possible sourcing action for
the purchase of goods/services as part of the activities managed by Procurement. The qualification of suppliers allows to:
• identify adequate suppliers based on compliance, sustainability and economic-financial criteria in line with the Group's policies and guidelines;
• manage risks associated with third parties (e.g. corruption risk, reputational risks, economic risks, etc.) by excluding suppliers who have not
succeeded in the qualification process;
• promote, to suppliers, ethical principles and policies in sustainability;
• arrange from time to time a list of successful suppliers in the qualification process that can be used for sourcing activities managed by
Procurement structures.
The supplier qualification process is performed when the negotiation and purchase of goods/services are carried out centrally by Group
Procurement, which is the responsible function: not all Group purchases are handled by Procurement, as there are purchase categories and/or
thresholds managed outside of Procurement.
The screening on suppliers is based on risk scores provided by external risk info-providers and on other specific controls acted by Procurement
and/or Compliance to verify mainly anti-corruption aspects and negative news. When risk scores are unavailable from info-providers the supplier
evaluation is based, by exception, on supplier’s questionnaires, which also take into consideration environmental and social aspects. The supplier
qualification must be periodically reviewed. In any case, a monitoring functionality, able to notify risk-related incidents or changing in the risk scores,
is in place.
Expenditure regulation:
This global policy has the purpose to define principles and minimum requirements necessary to manage expenditures and investments, from
demand to pay.
This policy applies to all disbursements incurred to perform activities in all legal entities of the Group, classified in expenditures and investments
according to the following:
• expenditures are all disbursements linked to the procurement of goods and services that have economic impact on P&L;
• investments are related to the procurement of goods and services that are long-term and have a multi-year utility.
The functions involved in the process disciplined by such policy are:
• Group Cost Management, in charge of steering the expenditure approval process at Group level, monitoring the evolution of Group and UniCredit
S.p.A. NHR costs, managing the ICT demand process at Group level and the activities related to Group Projects & Expenses Committee (PEC);
• Group Procurement, in charge of managing centrally the purchases of goods and services for the Group in order to achieve cost optimization.
190
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Environmental information
Disclosure pursuant to Article 8 of Regulation 2020/852 (EU Taxonomy Regulation)
Introduction
The following tables display the disclosure obligations under Article 8 of the Disclosures Delegated Act supplementing the EU Taxonomy Regulation
(2020/852), which requires financial companies to report Taxonomy eligibility and alignment’s key performance indicators (KPIs), starting for
calendar year 2023. The disclosure is intended to provide transparency on sustainability and facilitate the transition towards a low-carbon economy.
In particular, the Article 8 of the Regulation requires undertakings covered by the Non-Financial Reporting Directive (NFRD) 2014/95/EU to publish
information on how and to what extent their economic activities qualify as environmentally sustainable under the Taxonomy Regulation. The result is
presented through the green asset ratio (GAR), that is the exposures to activities that are Taxonomy aligned (numerator) divided by total covered
assets (denominator).
As of today, for the GAR calculation, actual data disclosed by counterparties are necessary to assess banks’ Taxonomy-related KPIs for financial
and non-financial undertakings. This means that undertakings that are not covered by mandatory non-financial disclosure are excluded, and the data
gap is reflected on the bank’s ratio.
This year, the GAR Turnover-based is 1.36% with total GAR assets equal to €547 billion, compared to year-end 2023 where the GAR was 1.16%
with total GAR assets equal to €551 billion. The GAR is mainly explained by exposures contributing to the climate change mitigation objective.
Our calculation approach
In accordance with the templates provided by Regulation, for the calculation of the GAR KPIs, we have differentiated the portfolio by assets and
applied different calculation approaches, where required. We have only included undertakings subject to NFRD with mandatory disclosures,
excluding exposures to central governments, central banks, and supranational issuers. Information related to the use of proceeds is not published
within the framework of the Article 8 Taxonomy templates. Therefore, the sole counterparty KPIs are taken into account to define eligibility and
alignment. Furthermore, as required by the Regulation, the T-1 templates have been published but it should be noted that the comparison is not
significant as the perimeter of the 2024 disclosure has been changed compared to that of last year. In details, below a description of the applied
approach.
• Financial Corporations, Non-Financial Corporations, and Financial Guarantees: the Taxonomy KPIs consist of the weighted average of
financing activities and the proportion of Taxonomy-aligned economic activities of the counterparty. The collection of reports disclosed by our
counterparties, according to the NFRD, was done with the support of an external provider.
- When identifying NFRD counterparties, we have included all corporations which by themselves or indirectly fulfil criteria of the mandatory NFRD
requirements. Moreover, when a counterparty has contributed to the parent’s reported KPIs, we have included the value for the counterparty by
using the KPIs of the parent company.
- We encountered cases where a counterparty, in its NFRD disclosure, did not report the breakdown of its Taxonomy KPIs among CCM and CCA.
In that case, for our disclosure, we have decided to include the KPIs in the TOTAL columns (‘TOTAL CCM + CCA + WTR + CE + PPC + BIO’20).
Therefore, the values in the total columns might be greater than the sum of the single components.
• Loan collateralised to households: we focused on the “Acquisition” perimeter under Delegated Regulation 2021/2139; (excluding the
“Renovation” perimeter under Delegated Regulation 2021/2139, and “Motor vehicles” due to a lack of specific information related to the
identification of “green loans”).
- For this portfolio, we identified the share of “green loans” by applying the criteria of the aforementioned Regulation - that is, we consider the best
performance buildings with punctual Energy Performance Certificate (EPC) and Primary Energy Demand (PED) data for Eligibility KPIs.
20 Climate change mitigation, Climate change adaptation, Water and marine resources, Circular economy, Pollution, Biodiversity.
191
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
- For the analysis of Alignment KPIs, we have considered the assets built before 31 December 2020 with a documented EPC = A. We only
consider documented EPC (adequate/actual documentation), therefore using a conservative approach. Furthermore, for Italian counterparties
only, we have applied the Top-15% approach for assets built before 31 December 2020. For assets built after 31 December 2020, we have
applied the NZEB21 approach. We have collected data for NZEB and Top-15% per region through an external data provider.
- The calculation approach also integrates the analysis of physical risks in the Do Not Significant Harm (DNSH) assessment, which is aligned with
the thresholds and climate data used for the Pillar 3 Template 5 disclosure - “Banking book - Indicators of potential climate change physical risk:
Exposures subject to physical risk (Group)”. We have not included adaptation plans or other types of mitigating actions, therefore applying a
conservative approach.
• Motor vehicles to households: for eligible exposures, we considered loans granted to fund the purchase of motor vehicles. For aligned
exposures, we have only considered loans to purchase low-emission vehicles.
• Asset Under Management (AuM): the reporting perimeter of the AuM KPIs is based on the volumes of collective investment funds which the
Group reports in the Group Full Year Results Market Presentation and other external communications. The numerator is calculated as a weighted
average of the proportion of Taxonomy-aligned economic activities at an aggregated portfolio level, over total investments. The collection of the
portfolio aggregated KPIs, which are the results of calculations performed on underlying holdings’ actual KPIs available to the market, was
collected through an external provider.
- The total value of AuM includes all types of asset class funds, while the ‘of which’ only includes debt and equity respectively as classified by our
external data provider (e.g. commodities are not classified). This means that the total value of AuM might be greater than the sum of the ‘of
which debts’ and ‘of which equity’ single components.
• New Business: the flow has been calculated as a delta stock approach at transaction level, between T (31 December 2024) and T-1 (31
December 2023), identifying only new transactions originated during this period.
• Additional disclosure on Nuclear and Gas related activities: we have disclosed the eligibility, non-eligibility, and alignment of nuclear energy
and fossil gas related activities in accordance with Article 8(6), (7) and (8) of the amended Disclosures Delegated Act as of 1 January 2023. The
nuclear energy and fossil gas-related activities’ KPIs have been computed by using the most recently available data and key performance
indicators of our non-financial corporations’ counterparties, therefore only considering undertakings subject to NFRD.
21 Nearly Zero Energy Building.
192
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Annex VI - Template for the KPIs of credit institutions
0 Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation
(€ million)
MAIN KPI
TOTAL
ENVIRONMENTALLY
SUSTAINABLE
ASSETS
KPI TURNOVER
BASED KPI CAPEX BASED
COVERAGE OVER
TOTAL ASSETS
% OF ASSETS
EXCLUDED FROM
THE NUMERATOR
OF THE GAR
(ARTICLE 7 (2) AND
(3) AND SECTION
1.1.2. OF ANNEX V)
% OF ASSETS
EXCLUDED FROM
THE
DENOMINATOR OF
THE GAR (ARTICLE
7 (1)) AND SECTION
1.2.4 OF ANNEX V)
Green Assets Ratio (GAR) stock
7,432
1.36%
1.91%
68.99%
56.10%
31.01%
ADDITIONAL KPI
TOTAL
ENVIRONMENTALLY
SUSTAINABLE
ASSETS
KPI TURNOVER
BASED KPI CAPEX BASED
COVERAGE OVER
TOTAL ASSETS
% OF ASSETS
EXCLUDED FROM
THE NUMERATOR
OF THE GAR
(ARTICLE 7 (2) AND
(3) AND SECTION
1.1.2. OF ANNEX V)
% OF ASSETS
EXCLUDED FROM
THE
DENOMINATOR OF
THE GAR (ARTICLE
7 (1)) AND SECTION
1.2.4 OF ANNEX V)
GAR flow
2,208
2.19%
3.42%
26.94%
-
-
Trading book
-
-
-
-
-
-
Financial Guarantees
291
5.81%
10.73%
-
-
-
Assets Under Management
3,225
9.22%
14.12%
-
-
-
Fees and commissions income
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
193
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
1 Assets for the calculation of GAR - Turnover based
(€ million)
a
b
c
d
e
f
g
h
i
j
k
l
m
n
31.12.2024
TOTAL GROSS
CARRYING AMOUNT
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments
not HfT eligible for GAR calculation
157,089
110,535
7,238
-
3,223
2,002
165
61
-
19
106
36
-
-
2
Financial undertaking
36,802
8,161
1,155
-
39
260
86
4
-
0
5
-
-
-
3
Credit institutions
23,860
5,882
412
-
29
23
9
3
-
-
0
-
-
-
4
Loans and advances
14,098
3,326
215
-
21
10
7
3
-
-
-
-
-
-
5
Debt securities, including UoP
6,586
1,771
146
-
5
7
2
0
-
-
0
-
-
-
6
Equity instruments
3,176
785
52
-
2
7
-
-
-
-
0
-
-
-
7
Other Financial corporation
12,942
2,279
743
-
10
237
77
1
-
0
4
-
-
-
8
Of which: investment firms
1
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
1
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
423
81
14
-
0
0
2
0
-
-
0
-
-
-
13
Loans and advances
186
49
5
-
0
0
0
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
238
32
8
-
0
0
2
0
-
-
0
-
-
-
16
Of which: insurance undertakings
2,252
-
52
-
1
10
-
0
-
0
-
-
-
-
17
Loans and advances
161
-
3
-
0
1
-
0
-
0
-
-
-
-
18
Debt securities, including UoP
12
-
0
-
0
0
-
-
-
-
-
-
-
-
19
Equity instruments
2,078
-
49
-
1
10
-
0
-
0
-
-
-
-
20
Non-Financial undertakings
22,752
7,695
3,278
-
379
1,742
79
57
-
19
102
36
-
-
21
Loans and advances
20,398
7,196
2,971
-
354
1,607
67
47
-
9
101
36
-
-
22
Debt securities, including UoP
2,301
466
292
-
26
120
12
10
-
10
1
0
-
-
23
Equity instruments
53
32
15
-
-
15
0
0
-
0
-
-
-
-
24
Households
97,477
94,634
2,804
-
2,804
-
-
-
-
-
-
-
-
-
25
Of which: loans collateralised by residential
immovable property
94,820
92,040
2,791
-
2,791
-
-
-
-
-
-
-
-
-
26
Of which: building renovation loans
2,247
2,195
-
-
-
-
-
-
-
-
-
-
-
-
27
Of which: motor vehicle loans
406
395
14
-
14
-
-
-
-
-
-
-
-
-
28
Local governments financing
58
46
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
10
2
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
49
43
-
-
-
-
-
-
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
194
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 1 Assets for the calculation of GAR - Turnover based
(€ million)
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
31.12.2024
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
372
92
-
-
174
2
-
-
141
-
-
-
111,980
7,432
-
3,240
2,021
2
Financial undertaking
31
-
-
-
1
-
-
-
2
-
-
-
8,741
1,159
-
39
260
3
Credit institutions
-
-
-
-
-
-
-
-
-
-
-
-
5,937
415
-
29
23
4
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
3,334
217
-
21
10
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
1,818
146
-
5
7
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
786
52
-
2
7
7
Other Financial corporation
31
-
-
-
1
-
-
-
2
-
-
-
2,804
744
-
10
237
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
1
-
-
-
0
-
-
-
0
-
-
-
85
14
-
0
0
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
50
5
-
0
0
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
1
-
-
-
0
-
-
-
0
-
-
-
35
8
-
0
0
16
Of which: insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
379
52
-
1
10
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
25
3
-
0
1
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
2
0
-
0
0
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
351
49
-
1
10
20
Non-Financial undertakings
341
92
-
-
173
2
-
-
140
-
-
-
8,560
3,468
-
396
1,760
21
Loans and advances
325
80
-
-
111
2
-
-
140
-
-
-
7,971
3,137
-
370
1,616
22
Debt securities, including UoP
16
12
-
-
62
0
-
-
0
-
-
-
557
317
-
26
130
23
Equity instruments
0
-
-
-
-
-
-
-
-
-
-
-
32
15
-
-
15
24
Households
-
-
-
-
-
-
-
-
-
-
-
-
94,634
2,804
-
2,804
-
25
Of which: loans collateralised by
residential immovable property
-
-
-
-
-
-
-
-
-
-
-
-
92,040
2,791
-
2,791
-
26
Of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
2,195
-
-
-
-
27
Of which: motor vehicle loans
-
-
-
-
-
-
-
-
-
-
-
-
395
14
-
14
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
46
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
2
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
43
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
195
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 1 Assets for the calculation of GAR - Turnover based
(€ million)
a
b
c
d
e
f
g
h
i
j
k
l
m
n
31.12.2024
TOTAL GROSS
CARRYING AMOUNT
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
31
Collateral obtained by taking possession: residential and
commercial immovable properties
314
58
-
-
-
-
-
-
-
-
-
-
-
-
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
390,108
-
-
-
-
-
-
-
-
-
-
-
-
-
33
Financial and Non-Financial undertaking
298,015
-
-
-
-
-
-
-
-
-
-
-
-
-
34
SMEs and NFCs (other than SMEs) not subject to NFRD
disclosure obligations
174,211
-
-
-
-
-
-
-
-
-
-
-
-
-
35
Loans and advances
172,603
-
-
-
-
-
-
-
-
-
-
-
-
-
36
of which: loans collateralised by commercial immovable
property
46,292
-
-
-
-
-
-
-
-
-
-
-
-
-
37
of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
38
Debt securities
1,351
-
-
-
-
-
-
-
-
-
-
-
-
-
39
Equity instruments
257
-
-
-
-
-
-
-
-
-
-
-
-
-
40
Non-EU country counterparties not subject to NFRD
disclosure obligations
16,641
-
-
-
-
-
-
-
-
-
-
-
-
-
41
Loans and advances
16,626
-
-
-
-
-
-
-
-
-
-
-
-
-
42
Debt securities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
43
Equity instruments
15
-
-
-
-
-
-
-
-
-
-
-
-
-
44
Derivatives
1,351
-
-
-
-
-
-
-
-
-
-
-
-
-
45
On demand interbank loans
6,874
-
-
-
-
-
-
-
-
-
-
-
-
-
46
Cash and cash-related assets
3,853
-
-
-
-
-
-
-
-
-
-
-
-
-
47
Other categories of assets (e.g. Goodwill, commodities
etc.)
80,013
-
-
-
-
-
-
-
-
-
-
-
-
-
48 Total GAR assets
547,511
110,593
7,238
-
3,223
2,002
165
61
-
19
106
36
-
-
49 Assets not covered for GAR calculation
246,082
-
-
-
-
-
-
-
-
-
-
-
-
-
50
Central governments and supranational issuers
138,736
-
-
-
-
-
-
-
-
-
-
-
-
-
51
Central banks exposure
52,263
-
-
-
-
-
-
-
-
-
-
-
-
-
52
Trading book
55,083
-
-
-
-
-
-
-
-
-
-
-
-
-
53 Total assets
793,593
110,593
7,238
-
3,223
2,002
165
61
-
19
106
36
-
-
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54 Financial guarantees
5,009
546
285
-
30
104
7
5
-
5
2
1
-
-
55 Assets under management
34,987
7,728
3,128
-
403
1,553
417
97
-
38
62
-
-
-
56
of which: debt securities
10,123
2,665
849
-
163
336
120
36
-
11
13
-
-
-
57
of which: equity instruments
6,637
996
566
-
26
374
82
5
-
5
14
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
196
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 1 Assets for the calculation of GAR - Turnover based
(€ million)
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
31.12.2024
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
-
-
-
-
60
-
-
-
-
32
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
33
Financial and Non-Financial undertaking
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
34
SMEs and NFCs (other than SMEs) not subject
to NFRD disclosure obligations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
35
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36
of which: loans collateralised by
commercial immovable property
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
37
of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
38
Debt securities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
39
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
40
Non-EU country counterparties not subject to
NFRD disclosure obligations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
41
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
42
Debt securities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
43
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
44
Derivatives
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45
On demand interbank loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
46
Cash and cash-related assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
47
Other categories of assets (e.g. Goodwill,
commodities etc.)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
48 Total GAR assets
372
92
-
-
174
2
-
-
141
-
-
-
112,040
7,432
-
3,240
2,021
49 Assets not covered for GAR calculation
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
50
Central governments and supranational
issuers
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
51
Central banks exposure
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
52
Trading book
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
53 Total assets
372
92
-
-
174
2
-
-
141
-
-
-
112,040
7,432
-
3,240
2,021
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54 Financial guarantees
35
0
-
-
0
0
-
-
2
-
-
-
1,134
291
-
30
109
55 Assets under management
629
-
-
-
496
-
-
-
54
-
-
-
9,386
3,225
-
403
1,591
56
of which: debt securities
118
-
-
-
31
-
-
-
12
-
-
-
2,958
884
-
163
347
57
of which: equity instruments
189
-
-
-
225
-
-
-
12
-
-
-
1,519
571
-
26
378
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
197
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
1 Assets for the calculation of GAR - Turnover based
(€ million)
a
b
c
d
e
f
g
h
i
j
k
l
m
n
31.12.2023
TOTAL GROSS
CARRYING AMOUNT
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments
not HfT eligible for GAR calculation
171,208
99,377
5,811
-
3,617
1,358
32
32
-
-
-
-
-
-
2
Financial undertaking
37,835
-
-
-
-
-
-
-
-
-
-
-
-
-
3
Credit institutions
21,098
-
-
-
-
-
-
-
-
-
-
-
-
-
4
Loans and advances
13,175
-
-
-
-
-
-
-
-
-
-
-
-
-
5
Debt securities, including UoP
7,462
-
-
-
-
-
-
-
-
-
-
-
-
-
6
Equity instruments
462
-
-
-
-
-
-
-
-
-
-
-
-
-
7
Other Financial corporation
16,737
-
-
-
-
-
-
-
-
-
-
-
-
-
8
Of which: investment firms
201
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
0
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
201
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
422
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
5
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
417
-
-
-
-
-
-
-
-
-
-
-
-
-
16
Of which: insurance undertakings
591
-
-
-
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
170
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
56
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
364
-
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-Financial undertakings
33,523
8,674
2,491
-
297
1,358
32
32
-
-
-
-
-
-
21
Loans and advances
30,851
8,279
2,332
-
290
1,300
32
32
-
-
-
-
-
-
22
Debt securities, including UoP
2,538
389
158
-
8
57
-
-
-
-
-
-
-
-
23
Equity instruments
134
6
2
-
-
0
0
-
-
-
-
-
-
-
24
Households
91,851
90,609
3,317
-
3,317
-
-
-
-
-
-
-
-
-
25
Of which: loans collateralised by residential
immovable property
90,971
89,728
3,317
-
3,317
-
-
-
-
-
-
-
-
-
26
Of which: building renovation loans
231
231
-
-
-
-
-
-
-
-
-
-
-
-
27
Of which: motor vehicle loans
649
649
-
-
-
-
-
-
-
-
-
-
-
-
28
Local governments financing
7,999
94
3
-
3
-
-
-
-
-
-
-
-
-
29
Housing financing
14
3
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
7,985
91
3
-
3
-
-
-
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
198
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 1 Assets for the calculation of GAR - Turnover based
(€ million)
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
31.12.2023
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
-
-
-
-
-
-
-
-
-
-
-
-
105,499
6,377
-
3,617
1,358
2
Financial undertaking
-
-
-
-
-
-
-
-
-
-
-
-
4,868
-
-
-
-
3
Credit institutions
-
-
-
-
-
-
-
-
-
-
-
-
4,662
-
-
-
-
4
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
3,030
-
-
-
-
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
1,529
-
-
-
-
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
103
-
-
-
-
7
Other Financial corporation
-
-
-
-
-
-
-
-
-
-
-
-
207
-
-
-
-
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
0
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
-
-
-
-
-
-
-
-
-
-
-
-
1
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
1
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0
-
-
-
-
16
Of which: insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
94
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
18
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
11
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
66
-
-
-
-
20
Non-Financial undertakings
-
-
-
-
-
-
-
-
-
-
-
-
9,928
3,058
-
297
1,358
21
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
9,400
2,794
-
290
1,300
22
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
522
262
-
8
57
23
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
6
2
-
-
0
24
Households
-
-
-
-
-
-
-
-
-
-
-
-
90,609
3,317
-
3,317
-
25
Of which: loans collateralised by
residential immovable property
-
-
-
-
-
-
-
-
-
-
-
-
89,728
3,317
-
3,317
-
26
Of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
231
-
-
-
-
27
Of which: motor vehicle loans
-
-
-
-
-
-
-
-
-
-
-
-
649
-
-
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
94
3
-
3
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
3
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
91
3
-
3
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
199
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 1 Assets for the calculation of GAR - Turnover based
(€ million)
a
b
c
d
e
f
g
h
i
j
k
l
m
n
31.12.2023
TOTAL GROSS
CARRYING AMOUNT
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
31
Collateral obtained by taking possession: residential and
commercial immovable properties
384
363
19
-
19
-
-
-
-
-
-
-
-
-
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
33
Financial and Non-Financial undertaking
291,099
-
-
-
-
-
-
-
-
-
-
-
-
-
34
SMEs and NFCs (other than SMEs) not subject to NFRD
disclosure obligations
191,765
-
-
-
-
-
-
-
-
-
-
-
-
-
35
Loans and advances
190,119
-
-
-
-
-
-
-
-
-
-
-
-
-
36
of which: loans collateralised by commercial immovable
property
50,235
-
-
-
-
-
-
-
-
-
-
-
-
-
37
of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
38
Debt securities
1,395
-
-
-
-
-
-
-
-
-
-
-
-
-
39
Equity instruments
251
-
-
-
-
-
-
-
-
-
-
-
-
-
40
Non-EU country counterparties not subject to NFRD
disclosure obligations
5,201
-
-
-
-
-
-
-
-
-
-
-
-
-
41
Loans and advances
5,198
-
-
-
-
-
-
-
-
-
-
-
-
-
42
Debt securities
2
-
-
-
-
-
-
-
-
-
-
-
-
-
43
Equity instruments
1
-
-
-
-
-
-
-
-
-
-
-
-
-
44
Derivatives
1,925
-
-
-
-
-
-
-
-
-
-
-
-
-
45
On demand interbank loans
6,996
-
-
-
-
-
-
-
-
-
-
-
-
-
46
Cash and cash-related assets
3,477
-
-
-
-
-
-
-
-
-
-
-
-
-
47
Other categories of assets (e.g. Goodwill, commodities
etc.)
76,240
-
-
-
-
-
-
-
-
-
-
-
-
-
48 Total GAR assets
551,328
99,740
5,830
-
3,636
1,358
32
32
-
-
-
-
-
-
49 Assets not covered for GAR calculation
244,641
-
-
-
-
-
-
-
-
-
-
-
-
-
50
Central governments and supranational issuers
119,861
-
-
-
-
-
-
-
-
-
-
-
-
-
51
Central banks exposure
67,506
-
-
-
-
-
-
-
-
-
-
-
-
-
52
Trading book
57,274
-
-
-
-
-
-
-
-
-
-
-
-
-
53 Total assets
795,969
-
-
-
-
-
-
-
-
-
-
-
-
-
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54 Financial guarantees
1,658
199
92
-
2
51
1
1
-
-
-
-
-
-
55 Assets under management
9,650
1,036
342
-
2
249
0
0
-
-
-
-
-
-
56
of which: debt securities
272
39
7
-
0
4
-
-
-
-
-
-
-
-
57
of which: equity instruments
9,377
997
335
-
2
245
0
0
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
200
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 1 Assets for the calculation of GAR - Turnover based
(€ million)
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
31.12.2023
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
-
-
-
-
363
19
-
19
-
32
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
33
Financial and Non-Financial undertaking
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
34
SMEs and NFCs (other than SMEs) not subject
to NFRD disclosure obligations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
35
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36
of which: loans collateralised by
commercial immovable property
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
37
of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
38
Debt securities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
39
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
40
Non-EU country counterparties not subject to
NFRD disclosure obligations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
41
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
42
Debt securities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
43
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
44
Derivatives
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45
On demand interbank loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
46
Cash and cash-related assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
47
Other categories of assets (e.g. Goodwill,
commodities etc.)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
48 Total GAR assets
-
-
-
-
-
-
-
-
-
-
-
-
105,862
6,396
-
3,636
1,358
49 Assets not covered for GAR calculation
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
50
Central governments and supranational
issuers
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
51
Central banks exposure
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
52
Trading book
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
53 Total assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54 Financial guarantees
-
-
-
-
-
-
-
-
-
-
-
-
221
95
-
3
57
55 Assets under management
-
-
-
-
-
-
-
-
-
-
-
-
1,389
342
-
2
249
56
of which: debt securities
-
-
-
-
-
-
-
-
-
-
-
-
40
7
-
0
4
57
of which: equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
1,348
335
-
2
245
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
201
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
1 Assets for the calculation of GAR - CapEx based
(€ million)
a
b
c
d
e
f
g
h
i
j
k
l
m
n
31.12.2024
TOTAL GROSS
CARRYING AMOUNT
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments
not HfT eligible for GAR calculation
157,089
113,132
10,062
-
3,316
3,329
505
169
-
73
147
83
-
-
2
Financial undertaking
36,802
8,529
1,656
-
85
377
221
6
-
0
5
-
-
-
3
Credit institutions
23,860
5,859
442
-
32
37
7
1
-
0
0
-
-
-
4
Loans and advances
14,098
3,289
235
-
20
17
5
1
-
-
-
-
-
-
5
Debt securities, including UoP
6,586
1,778
150
-
5
14
2
0
-
0
0
-
-
-
6
Equity instruments
3,176
793
57
-
6
5
-
-
-
-
0
-
-
-
7
Other Financial corporation
12,942
2,669
1,214
-
53
340
214
5
-
0
4
-
-
-
8
Of which: investment firms
1
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
1
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
423
87
20
-
1
1
6
0
-
-
0
-
-
-
13
Loans and advances
186
49
6
-
0
0
-
0
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
238
38
14
-
1
0
6
0
-
-
0
-
-
-
16
Of which: insurance undertakings
2,252
-
70
-
2
16
-
2
-
-
-
-
-
-
17
Loans and advances
161
-
4
-
0
1
-
0
-
-
-
-
-
-
18
Debt securities, including UoP
12
-
0
-
0
0
-
-
-
-
-
-
-
-
19
Equity instruments
2,078
-
66
-
2
16
-
2
-
-
-
-
-
-
20
Non-Financial undertakings
22,752
9,915
5,601
-
427
2,951
283
163
-
73
143
83
-
-
21
Loans and advances
20,398
9,056
4,926
-
359
2,688
233
121
-
34
139
81
-
-
22
Debt securities, including UoP
2,301
821
659
-
68
247
50
41
-
39
4
2
-
-
23
Equity instruments
53
38
16
-
0
16
0
0
-
-
-
-
-
-
24
Households
97,477
94,642
2,804
-
2,804
-
-
-
-
-
-
-
-
-
25
Of which: loans collateralised by residential
immovable property
94,820
92,048
2,791
-
2,791
-
-
-
-
-
-
-
-
-
26
Of which: building renovation loans
2,247
2,195
-
-
-
-
-
-
-
-
-
-
-
-
27
Of which: motor vehicle loans
406
395
14
-
14
-
-
-
-
-
-
-
-
-
28
Local governments financing
58
46
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
10
2
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
49
43
-
-
-
-
-
-
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
202
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 1 Assets for the calculation of GAR - CapEx based
(€ million)
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
31.12.2024
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
323
41
-
-
106
6
-
-
152
101
-
-
114,794
10,461
-
3,316
3,402
2
Financial undertaking
23
-
-
-
1
-
-
-
2
-
-
-
9,193
1,662
-
85
378
3
Credit institutions
-
-
-
-
-
-
-
-
-
-
-
-
5,917
444
-
32
37
4
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
3,294
236
-
20
17
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
1,830
150
-
5
14
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
793
57
-
6
5
7
Other Financial corporation
23
-
-
-
1
-
-
-
2
-
-
-
3,276
1,218
-
53
340
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
1
-
-
-
0
-
-
-
0
-
-
-
94
20
-
1
1
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
50
6
-
0
0
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
1
-
-
-
0
-
-
-
0
-
-
-
45
14
-
1
0
16
Of which: insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
338
72
-
2
16
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
20
4
-
0
1
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
2
0
-
0
0
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
316
68
-
2
16
20
Non-Financial undertakings
301
41
-
-
105
6
-
-
151
101
-
-
10,914
5,995
-
427
3,025
21
Loans and advances
286
41
-
-
82
5
-
-
101
51
-
-
9,912
5,226
-
359
2,723
22
Debt securities, including UoP
14
0
-
-
24
0
-
-
50
50
-
-
963
753
-
68
286
23
Equity instruments
1
-
-
-
-
-
-
-
-
-
-
-
38
16
-
0
16
24
Households
-
-
-
-
-
-
-
-
-
-
-
-
94,642
2,804
-
2,804
-
25
Of which: loans collateralised by
residential immovable property
-
-
-
-
-
-
-
-
-
-
-
-
92,048
2,791
-
2,791
-
26
Of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
2,195
-
-
-
-
27
Of which: motor vehicle loans
-
-
-
-
-
-
-
-
-
-
-
-
395
14
-
14
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
46
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
2
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
43
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
203
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 1 Assets for the calculation of GAR - CapEx based
(€ million)
a
b
c
d
e
f
g
h
i
j
k
l
m
n
31.12.2024
TOTAL GROSS
CARRYING AMOUNT
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
31
Collateral obtained by taking possession: residential and
commercial immovable properties
314
60
-
-
-
-
-
-
-
-
-
-
-
-
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
390,108
-
-
-
-
-
-
-
-
-
-
-
-
-
33
Financial and Non-Financial undertaking
298,015
-
-
-
-
-
-
-
-
-
-
-
-
-
34
SMEs and NFCs (other than SMEs) not subject to NFRD
disclosure obligations
174,211
-
-
-
-
-
-
-
-
-
-
-
-
-
35
Loans and advances
172,603
-
-
-
-
-
-
-
-
-
-
-
-
-
36
of which: loans collateralised by commercial immovable
property
46,292
-
-
-
-
-
-
-
-
-
-
-
-
-
37
of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
38
Debt securities
1,351
-
-
-
-
-
-
-
-
-
-
-
-
-
39
Equity instruments
257
-
-
-
-
-
-
-
-
-
-
-
-
-
40
Non-EU country counterparties not subject to NFRD
disclosure obligations
16,641
-
-
-
-
-
-
-
-
-
-
-
-
-
41
Loans and advances
16,626
-
-
-
-
-
-
-
-
-
-
-
-
-
42
Debt securities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
43
Equity instruments
15
-
-
-
-
-
-
-
-
-
-
-
-
-
44
Derivatives
1,351
-
-
-
-
-
-
-
-
-
-
-
-
-
45
On demand interbank loans
6,874
-
-
-
-
-
-
-
-
-
-
-
-
-
46
Cash and cash-related assets
3,853
-
-
-
-
-
-
-
-
-
-
-
-
-
47
Other categories of assets (e.g. Goodwill, commodities
etc.)
80,013
-
-
-
-
-
-
-
-
-
-
-
-
-
48 Total GAR assets
547,511
113,191
10,062
-
3,316
3,329
505
169
-
73
147
83
-
-
49 Assets not covered for GAR calculation
246,082
-
-
-
-
-
-
-
-
-
-
-
-
-
50
Central governments and supranational issuers
138,736
-
-
-
-
-
-
-
-
-
-
-
-
-
51
Central banks exposure
52,263
-
-
-
-
-
-
-
-
-
-
-
-
-
52
Trading book
55,083
-
-
-
-
-
-
-
-
-
-
-
-
-
53 Total assets
793,593
113,191
10,062
-
3,316
3,329
505
169
-
73
147
83
-
-
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54 Financial guarantees
5,009
784
509
-
53
206
22
24
-
18
5
3
-
-
55 Assets under management
34,987
9,534
4,761
-
463
2,181
548
179
-
72
117
-
-
-
56
of which: debt securities
10,123
2,977
1,254
-
174
508
140
68
-
22
25
-
-
-
57
of which: equity instruments
6,637
1,527
896
-
43
499
110
17
-
14
25
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
204
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 1 Assets for the calculation of GAR - CapEx based
(€ million)
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
31.12.2024
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
-
-
-
-
60
-
-
-
-
32
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
33
Financial and Non-Financial undertaking
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
34
SMEs and NFCs (other than SMEs) not subject
to NFRD disclosure obligations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
35
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36
of which: loans collateralised by
commercial immovable property
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
37
of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
38
Debt securities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
39
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
40
Non-EU country counterparties not subject to
NFRD disclosure obligations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
41
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
42
Debt securities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
43
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
44
Derivatives
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45
On demand interbank loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
46
Cash and cash-related assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
47
Other categories of assets (e.g. Goodwill,
commodities etc.)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
48 Total GAR assets
323
41
-
-
106
6
-
-
152
101
-
-
114,854
10,461
-
3,316
3,402
49 Assets not covered for GAR calculation
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
50
Central governments and supranational
issuers
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
51
Central banks exposure
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
52
Trading book
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
53 Total assets
323
41
-
-
106
6
-
-
152
101
-
-
114,854
10,461
-
3,316
3,402
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54 Financial guarantees
19
0
-
-
1
0
-
-
0
-
-
-
1,333
537
-
53
223
55 Assets under management
471
-
-
-
469
-
-
-
14
-
-
-
11,153
4,939
-
463
2,253
56
of which: debt securities
102
-
-
-
22
-
-
-
5
-
-
-
3,271
1,321
-
174
529
57
of which: equity instruments
126
-
-
-
221
-
-
-
2
-
-
-
2,010
913
-
43
513
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
205
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
1 Assets for the calculation of GAR - CapEx based
(€ million)
a
b
c
d
e
f
g
h
i
j
k
l
m
n
31.12.2023
TOTAL GROSS
CARRYING AMOUNT
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
171,208
102,895
8,819
-
3,532
2,601
120
88
-
0
-
-
-
-
2
Financial undertaking
37,835
-
-
-
-
-
-
-
-
-
-
-
-
-
3
Credit institutions
21,098
-
-
-
-
-
-
-
-
-
-
-
-
-
4
Loans and advances
13,175
-
-
-
-
-
-
-
-
-
-
-
-
-
5
Debt securities, including UoP
7,462
-
-
-
-
-
-
-
-
-
-
-
-
-
6
Equity instruments
462
-
-
-
-
-
-
-
-
-
-
-
-
-
7
Other Financial corporation
16,737
-
-
-
-
-
-
-
-
-
-
-
-
-
8
Of which: investment firms
201
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
0
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
201
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
422
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
5
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
417
-
-
-
-
-
-
-
-
-
-
-
-
-
16
Of which: insurance undertakings
591
-
-
-
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
170
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
56
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
364
-
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-Financial undertakings
33,523
12,192
5,499
-
212
2,601
120
88
-
0
-
-
-
-
21
Loans and advances
30,851
11,341
4,956
-
203
2,486
118
86
-
0
-
-
-
-
22
Debt securities, including UoP
2,538
779
490
-
9
116
-
-
-
-
-
-
-
-
23
Equity instruments
134
73
53
-
-
0
2
2
-
-
-
-
-
-
24
Households
91,851
90,609
3,317
-
3,317
-
-
-
-
-
-
-
-
-
25
Of which: loans collateralised by residential
immovable property
90,971
89,728
3,317
-
3,317
-
-
-
-
-
-
-
-
-
26
Of which: building renovation loans
231
231
-
-
-
-
-
-
-
-
-
-
-
-
27
Of which: motor vehicle loans
649
649
-
-
-
-
-
-
-
-
-
-
-
-
28
Local governments financing
7,999
94
3
-
3
-
-
-
-
-
-
-
-
-
29
Housing financing
14
3
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
7,985
91
3
-
3
-
-
-
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
206
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 1 Assets for the calculation of GAR - CapEx based
(€ million)
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
31.12.2023
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
-
-
-
-
-
-
-
-
-
-
-
-
108,084
9,806
-
3,532
2,601
2
Financial undertaking
-
-
-
-
-
-
-
-
-
-
-
-
2,994
-
-
-
-
3
Credit institutions
-
-
-
-
-
-
-
-
-
-
-
-
2,814
-
-
-
-
4
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
2,016
-
-
-
-
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
746
-
-
-
-
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
52
-
-
-
-
7
Other Financial corporation
-
-
-
-
-
-
-
-
-
-
-
-
180
-
-
-
-
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
-
-
-
-
-
-
-
-
-
-
-
-
1
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
1
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0
-
-
-
-
16
Of which: insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
93
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
18
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
10
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
65
-
-
-
-
20
Non-Financial undertakings
-
-
-
-
-
-
-
-
-
-
-
-
14,387
6,486
-
212
2,601
21
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
13,242
5,770
-
203
2,486
22
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
1,069
661
-
9
116
23
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
75
55
-
-
0
24
Households
-
-
-
-
-
-
-
-
-
-
-
-
90,609
3,317
-
3,317
-
25
Of which: loans collateralised by
residential immovable property
-
-
-
-
-
-
-
-
-
-
-
-
89,728
3,317
-
3,317
-
26
Of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
231
-
-
-
-
27
Of which: motor vehicle loans
-
-
-
-
-
-
-
-
-
-
-
-
649
-
-
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
94
3
-
3
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
3
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
91
3
-
3
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
207
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 1 Assets for the calculation of GAR - CapEx based
(€ million)
a
b
c
d
e
f
g
h
i
j
k
l
m
n
31.12.2023
TOTAL GROSS
CARRYING AMOUNT
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-
ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH
ENABLING
31
Collateral obtained by taking possession: residential and
commercial immovable properties
384
363
19
-
19
-
-
-
-
-
-
-
-
-
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
33
Financial and Non-Financial undertaking
291,099
-
-
-
-
-
-
-
-
-
-
-
-
-
34
SMEs and NFCs (other than SMEs) not subject to NFRD
disclosure obligations
191,765
-
-
-
-
-
-
-
-
-
-
-
-
-
35
Loans and advances
190,119
-
-
-
-
-
-
-
-
-
-
-
-
-
36
of which: loans collateralised by commercial immovable
property
50,235
-
-
-
-
-
-
-
-
-
-
-
-
-
37
of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
38
Debt securities
1,395
-
-
-
-
-
-
-
-
-
-
-
-
-
39
Equity instruments
251
-
-
-
-
-
-
-
-
-
-
-
-
-
40
Non-EU country counterparties not subject to NFRD
disclosure obligations
5,201
-
-
-
-
-
-
-
-
-
-
-
-
-
41
Loans and advances
5,198
-
-
-
-
-
-
-
-
-
-
-
-
-
42
Debt securities
2
-
-
-
-
-
-
-
-
-
-
-
-
-
43
Equity instruments
1
-
-
-
-
-
-
-
-
-
-
-
-
-
44
Derivatives
1,925
-
-
-
-
-
-
-
-
-
-
-
-
-
45
On demand interbank loans
6,996
-
-
-
-
-
-
-
-
-
-
-
-
-
46
Cash and cash-related assets
3,477
-
-
-
-
-
-
-
-
-
-
-
-
-
47
Other categories of assets (e.g. Goodwill, commodities
etc.)
76,240
-
-
-
-
-
-
-
-
-
-
-
-
-
48 Total GAR assets
551,328
103,258
8,837
-
3,551
2,601
120
88
-
0
-
-
-
-
49 Assets not covered for GAR calculation
244,641
-
-
-
-
-
-
-
-
-
-
-
-
-
50
Central governments and supranational issuers
119,861
-
-
-
-
-
-
-
-
-
-
-
-
-
51
Central banks exposure
67,506
-
-
-
-
-
-
-
-
-
-
-
-
-
52
Trading book
57,274
-
-
-
-
-
-
-
-
-
-
-
-
-
53 Total assets
795,969
-
-
-
-
-
-
-
-
-
-
-
-
-
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54 Financial guarantees
1,658
414
246
-
2
97
1
1
-
-
-
-
-
-
55 Assets under management
9,650
1,498
759
-
7
410
16
16
-
0
-
-
-
-
56
of which: debt securities
272
47
18
-
0
13
3
3
-
-
-
-
-
-
57
of which: equity instruments
9,377
1,450
740
-
7
397
13
13
-
0
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
208
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 1 Assets for the calculation of GAR - CapEx based
(€ million)
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
31.12.2023
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-
ELIGIBLE)
OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE
(TAXONOMY-ALIGNED)
OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
-
-
-
-
363
19
-
19
-
32
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
33
Financial and Non-Financial undertaking
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
34
SMEs and NFCs (other than SMEs) not subject
to NFRD disclosure obligations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
35
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36
of which: loans collateralised by
commercial immovable property
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
37
of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
38
Debt securities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
39
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
40
Non-EU country counterparties not subject to
NFRD disclosure obligations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
41
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
42
Debt securities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
43
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
44
Derivatives
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45
On demand interbank loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
46
Cash and cash-related assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
47
Other categories of assets (e.g. Goodwill,
commodities etc.)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
48 Total GAR assets
-
-
-
-
-
-
-
-
-
-
-
-
108,447
9,825
-
3,551
2,601
49 Assets not covered for GAR calculation
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
50
Central governments and supranational
issuers
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
51
Central banks exposure
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
52
Trading book
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
53 Total assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54 Financial guarantees
-
-
-
-
-
-
-
-
-
-
-
-
445
248
-
4
101
55 Assets under management
-
-
-
-
-
-
-
-
-
-
-
-
1,932
775
-
7
410
56
of which: debt securities
-
-
-
-
-
-
-
-
-
-
-
-
54
22
-
0
13
57
of which: equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
1,878
753
-
7
397
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
209
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
2 GAR sector information - Turnover based
(€ million)
BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND
LABEL)
a
b
e
f
i
j
m
n
q
r
u
v
y
z
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCA)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (WTR)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CE)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (PPC)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (BIO)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM +
CCA + WTR + CE +
PPC + BIO)
1 A02.10 Silviculture and other forestry activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2 A02.20 Logging
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3 A02.30 Gathering of wild growing non-wood products
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4 A02.40 Support services to forestry
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5 C16.10 Sawmilling and planing of wood
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6 C16.21 Manufacture of veneer sheets and wood-based panels
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7 C16.22 Manufacture of assembled parquet floors
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8 C16.23 Manufacture of other builders'carpentry and joinery
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9 C16.24 Manufacture of wooden containers
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
C16.29 Manufacture of other products of wood; manufacture of
articles of cork, straw and plaiting materials
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11 C17.11 Manufacture of pulp
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12 C17.12 Manufacture of paper and paperboard
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
C17.21 Manufacture of corrugated paper and paperboard and
of containers of paper and paperboard
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
C17.22 Manufacture of household and sanitary goods and of
toilet requisites
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15 C17.23 Manufacture of paper stationery
-
-
-
-
-
-
-
-
-
-
-
-
-
-
16 C17.24 Manufacture of wallpaper
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17 C17.29 Manufacture of other articles of paper and paperboard
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18 C20.11 Manufacture of industrial gases
1
0
-
-
-
-
-
-
-
-
-
-
1
0
19 C20.13 Manufacture of other inorganic basic chemicals
23
-
-
-
-
-
-
-
-
-
-
-
23
-
20 C20.14 Manufacture of other organic basic chemicals
-
-
-
-
-
-
-
-
-
-
-
-
4
-
21 C20.15 Manufacture of fertilisers and nitrogen compounds
0
0
-
-
-
-
0
0
-
-
-
-
0
0
22 C20.16 Manufacture of plastics in primary forms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
23
C22.11 Manufacture of rubber tyres and tubes; retreading and
rebuilding of rubber tyres
5
-
-
-
-
-
-
-
-
-
-
-
5
-
24 C22.19 Manufacture of other rubber products
0
-
-
-
-
-
-
-
-
-
-
-
0
-
25
C22.21 Manufacture of plastic plates, sheets, tubes and
profiles
0
0
-
-
-
-
-
-
-
-
-
-
0
0
26 C22.22 Manufacture of plastic packing goods
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
210
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 2 GAR sector information - Turnover based
(€ million)
BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND
LABEL)
a
b
e
f
i
j
m
n
q
r
u
v
y
z
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCA)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (WTR)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CE)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (PPC)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (BIO)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM +
CCA + WTR + CE +
PPC + BIO)
27 C22.23 Manufacture of builders ware of plastic
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28 C22.29 Manufacture of other plastic products
0
0
-
-
-
-
-
-
-
-
-
-
0
0
29 C23.11 Manufacture of flat glass
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30 C23.12 Shaping and processing of flat glass
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31 C23.13 Manufacture of hollow glass
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32 C23.14 Manufacture of glass fibres
-
-
-
-
-
-
-
-
-
-
-
-
-
-
33
C23.19 Manufacture and processing of other glass, including
technical glassware
-
-
-
-
-
-
-
-
-
-
-
-
-
-
34 C23.20 Manufacture of refractory products
-
-
-
-
-
-
-
-
-
-
-
-
-
-
35 C23.31 Manufacture of ceramic tiles and flags
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36
C23.32 Manufacture of bricks, tiles and construction products,
in baked clay
0
0
-
-
-
-
-
-
-
-
-
-
0
0
37
C23.41 Manufacture of ceramic household and ornamental
articles
-
-
-
-
-
-
-
-
-
-
-
-
-
-
38 C23.42 Manufacture of ceramic sanitary fixtures
-
-
-
-
-
-
-
-
-
-
-
-
-
-
39
C23.43 Manufacture of ceramic insulators and insulating
fittings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
40 C23.44 Manufacture of other technical ceramic products
-
-
-
-
-
-
-
-
-
-
-
-
-
-
41 C23.49 Manufacture of other ceramic products
-
-
-
-
-
-
-
-
-
-
-
-
-
-
42 C23.51 Manufacture of cement
78
5
-
-
-
-
-
-
-
-
-
-
78
5
43 C23.52 Manufacture of lime and plaster
-
-
-
-
-
-
-
-
-
-
-
-
-
-
44
C23.61 Manufacture of concrete products for construction
purposes
0
0
-
-
-
-
-
-
-
-
-
-
0
0
45
C23.62 Manufacture of plaster products for construction
purposes
-
-
-
-
-
-
-
-
-
-
-
-
-
-
46 C23.63 Manufacture of ready-mixed concrete
0
0
-
-
0
-
0
-
-
-
-
-
0
0
47 C23.64 Manufacture of mortars
-
-
-
-
-
-
-
-
-
-
-
-
-
-
48 C23.65 Manufacture of fibre cement
-
-
-
-
-
-
-
-
-
-
-
-
-
-
49
C23.69 Manufacture of other articles of concrete, plaster and
cement
-
-
-
-
-
-
-
-
-
-
-
-
-
-
50 C23.70 Cutting, shaping and finishing of stone
0
0
-
-
-
-
-
-
-
-
-
-
0
0
51 C23.91 Production of abrasive products
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
211
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 2 GAR sector information - Turnover based
(€ million)
BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND
LABEL)
a
b
e
f
i
j
m
n
q
r
u
v
y
z
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCA)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (WTR)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CE)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (PPC)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (BIO)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM +
CCA + WTR + CE +
PPC + BIO)
52
C23.99 Manufacture of other non-metallic mineral products
n.e.c.
2
1
-
-
-
-
0
-
-
-
-
-
2
1
53 C24.10 Manufacture of basic iron and steel and of ferro-alloys
127
59
-
-
-
-
6
6
-
-
-
-
133
65
54
C24.20 Manufacture of tubes, pipes, hollow profiles and
related fittings, of steel
0
0
-
-
-
-
-
-
-
-
-
-
0
0
55 C24.31 Cold drawing of bars
-
-
-
-
-
-
-
-
-
-
-
-
-
-
56 C24.32 Cold rolling of narrow strip
-
-
-
-
-
-
-
-
-
-
-
-
-
-
57 C24.33 Cold forming or folding
-
-
-
-
-
-
-
-
-
-
-
-
-
-
58 C24.34 Cold drawing of wire
0
0
-
-
-
-
-
-
-
-
-
-
0
0
59 C24.42 Aluminium production
28
-
-
-
-
-
-
-
-
-
-
-
28
-
60 C24.51 Casting of iron
-
-
-
-
-
-
-
-
-
-
-
-
-
-
61 C24.52 Casting of steel
1
1
-
-
-
-
-
-
-
-
-
-
1
1
62 C24.53 Casting of light metals
-
-
-
-
-
-
-
-
-
-
-
-
-
-
63
C25.11 Manufacture of metal structures and parts of
structures
0
0
-
-
-
-
-
-
-
-
-
-
0
0
64 C25.12 Manufacture of doors and windows of metal
8
2
-
-
-
-
-
-
-
-
-
-
8
2
65 C25.21 Manufacture of central heating radiators and boilers
-
-
-
-
-
-
-
-
-
-
-
-
-
-
66
C25.29 Manufacture of other tanks, reservoirs and containers
of metal
-
-
-
-
-
-
-
-
-
-
-
-
-
-
67
C25.30 Manufacture of steam generators, except central
heating hot water boilers
-
-
-
-
-
-
-
-
-
-
-
-
-
-
68 C25.40 Manufacture of weapons and ammunition
-
-
-
-
-
-
-
-
-
-
-
-
-
-
69
C25.50 Forging, pressing, stamping and roll-forming of metal;
powder metallurgy
9
3
-
-
-
-
-
-
-
-
-
-
9
3
70 C25.61 Treatment and coating of metals
-
-
-
-
-
-
-
-
0
0
-
-
0
0
71 C25.62 Machining
0
0
-
-
-
-
-
-
-
-
-
-
0
0
72 C25.71 Manufacture of cutlery
-
-
-
-
-
-
-
-
-
-
-
-
-
-
73 C25.72 Manufacture of locks and hinges
-
-
-
-
-
-
-
-
-
-
-
-
-
-
74 C25.73 Manufacture of tools
-
-
-
-
-
-
-
-
-
-
-
-
-
-
75 C25.91 Manufacture of steel drums and similar containers
-
-
-
-
-
-
-
-
-
-
-
-
-
-
76 C25.92 Manufacture of light metal packaging
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
212
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 2 GAR sector information - Turnover based
(€ million)
BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND
LABEL)
a
b
e
f
i
j
m
n
q
r
u
v
y
z
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCA)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (WTR)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CE)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (PPC)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (BIO)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM +
CCA + WTR + CE +
PPC + BIO)
77 C25.93 Manufacture of wire products, chain and springs
0
0
-
-
-
-
-
-
-
-
-
-
0
0
78 C25.94 Manufacture of fasteners and screw machine products
-
-
-
-
-
-
-
-
-
-
-
-
-
-
79 C25.99 Manufacture of other fabricated metal products n.e.c.
0
0
-
-
-
-
-
-
-
-
-
-
0
0
80 C26.11 Manufacture of electronic components
8
8
-
-
0
-
2
-
0
-
0
-
10
8
81 C26.12 Manufacture of loaded electronic boards
35
-
-
-
35
-
35
-
35
-
35
-
175
-
82 C26.20 Manufacture of computers and peripheral equipment
-
-
-
-
-
-
0
0
-
-
-
-
0
0
83 C26.30 Manufacture of communication equipment
1
-
-
-
-
-
3
-
-
-
-
-
4
-
84 C26.40 Manufacture of consumer electronics
-
-
-
-
-
-
-
-
-
-
-
-
-
-
85
C26.51 Manufacture of instruments and appliances for
measuring, testing and navigation
13
10
-
-
2
2
0
-
-
-
-
-
15
12
86 C26.52 Manufacture of watches and clocks
-
-
-
-
-
-
-
-
-
-
-
-
-
-
87
C26.60 Manufacture of irradiation, electromedical and
electrotherapeutic equipment
-
-
-
-
-
-
1
-
-
-
-
-
1
-
88
C26.70 Manufacture of optical instruments and photographic
equipment
-
-
-
-
-
-
-
-
-
-
-
-
-
-
89 C26.80 Manufacture of magnetic and optical media
-
-
-
-
-
-
-
-
-
-
-
-
-
-
90
C27.11 Manufacture of electric motors, generators and
transformers
8
7
-
-
-
-
0
-
-
-
-
-
8
7
91
C27.12 Manufacture of electricity distribution and control
apparatus
2
2
-
-
-
-
-
-
-
-
-
-
2
2
92 C27.20 Manufacture of batteries and accumulators
-
-
-
-
-
-
-
-
-
-
-
-
-
-
93 C27.31 Manufacture of fibre optic cables
0
0
-
-
-
-
-
-
-
-
-
-
0
0
94
C27.32 Manufacture of other electronic and electric wires and
cables
5
2
-
-
-
-
-
-
-
-
-
-
5
2
95 C27.33 Manufacture of wiring devices
-
-
-
-
-
-
-
-
-
-
-
-
-
-
96 C27.40 Manufacture of electric lighting equipment
0
0
-
-
-
-
-
-
-
-
-
-
0
0
97 C27.51 Manufacture of electric domestic appliances
0
0
-
-
-
-
0
0
-
-
-
-
0
0
98 C27.52 Manufacture of non-electric domestic appliances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
99 C27.90 Manufacture of other electrical equipment
11
2
-
-
-
-
46
46
-
-
-
-
56
48
100
C28.11 Manufacture of engines and turbines, except aircraft,
vehicle and cycle engines
0
0
-
-
-
-
0
-
-
-
-
-
0
0
101 C28.12 Manufacture of fluid power equipment
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
213
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 2 GAR sector information - Turnover based
(€ million)
BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND
LABEL)
a
b
e
f
i
j
m
n
q
r
u
v
y
z
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCA)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (WTR)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CE)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (PPC)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (BIO)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM +
CCA + WTR + CE +
PPC + BIO)
102 C28.13 Manufacture of other pumps and compressors
-
-
-
-
-
-
-
-
-
-
-
-
-
-
103 C28.14 Manufacture of other taps and valves
0
0
-
-
-
-
-
-
-
-
-
-
0
0
104
C28.15 Manufacture of bearings, gears, gearing and driving
elements
1
0
-
-
-
-
-
-
-
-
-
-
1
0
105 C28.21 Manufacture of ovens, furnaces and furnace burners
-
-
-
-
-
-
-
-
-
-
-
-
-
-
106 C28.22 Manufacture of lifting and handling equipment
-
-
-
-
-
-
0
-
-
-
-
-
0
-
107
C28.23 Manufacture of office machinery and equipment
(except computers and peripheral equipment)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
108 C28.24 Manufacture of power-driven hand tools
3
-
-
-
-
-
2
-
-
-
-
-
4
-
109
C28.25 Manufacture of non-domestic cooling and ventilation
equipment
16
0
-
-
-
-
0
-
-
-
-
-
16
0
110
C28.29 Manufacture of other general-purpose machinery
n.e.c.
0
0
-
-
-
-
0
-
0
-
-
-
0
0
111 C28.30 Manufacture of agricultural and forestry machinery
-
-
-
-
-
-
-
-
-
-
-
-
-
-
112 C28.41 Manufacture of metal forming machinery
-
-
-
-
-
-
-
-
-
-
-
-
-
-
113 C28.49 Manufacture of other machine tools
-
-
-
-
-
-
-
-
-
-
-
-
-
-
114 C28.91 Manufacture of machinery for metallurgy
-
-
-
-
-
-
-
-
-
-
-
-
-
-
115
C28.92 Manufacture of machinery for mining, quarrying and
construction
0
-
-
-
-
-
0
-
-
-
-
-
0
-
116
C28.93 Manufacture of machinery for food, beverage and
tobacco processing
21
2
-
-
-
-
-
-
-
-
-
-
21
2
117
C28.94 Manufacture of machinery for textile, apparel and
leather production
-
-
-
-
-
-
-
-
-
-
-
-
-
-
118
C28.95 Manufacture of machinery for paper and paperboard
production
22
18
-
-
-
-
5
-
-
-
-
-
26
18
119 C28.96 Manufacture of plastics and rubber machinery
-
-
-
-
-
-
-
-
-
-
-
-
-
-
120
C28.99 Manufacture of other special-purpose machinery
n.e.c.
19
1
-
-
-
-
0
-
-
-
-
-
19
1
121 C29.10 Manufacture of motor vehicles
565
99
18
18
-
-
13
-
-
-
-
-
597
117
122 C30.11 Building of ships and floating structures
58
14
-
-
-
-
-
-
-
-
-
-
58
14
123 C30.12 Building of pleasure and sporting boats
-
-
-
-
-
-
-
-
-
-
-
-
-
-
124 C30.20 Manufacture of railway locomotives and rolling stock
45
24
-
-
-
-
-
-
-
-
-
-
45
24
125 C30.91 Manufacture of motorcycles
1
0
-
-
-
-
-
-
-
-
-
-
1
0
126 C30.92 Manufacture of bicycles and invalid carriages
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
214
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 2 GAR sector information - Turnover based
(€ million)
BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND
LABEL)
a
b
e
f
i
j
m
n
q
r
u
v
y
z
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCA)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (WTR)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CE)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (PPC)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (BIO)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM +
CCA + WTR + CE +
PPC + BIO)
127 C30.99 Manufacture of other transport equipment n.e.c.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
128 C33.12 Repair of machinery
-
-
-
-
-
-
-
-
-
-
-
-
-
-
129 C33.15 Repair and maintenance of ships and boats
-
-
-
-
-
-
-
-
-
-
-
-
-
-
130 C33.17 Repair and maintenance of other transport equipment
64
39
-
-
-
-
-
-
-
-
-
-
64
39
131 D35.11 Production of electricity
408
348
0
0
23
1
23
-
23
-
23
-
500
348
132 D35.12 Transmission of electricity
187
179
-
-
0
-
0
-
0
-
0
-
188
179
133 D35.13 Distribution of electricity
35
34
0
0
0
0
0
-
-
-
-
-
36
34
134 D35.21 Manufacture of gas
9
2
-
-
-
-
-
-
-
-
-
-
9
2
135 D35.22 Distribution of gaseous fuels through mains
43
39
0
0
-
-
0
-
0
-
-
-
44
39
136 D35.30 Steam and air conditioning supply
1
1
-
-
0
0
0
-
0
-
-
-
1
1
137 E36.00 Water collection, treatment and supply
38
29
1
1
8
7
0
0
1
1
-
-
48
38
138 E37.00 Sewerage
-
-
-
-
-
-
-
-
-
-
-
-
-
-
139 E38.11 Collection of non-hazardous waste
39
33
-
-
0
0
32
32
0
0
-
-
71
65
140 E38.21 Treatment and disposal of non-hazardous waste
30
19
0
0
1
1
1
1
2
1
-
-
35
22
141 E38.32 Recovery of sorted materials
0
0
0
0
0
0
0
-
-
-
-
-
1
1
142
E39.00 Remediation activities and other waste management
services
0
0
-
-
-
-
-
-
-
-
-
-
0
0
143 F41.10 Development of building projects
25
12
0
-
0
-
0
0
-
-
-
-
25
12
144
F41.20 Construction of residential and non-residential
buildings
119
29
1
0
0
-
0
0
0
0
-
-
120
30
145 F42.11 Construction of roads and motorways
10
5
0
-
0
-
0
-
-
-
-
-
11
5
146 F42.12 Construction of railways and underground railways
28
28
0
0
-
-
0
-
-
-
-
-
28
28
147 F42.13 Construction of bridges and tunnels
-
-
-
-
-
-
-
-
-
-
-
-
-
-
148 F42.21 Construction of utility projects for fluids
21
11
-
-
-
-
-
-
-
-
-
-
21
11
149
F42.22 Construction of utility projects for electricity and
telecommunications
187
115
-
-
-
-
-
-
-
-
-
-
187
115
150 F42.91 Construction of water projects
4
3
0
0
0
0
0
0
0
0
-
-
5
3
151 F42.99 Construction of other civil engineering projects n.e.c.
0
-
-
-
-
-
-
-
-
-
-
-
0
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
215
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 2 GAR sector information - Turnover based
(€ million)
BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND
LABEL)
a
b
e
f
i
j
m
n
q
r
u
v
y
z
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCA)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (WTR)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CE)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (PPC)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (BIO)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM +
CCA + WTR + CE +
PPC + BIO)
152 F43.11 Demolition
-
-
-
-
-
-
-
-
-
-
-
-
-
-
153 F43.12 Site preparation
-
-
-
-
-
-
-
-
-
-
-
-
-
-
154 F43.13 Test drilling and boring
0
-
-
-
-
-
0
-
-
-
-
-
1
-
155 F43.21 Electrical installation
1
1
0
0
0
0
0
0
0
0
-
-
1
1
156 F43.22 Plumbing, heat and air-conditioning installation
1
0
0
0
0
0
0
0
0
0
-
-
1
1
157 F43.29 Other construction installation
6
6
-
-
-
-
-
-
-
-
-
-
6
6
158 F43.31 Plastering
-
-
-
-
-
-
-
-
-
-
-
-
-
-
159 F43.32 Joinery installation
-
-
-
-
-
-
-
-
-
-
-
-
-
-
160 F43.33 Floor and wall covering
-
-
-
-
-
-
-
-
-
-
-
-
-
-
161 F43.34 Painting and glazing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
162 F43.39 Other building completion and finishing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
163 F43.91 Roofing activities
0
0
-
-
0
-
0
-
0
-
-
-
0
0
164 F43.99 Other specialised construction activities n.e.c.
0
-
-
-
-
-
0
-
-
-
-
-
1
-
165 H49.10 Passenger rail transport, interurban
66
55
-
-
-
-
0
-
-
-
-
-
66
55
166 H49.20 Freight rail transport
170
125
-
-
-
-
0
-
-
-
-
-
170
125
167 H49.31 Urban and suburban passenger land transport
35
27
-
-
-
-
0
-
-
-
-
-
35
27
168 H49.32 Taxi operation
-
-
-
-
-
-
-
-
-
-
-
-
-
-
169 H49.39 Other passenger land transport n.e.c.
0
0
-
-
-
-
-
-
-
-
-
-
0
0
170 H49.41 Freight transport by road
0
0
-
-
-
-
0
-
-
-
-
-
0
0
171 H49.50 Transport via pipeline
-
-
-
-
-
-
-
-
-
-
-
-
-
-
172 H50.10 Sea and coastal passenger water transport
-
-
-
-
-
-
-
-
-
-
-
-
-
-
173 H50.20 Sea and coastal freight water transport
3
-
-
-
-
-
-
-
-
-
-
-
3
-
174 H50.30 Inland passenger water transport
-
-
-
-
-
-
-
-
-
-
-
-
-
-
175 H50.40 Inland freight water transport
-
-
-
-
-
-
-
-
-
-
-
-
-
-
176 H52.21 Service activities incidental to land transportation
35
8
0
-
2
-
38
-
-
-
-
-
76
8
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
216
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 2 GAR sector information - Turnover based
(€ million)
BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND
LABEL)
a
b
e
f
i
j
m
n
q
r
u
v
y
z
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCA)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (WTR)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CE)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (PPC)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (BIO)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM +
CCA + WTR + CE +
PPC + BIO)
177 H52.22 Service activities incidental to water transportation
2
1
0
0
-
-
0
-
-
-
-
-
2
1
178 H53.10 Postal activities under universal service obligation
18
2
-
-
-
-
-
-
-
-
-
-
18
2
179 H53.20 Other postal and courier activities
25
3
-
-
-
-
-
-
-
-
-
-
25
3
180
J59.11 Motion picture, video and television programme
production activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
181
J59.12 Motion picture, video and television programme post-
production activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
182
J59.13 Motion picture, video and television programme
distribution activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
183 J59.14 Motion picture projection activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
184 J59.20 Sound recording and music publishing activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
185 J60.10 Radio broadcasting
-
-
-
-
-
-
-
-
-
-
-
-
-
-
186 J60.20 Television programming and broadcasting activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
187 J61.10 Wired telecommunications activities
42
6
0
-
-
-
2
-
-
-
-
-
45
6
188 J61.20 Wireless telecommunications activities
2
1
-
-
-
-
1
-
-
-
-
-
3
1
189 J61.30 Satellite telecommunications activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
190 J61.90 Other telecommunications activities
32
13
-
-
-
-
3
-
-
-
-
-
35
13
191 J62.01 Computer programming activities
0
0
-
-
-
-
-
-
-
-
-
-
0
0
192 J62.02 Computer consultancy activities
6
4
-
-
0
-
0
-
0
-
0
-
7
4
193 J62.03 Computer facilities management activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
194
J62.09 Other information technology and computer service
activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
195 J63.11 Data processing, hosting and related activities
0
0
0
0
-
-
0
-
-
-
-
-
1
0
196 K65.12 Non-life insurance
-
-
-
-
-
-
-
-
-
-
-
-
-
-
197 K65.20 Reinsurance
-
-
-
-
-
-
-
-
-
-
-
-
-
-
198 L68.10 Buying and selling of own real estate
145
29
-
-
-
-
3
-
-
-
0
-
148
29
199 L68.20 Rental and operating of own or leased real estate
1,629
280
36
27
-
-
17
2
4
-
0
-
1,686
308
200 L68.31 Real estate agencies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
201 L68.32 Management of real estate on a fee or contract basis
14
14
-
-
-
-
-
-
-
-
-
-
14
14
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
217
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 2 GAR sector information - Turnover based
(€ million)
BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND
LABEL)
a
b
e
f
i
j
m
n
q
r
u
v
y
z
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCA)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (WTR)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CE)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (PPC)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (BIO)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM +
CCA + WTR + CE +
PPC + BIO)
202 M71.11 Architectural activities
0
-
-
-
-
-
-
-
-
-
-
-
0
-
203
M71.12 Engineering activities and related technical
consultancy
1
0
-
-
-
-
-
-
-
-
-
-
1
0
204 M71.20 Technical testing and analysis
0
0
-
-
-
-
0
-
-
-
-
-
0
0
205
M72.11 Research and experimental development on
biotechnology
-
-
-
-
-
-
-
-
-
-
-
-
-
-
206
M72.19 Other research and experimental development on
natural sciences and engineering
6
6
-
-
-
-
-
-
-
-
-
-
6
6
207
M72.20 Research and experimental development on social
sciences and humanities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
208 N77.11 Rental and leasing of cars and light motor vehicles
355
47
-
-
-
-
-
-
-
-
-
-
355
47
209 N77.12 Rental and leasing of trucks
-
-
-
-
-
-
-
-
-
-
-
-
-
-
210 N77.21 Rental and leasing of recreational and sports goods
-
-
-
-
-
-
-
-
-
-
-
-
-
-
211 N77.34 Rental and leasing of water transport equipment
-
-
-
-
-
-
-
-
-
-
-
-
-
-
212
N77.39 Rental and leasing of other machinery, equipment and
tangible goods n.e.c.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
213 P85.10 Pre-primary education
-
-
-
-
-
-
-
-
-
-
-
-
-
-
214 P85.20 Primary education
-
-
-
-
-
-
-
-
-
-
-
-
-
-
215 P85.31 General secondary education
-
-
-
-
-
-
-
-
-
-
-
-
-
-
216 P85.32 Technical and vocational secondary education
-
-
-
-
-
-
-
-
-
-
-
-
-
-
217 P85.41 Post-secondary non-tertiary education
-
-
-
-
-
-
-
-
-
-
-
-
-
-
218 P85.42 Tertiary education
-
-
-
-
-
-
-
-
-
-
-
-
-
-
219 P85.51 Sports and recreation education
-
-
-
-
-
-
-
-
-
-
-
-
-
-
220 P85.52 Cultural education
-
-
-
-
-
-
-
-
-
-
-
-
-
-
221 P85.53 Driving school activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
222 P85.59 Other education n.e.c.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
223 P85.60 Educational support activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
224 Q87.10 Residential nursing care activities
1
-
-
-
-
-
1
-
-
-
-
-
2
-
225
Q87.20 Residential care activities for mental retardation,
mental health and substance abuse
-
-
-
-
-
-
-
-
-
-
-
-
-
-
226 Q87.30 Residential care activities for the elderly and disabled
0
-
-
-
-
-
0
-
-
-
-
-
0
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
218
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 2 GAR sector information - Turnover based
(€ million)
BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND
LABEL)
a
b
e
f
i
j
m
n
q
r
u
v
y
z
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
NON-FINANCIAL CORPORATES (SUBJECT
TO NFRD)
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
GROSS CARRYING AMOUNT
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCA)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (WTR)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CE)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (PPC)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (BIO)
OF WHICH
ENVIRONMENTALLY
SUSTAINABLE (CCM +
CCA + WTR + CE +
PPC + BIO)
227 Q87.90 Other residential care activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
228 R90.01 Performing arts
-
-
-
-
-
-
-
-
-
-
-
-
-
-
229 R90.02 Support activities to performing arts
-
-
-
-
-
-
-
-
-
-
-
-
-
-
230 R90.03 Artistic creation
-
-
-
-
-
-
-
-
-
-
-
-
-
-
231 R90.04 Operation of arts facilities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
232 R91.01 Library and archives activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
233 R91.02 Museums activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
234
R91.03 Operation of historical sites and buildings and similar
visitor attractions
-
-
-
-
-
-
-
-
-
-
-
-
-
-
235
R91.04 Botanical and zoological gardens and nature reserves
activities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
236 S95.21 Repair of consumer electronics
-
-
-
-
-
-
-
-
-
-
-
-
-
-
237
S95.22 Repair of household appliances and home and garden
equipment
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
219
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
3 GAR KPI (stock) - Turnover based - % (compared to total covered assets in the denominator)
a
b
c
d
e
f
g
h
i
j
k
l
m
31.12.2024
% (COMPARED TO TOTAL COVERED ASSETS IN THE
DENOMINATOR)
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
20.19%
1.32%
-
0.59%
0.37%
0.03%
0.01%
-
0.00%
0.02%
0.01%
-
-
2
Financial undertakings
1.49%
0.21%
-
0.01%
0.05%
0.02%
0.00%
-
0.00%
0.00%
-
-
-
3
Credit institutions
1.07%
0.08%
-
0.01%
0.00%
0.00%
0.00%
-
-
0.00%
-
-
-
4
Loans and advances
0.61%
0.04%
-
0.00%
0.00%
0.00%
0.00%
-
-
-
-
-
-
5
Debt securities, including UoP
0.32%
0.03%
-
0.00%
0.00%
0.00%
0.00%
-
-
-
-
-
-
6
Equity instruments
0.14%
0.01%
-
0.00%
0.00%
-
-
-
-
0.00%
-
-
-
7
Other Financial corporation
0.42%
0.14%
-
0.00%
0.04%
0.01%
0.00%
-
0.00%
0.00%
-
-
-
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
0.01%
0.00%
-
0.00%
0.00%
0.00%
-
-
-
0.00%
-
-
-
13
Loans and advances
0.01%
0.00%
-
0.00%
0.00%
0.00%
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
0.01%
0.00%
-
0.00%
0.00%
0.00%
-
-
-
0.00%
-
-
-
16
Of which: insurance undertakings
-
0.01%
-
0.00%
0.00%
-
0.00%
-
-
-
-
-
-
17
Loans and advances
-
0.00%
-
0.00%
0.00%
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
0.00%
-
-
0.00%
-
-
-
-
-
-
-
-
19
Equity instruments
-
0.01%
-
0.00%
0.00%
-
0.00%
-
-
-
-
-
-
20
Non-Financial undertakings
1.41%
0.60%
-
0.07%
0.32%
0.01%
0.01%
-
0.00%
0.02%
0.01%
-
-
21
Loans and advances
1.31%
0.54%
-
0.06%
0.29%
0.01%
0.01%
-
0.00%
0.02%
0.01%
-
-
22
Debt securities, including UoP
0.09%
0.05%
-
0.00%
0.02%
0.00%
0.00%
-
0.00%
0.00%
0.00%
-
-
23
Equity instruments
0.01%
0.00%
-
-
0.00%
-
-
-
-
-
-
-
-
24
Households
17.28%
0.51%
-
0.51%
-
-
-
-
-
-
-
-
-
25
Of which: loans collateralised by residential
immovable property
16.81%
0.51%
-
0.51%
-
-
-
-
-
-
-
-
-
26
Of which: building renovation loans
0.40%
-
-
-
-
-
-
-
-
-
-
-
-
27
Of which: motor vehicle loans
0.07%
0.00%
-
0.00%
-
-
-
-
-
-
-
-
-
28
Local governments financing
0.01%
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
0.00%
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
0.01%
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
0.01%
-
-
-
-
-
-
-
-
-
-
-
-
32 Total GAR assets
20.20%
1.32%
-
0.59%
0.37%
0.03%
0.01%
-
0.00%
0.02%
0.01%
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
220
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 3 GAR KPI stock - Turnover based - % (compared to total covered assets in the denominator)
n
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
31.12.2024
% (COMPARED TO TOTAL COVERED ASSETS IN THE
DENOMINATOR)
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
PROPORTION
OF TOTAL
ASSETS
COVERED
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
0.07%
0.02%
-
-
0.03%
0.00%
-
-
0.03%
-
-
-
20.45%
1.36%
-
0.59%
0.37%
19.79%
2
Financial undertakings
0.01%
-
-
-
0.00%
-
-
-
0.00%
-
-
-
1.60%
0.21%
-
0.01%
0.05%
4.64%
3
Credit institutions
-
-
-
-
-
-
-
-
-
-
-
-
1.08%
0.08%
-
0.01%
0.00%
3.01%
4
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.61%
0.04%
-
0.00%
0.00%
1.78%
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
0.33%
0.03%
-
0.00%
0.00%
0.83%
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.14%
0.01%
-
0.00%
0.00%
0.40%
7
Other Financial corporation
0.01%
-
-
-
0.00%
-
-
-
0.00%
-
-
-
0.51%
0.14%
-
0.00%
0.04%
1.63%
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
0.00%
-
-
-
-
-
-
-
0.00%
-
-
-
0.02%
0.00%
-
0.00%
0.00%
0.05%
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.01%
0.00%
-
0.00%
0.00%
0.02%
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
0.00%
-
-
-
-
-
-
-
0.00%
-
-
-
0.01%
0.00%
-
0.00%
0.00%
0.03%
16
Of which: insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
0.07%
0.01%
-
0.00%
0.00%
0.28%
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
0.00%
-
0.00%
0.00%
0.02%
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
0.00%
-
-
0.00%
0.00%
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.06%
0.01%
-
0.00%
0.00%
0.26%
20
Non-Financial undertakings
0.06%
0.02%
-
-
0.03%
0.00%
-
-
0.03%
-
-
-
1.56%
0.63%
-
0.07%
0.32%
2.87%
21
Loans and advances
0.06%
0.01%
-
-
0.02%
0.00%
-
-
0.03%
-
-
-
1.46%
0.57%
-
0.07%
0.30%
2.57%
22
Debt securities, including UoP
0.00%
0.00%
-
-
0.01%
0.00%
-
-
-
-
-
-
0.10%
0.06%
-
0.00%
0.02%
0.29%
23
Equity instruments
0.00%
-
-
-
-
-
-
-
-
-
-
-
0.01%
0.00%
-
-
0.00%
0.01%
24
Households
-
-
-
-
-
-
-
-
-
-
-
-
17.28%
0.51%
-
0.51%
-
12.28%
25
Of which: loans collateralised by residential
immovable property
-
-
-
-
-
-
-
-
-
-
-
-
16.81%
0.51%
-
0.51%
-
11.95%
26
Of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
0.40%
-
-
-
-
0.28%
27
Of which: motor vehicle loans
-
-
-
-
-
-
-
-
-
-
-
-
0.07%
0.00%
-
0.00%
-
0.05%
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
0.01%
-
-
-
-
0.01%
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
0.00%
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
0.01%
-
-
-
-
0.01%
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
-
-
-
-
0.01%
-
-
-
-
0.04%
32 Total GAR assets
0.07%
0.02%
-
-
0.03%
0.00%
-
-
0.03%
-
-
-
20.46%
1.36%
-
0.59%
0.37%
68.99%
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
221
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
3 GAR KPI (stock) - Turnover based - % (compared to total covered assets in the denominator)
a
b
c
d
e
f
g
h
i
j
k
l
m
31.12.2023
% (COMPARED TO TOTAL COVERED ASSETS IN THE
DENOMINATOR)
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
18.03%
1.05%
-
0.66%
0.25%
0.01%
0.01%
-
-
-
-
-
-
2
Financial undertakings
-
-
-
-
-
-
-
-
-
-
-
-
-
3
Credit institutions
-
-
-
-
-
-
-
-
-
-
-
-
-
4
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
7
Other Financial corporation
-
-
-
-
-
-
-
-
-
-
-
-
-
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
16
Of which: insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-Financial undertakings
1.57%
0.45%
-
0.05%
0.25%
0.01%
0.01%
-
-
-
-
-
-
21
Loans and advances
1.50%
0.42%
-
0.05%
0.24%
0.01%
0.01%
-
-
-
-
-
-
22
Debt securities, including UoP
0.07%
0.03%
-
0.00%
0.01%
-
-
-
-
-
-
-
-
23
Equity instruments
0.00%
0.00%
-
-
0.00%
-
-
-
-
-
-
-
-
24
Households
16.43%
0.60%
-
0.60%
-
-
-
-
-
-
-
-
-
25
Of which: loans collateralised by residential
immovable property
16.27%
0.60%
-
0.60%
-
-
-
-
-
-
-
-
-
26
Of which: building renovation loans
0.04%
-
-
-
-
-
-
-
-
-
-
-
-
27
Of which: motor vehicle loans
0.12%
-
-
-
-
-
-
-
-
-
-
-
-
28
Local governments financing
0.02%
0.00%
-
0.00%
-
-
-
-
-
-
-
-
-
29
Housing financing
0.00%
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
0.02%
0.00%
-
0.00%
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
0.07%
0.00%
-
0.00%
-
-
-
-
-
-
-
-
-
32 Total GAR assets
18.09%
1.06%
-
0.66%
0.25%
0.01%
0.01%
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
222
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 3 GAR KPI stock - Turnover based - % (compared to total covered assets in the denominator)
n
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
31.12.2023
% (COMPARED TO TOTAL COVERED ASSETS IN THE
DENOMINATOR)
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
PROPORTION
OF TOTAL
ASSETS
COVERED
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
-
-
-
-
-
-
-
-
-
-
-
-
19.14%
1.16%
-
0.66%
0.25%
21.51%
2
Financial undertakings
-
-
-
-
-
-
-
-
-
-
-
-
0.88%
-
-
-
-
4.75%
3
Credit institutions
-
-
-
-
-
-
-
-
-
-
-
-
0.85%
-
-
-
-
2.65%
4
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.55%
-
-
-
-
1.66%
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
0.28%
-
-
-
-
0.94%
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.02%
-
-
-
-
0.06%
7
Other Financial corporation
-
-
-
-
-
-
-
-
-
-
-
-
0.04%
-
-
-
-
2.10%
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.03%
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.03%
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
0.05%
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
0.00%
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
0.05%
16
Of which: insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
0.02%
-
-
-
-
0.07%
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
0.02%
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
0.01%
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.01%
-
-
-
-
0.05%
20
Non-Financial undertakings
-
-
-
-
-
-
-
-
-
-
-
-
1.80%
0.55%
-
0.05%
0.25%
4.21%
21
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
1.70%
0.51%
-
0.05%
0.24%
3.88%
22
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
0.09%
0.05%
-
0.00%
0.01%
0.32%
23
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
0.00%
-
-
0.00%
0.02%
24
Households
-
-
-
-
-
-
-
-
-
-
-
-
16.43%
0.60%
-
0.60%
-
11.54%
25
Of which: loans collateralised by residential
immovable property
-
-
-
-
-
-
-
-
-
-
-
-
16.27%
0.60%
-
0.60%
-
11.43%
26
Of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
0.04%
-
-
-
-
0.03%
27
Of which: motor vehicle loans
-
-
-
-
-
-
-
-
-
-
-
-
0.12%
-
-
-
-
0.08%
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
0.02%
0.00%
-
0.00%
-
1.00%
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
0.00%
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
0.02%
0.00%
-
0.00%
-
1.00%
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
-
-
-
-
0.07%
0.00%
-
0.00%
-
0.05%
32 Total GAR assets
-
-
-
-
-
-
-
-
-
-
-
-
19.20%
1.16%
-
0.66%
0.25%
69.27%
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
223
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
3 GAR KPI (stock) - Capex based - % (compared to total covered assets in the denominator)
% (COMPARED TO TOTAL COVERED ASSETS IN THE
DENOMINATOR)
a
b
c
d
e
f
g
h
i
j
k
l
m
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
20.66%
1.84%
-
0.61%
0.61%
0.09%
0.03%
-
0.01%
0.03%
0.02%
-
-
2
Financial undertakings
1.56%
0.30%
-
0.02%
0.07%
0.04%
0.00%
-
0.00%
0.00%
-
-
-
3
Credit institutions
1.07%
0.08%
-
0.01%
0.01%
0.00%
0.00%
-
-
0.00%
-
-
-
4
Loans and advances
0.60%
0.04%
-
0.00%
0.00%
0.00%
0.00%
-
-
-
-
-
-
5
Debt securities, including UoP
0.32%
0.03%
-
0.00%
0.00%
0.00%
0.00%
-
-
-
-
-
-
6
Equity instruments
0.14%
0.01%
-
0.00%
0.00%
-
-
-
-
0.00%
-
-
-
7
Other Financial corporation
0.49%
0.22%
-
0.01%
0.06%
0.04%
0.00%
-
0.00%
0.00%
-
-
-
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
0.02%
0.00%
-
0.00%
0.00%
0.00%
0.00%
-
-
0.00%
-
-
-
13
Loans and advances
0.01%
0.00%
-
0.00%
0.00%
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
0.01%
0.00%
-
0.00%
0.00%
0.00%
0.00%
-
-
0.00%
-
-
-
16
Of which: insurance undertakings
-
0.01%
-
0.00%
0.00%
-
0.00%
-
-
-
-
-
-
17
Loans and advances
-
0.00%
-
0.00%
0.00%
-
0.00%
-
-
-
-
-
-
18
Debt securities, including UoP
-
0.00%
-
-
0.00%
-
-
-
-
-
-
-
-
19
Equity instruments
-
0.01%
-
0.00%
0.00%
-
0.00%
-
-
-
-
-
-
20
Non-Financial undertakings
1.81%
1.02%
-
0.08%
0.54%
0.05%
0.03%
-
0.01%
0.03%
0.02%
-
-
21
Loans and advances
1.65%
0.90%
-
0.07%
0.49%
0.04%
0.02%
-
0.01%
0.03%
0.01%
-
-
22
Debt securities, including UoP
0.15%
0.12%
-
0.01%
0.05%
0.01%
0.01%
-
0.01%
0.00%
0.00%
-
-
23
Equity instruments
0.01%
0.00%
-
0.00%
0.00%
0.00%
0.00%
-
-
-
-
-
-
24
Households
17.29%
0.51%
-
0.51%
-
-
-
-
-
-
-
-
-
25
Of which: loans collateralised by residential
immovable property
16.81%
0.51%
-
0.51%
-
-
-
-
-
-
-
-
-
26
Of which: building renovation loans
0.40%
-
-
-
-
-
-
-
-
-
-
-
-
27
Of which: motor vehicle loans
0.07%
0.00%
-
0.00%
-
-
-
-
-
-
-
-
-
28
Local governments financing
0.01%
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
0.00%
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
0.01%
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
0.01%
-
-
-
-
-
-
-
-
-
-
-
-
32 Total GAR assets
20.67%
1.84%
-
0.61%
0.61%
0.09%
0.03%
-
0.01%
0.03%
0.02%
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
224
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 3 GAR KPI (stock) - Capex based - % (compared to total covered assets in the denominator)
% (COMPARED TO TOTAL COVERED ASSETS IN THE
DENOMINATOR)
n
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
31.12.2024
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION
OF TOTAL
ASSETS
COVERED
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
0.06%
0.01%
-
-
0.02%
0.00%
-
-
0.03%
0.02%
-
-
20.97%
1.91%
-
0.61%
0.62%
19.79%
2
Financial undertakings
0.00%
-
-
-
0.00%
-
-
-
0.00%
-
-
-
1.68%
0.30%
-
0.02%
0.07%
4.64%
3
Credit institutions
-
-
-
-
-
-
-
-
-
-
-
-
1.08%
0.08%
-
0.01%
0.01%
3.01%
4
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.60%
0.04%
-
0.00%
0.00%
1.78%
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
0.33%
0.03%
-
0.00%
0.00%
0.83%
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.14%
0.01%
-
0.00%
0.00%
0.40%
7
Other Financial corporation
0.00%
-
-
-
0.00%
-
-
-
0.00%
-
-
-
0.60%
0.22%
-
0.01%
0.06%
1.63%
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
0.00%
-
-
-
-
-
-
-
0.00%
-
-
-
0.02%
0.00%
-
0.00%
0.00%
0.05%
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.01%
0.00%
-
0.00%
0.00%
0.02%
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
0.00%
-
-
-
-
-
-
-
0.00%
-
-
-
0.01%
0.00%
-
0.00%
0.00%
0.03%
16
Of which: insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
0.06%
0.01%
-
0.00%
0.00%
0.28%
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
0.00%
-
0.00%
0.00%
0.02%
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
0.00%
-
-
0.00%
0.00%
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.06%
0.01%
-
0.00%
0.00%
0.26%
20
Non-Financial undertakings
0.05%
0.01%
-
-
0.02%
0.00%
-
-
0.03%
0.02%
-
-
1.99%
1.09%
-
0.08%
0.55%
2.87%
21
Loans and advances
0.05%
0.01%
-
-
0.01%
0.00%
-
-
0.02%
0.01%
-
-
1.81%
0.95%
-
0.07%
0.50%
2.57%
22
Debt securities, including UoP
0.00%
0.00%
-
-
0.00%
0.00%
-
-
0.01%
0.01%
-
-
0.18%
0.14%
-
0.01%
0.05%
0.29%
23
Equity instruments
0.00%
-
-
-
-
-
-
-
-
-
-
-
0.01%
0.00%
-
0.00%
0.00%
0.01%
24
Households
-
-
-
-
-
-
-
-
-
-
-
-
17.29%
0.51%
-
0.51%
-
12.28%
25
Of which: loans collateralised by residential
immovable property
-
-
-
-
-
-
-
-
-
-
-
-
16.81%
0.51%
-
0.51%
-
11.95%
26
Of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
0.40%
-
-
-
-
0.28%
27
Of which: motor vehicle loans
-
-
-
-
-
-
-
-
-
-
-
-
0.07%
0.00%
-
0.00%
-
0.05%
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
0.01%
-
-
-
-
0.01%
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
0.00%
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
0.01%
-
-
-
-
0.01%
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
-
-
-
-
0.01%
-
-
-
-
0.04%
32 Total GAR assets
0.06%
0.01%
-
-
0.02%
0.00%
-
-
0.03%
0.02%
-
-
20.98%
1.91%
-
0.61%
0.62%
68.99%
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
225
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
3 GAR KPI (stock) - Capex based - % (compared to total covered assets in the denominator)
% (COMPARED TO TOTAL COVERED ASSETS IN THE
DENOMINATOR)
a
b
c
d
e
f
g
h
i
j
k
l
m
31.12.2023
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
18.66%
1.60%
-
0.64%
0.47%
0.02%
0.02%
-
-
-
-
-
-
2
Financial undertakings
-
-
-
-
-
-
-
-
-
-
-
-
-
3
Credit institutions
-
-
-
-
-
-
-
-
-
-
-
-
-
4
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
7
Other Financial corporation
-
-
-
-
-
-
-
-
-
-
-
-
-
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
16
Of which: insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-Financial undertakings
2.21%
1.00%
-
0.04%
0.47%
0.02%
0.02%
-
-
-
-
-
-
21
Loans and advances
2.06%
0.90%
-
0.04%
0.45%
0.02%
0.02%
-
-
-
-
-
-
22
Debt securities, including UoP
0.14%
0.09%
-
0.00%
0.02%
-
-
-
-
-
-
-
-
23
Equity instruments
0.01%
0.01%
-
-
0.00%
0.00%
0.00%
-
-
-
-
-
-
24
Households
16.43%
0.60%
-
0.60%
-
-
-
-
-
-
-
-
-
25
Of which: loans collateralised by residential
immovable property
16.27%
0.60%
-
0.60%
-
-
-
-
-
-
-
-
-
26
Of which: building renovation loans
0.04%
-
-
-
-
-
-
-
-
-
-
-
-
27
Of which: motor vehicle loans
0.12%
-
-
-
-
-
-
-
-
-
-
-
-
28
Local governments financing
0.02%
0.00%
-
0.00%
-
-
-
-
-
-
-
-
-
29
Housing financing
0.00%
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
0.02%
0.00%
-
0.00%
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
0.07%
0.00%
-
0.00%
-
-
-
-
-
-
-
-
-
32 Total GAR assets
18.73%
1.60%
-
0.64%
0.47%
0.02%
0.02%
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
226
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 3 GAR KPI (stock) - Capex based - % (compared to total covered assets in the denominator)
% (COMPARED TO TOTAL COVERED ASSETS IN THE
DENOMINATOR)
n
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
31.12.2023
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION
OF TOTAL
ASSETS
COVERED
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
-
-
-
-
-
-
-
-
-
-
-
-
19.60%
1.78%
-
0.64%
0.47%
21.51%
2
Financial undertakings
-
-
-
-
-
-
-
-
-
-
-
-
0.54%
-
-
-
-
4.75%
3
Credit institutions
-
-
-
-
-
-
-
-
-
-
-
-
0.51%
-
-
-
-
2.65%
4
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.37%
-
-
-
-
1.66%
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
0.14%
-
-
-
-
0.94%
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.01%
-
-
-
-
0.06%
7
Other Financial corporation
-
-
-
-
-
-
-
-
-
-
-
-
0.03%
-
-
-
-
2.10%
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.03%
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.03%
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
0.05%
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
0.00%
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
0.05%
16
Of which: insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
0.02%
-
-
-
-
0.07%
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
0.02%
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
0.01%
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.01%
-
-
-
-
0.05%
20
Non-Financial undertakings
-
-
-
-
-
-
-
-
-
-
-
-
2.61%
1.18%
-
0.04%
0.47%
4.21%
21
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
2.40%
1.05%
-
0.04%
0.45%
3.88%
22
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
0.19%
0.12%
-
0.00%
0.02%
0.32%
23
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.01%
0.01%
-
-
0.00%
0.02%
24
Households
-
-
-
-
-
-
-
-
-
-
-
-
16.43%
0.60%
-
0.60%
-
11.54%
25
Of which: loans collateralised by residential
immovable property
-
-
-
-
-
-
-
-
-
-
-
-
16.27%
0.60%
-
0.60%
-
11.43%
26
Of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
0.04%
-
-
-
-
0.03%
27
Of which: motor vehicle loans
-
-
-
-
-
-
-
-
-
-
-
-
0.12%
-
-
-
-
0.08%
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
0.02%
0.00%
-
0.00%
-
1.00%
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
0.00%
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
0.02%
0.00%
-
0.00%
-
1.00%
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
-
-
-
-
0.07%
0.00%
-
0.00%
-
0.05%
32 Total GAR assets
-
-
-
-
-
-
-
-
-
-
-
-
19.67%
1.78%
-
0.64%
0.47%
69.27%
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
227
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
4 GAR KPI flow - Turnover based - % (compared to flow of total eligible assets)
% (COMPARED TO FLOW OF TOTAL ELIGIBLE ASSETS)
a
b
c
d
e
f
g
h
i
j
k
l
m
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
13.08%
2.13%
-
0.30%
1.07%
0.08%
0.03%
-
0.02%
0.04%
0.03%
-
-
2
Financial undertakings
4.89%
0.63%
-
0.03%
0.16%
0.04%
0.00%
-
0.00%
0.00%
-
-
-
3
Credit institutions
3.72%
0.23%
-
0.02%
0.01%
0.01%
0.00%
-
-
-
-
-
-
4
Loans and advances
2.40%
0.14%
-
0.02%
0.01%
0.01%
0.00%
-
-
-
-
-
-
5
Debt securities, including UoP
0.71%
0.05%
-
0.00%
0.00%
0.00%
0.00%
-
-
-
-
-
-
6
Equity instruments
0.61%
0.04%
-
-
-
-
-
-
-
-
-
-
-
7
Other Financial corporation
1.17%
0.40%
-
0.01%
0.15%
0.04%
0.00%
-
0.00%
0.00%
-
-
-
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
0.05%
0.01%
-
0.00%
0.00%
0.00%
-
-
-
-
-
-
-
13
Loans and advances
0.05%
0.01%
-
0.00%
0.00%
0.00%
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
16
Of which: insurance undertakings
-
0.02%
-
0.00%
0.00%
-
0.00%
-
-
-
-
-
-
17
Loans and advances
-
0.00%
-
0.00%
0.00%
-
0.00%
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
0.02%
-
-
0.00%
-
-
-
-
-
-
-
-
20
Non-Financial undertaking
2.55%
1.39%
-
0.18%
0.91%
0.03%
0.03%
-
0.02%
0.03%
0.03%
-
-
21
Loans and advances
2.35%
1.26%
-
0.16%
0.87%
0.02%
0.02%
-
0.01%
0.03%
0.03%
-
-
22
Debt securities, including UoP
0.20%
0.13%
-
0.02%
0.03%
0.01%
0.01%
-
0.01%
0.00%
0.00%
-
-
23
Equity instruments
0.00%
-
-
-
-
-
-
-
-
-
-
-
-
24
Households
5.64%
0.10%
-
0.10%
-
-
-
-
-
-
-
-
-
25
Of which: loans collateralised by residential
immovable property
5.56%
0.10%
-
0.10%
-
-
-
-
-
-
-
-
-
26
Of which: building renovation loans
0.05%
-
-
-
-
-
-
-
-
-
-
-
-
27
Of which: motor vehicle loans
0.03%
0.01%
-
0.01%
-
-
-
-
-
-
-
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
0.01%
-
-
-
-
-
-
-
-
-
-
-
-
32 Total GAR assets
13.09%
2.13%
-
0.30%
1.07%
0.08%
0.03%
-
0.02%
0.04%
0.03%
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
228
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 4 GAR KPI flow - Turnover based - % (compared to flow of total eligible assets)
% (COMPARED TO FLOW OF TOTAL ELIGIBLE ASSETS)
n
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
31.12.2024
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
PROPORTION
OF TOTAL NEW
ASSETS
COVERED
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
0.08%
0.01%
-
-
0.04%
0.00%
-
-
0.00%
-
-
-
13.45%
2.19%
-
0.30%
1.08%
26.91%
2
Financial undertakings
0.01%
-
-
-
0.00%
-
-
-
0.00%
-
-
-
5.09%
0.64%
-
0.03%
0.16%
15.69%
3
Credit institutions
-
-
-
-
-
-
-
-
-
-
-
-
3.73%
0.23%
-
0.02%
0.01%
11.36%
4
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
2.41%
0.14%
-
0.02%
0.01%
8.15%
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
0.71%
0.05%
-
0.00%
0.00%
1.74%
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.61%
0.04%
-
-
-
1.47%
7
Other Financial corporation
0.01%
-
-
-
0.00%
-
-
-
0.00%
-
-
-
1.36%
0.40%
-
0.01%
0.15%
4.33%
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
-
-
-
-
-
-
-
-
-
-
-
-
0.05%
0.01%
-
0.00%
0.00%
0.14%
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.05%
0.01%
-
0.00%
0.00%
0.14%
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
16
Of which: insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
0.13%
0.02%
-
0.00%
0.00%
0.54%
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.02%
0.00%
-
0.00%
0.00%
0.11%
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.11%
0.02%
-
-
0.00%
0.42%
20
Non-Financial undertaking
0.07%
0.01%
-
-
0.04%
0.00%
-
-
0.00%
-
-
-
2.72%
1.46%
-
0.18%
0.92%
6.66%
21
Loans and advances
0.07%
0.01%
-
-
0.04%
0.00%
-
-
0.00%
-
-
-
2.51%
1.32%
-
0.16%
0.88%
6.23%
22
Debt securities, including UoP
0.00%
0.00%
-
-
0.00%
0.00%
-
-
0.00%
-
-
-
0.21%
0.14%
-
0.02%
0.04%
0.43%
23
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
-
-
-
-
0.00%
24
Households
-
-
-
-
-
-
-
-
-
-
-
-
5.64%
0.10%
-
0.10%
-
4.55%
25
Of which: loans collateralised by residential
immovable property
-
-
-
-
-
-
-
-
-
-
-
-
5.56%
0.10%
-
0.10%
-
4.48%
26
Of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
0.05%
-
-
-
-
0.04%
27
Of which: motor vehicle loans
-
-
-
-
-
-
-
-
-
-
-
-
0.03%
0.01%
-
0.01%
-
0.03%
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
-
-
-
-
0.01%
-
-
-
-
0.03%
32 Total GAR assets
0.08%
0.01%
-
-
0.04%
0.00%
-
-
0.00%
-
-
-
13.46%
2.19%
-
0.30%
1.08%
26.94%
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
229
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
4 GAR KPI flow - Capex based - % (compared to flow of total eligible assets)
% (COMPARED TO FLOW OF TOTAL ELIGIBLE ASSETS)
a
b
c
d
e
f
g
h
i
j
k
l
m
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
14.22%
3.26%
-
0.24%
1.69%
0.25%
0.09%
-
0.06%
0.07%
0.05%
-
-
2
Financial undertakings
5.09%
0.96%
-
0.04%
0.23%
0.10%
0.00%
-
0.00%
0.00%
-
-
-
3
Credit institutions
3.68%
0.25%
-
0.02%
0.02%
0.01%
0.00%
-
0.00%
-
-
-
-
4
Loans and advances
2.36%
0.15%
-
0.02%
0.01%
0.00%
0.00%
-
-
-
-
-
-
5
Debt securities, including UoP
0.71%
0.06%
-
0.00%
0.00%
0.00%
0.00%
-
0.00%
-
-
-
-
6
Equity instruments
0.61%
0.04%
-
-
0.00%
-
-
-
-
-
-
-
-
7
Other Financial corporation
1.41%
0.71%
-
0.02%
0.22%
0.10%
0.00%
-
0.00%
0.00%
-
-
-
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
0.05%
0.01%
-
0.00%
0.00%
-
-
-
-
-
-
-
-
13
Loans and advances
0.05%
0.01%
-
0.00%
0.00%
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
16
Of which: insurance undertakings
-
0.03%
-
0.00%
0.01%
-
0.00%
-
-
-
-
-
-
17
Loans and advances
-
0.00%
-
0.00%
0.00%
-
0.00%
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
0.03%
-
0.00%
0.01%
-
0.00%
-
-
-
-
-
-
20
Non-Financial undertaking
3.49%
2.20%
-
0.09%
1.46%
0.15%
0.09%
-
0.06%
0.07%
0.05%
-
-
21
Loans and advances
3.20%
1.99%
-
0.09%
1.35%
0.11%
0.06%
-
0.03%
0.06%
0.05%
-
-
22
Debt securities, including UoP
0.29%
0.21%
-
0.00%
0.11%
0.04%
0.04%
-
0.03%
0.00%
0.00%
-
-
23
Equity instruments
0.00%
0.00%
-
0.00%
-
-
-
-
-
-
-
-
-
24
Households
5.64%
0.10%
-
0.10%
-
-
-
-
-
-
-
-
-
25
Of which: loans collateralised by residential
immovable property
5.56%
0.10%
-
0.10%
-
-
-
-
-
-
-
-
-
26
Of which: building renovation loans
0.05%
-
-
-
-
-
-
-
-
-
-
-
-
27
Of which: motor vehicle loans
0.03%
0.01%
-
0.01%
-
-
-
-
-
-
-
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
0.01%
-
-
-
-
-
-
-
-
-
-
-
-
32 Total GAR assets
14.23%
3.26%
-
0.24%
1.69%
0.25%
0.09%
-
0.06%
0.07%
0.05%
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
230
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 4 GAR KPI flow - Capex based - % (compared to flow of total eligible assets)
% (COMPARED TO FLOW OF TOTAL ELIGIBLE ASSETS)
n
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
31.12.2024
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
PROPORTION
OF TOTAL NEW
ASSETS
COVERED
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS
FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
0.09%
0.00%
-
-
0.02%
0.00%
-
-
0.00%
-
-
-
14.79%
3.42%
-
0.24%
1.76%
26.91%
2
Financial undertakings
0.01%
-
-
-
0.00%
-
-
-
0.00%
-
-
-
5.34%
0.96%
-
0.04%
0.23%
15.69%
3
Credit institutions
-
-
-
-
-
-
-
-
-
-
-
-
3.69%
0.25%
-
0.02%
0.02%
11.36%
4
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
2.36%
0.15%
-
0.02%
0.01%
8.15%
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
0.71%
0.06%
-
0.00%
0.00%
1.74%
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.61%
0.04%
-
-
0.00%
1.47%
7
Other Financial corporation
0.01%
-
-
-
0.00%
-
-
-
0.00%
-
-
-
1.65%
0.71%
-
0.02%
0.22%
4.33%
8
Of which: investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Of which: management companies
-
-
-
-
-
-
-
-
-
-
-
-
0.05%
0.01%
-
0.00%
0.00%
0.14%
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.05%
0.01%
-
0.00%
0.00%
0.14%
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
16
Of which: insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
0.13%
0.03%
-
0.00%
0.01%
0.54%
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
0.02%
0.00%
-
0.00%
0.00%
0.11%
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
0.12%
0.03%
-
0.00%
0.01%
0.42%
20
Non-Financial undertaking
0.08%
0.00%
-
-
0.02%
0.00%
-
-
0.00%
-
-
-
3.80%
2.35%
-
0.09%
1.52%
6.66%
21
Loans and advances
0.08%
0.00%
-
-
0.02%
0.00%
-
-
0.00%
-
-
-
3.47%
2.10%
-
0.09%
1.38%
6.23%
22
Debt securities, including UoP
0.00%
0.00%
-
-
0.00%
0.00%
-
-
0.00%
-
-
-
0.33%
0.25%
-
0.00%
0.14%
0.43%
23
Equity instruments
0.00%
-
-
-
-
-
-
-
-
-
-
-
0.00%
0.00%
-
0.00%
-
0.00%
24
Households
-
-
-
-
-
-
-
-
-
-
-
-
5.64%
0.10%
-
0.10%
-
4.55%
25
Of which: loans collateralised by residential
immovable property
-
-
-
-
-
-
-
-
-
-
-
-
5.56%
0.10%
-
0.10%
-
4.48%
26
Of which: building renovation loans
-
-
-
-
-
-
-
-
-
-
-
-
0.05%
-
-
-
-
0.04%
27
Of which: motor vehicle loans
-
-
-
-
-
-
-
-
-
-
-
-
0.03%
0.01%
-
0.01%
-
0.03%
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
-
-
-
-
0.01%
-
-
-
-
0.03%
32 Total GAR assets
0.09%
0.00%
-
-
0.02%
0.00%
-
-
0.00%
-
-
-
14.80%
3.42%
-
0.24%
1.76%
26.94%
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
231
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
5 KPI off-balance sheet exposures stock - Turnover based - % (compared to total eligible Off-Balance-Sheet assets)
% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-SHEET
ASSETS)
a
b
c
d
e
f
g
h
i
j
k
l
m
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
1 Financial guarantees (FinGuar KPI)
10.89%
5.69%
-
0.61%
2.08%
0.14%
0.10%
-
0.09%
0.05%
0.01%
-
-
2 Assets under management (AuM KPI)
22.09%
8.94%
-
1.15%
4.44%
1.19%
0.28%
-
0.11%
0.18%
-
-
-
continued: 5 KPI off-balance sheet exposures stock - Turnover based - % (compared to total eligible Off-Balance-Sheet assets)
% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-SHEET
ASSETS)
n
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
31.12.2024
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING
TAXONOMY RELEVANT SECTORS (TAXONOMY-
ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING
TAXONOMY RELEVANT SECTORS (TAXONOMY-
ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING
TAXONOMY RELEVANT SECTORS (TAXONOMY-
ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
1 Financial guarantees (FinGuar KPI)
0.71%
-
-
-
0.01%
-
-
-
0.03%
-
-
-
22.64%
5.81%
-
0.61%
2.17%
2 Assets under management (AuM KPI)
1.80%
-
-
-
1.42%
-
-
-
0.15%
-
-
-
26.83%
9.22%
-
1.15%
4.55%
5 KPI off-balance sheet exposures stock - Capex based - % (compared to total eligible Off-Balance-Sheet assets)
% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-SHEET
ASSETS)
a
b
c
d
e
f
g
h
i
i
j
k
l
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
1 Financial guarantees (FinGuar KPI)
15.64%
10.16%
-
1.06%
4.10%
0.44%
0.49%
-
0.36%
0.10%
-
-
-
2 Assets under management (AuM KPI)
27.25%
13.61%
-
1.32%
6.23%
1.57%
0.51%
-
0.21%
0.33%
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
232
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
continued: 5 KPI off-balance sheet exposures stock - Capex based - % (compared to total eligible Off-Balance-Sheet assets)
% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-SHEET
ASSETS)
n
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
31.12.2024
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING
TAXONOMY RELEVANT SECTORS (TAXONOMY-
ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING
TAXONOMY RELEVANT SECTORS (TAXONOMY-
ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING
TAXONOMY RELEVANT SECTORS (TAXONOMY-
ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
1 Financial guarantees (FinGuar KPI)
0.38%
0.01%
-
-
0.01%
0.01%
-
-
-
-
-
-
26.61%
10.73%
-
1.06%
4.46%
2 Assets under management (AuM KPI)
1.35%
-
-
-
1.34%
-
-
-
0.04%
-
-
-
31.88%
14.12%
-
1.32%
6.44%
5 KPI off-balance sheet exposures flow - Turnover based - % (compared to total eligible Off-Balance-Sheet assets)
% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-SHEET
ASSETS)
a
b
c
d
e
f
g
h
i
j
k
l
m
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
1 Financial guarantees (FinGuar KPI)
24.63%
9.55%
-
0.22%
3.91%
0.47%
0.34%
-
0.34%
0.05%
0.01%
-
-
2 Assets under management (AuM KPI)
-
-
-
-
-
-
-
-
-
-
-
-
-
continued: 5 KPI off-balance sheet exposures flow - Turnover based - % (compared to total eligible Off-Balance-Sheet assets)
% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-SHEET
ASSETS)
n
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
31.12.2024
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING
TAXONOMY RELEVANT SECTORS (TAXONOMY-
ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING
TAXONOMY RELEVANT SECTORS (TAXONOMY-
ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING
TAXONOMY RELEVANT SECTORS (TAXONOMY-
ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
1 Financial guarantees (FinGuar KPI)
0.90%
-
-
-
0.01%
-
-
-
-
-
-
-
26.07%
9.91%
-
0.22%
4.25%
2 Assets under management (AuM KPI)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
233
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
5 KPI off-balance sheet exposures flow - Capex based - % (compared to total eligible Off-Balance-Sheet assets)
% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-SHEET
ASSETS)
a
b
c
d
e
f
g
h
i
j
k
l
m
31.12.2024
CLIMATE CHANGE MITIGATION (CCM)
CLIMATE CHANGE ADAPTATION (CCA)
WATER AND MARINE RESOURCES (WTR)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE OF
PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
OF WHICH USE OF
PROCEEDS
OF WHICH ENABLING
1 Financial guarantees (FinGuar KPI)
32.95%
18.25%
-
1.88%
10.45%
1.62%
1.59%
-
1.35%
0.11%
0.07%
-
-
2 Assets under management (AuM KPI)
-
-
-
-
-
-
-
-
-
-
-
-
-
continued: 5 KPI off-balance sheet exposures flow - Capex based - % (compared to total eligible Off-Balance-Sheet assets)
% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-SHEET
ASSETS)
n
o
p
q
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
31.12.2024
CIRCULAR ECONOMY (CE)
POLLUTION (PPC)
BIODIVERSITY AND ECOSYSTEMS (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS
(TAXONOMY-ELIGIBLE)
PROPORTION OF TOTAL COVERED ASSETS FUNDING
TAXONOMY RELEVANT SECTORS (TAXONOMY-
ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING
TAXONOMY RELEVANT SECTORS (TAXONOMY-
ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING
TAXONOMY RELEVANT SECTORS (TAXONOMY-
ALIGNED)
PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY
RELEVANT SECTORS (TAXONOMY-ALIGNED)
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
ENABLING
OF WHICH USE
OF PROCEEDS
OF WHICH
TRANSITIONAL
OF WHICH
ENABLING
1 Financial guarantees (FinGuar KPI)
0.43%
0.01%
-
-
0.01%
0.01%
-
-
-
-
-
-
35.13%
19.92%
-
1.88%
11.80%
2 Assets under management (AuM KPI)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
Company Report
ESG Review
Financial Review
Strategic Review
Consolidated Report
234
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Additional disclosure on Nuclear and Gas related activities
1 Nuclear and fossil gas related activities - Green Assets Ratio - Stock
NUCLEAR ENERGY RELATED ACTIVITIES
YES/NO
4.26
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative
electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle
YES
4.27
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce
electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as
well as their safety upgrades, using best available technologies
YES
4.28
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or
process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear
energy, as well as their safety upgrades
YES
FOSSIL GAS RELATED ACTIVITIES
YES/NO
4.29
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce
electricity using fossil gaseous fuels
YES
4.30
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and
power generation facilities using fossil gaseous fuels
YES
4.31
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that
produce heat/cool using fossil gaseous fuels
YES
235
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
2 Taxonomy-aligned economic activities (denominator) - Turnover based
(€ '000)
ECONOMIC ACTIVITIES
AMOUNT AND PROPORTION
TOTAL (CCM + CCA)
CLIMATE CHANGE MITIGATION
(CCM)
CLIMATE CHANGE ADAPTATION
(CCA)
AMOUNT
%
AMOUNT
%
AMOUNT
%
1
Taxonomy-aligned economic activities (denominator) -
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of
the applicable KPI
-
-
-
-
-
-
2
Taxonomy-aligned economic activities (denominator) -
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of
the applicable KPI
-
-
-
-
-
-
3
Taxonomy-aligned economic activities (denominator) -
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of
the applicable KPI
7,338
0.00%
7,338
0.00%
-
-
4
Taxonomy-aligned economic activities (denominator) -
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of
the applicable KPI
-
-
-
-
-
-
5
Taxonomy-aligned economic activities (denominator) -
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of
the applicable KPI
298
0.00%
298
0.00%
-
-
6
Taxonomy-aligned economic activities (denominator) -
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of
the applicable KPI
-
-
-
-
-
-
7
Taxonomy-aligned economic activities (denominator)
- Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6
above in the denominator of the applicable KPI
7,290,747
1.33%
7,230,180
1.32%
60,567
0.01%
8
Taxonomy-aligned economic activities (denominator)
- Total applicable KPI
7,298,383
1.34%
7,237,816
1.33%
60,567
0.01%
236
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
2 Taxonomy-aligned economic activities (denominator) - CapEx based
(€ '000)
ECONOMIC ACTIVITIES
AMOUNT AND PROPORTION
TOTAL (CCM + CCA)
CLIMATE CHANGE MITIGATION
(CCM)
CLIMATE CHANGE ADAPTATION
(CCA)
AMOUNT
%
AMOUNT
%
AMOUNT
%
1
Taxonomy-aligned economic activities (denominator) -
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of
the applicable KPI
-
-
-
-
-
-
2
Taxonomy-aligned economic activities (denominator) -
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of
the applicable KPI
1,481
0.00%
1,481
0.00%
-
-
3
Taxonomy-aligned economic activities (denominator) -
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of
the applicable KPI
7,501
0.00%
7,501
0.00%
-
-
4
Taxonomy-aligned economic activities (denominator) -
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of
the applicable KPI
-
-
-
-
-
-
5
Taxonomy-aligned economic activities (denominator) -
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of
the applicable KPI
8,738
0.00%
8,738
0.00%
-
-
6
Taxonomy-aligned economic activities (denominator) -
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of
the applicable KPI
-
-
-
-
-
-
7
Taxonomy-aligned economic activities (denominator)
- Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6
above in the denominator of the applicable KPI
10,212,628
1.87%
10,043,976
1.83%
168,652
0.03%
8
Taxonomy-aligned economic activities (denominator)
- Total applicable KPI
10,230,348
1.88%
10,061,696
1.84%
168,652
0.03%
237
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
3 Taxonomy-aligned economic activities (numerator) - Turnover based
(€ '000)
ECONOMIC ACTIVITIES
AMOUNT AND PROPORTION
TOTAL (CCM + CCA)
CLIMATE CHANGE MITIGATION
(CCM)
CLIMATE CHANGE ADAPTATION
(CCA)
AMOUNT
%
AMOUNT
%
AMOUNT
%
1
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
-
-
-
-
-
-
2
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
1
0.00%
1
0.00%
-
-
3
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
23,470
0.32%
23,470
0.32%
-
-
4
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
-
-
-
-
-
-
5
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
298
0.00%
298
0.00%
-
-
6
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
-
-
-
-
-
-
7
Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6
above in the numerator of the applicable KPI
7,274,614
99.67%
7,214,047
98.84%
60,567
0.83%
8
Total amount and proportion of taxonomy-aligned
economic activities in the numerator of the applicable
KPI
7,298,383
100.00%
7,237,816
99.17%
60,567
0.83%
238
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
3 Taxonomy-aligned economic activities (numerator) - CapEx based
(€ '000)
ECONOMIC ACTIVITIES
AMOUNT AND PROPORTION
TOTAL (CCM + CCA)
CLIMATE CHANGE MITIGATION
(CCM)
CLIMATE CHANGE ADAPTATION
(CCA)
AMOUNT
%
AMOUNT
%
AMOUNT
%
1
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
-
-
-
-
-
-
2
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
1,596
0.02%
1,596
0.02%
-
-
3
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
11,931
0.12%
11,931
0.12%
-
-
4
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
1
0.00%
1
0.00%
-
-
5
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
8,739
0.09%
8,739
0.09%
-
-
6
Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the
applicable KPI
-
-
-
-
-
-
7
Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6
above in the numerator of the applicable KPI
10,208,081
99.78%
10,039,429
98.13%
168,652
1.65%
8
Total amount and proportion of taxonomy-aligned
economic activities in the numerator of the applicable
KPI
10,230,348
100.00%
10,061,696
98.35%
168,652
1.65%
239
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
4 Taxonomy-eligible but not taxonomy-aligned economic activities - Turnover based
(€ '000)
ECONOMIC ACTIVITIES
AMOUNT AND PROPORTION
TOTAL (CCM + CCA)
CLIMATE CHANGE MITIGATION
(CCM)
CLIMATE CHANGE ADAPTATION
(CCA)
AMOUNT
%
AMOUNT
%
AMOUNT
%
1
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.26 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
2
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.27 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
3
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.28 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
548
0.00%
548
0.00%
-
-
4
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
20,897
0.00%
20,897
0.00%
-
-
5
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
464,977
0.08%
464,977
0.08%
-
-
6
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.31 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
3,046
0.00%
3,046
0.00%
-
-
7
Amount and proportion of other taxonomy-eligible
but not taxonomy-aligned economic activities not
referred to in rows 1 to 6 above in the denominator
of the applicable KPI
102,970,074
18.81%
102,865,738
18.79%
104,336
0.02%
8
Total amount and proportion of taxonomy eligible
but not taxonomy-aligned economic activities in the
denominator of the applicable KPI
103,459,542
18.97%
103,355,206
18.95%
104,336
0.02%
240
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
4 Taxonomy-eligible but not taxonomy-aligned economic activities - CapEx based
(€ '000)
ECONOMIC ACTIVITIES
AMOUNT AND PROPORTION
TOTAL (CCM + CCA)
CLIMATE CHANGE MITIGATION
(CCM)
CLIMATE CHANGE ADAPTATION
(CCA)
AMOUNT
%
AMOUNT
%
AMOUNT
%
1
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.26 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
2
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.27 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
3
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.28 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
1,385
0.00%
1,385
0.00%
-
-
4
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
11,063
0.00%
10,952
0.00%
111
0.00%
5
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
310,508
0.06%
310,508
0.06%
-
-
6
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.31 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
8,351
0.00%
8,351
0.00%
-
-
7
Amount and proportion of other taxonomy-eligible
but not taxonomy-aligned economic activities not
referred to in rows 1 to 6 above in the denominator
of the applicable KPI
103,134,232
18.84%
102,798,280
18.78%
335,952
0.06%
8
Total amount and proportion of taxonomy eligible
but not taxonomy-aligned economic activities in the
denominator of the applicable KPI
103,465,539
18.97%
103,129,476
18.91%
336,063
0.06%
241
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
5 Taxonomy non-eligible economic activities
(€ '000)
ECONOMIC ACTIVITIES
TURNOVER
CAPEX
AMOUNT
PERCENTAGE
AMOUNT
PERCENTAGE
1
Amount and proportion of economic activity referred to in row 1
of Template 1 that is taxonomy-non-eligible in accordance with
Section 4.26 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
-
-
-
-
2
Amount and proportion of economic activity referred to in row 2
of Template 1 that is taxonomy-non-eligible in accordance with
Section 4.27 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
-
-
1,149
0.00%
3
Amount and proportion of economic activity referred to in row 3
of Template 1 that is taxonomy-non-eligible in accordance with
Section 4.28 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
2,996
0.00%
2,220
0.00%
4
Amount and proportion of economic activity referred to in row 4
of Template 1 that is taxonomy-non-eligible in accordance with
Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
-
-
-
-
5
Amount and proportion of economic activity referred to in row 5
of Template 1 that is taxonomy-non-eligible in accordance with
Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
8,441
0.00%
-
-
6
Amount and proportion of economic activity referred to in row 6
of Template 1 that is taxonomy-non-eligible in accordance with
Section 4.31 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
-
-
-
-
7
Amount and proportion of other taxonomy-non-eligible
economic activities not referred to in rows 1 to 6 above in
the denominator of the applicable KPI
435,459,723
79.53%
432,653,231
79.02%
8
Total amount and proportion of taxonomy-non-eligible
economic activities in the denominator of the applicable
KPI
435,471,160
79.54%
432,656,600
79.02%
242
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
E1 - Climate change
Strategy
E1-1 - Transition plan for climate change mitigation
In line with the effort sustained in the previous years, in 2024 UniCredit Group adopted a Transition Plan to support the achievement of our Net Zero
targets for financed and own emissions, and to convert our commitments into actions.
It was mainly shaped in line with Net Zero Banking Alliance (NZBA) requirements and the Glasgow Financial Alliance for Net Zero (GFANZ), thus
responding to CSRD requirements related to E1 standard on Climate Change.
Our transition plan supports our ambition to become a Net Zero Bank by 2050 through the achievement of our 2030 Net Zero intermediate targets
on financed emissions defined for six of the most carbon-intensive sectors, outlined by NZBA. The 2030 Net Zero targets have been defined in line
with NZBA principles and guidance, international standards, best market practices and 1.5°C degree pathways. For more details, refer to E1-4
Targets related to climate change mitigation and adaptation section.
The targets have been set considering the Group as a whole, in line with our Group commitment to NZBA. The approach reflects our belief in the
importance of collective accountability and Group-wide consistency when addressing global challenges like climate change. By adopting a
centralised framework, we aim to foster coherence in our efforts, leverage synergies across business units, and maintain a unified strategic
direction.
Our Group targets of Net Zero on own emissions (Scope 1 and 2 market-based) and on financed emissions (Scope 3, Category 15) are in line with
the objectives of the Paris Agreement.
Specifically, UniCredit is not excluded from the EU Paris-aligned benchmarks.
Decarbonisation levers and key actions
Own emissions
While financed emissions account for the greatest share of our climate impact, the management of our operational environmental footprint is also
key to becoming a Net Zero bank. Our ambition is to reach Net Zero on own emissions (Scope 1 and 2, market-based) by 2030.
Levers on our path towards Net Zero include renewable electricity sourcing, alongside space optimisation, energy efficiency measures, and heating
systems transformations.
More details on actions implemented and planned are provided in the E1-3 Actions and resources in relation to climate change policies section.
Financed emissions
Financed emissions account for most of our climate impact, therefore their reduction is considered essential to becoming a Net Zero bank.
To achieve our ambition for each sector, we started working with our portfolio of clients to define how to reduce our impact. Identified levers differ
from sector to sector.
Oil & Gas
With regard to the Oil & Gas sector, traditional business models are increasingly under pressure because the effects of climate change are
worsening, with energy security becoming even more relevant. While the investments into clean-energy projects are increasing, tailored solutions
are required based on geography, off-take industry, and infrastructure availability. For this reason, the industry’s engagement will be key in the
upcoming decades. A key strategic challenge for Oil & Gas companies is aligning existing skills and capital with new requirements of energy
transition.
In this scenario, we believe that Oil & Gas players have several opportunities to play a meaningful role in the energy transition, therefore we are
working to encourage the industry transition on multiple fronts:
• engaging with clients to educate them about transition and make them aware of the importance of clear transition plans as a pre-requisite for
transition project financing;
• rebalancing our loan portfolio:
- supporting clients investing in alternative, more sustainable fuels;
- gradually reducing the financing of the most carbon-intensive activities;
• collaborating in sector-led initiatives and new ventures for sector technology innovation, even when solutions are not yet fully mature;
243
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
• assisting clients in diversifying activities, helping them address sector challenges linked to the energy crisis, such as the need to provide energy
security.
We consider this sector fundamental to scale-up crucial technologies such as hydrogen, hydrogen derivatives, biofuels, and carbon capture,
utilization and storage (CCUS) so we are also promoting sector-based initiatives that facilitate their growth and spread.
For the past three years, UniCredit has sponsored the World Hydrogen Congress, an event which brings together thousands of experts and
professionals encouraging knowledge sharing and innovation of this budding industry. Since 2021, we have also been a member of the European
Clean Hydrogen Alliance, established by the European Commission to support the development of green hydrogen projects to drive the energy
transition. Through this alliance, we successfully contribute to the deployment of low carbon solutions across Europe, working closely with key
industry players and regulators. The alliance also enables us to stay abreast of the latest developments in the rapidly growing green hydrogen and
hydrogen derivate sectors.
Financing biofuels plays a crucial role in transitioning the Oil & Gas sector, indeed it significantly contribute to reduce greenhouse gas emissions and
promote a circular economy as the sector can leverage on existing infrastructure and technical expertise for its production and distribution.
Biofuels are a cornerstone of achieving the European Green Deal objectives and support the renewable energy targets by fostering energy
independence. This technology also plays an active role in the decarbonisation targets of other European directives such as the Renewable Energy
Directives, which highlight the importance and set quotas for advanced feedstocks when replacing fossil fuels in transport and other industries.
Specifically, biofuels have a wide range of applications as they usually act as “drop-in” fuels easily substituting their fossil counterparts. For example,
biomethane has the lowest carbon abatement cost compared to other renewable fuels, making it a highly efficient technology.
In line with UniCredit’s strategy to support the energy transition, we have supported a number of infrastructure funds, such as DWS, MEAG, and
Igneo, in their acquisition and development of their biogas and biomethane portfolios, who aim to expand the biofuel production and target the
advanced feedstocks furthering the development of the green fuel industry.
Power Generation
In the Power Generation sector our strategy is primarily focused on supporting our clients to shift from fossil fuel energy production to more
sustainable sources of energy (e.g., pure renewables).
To this extent, our industry experts work with clients that want to refocus their business model and also with clients that want to further invest in
renewable energy projects. Thanks to our extended network, we are also able to serve pure renewable players through project financing initiatives,
especially in wind, photovoltaic and advisory activities.
Through sector-specific events, we are also involved in discussions on the best approach for the energy transition. For example, in the Czech
Republic and Slovakia, UniCredit is a member of the Solar Association, the largest professional association of solar energy entrepreneurs to
promote technical, legislative and economic conditions for the operation of the renewable energy sector. We are also a partner of Climate &
Sustainable Leaders, a unique platform in the Czech Republic to foster sustainability and climate protection.
Automotive
The automotive sector is a pillar of the global economy and at the same time one of the major contributors to climate change. Road transport in
Europe accounts for around one fifth of greenhouse gas (GHGs) emissions.
Europe, driven by its ambitious Fit for 55 legislation targets, is expected to electrify rapidly as all new cars sold in the EU will need to have zero
tailpipe emissions by 2035 (Source: europa.eu). However, some European companies have scrapped their car electrification targets, citing
challenges such as regulatory uncertainty, rising production costs, and increasing competition.
Our strategy for the automotive sector aims to support our clients in their transition path and achieving their own targets, helping them in seizing new
market opportunities across their value chain (including EV battery manufacturing, infrastructure management, etc.) as they shift towards low-
emission vehicles. We have started to actively work with a range of our clients, including some of the top car manufacturers in the market, to finance
specific projects entirely dedicated to electric vehicle production, such as finance for a new dedicated factory. For example, UniCredit Bank GmbH,
with other financial institutions, contributed to finance the extension of the existing Mercedes-Benz group plant in Kecskemét/Hungary. The new
facilities will be solely used for the manufacturing of battery electric vehicles.
Our holistic industry approach (“In Motion”), combines the expertise of all our specialists along the total automotive value chain, from natural
resources to recycling, with the support of the investments into new technology to support the sector in its transformation towards zero emission
mobility.
244
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Steel
The decarbonisation of the Steel industry to Net Zero requires joint efforts from all stakeholders including regulators, producers, and final customers
for the adoption of a unified standard which is why industry-backed initiatives are key.
Steel contributed over 7% of global CO2 emissions while the demand is expected to continue to increase, classifying it as one of the hard to abate
sectors. At UniCredit, we believe this is a key step to help the Steel industry transition into a greener future, as we continue to support our clients in
their ambitions and engage in strategic industry discussions around the development of real investment projects.
In recognition of the importance of collaboration between the financial world and the steel industry, we are a Signatory of the Sustainable Steel
Principles which was the result of the collaboration of the Steel Climate-Aligned Finance Working Group facilitated by RMI’s Center for Climate-
Aligned Finance. The Principles helped establish a sector-specific methodology, access to robust data, and a common measurement and disclosure
platform that is essential to impactful client engagement and action in the real economy.
At UniCredit, we are keen to support the decarbonisation of the full steel value chain and actively engage with clients looking to transition from the
historically polluting technology to cleaner production paths which incorporate a myriad of solutions ranging from hydrogen-based technologies to
green electrification of the production.
As proof of our firm commitment, UniCredit acted as Mandated Lead Arranger (MLA) and lender of the SACE covered green loan financing for
Salzgitter group. The transaction contributed to the financing of its €2.3 billion decarbonisation project SALCOS® which will convert its blast furnace
steel production to DRI and electric arc furnaces powered by green electricity and green hydrogen. Once completed in 2033, SALCOS® will enable
a 95% abatement of Salzgitter AG’s CO2 emissions in steel manufacturing, reducing Germany’s aggregate CO2 emissions by around 1%. The
financing facility was among the first ECA-covered Corporate Green Loans in the steel sector worldwide and the first in Germany.
Shipping
Industry stakeholders agree that decarbonising the Shipping sector is a significant challenge. Since shipping is a fundamentally international
industry, it is important to subject it to uniform regulations among the countries. In this sense, we appreciate the steps taken by the International
Maritime Organization (IMO) in its efforts to counter the effects of climate change stemming from the sector.
Through the adoption of the 2023 IMO Strategy on Reduction of GHG emissions from ships, the IMO has increased the ambition to reduce global
GHG emissions and provided a framework for Member States that sets out the path to a greener industry. As stated by UNCTAD (United Nations
Conference on Trade and Development), minimising uncertainty about future regulations, and improving clarity around carbon prices and fuels, is
needed to spur action and investment by shipowners and other stakeholders across the maritime transport and energy production value chain
(UNICTAD, Review of maritime transport 2023). At a global level, important steps need to be taken to facilitate the availability and usability of
alternative fuels through dedicated and adequate production, bunkering facilities, and storage.
At UniCredit we believe that scaling up investment in new ships (including design, engines and onboard technologies) is also crucial. We will do our
part by funding our clients’ next generation vessels and/or financing the retrofit of their existing ships. We are continuously engaging our customers
to identify with them the best financing strategy to accelerate their transition.
Commercial Real Estate
To achieve its target, UniCredit supports the corporate clients operating in Real Estate on their journey to a sustainable transition.
We aim to focus financing towards better new energy-efficient buildings, while also supporting our clients in the retrofitting of less efficient premises.
In general we favour transactions with lower emissions intensity and better energy certificate labels.
We will engage with our customers and stimulate conversations, proposing dedicated products or other financing opportunities to support the
achievement of their plans.
We are encouraging the collection of actual Energy Performance Certificates among our clients as this is also relevant to improve our data quality
and step up our calculation methodologies for this sector.
Finally, it is important to emphasise that strong commitments from governments and other industry stakeholders will be crucial to the achievement of
the decarbonisation targets.
Our target already reflects challenging public government commitments on the share of renewables within the electricity grid of the countries in
scope. These commitments are therefore a key enabler for the overall sector decarbonisation and our ability to achieve the 2030 intermediate goal.
245
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Some relevant projects have been financed in the sector. One of these involves Coima group and is related to P39, a real estate office/residential
complex located in Milan. It applies the most effective sustainable building practices with constant focus on energy saving, allowing the building to
meet the Nearly Zero Energy Building standard.
Moreover, as proof of our commitment in this sector, in Italy a specific product has also been designed to support corporate clients, called
One4Planet Green Buildings. It is a use of proceeds, medium-long term loan, (Secured or Unsecured) for Corporate clients aiming to finance
projects with the following purposed:
• construction or purchase of high energy-efficiency buildings (Energy Performance Certificate rated “A” or higher);
• renovation of buildings with an improvement in energy efficiency class;
• installation, maintenance, or repair of fittings or property finishing works with a high energy impact.
Residential Real Estate
For this segment, transitioning to net-zero buildings requires Government initiatives as well as dedicated financial tools.
Firstly, Government intervention and adequate incentive schemes will be crucial enablers for the decarbonisation path. It is essential to have
coordinated policies that support an improvement in the energy consumption mix for the existing building stock (e.g., through an increase in the
share of renewables within each country’s electricity supply), while at the same time providing the right incentives to increase renovation rates,
especially in the poorest areas and those with more heritage buildings, and a lower net zero assets construction rate.
At UniCredit we will monitor the progress of the sector regulatory framework and incentive system and at the same time we will continue to support
clients who want to reduce the carbon footprint of their homes, also designing and providing dedicated product offering.
For example, in Italy a new mortgage was released in June 2023 called “Mutuo Sostenibilità Energetica” (€83.3 million disbursed by December
2024) and new partnerships were developed with strategic providers in this sector. This product foresees dedicated conditions and an ecosystem of
value-added services such as a EPC label simulation and a complete project for energy efficiency ready to be implemented, through specialised
partners.
Resources to support our Transition Plan
With regard to the operational and capital expenditures (OpEx and CapEx) for supporting our commitment to Net Zero, we established a dedicated
Net Zero project at Group level which was initially set up in 2022 and is led by a cross-functional team. This project brings together ESG, Finance,
Risk Management, Business and Digital teams to identify and implement the key actions needed to define and support our transition strategy,
involving 150 employees.
In addition, we are also leveraging the Bank’s existing ESG functions, such as ESG advisory experts, that have pivotal roles in the client
engagement process. Furthermore, at a local level we benefit from dedicated expert roles. For example, we have set up a team of ESG Experts to
support Relationship Managers in the origination and structuring of ESG deals for corporate clients across all Italian commercial regions.
To provide all involved UniCredit functions with relevant Net Zero information and methodologies needed to effectively implement our transition
strategy, we have invested in our ICT infrastructure to enhance supporting tools and introduce new functionalities, for example:
• structuring and automatizing Net Zero data input an output flows for monitoring and reporting activities;
• introducing clients’ transition plans assessment functionalities;
• displaying Net Zero relevant data by client (including their environmental impact, cluster and recommended strategy) to our business network
leveraging on existing dashboards;
• enabling business colleagues to simulate Net Zero impact at single deal and portfolio level;
• allowing the identification and segregation of deals aiming to support the transition of our clients.
We delivered dedicated Net Zero training sessions at group-level for UniCredit internal functions involved in all our operating countries during the
year. Colleagues in the interested functions have been involved in six hours of training, including Net Zero fundamentals, clients’ transition plans
assessment methodology, clients’ Net Zero engagement strategies together with Net Zero’s implications for the credit process, and transition
finance.
It should be noted that the amount of financial resources invested in ICT infrastructures for the action plan is not material.
Alignment of our Transition Plan with the overall business strategy
In UniCredit we put clients at the centre of our Bank and our decision-making, and we are directly influenced by their needs. It is our responsibility to
support them in their own just and fair transition as we progress towards our ESG targets, leveraging on the Net Zero commitment and Transition
Plan as stated in our new ESG Strategic Framework and consistently with our ESG Strategy.
246
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
As a consequence, we are working to increasingly embed Net Zero into our core banking processes, such as the financial, risk and business
processes.
For instance, starting from 2023 we included Net Zero in target setting, breakdown, and cascading activities into our existing planning processes,
assigning clear responsibilities within existing governance and setting-up adequate tools to systematically gather and model all data required.
As part of this effort, we also embedded Net Zero KPIs into our Risk Appetite Framework (RAF).
In addition to ensure the right organizational commitment, we have also aligned our Remuneration Policy to Net Zero objectives. We introduced Net
Zero KPIs in the Sustainability section of our Top Management long-term performance conditions. For more details on our Remuneration Policy,
please refer to GOV-3 Integration of sustainability-related performance in incentive schemes section.
With our Transition Plan we are continuing and even strengthening the support to our clients, accelerating their transition and providing them with
effective advisory, tools and appropriate financing solutions. We are empowering clients and communities by financing renewable energy projects
and energy efficiency efforts.
Our business functions are focused on supporting clients that are more advanced in their decarbonisation strategy and engaging clients still in the
early stage of their transition path. Therefore, we developed a specific methodology and process based on a dedicated climate and environmental
questionnaire to evaluate and cluster our clients’ transition pathway. Furthermore, we introduced sector-specific policies that commit us to stop
financing controversial carbon-intensive activities, such as energy production from thermal coal and the most impactful oil and gas operations (e.g.
tar sands, fracking, ultra-deepwater drilling, arctic extraction, etc.) and to phase out similar financing that had been granted in the past before the
policies came into effect. We continually update our policies to ensure that the most recent evolution of related risks is considered and properly
managed.
Our Transition Plan was approved by the UniCredit group CEO during the Group Executive Committee meeting and finally reviewed by the Board of
Directors in February 2024. The same formal process had been followed for the approval and review of Net Zero intermediate 2030 targets before
disclosure to the market.
Progress in the implementation of our Transition Plan
Throughout the year, we turned our commitment into actions, cascading the Net Zero transition plan, already set up in 2023, to the whole Group and
involving all the relevant functions of the Bank to deploy the actions identified. For more details, please refer to E1-4 Targets related to climate
change mitigation and adaptation section.
Starting from our inaugural plan, we have updated the identified activities on the basis of our ESG Strategy, regulatory evolution and stakeholder
expectations. We adapted the plan to cope with the new Net Zero sectors (i.e. Steel, Commercial and Residential Real Estate and Shipping) as we
want to accompany their own transition. To this extent, we consider it crucial to keep pace in a dynamic context and properly manage all emerging
needs to reach our Net Zero targets.
In 2024, we achieved good progress in our journey to Net Zero in terms of Implementation Plan, Governance and Dialogue with stakeholders.
Implementation plan
In order to operationalise our targets, we have set and are following a cross-functional implementation plan, which defines how we integrate Net
Zero considerations into all our core business activities and decision-making processes and is based on the following key components:
1. Target setting to ensure we structurally embed Net Zero into our planning process and our targets at group and local level;
2. Monitoring to effectively track our progress against our targets and to identify corrective measures in case of deviations;
3. Risk management to ensure we adequately manage the different risks (reputational risk, climate and environmental risk and credit risk) linked to
our clients’ transition to more sustainable business models;
4. Products and services to effectively assist our clients’ journeys to Net Zero;
5. Supporting tools to ensure the organisation has all the relevant information to operate in this space.
1. Target setting
The target setting process is a critical backbone to be aligned with the expectations set by NZBA. The process involved a broad cross-functional
working group with an active support from our ESG, Risk Management, Finance and Business functions.
We initially established a set of intermediate 2030 targets on Oil & Gas, Power Generation and Automotive then we added new intermediate targets
for Steel in January 2024, and Shipping and Commercial Real Estate in July 2024, together with the 2022 baseline for Residential Real Estate.
For more details, please refer to E1-4 Targets related to climate change mitigation and adaptation section.
247
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
To reinforce the strategic direction and orient the Group, the planning process have been adapted to incorporate the new commitments so once
2030 targets were set at Group Level, they were broken down by division and cascaded to the whole organization.
2. Monitoring
We have set up a dedicated process to track our Net Zero KPIs evolution vis-à-vis our baseline and targets. This is fundamental to the effective and
timely steering of our loan portfolio and requested also by NZBA.
The Net Zero monitoring process also demands strong collaboration between all Net Zero-involved functions (Risk Management, Finance, ESG,
Digital and Business) given high interdependencies for targets breakdown, targets cascading and data strategy.
It requires that we not only track the evolution of our exposure on existing clients, but also that we periodically refresh climate data for the calculation
of climate impact.
Thanks to the new monitoring process we have put in place, starting from 2024 we are able to provide our business functions with dedicated
periodic reports on Net Zero impact evolution, including all underlying drivers needed to steer our Net Zero portfolio.
As for target setting, we are progressively extending monitoring activities to new sectors: in 2023, we started with Oil & Gas, Automotive, and Power
Generation; in 2024, we included Steel and, in parallel, are working on the inclusion of data for Shipping and Commercial and Residential Real
Estate for the beginning of 2025.
3. Risk management
As result of our commitment towards sustainability and Net Zero, we have begun integrating Net Zero considerations into Risk Management
Framework for three priority sectors, continuing and building on previous efforts to incorporate risk climate and environment over the past few years.
Specifically we:
• updated our Oil & Gas policy by integrating Net Zero provisions as a driver for the reputational risk evaluation and assessment;
• introduced specific KPIs related to our Net Zero targets into our Risk Appetite Framework (RAF);
• released more comprehensive qualitative guidelines to incorporate Net Zero commitments in our credit risk strategies;
• defined and embedded Net Zero client strategies into the credit process.
During 2024, we reinforced our approach, evolving it and extending the above-described components of the Risk Management framework also to
the new sectors.
Specifically Net Zero client strategies aimed at further tailoring our approach to the needs of different clients. First, we clustered our Net Zero clients
based on their actual impact on our financed emissions and on their forward-looking transition strategy, thereby identifying transition leaders, clients
aligning to transition and laggards vis-à-vis transition. The next step was to set differentiated engagement strategies by client cluster and sector,
ranging from retaining/expanding our relationship with leaders to active engagement of aligning clients and gradual reduction of our support to
laggards. In all cases, we regard green and transition finance as a key lever to assist our clients’ transition, especially for those who are not yet
leaders on the transition journey.
248
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
To ensure our approach is based on solid ground and we actively support our clients progressing in their transition, we adopted a bespoke approach
for assessing our clients’ transition plans, when available, and to strategically engage with them on their decarbonisation strategy.
Based on internationally recognised frameworks and initiatives on transition planning (e.g. GFANZ, CDP, CA100+), we developed a cross-industry
questionnaire, measuring qualitative and quantitative elements for evaluating the completeness of our clients’ transition plans, including current and
forward-looking key indicators such as historical emissions, targets, risk management, the governance and strategy in place.
Depending on the coverage of these indicators, questions and answers are converted into a qualitative score on a scale from 0% to 100%
determining three possible assessments (developed transition strategy, early-stage transition strategy and absent transition strategy). In 2024 we
started testing this approach with pilot cases and we plan to extend it to all our Net Zero sectors’ clients. Furthermore, we also plan to rely on
external experts to further strengthen our understanding of our clients’ transition plans. This approach represents a fundamental part of our Net Zero
engagement strategy to facilitate insightful and data-driven discussions with existing and prospective clients regarding new opportunities to finance
their transition and mitigate potential risks.
4. Products and services
We are supporting many of our clients with dedicated products such as green loans (aligned to market standards such as EU Taxonomy or ICMA),
green financing in partnership with public entities at local and European level (e.g. Kreditanstalt für Wiederaufbau, European Investment Fund, etc.),
sustainability-linked loans and much more.
Moreover, since starting our Net Zero journey we realized that supporting our clients with dedicated transition finance is key to reaching our Net Zero
ambition.
Therefore, we have established our own internal definition of transition finance based on EU Commission recommendations and included it in our
ESG Product Guidelines at the end of 2023, that apply to all Group countries. They aim to define a comprehensive methodology for the
homogeneous classification and reporting of UniCredit’s ESG products and services, defining criteria for eligibility, and at the same time, to protect
the Group against greenwashing and social-washing risks.
The guidelines also require our clients to have transition plans certified by a third party to access transition finance, so that we ensure that the
required financing is dedicated to eligible transition initiatives.
Finally, to effectively identify which of our products are most effective for our clients, we will continue to leverage our dedicated ESG functions, such
as the ESG advisory team, which helps business network colleagues analyse clients’ ESG needs and identify the most appropriate products to
support them.
5. Supporting tools
To provide all involved UniCredit functions with relevant Net Zero information and methodologies needed to effectively implement our transition
strategy, we are also upgrading our supporting tools and introducing new functionalities, for example:
• introducing clients’ transition plans assessment functionalities into existing tools;
• displaying Net Zero relevant data by client (including their impact, cluster and recommended strategy) to our business network leveraging on
existing dashboards;
• enabling business colleagues to simulate Net Zero impact at single deal and portfolio level through dedicated tools;
• allowing the identification and segregation of deals aiming to support the transition of our clients, on the basis of our internal definition of transition
finance (founded on EU Commission recommendations and included it in our ESG Product Guidelines at the end of 2023).
In addition, in March 2023 we joined the Open-es partnership, an Alliance that brings together entrepreneurial, financial and associated networks.
Through Open-es we have strengthened our support for our clients in their sustainable development with a digital and innovative platform that
provides them with an ESG scoring, provided by Cerved Rating Agency, and also allows to pursue clients' decarbonisation path.
All the additional tools and new functionalities described above were designed and finetuned during the last two years with the involvement of cross-
functional working groups from the ESG, Risk Management, Business and Digital functions.
Governance
In order to support our commitment to Net Zero, we established a dedicated Net Zero project at Group level, which was initially set up in 2022 and is
led by a cross-functional team. This project brings together ESG, Finance, Risk Management, Business and Digital teams to identify and implement
the key actions needed to define and support our transition strategy.
As a key part of our Transition Plan, we are working to increasingly embed Net Zero into our core banking processes, such as the planning, risk and
business processes. As part of these effort, we embedded Net Zero KPIs into our Risk Appetite Framework (RAF), as mentioned in the Risk
Management section.
249
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
In terms of our clients, we are leveraging the Bank’s existing ESG functions, further promoting crucial capabilities, such as ESG advisory experts,
that have pivotal roles in the client engagement process.
Furthermore, at the local level, we benefit from dedicated expert roles. For example, we have set up a team of ESG Experts to support Relationship
Managers in the origination and structuring of ESG deals for corporate clients across all Italian commercial regions. Also, in Germany, we have
dedicated ESG training programmes such as the Sustainable Finance Experts programme, certified by an external institution, primarily aimed at
client relationship managers and other specific roles.
To support our enhanced ESG governance processes and maintain our Net Zero momentum, during the year we delivered dedicated Net Zero
training sessions at Group level for UniCredit internal functions involved in all our operating countries.
Our training focused on the key skills and knowledge needed for Net Zero decision-making, including basic training on Net Zero fundamentals,
clients’ transition plans assessment methodology, Net Zero engagement strategies and their implications for the credit process, and transition
finance and its applicability for Net Zero clients. We are planning to deliver new courses in order to cover emerged learning needs derived by
extending our targets and sectors.
Dialogue with stakeholders
UniCredit constantly engages with sector associations to contribute to shape the financial institutions’ role in supporting the real economy transition.
A constant dialogue with key external stakeholders and dynamic environment is fundamental to ensure a shared approach to reach Net Zero
targets.
For example, we are taking part in NZBA working groups where we provide feedback to set clear guidelines and standards. Furthermore, we
maintain an active dialogue with policymakers and regulators on Net Zero through sector associations such as the Institute of International Finance
(IIF), the Association for Financial Markets in Europe (AFME) and the European Banking Federation (EBF), which provide input and feedback on the
role of financial institutions in achieving climate goals, on the framework for transition finance and on transition planning.
We also strive to engage locally with industry sectors and other stakeholders in the countries where we are present. For example, UniCredit Bank
Austria continued its cooperation with WWF Austria, with 2024 focus on raising awareness and screening of possibilities to integrate more
sustainable products into the Bank's investment portfolio.
A relevant moment of dialogue with our stakeholders, is the celebration of our ESG Day. In 2024 UniCredit held its second recurrence “A challenged
future: choosing the path ahead”: the event, with more than 13,000 participants, built as a customer journey to provide concrete solutions to the
clients. The session entitled "A zero-sum game? Solving sustainability trade-offs", hosting relevant energy sector’ guests, highlighted the need to
manage conflicting interests as part of the transition, with meaningful action, balancing environmental, social and biodiversity issues.
The event also provided a moment to formally launch the workers' stream of its “Skills for Transition program”, which delivers strategic training to the
workforce of companies expected to be impacted by the green transition, helping them to develop the skills they need to meet the need of a
changing environment whilst generating a measurable social impact. Fully funded by UniCredit, the programme spans six UniCredit group countries:
Italy, Germany, Bulgaria, the Czech Republic, Slovakia and Romania, delivering specific learning paths via a digital platform and in workers' local
languages.
250
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Impact risk and opportunity management
For the disclosure of Climate change IROs, reference is made to Notes to the consolidated accounts, Part E - Information on risks and related
hedging policies, Section 2 -Climate and environmental risks.
E1-2 - Policies related to climate change mitigation and adaptation
UniCredit’s commitment to Net Zero emissions is fostered through our specific policies on climate change, which address material impacts, risks and
opportunities resulted from the Double Materiality Assessment:
Impacts:
• generation of direct and indirect energy GHG emissions (Scope 1 and 2);
• generation of indirect GHG emissions produced in the value chain as a result of the business activities performed by actors in the downstream
value chain (Scope 3 - Only 15 category);
• generation of indirect GHG emissions produced in the value chain as a result of the business activities performed by actors in the upstream and
downstream value chain (Scope 3 - All categories except financed);
• fostering awareness and commitments related to climate change and accelerating the green transition through the support towards energy
efficiency initiatives and renewable sources financial projects across counterparties for the next years.
Risk:
• credit risk: impact on credit risk portfolio due to deterioration of the counterparty’s creditworthiness due to damage, caused by acute and chronic
events, to the counterparty’s plants and production sites and decrease in the recoverable amount/market values of collateral due to damage,
caused by acute and chronic events.
Opportunities:
• investments in the implementation of green/environmental projects;
• creation of new products and services to support clients in their transition journey towards their decarbonisation targets;
• invest in/finance green tech (start-ups) and also access new markets (e.g., carbon emissions trading).
In particular, the Smart Office Workplace policy focuses on space and energy consumption optimisation and curbing GHG emissions in the Bank’s
offices worldwide. Sector-specific policies (covering Civil Nuclear, Coal, Defence, Mining, Oil & Gas, Tobacco, and Water infrastructure) address
climate change adaptation and mitigation strategies among UniCredit’s credit portfolio: these policies aim to manage financed GHG emissions and
mitigate risks associated with counterparties’ financial stability, which may be affected by climate-related events that could harm their production
sites and reduce the market value or recoverability of collateral. Additionally, the ESG Product Guidelines include a comprehensive methodology for
classifying and reporting UniCredit’s ESG offering, with a focus on financing energy efficiency, renewable energy deployment, and climate change
mitigation and adaptation initiatives: this represents a possibility for UniCredit to invest in green projects while creating new ESG products.
For more details on climate-related policies, please refer to MDR-P Policies adopted to manage material sustainability matters section.
E1-3 - Actions and resources in relation to climate change policies
Decarbonisation lever types for both own emissions and financed emissions are covered in the E1-1 Transition plan for climate change mitigation
section.
Progress achieved and expected actions on Net Zero targets
Own Emissions
In 2024 our Group GHG emissions arising from own operations amounted to: 24,412 tCO2e (Scope 1); 16,702 tCO2e (Scope 2 market-based);
100,830 tCO2e (Scope 2 location-based); 285,848 tCO2e (Scope 3 - excluding category 15). For the present disclosure, comparisons with historical
data are not possible due to the changed reporting perimeter versus previous years. However, as in previous years, in 2024 we prioritised efforts to
abate climate impacts arising from our own operations.
Indeed, we hold ourselves to the same standards that we expect from our partners and have established well-defined objectives to contain our
environmental footprint, in particular the reduction of GHG emissions arising from our own operations. This includes reducing our energy
consumption mainly through space optimisation measures, procuring electricity from renewable sources, improving the energy efficiency of our
premises and data centres, and transforming our heating systems from fossil fuels to more sustainable sources (heating pumps or district heating).
251
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
We were the first bank in Italy to close a corporate PPA (Power Purchase Agreement) to meet the energy demand of our data centres located in
Verona, Italy. This agreement strengthens UniCredit’s group-wide Green Energy Procurement strategy, serving as a best practice across our
geographies.
In addition to renewable energy sourcing, we are also committed to improving space and energy efficiency in our buildings. In 2023, we introduced a
new Smart Office Workplace Policy to define space efficiency KPIs and provide guidelines on energy efficiency measures and improv the quality of
the built office environment with a focus on hybrid solutions, health, well-being and sustainability.
In light of the hybrid way of working we have optimized the footprint of our headquarters (HQ) by releasing selected buildings and creating newly
refurbished spaces while improving the space occupancy in our premises during holiday periods.
In most of our buildings, we continue to work towards consolidating our efforts on energy efficiency by applying smart energy control systems,
improving thermal insulation and implementing LED solutions.
Moreover, we have improved the algorithms that manage Heating, Ventilation, and Air Conditioning (HVAC) and lighting controls, optimising both
energy consumption and workplace comfort.
The Group’s guidelines for dedicated energy management measures, launched at the end of 2022 in response to the global energy crisis, allow to
continuously reduce our energy consumption thanks to specific actions including heating and cooling systems working hours reduction, sustainable
temperature set-points and lighting time frame reduction.
Natural gas, diesel and oil heating systems transformations (to electrical heat pump or district heating) is always considered a preferred option in
case of planned maintenance replacement.
Moreover, renewable energy sourcing is a crucial step on our path towards Net Zero on own emissions. We also make use of self-produced
renewable electricity at selected premises.
Our Group target is set to Net Zero on own emissions (Scope 1 and 2 market-based) by 2030. Within the premises we occupy, our efforts towards
the achievement of this target consist of reducing as much as possible from our own operational consumption and procuring energy from
green/renewable sources.
In 2024 a total cash-out of ca. €30 million was carried out on the abovementioned related actions on our real estate building portfolio.
Based on the multi-year plan budget a total cash-out of ca. €60 million has been budgeted for actions on our real estate building portfolio with an
impact on the Net Zero own emissions target.
We will continue to act on the following levers:
• space optimization;
• energy efficiency;
• heating system transformation: in the coming years, we are planning to transform a significant number of fossil fuel heating systems into highly
efficient electrical heat pumps or district heating;
• electricity and District Heating/cooling purchased from certified renewable sources;
• self-produced electricity.
252
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Financed emissions
Actions and progress made on financed emissions in respect to Net Zero 2030 intermediate targets are reported below for each sector and refer to
2023, in line with the latest climate data available on our clients.
Oil & Gas
During the past years, we focused on engaging clients with clear transition strategies to actively support them in their transition path; on the other
hand, we kept reducing our exposure to clients not aligned with the transition and clients with high impact on sector Scope 3 emissions.
As results, in 2023 our financed emissions decreased by -47% vs 2022 and more than 50% vs the 2021 initial baseline, moving to a value of 10.2
MtCO2e, below the Group 2030 target.
The reduction has been mainly driven by the deleveraging of non-strategic clients, with an acceleration in the reduction of Russian client exposure.
Despite the good results achieved so far, we currently confirm our Net Zero Group target for 2030 of -29% vs 2021 baseline (i.e., 15.2 MtCO2e).
A temporary increase in financed emissions could materialise in the coming years, considering the volatility of the metric (e.g., the impact of potential
change in EVIC) and the Bank’s intention to support the transition of our clients operating in the sector.
In scope on balance
sheet lending YE2023:
€4.7bn
Financed emissions
baseline YE2021:
21.4 MtCO2e
Financed emissions
YE2023 vs YE2021:
- 52% (to 10.2 MtCO2e)
Financed emissions
2030 Target vs 2021:
- 29%
Notes:
IEA NZE 2050 Benchmark: Percentage reduction of the NZ IEA World scenario, including Oil & Gas only.
Financed emissions: Computed on portfolio in scope when data available (Scope 3 emissions for midstream companies not computed in line with current literature).
253
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Power Generation
In 2023 the emissions intensity of our portfolio in the sector has further reduced compared to 2022 (-30%) moving to a value of 107 gCO2e/kWh,
already below the 2030 intermediate target, and decreasing by 49% from the initial baseline.
This positive trend was mainly achieved thanks to the increased exposure to counterparties operating in the renewables business (“pure” renewable
players) and our continued support to the traditional power producers who are increasing the share of renewables in their production mix, pursuing
the climate transition. In 2023 approximately €5.5 billion of our Power generation portfolio is related to lending to “pure” renewable players or green
loans to traditional players to support power production from renewable sources. Although 2023 emissions intensity is already below our
intermediate target for the sector, we currently confirm a target of 111 gCO2e/kWh for 2030 expecting a possible temporary increase of physical
emissions in the coming years resulting from the Bank’s support of green transition of traditional power producers and countries where we operate.
In scope on balance
sheet lending YE2023:
€9.8bn
Emissions Intensity
baseline YE2021:
208 gCO2e/kWh
Emissions Intensity
YE2023:
107 gCO2e/kWh
Emissions Intensity
2030:
111 gCO2e/kWh
Notes:
IEA NZE 2050 (Europe) Benchmark: Scenario scaled down to European level (excluding Ammonia and Hydrogen).
Emissions Intensity: Computed on portfolio in scope when data available.
254
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Automotive
In 2023, the emissions intensity of our loan portfolio decreased significantly compared to both 2022 and initial 2021 baseline, reaching 116
gCO2/vkm (-30% and -28% respectively vs.2022 and 2021 baseline).
The reduction of our metric is the result of the financing of projects dedicated to the production of electric vehicles (i.e., green loans to which we
attribute a value of emissions intensity equal to 0), and the improvement of emissions data of the car manufacturers in our portfolio who are
progressively converting their production from vehicles with internal combustion engines to hybrid and electric vehicles.
To reach our 2030 intermediate target, we will continue to support the transition plan of our clients, as well as support new zero-emissions projects
for the production of greener vehicles.
In scope on balance
sheet lending YE2023:
€2.0bn
Emissions Intensity
baseline YE2021:
161 gCO2/vKm
Emissions Intensity
YE2023:
116 gCO2/vKm
Emissions Intensity
2030 Target:
95 gCO2/vKm
Notes:
IEA NZE 2050 Benchmark: World scenario on whole fleet.
Emissions Intensity: Computed on portfolio in scope when data available.
255
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Steel
In 2023, the emissions intensity of our Steel loan portfolio increased slightly from 1.45 tCO2/tSteel of 2022 to 1.50 tCO2/ tSteel (+3%), mainly driven
by a temporary increase of the exposure to specific higher-emitting clients.
However, the 2023 performance results in a negative alignment score of -0.17, which is better than the decarbonization pathway of the IEA and
MPP TM benchmarks, required by the Sustainable Steel Principles.
UniCredit is actively supporting high-emitting clients that are pursuing the decarbonization of this hard to abate sector.
For the coming years, as the construction of new low-carbon steel plants progresses and in line with our strategy to support the transition of the steel
industry, UniCredit expects a decrease in the metric thanks to the financing of projects related to low-carbon steel production.
We will continue to work closely with our clients to help realise their transition plan and achieve our 2030 intermediate target (i.e., 1.11 tCO2/tSteel).
In scope on balance
sheet lending YE2023:
€1.9bn
Emissions Intensity
baseline YE2022:
1.45 tCO2/tSteel
Emissions Intensity
YE2023:
1.50 tCO2/tSteel
Emissions Intensity
2030 Target:
1.11 tCO2/tSteel
Notes:
IEA NZE 2050 Benchmark: IEA trajectory is an enhancement of IEA NZE providing split trajectory on primary and secondary markets and following a fixed boundary approach.
MPP TM Benchmark: Mission Possible Partnership Technology Moratorium.
256
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Shipping
In 2023, the emissions intensity of our loan portfolio registered a slight decrease compared to 2022 (-1%). The result is mainly driven by a rather
stable performance vs. 2022 of the existing vessels in our portfolio. In line with our strategy, we want to support our clients by providing lending for
the construction of most efficient vessels and/or financing the retrofit of existing ships in their fleet.
We will continue to engage our customers to better understand their mid-long terms decarbonisation strategy and to identify with them the best
financing solutions to accelerate their transition.
Since investments in the shipping sector take time to deliver benefits in terms of vessel emissions intensity reduction (i.e., due to the time required to
build and operate new vessels), we expect to see a positive impact on the emissions intensity metric from our recent financing from 2025 onwards
and an acceleration of the reduction in the metric closer to the end of the decade.
In scope on balance
sheet lending YE2023:
€2.5bn
Emissions Intensity
baseline YE2022:
Passenger: 14.1
gCO2e/GT-nm
Merchant: 9.5 gCO2e/
dwt-nm
Emissions Intensity
YE2023 vs YE2022:
-1%
(Passenger: 14.0
gCO2e/GT-nm
Merchant: 9.3
gCO2e/dwt-nm)
Emissions Intensity
2030 Target vs 2022:
-30%
Notes:
IEA NZE 2050 Benchmark: Percentage reduction target in line with benchmark.
-1%: Portfolio percentage reduction exposure-weighted at subsector level.
257
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Commercial Real Estate
In 2023, the emissions intensity of our Commercial Real Estate portfolio decreased slightly moving from 44.2 to 43.4 kgCO2e/m2 (-2%). The
improvement was mainly driven by an increase of lending to building with better energy performance in Germany and Austria in 2023 and the
progress in the decarbonisation of the electricity grid with an increase of renewables sources in Germany.
We expect to see a positive evolution of the metric also in the coming years, however an acceleration of the decarbonisation of the sector and our
progress in reaching the 2030 target are closely linked to the evolution of the regulatory framework and the progress the three countries in which we
operate will make in terms of electricity grid decarbonisation.
In scope on balance
sheet lending YE2023:
€30.6bn
Emissions Intensity
baseline YE2022:
44.2 kgCO2e/m2
Emissions Intensity
YE2023:
43.4 kgCO2e/m2
Emissions Intensity
2030 Target vs 2022:
-44%/-55%
Residential real Estate
For the Residential Real Estate, we recently disclosed our 2022 emissions baseline on mortgages to households with the intention to monitor our
progress in the sector.
Emissions intensity remained fairly stable in 2023, slightly decreasing from 36.3 to 35.8 kgCO2e /m2 (-1.4%). The positive trend was mainly driven,
as for Commercial Real Estate, by an increase in lending to buildings with better energy performance in Germany and Austria and the positive effect
of German decarbonisation of the electricity grid.
For the future, we confirm our intention to support clients who want to reduce the carbon footprint while reiterating the importance of government
intervention and adequate incentives as enablers for the decarbonisation journey of the sector, even more than Commercial Real Estate sector,
since it is related to the expenditure borne by individuals and families.
Resources allocated to perform activities
The availability of ICT and HR resources are crucial to perform the activities related to the key components of our implementation plan, as described
in the E1-1 Transition plan for climate change mitigation section.
A lack or the misallocation of the identified resources could compromise the success or feasibility of the action plan.
It should be noted that financial resources allocated to action plans (CapEx), mainly related to not material ICT investments as reported in the E1-1
Transition plan for climate change mitigation section, are accounted for in the line item "100. Intangible assets".
The current financial resources mentioned in the previous paragraph, are mainly related to CapEx, which are reflected in the table “9.6 Property,
plant and equipment used in the business: annual changes”, Notes to the consolidated accounts, Part B - Consolidated balance sheet - Assets.
258
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Metrics and targets
E1-4 - Targets related to climate change mitigation and adaptation
With regard to the relationship with policy objectives, please refer to MDR-P – Policies adopted to manage material sustainability matters section.
Net Zero target on own emissions
We have committed to pursuing Net Zero emissions on our own operations (Scope 1 and 2, market-based) by 2030, without interim targets. Our
target is compatible with limiting global warming to 1.5°C in alignment with the Paris Agreement objectives. The target applies to the Group.
As of 2024 reporting, we have revised the base year of our Net Zero target on own emissions to 2024, previously 2021.
In accordance with our strategy, which recognises that the most effective way of managing our climate impact arising from our own operations is to
focus our efforts on those facilities for which we have full control, we apply a segmentation to the inventory of the premises we occupy. Thus, we
distinguish those assets for which we have control and those for which we do not. Consequently, emissions from assets for which we do not have
control are reported under Scope 3.
Renewable energy sourcing is a crucial step on our path towards Net Zero on our own emissions, along with space optimisation, energy efficiency,
and the transformation of fossil fuel heating systems into highly efficient electrical heat pumps or district heating.
A working group was established to disclose the target and monitor our Net Zero trajectory. We have raised awareness on this fundamental goal
among our employees, for example by organising dedicated workshops on Net Zero on own emissions, involving the Group Real Estate, Group
Strategy and Group ESG functions. This has offered colleagues an excellent opportunity to gain knowledge and insights on how to contribute to the
achievement of our Net Zero target.
Net Zero targets on financed emissions
In line with the NZBA commitment, our ambition is for Net Zero on financed emissions by 2050.
To achieve that, we disclosed targets on six sectors (i.e., Oil & Gas, Power Generation, Automotive, Steel, Shipping and Commercial Real Estate)
and emissions baseline for Residential Real Estate. On Coal, phase out by 2028 strategy and related policy are already in place22.
Following a detailed review of our financing portfolios, among the most carbon-intensive sectors identified by NZBA, we have identified three sectors
where we do not have a material exposure: Aluminum, Cement and Aviation. In particular, each of them represents less than 1% of our exposure to
carbon intensive sectors, with lending on-balance sheet of less than €1 billion23. Given their low materiality, these sectors will not be considered for
the Net Zero target setting. However, we will continue to monitor them to ensure our approach remains adaptable for future adjustments, if
necessary.
On Agriculture, we will continue to monitor future developments of European and local policy frameworks for the sector as well as the evolution of
recognised methodologies and data availability, being the prerequisites for working to define a decarbonisation target and strategy, as outlined by
the latest published NZBA guidelines.
Key design choices for setting Net Zero targets on financed emissions
The process for baseline and target definition involved a broad cross-functional working group with support from our ESG, Risk Management,
Finance and Business functions. It entailed the development of a dedicated internal methodology to calculate our emissions baseline and to project
its potential future trajectory, based on Net Zero reference market practices (SBTi, PCAF, IEA) and on sector guidelines (e.g. by NZBA). It also
required gathering new information from external and internal data sources and using tools to model the future evolution of our financed emissions.
For the sectors in scope, the baseline and targets were defined on the emissions profile of the Bank’s lending portfolio (on-balance sheet exposure).
Baselines defined and disclosed for sectors in scope are confirmed and do not require any adjustment or restatement.
To define the Net Zero intermediate targets we used science-based decarbonisation scenarios, in line with NZBA guidelines. In selecting the
reference scenario, we mainly considered the level of scenario ambition (i.e., whether it aligns to the Paris Agreement temperature goals and with a
1.5°C temperature target pathway), credibility of the scenario provider, possibility for geographical breakdown computation and level of detail
provided for customisation.
22 Green financing is allowed beyond 2028 only for no coal developer (no increase in coal business since September 2020) and if they have a phase out plan in line with their National Energy & Climate Plan.
23 In parallel we constantly check that the sum of all excluded sectors for materiality reasons (e.g., Aluminum, Cement, Aviation) is not higher than the 3% of the total lending on balance of the carbon-intensive portfolio.
259
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
The Bank referred to the International Energy Agency (IEA) Net Zero 1.5°C scenarios (i.e., IEA NZ 2050 for Oil & Gas, Power Generation,
Automotive, Steel, and Shipping), deriving, when needed and possible, sector-specific benchmarks and the CRREM v.2.01 scenario for Commercial
Real Estate (also aligned to the 1.5°C pathway), tailored to the UniCredit portfolio and geographies in scope.
In setting Net Zero targets, UniCredit has considered the impacts it has on climate while financing specific sectors. Also, potential risks and
opportunities have been taken into account in order to ensure that our targets are consistent with reality. Our Net Zero targets are aligned with our
climate-related policies’ objectives.
The table and specific paragraphs below provide an overview of the sector-specific approach, data and metrics for the computation of emission
baseline and the definition of the Net Zero intermediate target for each sector. The metrics used were chosen in line with market practices.
Progresses for each sector reported in the table are detailed in E1 - 3 Actions and resources in relation to climate change policies section.
Net Zero targets and progress on financed emissions
SECTOR
SCOPE
VALUE CHAIN
METRIC
SCENARIO
BENCHMARK
RETROSPECTIVE
MILESTONES AND TARGET YEARS
BASE
YEAR
BASELINE
2022
2023
% 2023/
2022
2025
2030
2050
ANNUAL%
TARGET/
BASE
YEAR
Oil & Gas
Scope 3
Category
11
Upstream,
Midstream,
Downstream
Absolute
Financed
Emissions
MtCO2e
IEA NZ 2050
(World)
2021
21.4
19.3
10.2
-47%
N/A
-29%
N/A
-3%
Power Generation
Scope 1
Power
Generation
Emissions
Intensity
gCO2e/kWh
IEA NZ 2050
(Europe)
2021
208
152
107
-30%
N/A
111
N/A
-5%
Automotive
Scope 3
Category
11 Tank-
To-Wheel
Automotive
Manufacturers
(Light-duty
Vehicles)
Emissions
Intensity
gCO2/vKm
IEA NZ 2050
(World)
2021
161
165
116
-30%
N/A
95
N/A
-5%
Steel
Fixed
System
Boundary -
Scope 1, 2
and 3
(Category 1
and 10)
Crude
steel
makers
Emissions
Intensity
tCO2/tSteel
IEA NZ 2050
(World)
2022
1.45
1.45
1.50
3%
N/A
1.11
N/A
-3%
Alignment score
-0.69
-0.69
-0.17
Shipping
Scope 1
and Scope
3 Category
3 - Well-To-
Wake
Shipping
operators
Emissions
Intensity
Passenger
gCO2e/GT-nm
IEA NZ 2050
(World)
2022
14.1
14.1
14.0
0%
N/A
-30%
N/A
-4%
Emissions
Intensity
Merchant
gCO2e/DWT-nm
9.5
9.5
9.3
-2%
N/A
N/A
Commercial Real
Estate
Operational
emissions
Real Estate
operators -
building
owners (asset
financing)
Emissions
Intensity
kgCO2e/ m2
CRREM
v.2.01
2022
44.2
44.2
43.4
-2%
N/A
-44%
-55%
N/A
-6% - 7%
Residential Real
Estate
Operational
emissions
Homeowners
(mortgages)
Emissions
Intensity
kgCO2e/ m2
N/A
2022
36.3
36.3
35.8
-1%
N/A
N/A
N/A
N/A
Notes:
Figures rounded.
Metric: Emissions intensity is exposure weighted.
Milestones and Target Years:
• 2025: UniCredit group has defined the Net Zero intermediate targets for 2030;
• 2030: When expressed in %, the value refers to reduction vs base year;
• 2050: UniCredit is committed to Net Zero 2050 maintaining a reduction path in line with the NZ scenario for each sector;
• Annual % target/base year: Average annual emissions reduction.
Fixed System Boundary: definition according to the Sustainable Steel Principles.
Commercial Real Estate/Residential Real Estate: Corresponding to Scope 1 and 2 or Scope 3 for building owners that leased assets.
Operational emissions: Focused on Italy, Germany, Austria (excluding Leasing).
260
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Oil & Gas
To calculate the baseline and target for Oil & Gas, the absolute financed emissions metric was used.
To ensure comprehensive emissions coverage, the end-to-end value chain was considered, including the upstream, midstream, and downstream
segments of the oil and gas sector. The assessment of sector emissions focused on Scope 3 emissions, based on materiality (Scope 3 emissions
account for approximately 90% of emissions in the sector).
Commodity traders were considered only above a materiality threshold of more than 2% of total portfolio financed production, and 1% of total
counterparty financed production24.
To calculate Scope 3 financed emissions, the following data inputs were used:
• counterparty-level emissions data: Scope 3 Category 11 emissions for each company are computed leveraging production data, as well as
emissions factors for each technology type (e.g. oil, gas)25;
• counterparty-level financial data: Company value and balance sheet lending is used to calculate the bank attribution factor (Exposure/Company
Value). Following PCAF methodology, the company value was measured using the EVIC (Enterprise Value including Cash) with the dynamic
approach. If unavailable (e.g., in the case of an unlisted company) we used the Book Value of Debt and Equity or Total Assets as a last resort.
Initial emissions baseline for Oil & Gas sector refers to year end 2021. Considering the selected design elements, the on-balance sheet lending in
scope for the sector in 2021 was €7.8 billion (as of 31 December 2021).
The 2021 emissions baseline for the sector has been estimated at 21.4 MtCO2e26.
Group intermediate Net Zero target has been defined for the year 2030. The period considered to achieve the Net Zero target is 2021-2030.
To define the Net Zero target for the sector we compared our emissions baseline with the IEA Net Zero 2050 scenario (World scenario including only
Oil & Gas). We decided to define our 2030 target in line with the percentage reduction 2021-2030 of the selected scenario, targeting a -29%
reduction by 2030 vs. 2021 baseline (corresponding to a 15.2 MtCO2e at 2030).
Power Generation
The portfolio-weighted physical intensity of carbon emissions per unit of energy was used as a key metric to calculate the baseline and set the Net
Zero target.
Carbon emissions from power generation were considered since they account for more than 90% of total emissions in the power value chain.
The focus was on Scope 1 emissions, the most material for the sector. Scope 2 and 3 emissions were not considered, given their small impact in the
overall power value chain and because of limited data availability.
Counterparty-level production data, sourced from an external data provider, were used to calculate the emissions intensity. Scope 1 emissions were
calculated by applying an emissions factor to the power generated by technology type. The emissions factor is computed from the IEA dataset,
using total emissions and generation per technology type.
Initial emissions baseline for Power Generation sector refers to year end 2021. Considering the selected design elements, the on-balance sheet
lending in scope for the sector in 2021 was €8.9 billion (as of 31 December 2021).
The 2021 emissions baseline for the sector has been estimated at 208 gCO2e/kWh. The Bank’s emissions intensity for 2021 is lower than the
benchmark, reflecting the effort to finance cleaner projects and counterparties already in place at the time of baseline definition.
Group intermediate Net Zero target has been defined for the year 2030. The period considered to achieve the Net Zero target is 2021-2030.
To define the Net Zero target for the sector, we compared our emissions baseline with the IEA Net Zero 2050 scenario, scaled down to European
level (excluding Ammonia and Hydrogen), because the majority of the Bank’s portfolio is based in Europe.
A convergence approach has been chosen to define the 2030 target in line with the benchmark and market practices. Our 2030 Net Zero target
value consequently defined equals 111 gCO2e/kWh.
Automotive
The primary metric selected for the Automotive sector is the exposure-weighted physical intensity (gCO2/vKm), on Scope 3 Category 11 Tank-to-
Wheel (TTW) emissions intensity.
The analysis of the sector was focused on producers of Light Duty Vehicles, which include passenger cars and light trucks, in line with market
practices and guidance, and with current data availability.
24 Diversified companies are included based on prevalence of the activity.
25 Scope 3 emissions are computed for upstream, integrated and downstream companies. They are not computed for midstream companies, in line with current literature.
26 Computed on portfolio in scope when data available.
261
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
The assessment of the portfolio’s emissions profile focused on Scope 3 Category 11 Tank-to-Wheel (TTW) emissions, on which auto manufacturers
have more levers for decarbonisation, such as the shift to electric vehicles and improved fuel efficiency.
The following data inputs are used to calculate the emission- intensity: counterparty-level production data (number of vehicles produced, per
technology type) and counterparty-level Scope 3 Category 11 TTW emissions of new vehicles sold, calculated by applying an emissions factor (CO2)
to the production data, by technology type and manufacturer.
The initial emissions baseline for the Automotive sector refers to year-end 2021. Considering the selected design elements, on-balance sheet
lending in scope for the sector in 2021 was €1.8 billion (as of 31 December 2021).
The 2021 emissions baseline for the sector has been estimated at 161 gCO2/vKm.
Group intermediate Net Zero target has been defined for the year 2030. The period considered to achieve the Net Zero target is 2021-2030.
The IEA NZE 2050 scenario was selected as the benchmark to measure portfolio alignment and define Net Zero target. The scenario reflects an
emissions intensity target inclusive of the entire existing fleet, while the Bank’s baseline is calculated based on emissions intensity associated with
manufacturers’ new vehicle sales only, based on external data availability and market practice.
Our 2030 Net Zero target has been defined at 95gCO2/vKm, below the value of the selected scenario at 2030 and implying a reduction of 41%
compared to the 2021 baseline value.
Steel
Exposure-weighted emissions intensity in tons of CO2 emissions per tons of produced steel (tCO2/tSteel) is the selected metric to calculate the
baseline and set our 2030 interim target. The portfolio alignment score is an additional metric that we consider and is calculated according to the
definition of the Sustainable STEEL Principles.
As recommended by the Sustainable STEEL Principles Association, we defined the baseline and target for all crude steel Group producers27 in the
Bank’s lending portfolio. Activities included in scope are:
• crude steel making and basic steel processing;
• steel sales and steel product production (related to crude steel making Groups).
In line with Sustainable STEEL Principles, the carbon emissions scope follows a Fixed System Boundary, which identifies a consistent boundary of
activities to be reported on, regardless of whether they are executed by the steel mill itself, a supplier, or off-taker (i.e., regardless of whether they
are Scope 1, 2 or 3 emissions of an individual company). This approach takes into account the steel sector’s high degree of variability in emissions,
particularly elements of Scope 3, depending on the ownership structure and level of vertical integration.
We have used the following inputs to calculate the Group emissions baseline and alignment score for the steel sector: production data, emissions
data and scrap charge. This data was sourced from the third-party data provider selected by the Sustainable STEEL Principles Association.
The initial emissions baseline for the steel sector refers to year-end 2022. Considering the selected design elements, the on-balance sheet lending
in scope for the sector was €2.2 billion, as of 31 December 2022.
The 2022 baseline emission intensity of the steel sector, as per the Fixed System Boundary (Scope 1, 2 and 3, Category 1 and 1028) was estimated
at 1.45 tCO2/ tSteel, which is lower than the value of the selected IEA Net Zero benchmark, equal to 1.51 tCO2/tSteel in 2022.
Comparing our 2022 emissions intensity with 2022 benchmark values, the 2022 Bank portfolio alignment score is -0.69.
Group intermediate Net Zero target has been defined for the year 2030. The period considered to achieve the Net Zero target is 2022-2030.
We selected the IEA Net Zero 2050 scenario as the reference scenario to set the 2030 intermediate target. We used the IEA trajectory computed by
the Sustainable Steel Principles Association, which is an enhancement of the IEA NZE benchmark (providing split trajectory for primary and
secondary markets and following a fixed boundary approach). The benchmark has then been tailored to UniCredit portfolio scrap charge equal to
47% in 2022.
27 Steel manufacturers, that are processing crude steel purchased from third party (i.e., re-roller) are not considered; activities considered in the perimeter, following Sustainable Steel Principle, are: Crude steel making and
basic steel processing and Steel sales and steel products production (related to crude steel making Groups); also exposure for Holding, Financial Service and Trading companies, if related to Steel Groups in perimeter, and
other supporting business activities controlled by Steel Group.
28 Category 1. Purchased goods and services and Category 10. Processing of sold products. All emissions in the Fixed System Boundary are included, as defined by the Sustainable Steel Principles.
262
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
We are targeting a 2030 emissions intensity of 1.11 tCO2/tSteel in line with the 2030 value of the selected scenario, corresponding to an alignment
score equal to 0 in 203029.
Shipping
We selected exposure-weighted emission intensity as the metric to calculate the baseline and set our 2030 interim target. As we consider both
passenger ships and merchant ships in our portfolio, we used two different metrics30 in line with the available guideline: grams of CO2e over gross
tonnes (i.e., volume) times nautical miles for passenger ships and grams of CO2e over deadweight (i.e., carried weight) times nautical miles for
merchant ships.
In line with industry guidelines and market practice, we defined the baseline and targets for shipping operators31, including passenger as well as
merchant ships. To increase portfolio coverage, we included both vessel and non-vessel financing to shipping operators in the baseline.
The assessment of sector emissions focused on Scope 1 and Scope 3 category 3 emissions i.e., Well To Wake32 - “lifecycle emissions” (from ships’
fuel combustion and from fuel production and distribution) aligned with the 2023 International Maritime Organization Strategy on the reduction of
GHG emissions from ships.
To calculate the Group emissions baseline for the sector we used emissions data and transport work data (i.e., gross tonnage for passenger ships
and deadweight tonnage for merchant ships). We engaged directly with our clients to gather the necessary data to establish our Net Zero baseline.
When data was not available or collected by the client, we used public databases.
Initial emissions baseline for the Shipping sector refers to year-end 2022. Overall portfolio on-balance sheet lending in scope for the sector was €3.1
billion as of 31 December 2022.
The 2022 baseline emissions intensity of the sector, as per Scope 1 and 3 Category 3, was estimated at 14.1 gCO2e/GT-nm for the lending portfolio
related to passenger ships, and 9.5 gCO2e/DWT-nm for the portfolio related to merchant ships.
Intermediate Net Zero target has been defined for the year 2030. The period considered to achieve the Net Zero target is 2022-2030.
We selected the IEA Net Zero 2050 benchmark as the reference scenario to set the 2030 intermediate target.
By 2030, we aim to achieve a 30% reduction of the emissions intensity Scope 1 and 3 of the overall shipping portfolio from a 2022 baseline of:
• 14.1 gCO2e/GT-nm for passenger ships;
• 9.5 gCO2e/DWT-nm for merchant ships.
This is in line with the % reduction in the IEA NZ scenario from 2022 to 2030.
Commercial Real Estate
We selected exposure-weighted emissions intensity in kilos of CO2e over square meters as the metric to calculate the baseline and set our 2030
interim target33.
To support the sector’s decarbonisation, we defined a Net Zero target for our commercial real estate portfolio considering our three largest and most
material geographies: Italy, Germany and Austria.
In line with current market practices, we set the baseline and target for Real Estate operators34, which we define as clients selling or buying real
estate, renting real estate or providing other real estate services for their own or leased property. We have only considered financing for the
purchase or refinance of a building when the real estate asset is taken as collateral, and the client is the owner of the building35.
The calculation of the emissions baseline and target focuses on the operational emissions36 that are associated with the energy used during the
operation of the building37.
29 According to benchmark defined for UCG portfolio with 2022 portfolio weighted average scrap charge percentage.
30 Annual Efficiency Ratio (AER) which calculates the carbon intensity of each vessel by dividing the amount of CO2e emissions by cargo carrying capacity and distance sailed; Gross Tonnage (GT) i.e., volume, is used to
measure cargo capacity for Passenger ships whereas Deadweight Tonnage (DWT) i.e., weight, is used for merchant ships.
31 Inclusion of non-operative vessels with proxies; exclusion of military ships; inclusion of corporate small and corporate large clients and exclusion of retail small clients; exclusion of bad loans.
32 Scope 1 downstream emissions from fuel combustion and Scope 3 upstream emissions from fuel production and distribution
33 Emissions intensity available for Italy as kgCO2/m2 and for Germany and Austria as kgCO2e/m2.
34 Owners of the buildings on which emissions baseline is computed; performing the following activities: selling or buying real estate, renting real estate or providing other real estate services for clients’ own or leased
property and may be done on a fee or contract basis.
35 The building could be a residential or a commercial asset, when eligible to obtain an Energy Performance Certificate (EPC).
36 Scope 1, 2 and Scope 3 Category 13 (if property Is leased).
37 E.g., including heating, hot water, cooling, ventilation, lighting systems, equipment, and lifts.
263
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
To calculate the emissions baseline for the sector, we used loan and asset information available in our internal systems and retrieved the emissions
data from the Energy Performance Certificate38 (EPC) collected from the borrowers. When the certificate was not available, we estimated the
emissions from the building EPC label, collected or estimated. The level of estimated data used for baseline computation is currently high because,
in some of our geographies, information has in the past not been available or mandatory by law. However, we expect to improve the availability of
actual EPC information over time as the regulatory framework evolves.
The initial emissions baseline for the Commercial real estate sector refers to year-end 2022. Overall portfolio on-balance sheet lending is in scope
for Italy, Germany and Austria was €31.1 billion as of 31 December 2022.
The 2022 baseline emissions intensity was estimated at 44.2 kgCO2e/m2.
The intermediate Net Zero target has been defined for the year 2030.The period considered to achieve the Net Zero target is 2022-2030.
We selected the CREEM v2.01 scenario39 as the reference trajectory to set the 2030 intermediate target. We aim to achieve a reduction in the
physical intensity of the operational emissions of 44% to 55% from the 2022 emissions baseline (corresponding to a 2030 emissions intensity range
of 24.8 - 19.9 kgCO2e/m2).
This range target, with the -55% in line with the reduction trend of the CRREM decarbonisation trajectory, is ambitious and considered market
uncertainty and the regulatory developments at the same time.
Residential Real Estate
For Residential Real Estate, the Bank has not defined a Net Zero intermediate target so far, mainly due to uncertainty of regulatory framework and
governments support. However, considering the relevance of the sector we decided to compute the emissions baseline and monitor its progress
over time.
To support the sector’s decarbonisation, we defined a Net Zero target for our residential real estate portfolio considering our three largest and most
material geographies: Italy, Germany and Austria.
To calculate the emissions baseline for the sector, we selected the exposure-weighted emissions intensity in kilos of CO2e over square metres as
reference metric40.
In line with industry guidelines and market practice, we defined the baseline for Residential real estate by considering our retail mortgages
portfolio41, which is the financing we provide to our private individual clients to purchase or refinance residential premises. The Bank analysed and
computed its Group emissions baseline on its portfolio across Italy, Germany and Austria.
The emissions baseline was calculated by focusing on the operational emissions42 that are associated with the energy used during the operation of
the building43.
To calculate the Group emissions baseline for the residential real estate sector, we leveraged loan and asset information in our systems and Energy
Performance Certificate44 (EPC) information. We used actual data to estimate emissions of the building when it was available, and proxies when it
was unavailable.
Using the selected design elements, on-balance sheet lending in scope for the sector was €72.8 billion as of 31 December 2022 and the 2022
baseline emissions intensity of the residential real estate sector was estimated at 36.3 kgCO2e/m2.
For more details, please refer to E1-6 - Gross Scope 1,2,3 and Total GHG emissions section.
The Bank will continue to support clients who want to reduce the carbon footprint of their homes and constantly monitor the ongoing evolution of the
regulatory landscape.
38 EPC label estimated when not available on the stock, based on country-specific data and methodologies, also leveraging on external providers and sources (e.g., PICAF).
39 Tailored to UniCredit portfolio (i.e., Geographies in scope and type of assets).
40 Emissions intensity available for Italy as kgCO2/m2 and for Germany and Austria as kgCO2e/m2.
41 Exclusion of bad loans; only lending collateralised by the asset (residential or commercial) considered in the baseline estimation.
42 Scope 1, 2 and Scope 3 Category 13 (if property Is leased).
43 E.g., including heating, hot water, cooling, ventilation, lighting systems, equipment, and lifts.
44 EPC label estimated when not available on the stock, based on Country-specific data and methodologies, also leveraging on external providers and sources (e.g., PICAF).
264
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
E1-5 - Energy consumption and mix
Energy consumption at the end of reporting year has been collected by each Group legal entity per each building included in the consolidation
perimeter. Moreover, the data includes the fuel consumption of company owned or company leased cars used by Group employees.
Reported data refers to energy consumption in MWh related to own operations.
Energy consumption data is solely validated by the appointed assurance provider.
Energy consumption and mix
ENERGY CONSUMPTION AND MIX
31.12.2024
a) Total fossil energy consumption (MWh)
166,647
Share of fossil sources in total energy consumption (%)
38.1%
b) Consumption from nuclear sources (MWh)
-
Share of consumption from nuclear sources in total energy consumption (%)
-
i) Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas,
renewable hydrogen, etc.) (MWh)
-
ii) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)
270,708
iii) The consumption of self-generated non-fuel renewable energy (MWh)
312
c) Total renewable energy consumption (MWh)
271,020
Share of renewable sources in total energy consumption (%)
61.9%
Total energy consumption (MWh)
437,667
Within UniCredit group, there are legal entities operating in sector F - Construction (1 entity) and sector L - Real Estate activities (37 entities), which
are high climate impact sectors, as listed in Sections A to H and Section L of Annex I to Regulation (EC) 1893/2006 of the European Parliament and
of the Council (as defined in Commission Delegated Regulation (EU) 2022/1288)45.
of which: high climate impact sector
ENERGY CONSUMPTION AND MIX
31.12.2024
1) Fuel consumption from coal and coal products (MWh)
-
2) Fuel consumption from crude oil and petroleum products (MWh)
573
3) Fuel consumption from natural gas (MWh)
61
4) Fuel consumption from other fossil sources (MWh)
-
5) Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)
1,225
6) Total fossil energy consumption (MWh) (calculated as the sum of lines 1 to 5)
1,859
Share of fossil sources in total energy consumption (%)
61.6%
7) Consumption from nuclear sources (MWh)
-
Share of consumption from nuclear sources in total energy consumption (%)
-
8) Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin,
biogas, renewable hydrogen, etc.) (MWh)
-
9) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)
1,161
10) The consumption of self-generated non-fuel renewable energy (MWh)
-
11) Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10)
1,161
Share of renewable sources in total energy consumption (%)
38.4%
Total energy consumption (MWh) (calculated as the sum of lines 6, 7 and 11)
3,020
45 In particular, the Sectors are related to the following NACE codes:
Section A - Agriculture, Forestry and Fishing;
Section B - Mining and Quarrying;
Section C - Manufacturing;
Section D - Electricity, gas, steam and air conditioning supply;
Section E - Water supply; Sewerage, Waste management and Remediation activities;
Section F - Construction;
Section G - Wholesale and Retail trade; Repair of motor vehicles and motorcycles;
Section H - Transportation and Storage;
Section L - Real Estate activities.
265
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Energy intensity per net revenue for high climate impact sectors
ENERGY INTENSITY PER NET REVENUE FOR HIGH CLIMATE IMPACT SECTORS
31.12.2024
Total energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact sectors
(MWh/€ million)
(220.26)
Connectivity of energy intensity based on net revenue with financial reporting information
(€ million)
31.12.2024
Net revenue from activities in high climate impact sectors used to calculate energy intensity
(14)
Net revenue (other)
24,284
Total net revenue (Financial statements)
24,270
It should be noted that, in the absence of sector specific standards still not issued, UniCredit group has defined the consolidated operating income
as parameter associated to the concept of net revenues for the above tables.
E1-6 - Gross Scope 1,2,3 and Total GHG emissions
With regards to own emissions (Scope 1, 2, and 3 excluding category 15), for the present disclosure comparisons with historical data are not
possible due to the changed reporting perimeter versus previous years as a result of aligning our sustainability statement perimeter with that of our
financial statement, in coherence with CSRD reporting requirements. Moreover, further categories have been included in our Scope 3 own
emissions accounting.
With regards to financed emissions (Scope 3, category 15), 2024 is the first reporting year, thus progress in respect to the previous year is not
available and will be provided starting from the next reporting cycle. For the 2030 Net Zero sectoral targets, the progress is reported and described
in the E1-3 - Actions and resources in relation to climate change policies section according to the selected metrics (absolute financed emissions or
emissions intensity).
Total GHG emissions disaggregated by Scopes 1 and 2 and significant Scope 3
31.12.2024
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO₂eq)
24,412
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO₂eq)
100,830
Gross market-based Scope 2 GHG emissions (tCO₂eq)
16,702
Significant scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG emissions (tCO₂eq)
97,473,496
1. Purchased goods and services
175,259
1.1. Cloud computing and data center services
174,579
2. Capital goods
40,644
5. Waste generated in operations
179
6. Business travel
3,237
7. Employee commuting
10,162
8. Upstream leased assets
25,357
13. Downstream leased assets
31,011
15. Investments
97,187,648
Total GHG emissions
Total GHG emissions (location-based) (tCO₂eq)
97,598,738
Total GHG emissions (market-based) (tCO₂eq)
97,514,610
266
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Total GHG emissions - by country
COUNTRY
2024
Italy
10,397
Germany
5,604
Central Europe
3,300
Eastern Europe
5,049
Others
62
Scope 1 GHG emissions (tCO₂eq)
24,412
Italy
50,473
Germany
24,848
Central Europe
4,195
Eastern Europe
20,534
Others
781
Scope 2 GHG emissions - location-based (tCO₂eq)
100,830
Italy
447
Germany
3,251
Central Europe
696
Eastern Europe
11,622
Others
687
Scope 2 GHG emissions - market-based (tCO₂eq)
16,702
Italy
41,647,738
Germany
28,803,329
Central Europe
17,977,958
Eastern Europe
9,041,373
Others
3,097
Significant scope 3 GHG emissions (tCO₂eq)
97,473,496
Total GHG emissions (location-based) (tCO₂eq)
97,598,738
Total GHG emissions (market-based) (tCO₂eq)
97,514,610
Note:
Others includes Belgium, Brazil, China, France, Greece, Hong Kong. Japan, Luxembourg, Poland, Singapore, Sweden, Spain, Switzerland, USA, United Kingdom.
GHG intensity based on net revenue
GHG INTENSITY BASED ON NET REVENUE
31.12.2024
Total GHG emissions (location-based) per net revenue (tCO₂eq/€ million)
4,021.28
Total GHG emissions (market-based) per net revenue (tCO₂eq/€ million)
4,017.82
It should be noted that the value used for the denominator in the ratios calculated in the above table is the consolidated operating income, equal to
€24,270 million (refer to the Consolidated income statement).
The biogenic emissions of CO2 from the combustion or bio-degradation of Scope 1 biomass, biofuel, biogas or other bioenergy sources consumed
by the Group are equal to 0 tCO2e.
With regards to biogenic emissions of CO2 from the combustion or bio-degradation of Scope 2 and Scope 3 biomass, biofuel, biogas or other
bioenergy sources, such sources, and thus emissions, are not relevant for the sector in which our Group operates.
We have procured electricity from renewable energy sources for a number of years. Indeed, in 2024, 91% of procured electricity consumed at our
premises was from renewable energy, with additional geographies (Bulgaria and Romania) procuring such electricity for the first time in the course
of the year. Contractual instruments used in the purchase of electricity, steam and heating/cooling from renewable energy include, for example,
Guarantees of Origin. Furthermore, we have in place a corporate PPA (Power Purchase Agreement) to fulfil the energy demand of our data centers
located in Verona, Italy.
267
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
In relation to own emissions, significant changes affecting the comparability of 2024 data versus previous years is mainly explained by the extension
of our reporting perimeter. Indeed, in converging our reporting process to the CSRD requirements, we aligned the perimeter of our sustainability
statement to that of our financial statement. Moreover, further categories have been included in our Scope 3 own emissions accounting.
Scope 1 includes emissions arising from sources owned or controlled by our Group, which include direct energy consumption, road business travel
and refrigerant gas leakages. Scope 2 includes indirect emissions arising from purchased electricity, steam and heating/cooling consumed by
equipment or systems owned or controlled by our Group. Scope 3 includes indirect emissions occurring in our value chain arising from copy paper
consumption; purchased ITC services; purchased IT equipment and furniture; employee homeworking; air and rail business travel; glass, paper,
cardboard, cans and plastic waste disposal; energy consumption at upstream and downstream assets calculated considering the market-based
method. Figures and information relating to the Scope 1, Scope 2 and Scope 3 classes of greenhouse gas emissions have been prepared in
accordance with “The Greenhouse Gas Protocol: A Corporate, Accounting and Reporting Standard (Revised Edition, 2004)”.
The sources of emission factors applied to our GHG Inventory are reported below, divided by Scope.
Scope 1:
• DEFRA, UK Government GHG Conversion Factors for Company Reporting (2024), for stationary combustion, business travel and refrigerant gas
leakages.
Scope 2:
• DEFRA, UK Government GHG Conversion Factors for Company Reporting (2024), for district heating;
• IEA Emission Factors (2024), www.iea.org/statistics. All rights reserved; as modified by UniCredit S.p.A., for electricity consumption, location-
based method and in the market-based method where applicable;
• Association of Issuing Bodies (AIB), 2023 European Residual Mixes, V.1.0 (2024), for electricity consumption, market-based method (for
European countries). AIB does not report emission factors for gases other than CO2, thus related Scope 2 market-based emissions are expressed
in tons of CO2; however, the percentage of methane and nitrous oxide has a negligible effect on total GHG emissions (CO2 equivalent) as inferred
from the relevant technical literature;
• The International Tracking Standard Foundation, (I-REC(E) Residual Mix (2023 data), for electricity consumption, market-based method (for non-
European countries, excluding USA). Emission factors for gases other than CO2 are not reported, thus related Scope 2 market-based emissions
are expressed in tons of CO2; however, the percentage of methane and nitrous oxide has a negligible effect on total GHG emissions (CO2
equivalent) as inferred from the relevant technical literature;
• 2024 Green-e® Residual Mix Emissions Rates (2022 Data), for electricity consumption, market-based method (for USA). Emission factors for
gases other than CO2 are not reported, thus related Scope 2 market-based emissions are expressed in tons of CO2; however, the percentage of
methane and nitrous oxide has a negligible effect on total GHG emissions (CO2 equivalent) as inferred from the relevant technical literature.
Scope 3 (for category 15, please refer to Reporting boundaries considered and calculation methods for estimating Scope 3 GHG emissions):
• CEPI, CEPI statistics (2023), for copy paper use;
• EUROSTAT - Environmental statistics and accounts; sustainable development (Consumption-based accounting tool; 2023), for purchased ICT
services, IT equipment and furniture;
• DEFRA, UK Government GHG Conversion Factors for Company Reporting (2024), for business travel, waste disposal and homeworking;
• Sources of emission factors for energy consumption at upstream and downstream assets:
- DEFRA, UK Government GHG Conversion Factors for Company Reporting (2024), for stationary combustion and district heating consumption;
- Association of Issuing Bodies (AIB), 2023 European Residual Mixes, V.1.0 (2024), for electricity consumption market-based method (for
European countries). AIB does not report emission factors for gases other than CO2, thus related market-based emissions are expressed in tons
of CO2; however, the percentage of methane and nitrous oxide has a negligible effect on total GHG emissions (CO2 equivalent) as inferred from
the relevant technical literature;
- IEA Emission Factors (2024), www.iea.org/statistics. All rights reserved; as modified by UniCredit S.p.A. - for electricity consumption where
applicable;
- The International Tracking Standard Foundation, (I-REC(E) Residual Mix, (2023 data), for electricity consumption, market-based method (for
non-European countries, excluding USA). Emission factors for gases other than CO2 are not reported, thus related market-based emissions are
expressed in tons of CO2; however, the percentage of methane and nitrous oxide has a negligible effect on total GHG emissions (CO2
equivalent) as inferred from the relevant technical literature;
268
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
- 2024 Green-e® Residual Mix Emissions Rates (2022 Data), for electricity consumption, market-based method (for USA). Emission factors for
gases other than CO2 are not reported, thus related market-based emissions are expressed in tons of CO2; however, the percentage of methane
and nitrous oxide has a negligible effect on total GHG emissions (CO2 equivalent) as inferred from the relevant technical literature.
With regards to the calculation of own emissions, currently no significant events or changes occur between the reporting dates of entities in our
value chain and the date of our financial statement, since our reporting period does not differ from the reporting period of the entities in our value
chain.
Scope 3 GHG emissions categories that have been excluded
Category 3, Fuel and energy-related activities not included in Scope 1 or Scope 2: this category is deemed not sufficiently relevant considering our
use of energy as a financial institution.
Category 4, Upstream transportation and distribution: as a financial institution, this category is not considered sufficiently relevant to be calculated.
Category 9, Downstream Transportation and distribution: as a financial institution, this category is not considered sufficiently relevant to be
calculated.
Category 10, Processing of sold products: as a financial institution, this category is not considered sufficiently relevant to be calculated.
Category 11, Use of sold products: as a financial institution, this category is not considered sufficiently relevant to be calculated.
Category 12, End-of-life treatment of sold products: as a financial institution, this category is not considered sufficiently relevant to be calculated.
Category 14, Franchises: we do not have any franchises.
Reporting boundaries considered and calculation methods for estimating Scope 3 GHG emissions
The perimeter for the calculation of categories 1, 2, 5, 8 and 13 is aligned with the perimeter of the financial statement. For categories 6 and 7, the
perimeter corresponds to the legal entities that have at least one Full Time Equivalent (FTE). The methodological reference for Scope 3 accounting
(for categories other than category 15) is the GHG Protocol, Technical Guidance for Calculating Scope Emissions.
Category 1, Purchased goods and services: Includes emissions arising from copy paper consumption for which the average-data method has been
applied; purchased ITC services, for which the spend-based method has been applied and the relative emissions estimated based on the
expenditure for purchased ITC services, as reported in our financial statement. While emissions from copy paper consumption are typically not
particularly significant for our organization, this source has nonetheless been included in continuity with our GHG Inventory accounting in previous
years.
Category 2, Capital goods: Includes emissions arising from IT equipment, electronics and furniture purchases, for which the spend-based method
has been applied and the relative emissions estimated based on the respective expenditure for the purchased goods, as reported in our financial
statement.
Category 5, Waste generated in operations: Includes emissions arising from the disposal of paper, cardboard, plastic, cans, and glass, for which the
waste-type-specific method has been applied. While emissions from waste disposal are typically not particularly significant for our organization, this
source has nonetheless been included in continuity with our GHG Inventory accounting in previous years.
Category 6, Business travel: Includes emissions arising from air and rail business travel, for which the distance-based method has been applied in
both cases. Air travel data has been categorised in long (more than 3,700km), medium (more than 1,000km - less than 3,700km) and short (less
than 1,000 km) distance.
Category 7, Employee commuting: Includes only emissions arising from homeworking for which the average-data method has been applied.
Emissions are calculated based on the hours of homeworking completed by employees during the year, as registered in our HR systems. The GHG
Protocol, Technical Guidance for Calculating Scope 3 Emissions indicates that emissions arising from employees working remotely may be
accounted under this category, although a specific calculation methodology is not detailed.
Category 8, Upstream leased assets: Includes emissions arising from energy consumption at upstream assets used by the Group. The asset-
specific method and, where relevant, the average-data method, have been applied.
Category 13, Downstream leased assets: Includes emissions arising from energy consumption by third parties at assets owned by the Group.
The asset-specific method and, where relevant, the average-data method, have been applied.
Category 15, According to Regulation 2022/2453, institutions shall disclose their total financed emissions (Scope 1, 2, 3) and provide the related
estimation associated with institutions’ lending and investment activities.
Financed emission have been estimated for Non-Financial Corporations and Households counterparties, with the following approach:
• Scope 3 emissions (category 15 - financed emissions related to Non-financial corporations): UniCredit based the calculation of scope 1, 2
and 3 of its financed emissions by gathering information on the counterparties (also with the support of an external provider). UniCredit collected
and determined GHG emissions information, according to Global GHG Accounting and Reporting Standard, developed by the PCAF, in line with
the following methodologies:
269
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
- reported emissions: data directly disclosed by the company in publicly available documents (Non-Financial Statements, Sustainability Reports);
- estimated emissions: data estimated using methodologies aligned with market best practices.
The estimation procedure relies on official data from public sources (Eurostat) on emission intensity, expressed in tons of CO2 per euro of added
value, broken down by NACE code and European country. This coefficient is further refined by incorporating, where available, more detailed
emission data for specific NACE/Ateco codes (source: ISPRA / Single Registry for the Emissions Trading System). As part of this refinement
process, sectoral averages derived from reported data are also used when homogeneous and statistically significant samples are available.
The emission intensity per euro of added value is then recalibrated to obtain an intensity measure per euro of revenue. Finally, the sectoral
coefficient obtained is applied to the individual company's revenue to determine the estimated emissions volume.
As per regulatory indications, the financed emissions are calculated within the scope of Exposures towards sectors that highly contribute to climate
change, which in Unicredit amount to €176.9 billion, corresponding to 82.8% of total GCA of Non-Financial Corporations. The effective coverage of
actual data is 16% while the remaining 84% is relying on estimated data. Exposure data cover the following asset classes: loans and advances,
debt securities and equity.
• Scope 3 emissions (category 15 - financed emissions related to households): they are estimated leveraging on the Net-Zero initiative on
residential mortgages and cover the perimeter: only loans collateralised by a residential asset for Italy, Germany and Austria geographies are
included. Leasing business and other CEE&EE legal entities are excluded. Also for this category, the PCAF methodology has been applied.
The total exposure to residential mortgages to households on which Scope 3 category 15 emissions have been calculated is €69 billion,
corresponding to 82% of total exposure of the group to residential mortgages (percentage calculated on GCA). The coverage of punctual data on
physical intensity is 27% while the remaining 73% is relying on estimated data.
UniCredit has not calculated financed emissions for its lending activities to customers in the following segments:
- financial institutions (including credit institutions and other financial corporations), as they are considered having very low scope 1 and 2
emissions and data on Scope 3 emissions are still too volatile to be considered reliable in this moment. The total GCA of financial institutions is
€144 billion (or 22.6% of the total GCA46);
- sovereign institutions, due to substantial lack of emission data sources and estimation approaches. The total GCA of sovereign insititutions is
€139 billion (or 21.8% of the total GCA47).
UniCredit will continue to work to enhance its coverage of different exposures while data and estimation approaches will become more widespread
in the industry.
E1-7 - Removals and GHG mitigation projects financed through carbon credits
No data to be disclosed.
E1-8 - Internal carbon pricing
No data to be disclosed.
E3 - Water and marine resources
Impact risk and opportunity management
E3-1 - Policies related to water and marine resources
UniCredit’s commitment to addressing water-related issues is steadily taking shape, although it has not yet materialized into a dedicated policy to
cover the material impact resulting from the DMA, relating to Fostering awareness and commitments related to water consumption, withdrawal by
UniCredit clients.
However, the Group, in its continuous monitoring of the market and stakeholder’s expectations, has identified six «sensitive sectors» for which it has
adopted a dedicated additional set of provisions and rules described in specific internal regulations. Within our sectoral policies, water management
is particularly taken into consideration, through the assessment of potential environmental impacts based on internationally recognized
standards. On top to the dedicated Water Infrastructure (Large dams) policy, for example, specific evaluations are performed to limit associated
risks to the Group’s reputation.
• Our Mining Industry policy aims to assess the potential environmental and social impacts of the Group’s Mining Finance transactions, and, through
the implementation of appropriate management and mitigation measures on the part of the Group’s clients or customers, to limit associated risks
to the Group’s reputation. Environmental damage or degradation, including habitat and biodiversity loss and contamination of groundwater,
surface water, sediments, soil, and air are considered.
46 The total GCA is the sum of the GCA related to non-financial corporations, househols, financial institutions and sovereign institutions.
47 The total GCA is the sum of the GCA related to non-financial corporations, househols, financial institutions and sovereign institutions.
270
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
• Our Oil& gas sector policy does not allow Upstream activities in Ultra-Deep Water (more than 1500 meters/5000 feet).
• Our Civil Nuclear policy provides guidelines and standards, which are based on those accepted by the industry and by other stakeholders and
represent best practice, to address the particular challenges posed by the nuclear sector and to minimize environmental and social risks
associated with the financing of nuclear energy activities, with particular attention, amongst others, to groundwater and water.
Also, our ESG Product Guidelines Policy, defined in 2022, aims at establishing a consistent and comprehensive methodology for the classification
and reporting of the ESG offering as well as preventing green and social washing risk. UniCredit is willing to reach new business opportunities while
contributing to the creation of positive impacts.
The Guidelines provide a classification of green loans. We consider as “Green” the loans financing economic activities, contributing substantially to
one or more of the environmental objectives of the EU Taxonomy criteria:
1. Climate change mitigation;
2. Climate change adaptation;
3. The sustainable use and protection of water and marine resources;
4. The transition to a circular economy;
5. Pollution prevention and control;
6. The protection and restoration of biodiversity and ecosystems.
For more details on related policies, refer to the MDR-P Policies adopted to manage material sustainability matters.
The bank is also committing itself on the topic through the adherence to internationally recognised standards. Amongst others UniCredit has been
committed to complying with the Equator Principles (EP) from their outset in 2003. The EP are a financial industry benchmark for determining,
assessing and managing environmental and social risk in projects. For projects in Non-Designated Countries they draw upon the IFC Performance
Standards on Environmental and Social Sustainability and the World Bank Group Environmental, Health and Safety Guidelines, together the World
Bank Standards. The topics water and marine resources are addressed across multiple Performance Standards, i.e. Resource Efficiency
and Pollution Prevention, and Biodiversity Conservation and Sustainable Management of Living Natural Resources.
E3-2 - Actions and resources related to water and marine resources
At UniCredit, we recognise that our activities can have both positive and negative impacts on natural resources and the environment. By taking this
into account, we are able to prevent negative ones that can harm the planet and communities while also influencing the market towards the
necessary transition to more sustainable practices.
Our commitment is demonstrated by our sustainability governance which has been significantly strengthened in recent years at both steering and
execution levels, underpinning the drive to further integrate ESG criteria into the Group’s overall business strategy. In particular, we started to
study, analyse and focus environmental factors other than climate, as we recognize the interconnection impacts and dependencies with
natural capital.
UniCredit’s strategy incorporates identifying and understanding climate and environmental risks (C&E) and opportunities that the Bank may
encounter. C&E factors are related to the quality and functioning of the natural environment and its systems (Natural Capital) and include factors
such as climate change, biodiversity, energy consumption, water, pollution, and waste management.
Nature-related assessment is at an early stage for the whole banking industry, with limitations in terms of data availability across drivers and
sectors, lack of commonly agreed metrics and methodologies (e.g. scenarios). In this context, in 2024 the Bank has defined an assessment to
identify which industries are most exposed to nature-related risks in terms of impact on natural capital and dependency from ecosystems
services.
For the assessment on impact the Bank has enhanced the 2023 analysis, by computing 18 granular KPIs (at industry or at counterparty level) for
the identification of 4 Environmental Factors being Biodiversity, Pollution, Water usage, Waste management. The analysis leverages on
recognized and recommended global sources (e.g. Exiobase, Globio, Natura 2000, Encore) and on banking industry initiative guidance (e.g.,
TNFD, Nature Target Setting Guidance).
In 2024 the Bank has integrated the Nature-related assessment with a new analysis to identify the dependency level from ecosystem services. The
analysis leverages mainly on ENCORE48 tool and Ecosystem services that represent the link between nature and economic activities and the benefit
that nature provides to enable or facilitate business production processes.
To have a comprehensive overview on the Nature-related assessment, the outcomes of Impact and Dependency analysis have been aggregated at
the industry level to create a portfolio heatmap.
48 ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure): opensource tool suggested by regulators as a standard to assess corporates dependency from ecosystem services.
271
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Moreover, as described in E1, to determine the extent to which the Bank’s credit counterparties are exposed to Climate and Environmental risks, the
C&E questionnaire is used and includes a consist of qualitative and quantitative current and forward-looking key indicators (including also on beyond
climate factors). With regards to the nature-related factors the Group will evaluate to selectively adjust the C&E Questionnaire to include a more
comprehensive assessment of the clients’ nature-related factors.
Metrics and targets
E3-3 - Targets related to water and marine resources
The Bank has currently no target on water and marine resources because it applies the rules included in other standards of conduct as follows. As
part of its commitment to the Equator Principles (EP), UniCredit applies the globally accepted World Bank Standards to applicable projects. Aside
from the rules set by the IFC’s Industry Sector Guidelines its General EHS Guidelines define strict requirements in terms of wastewater, ambient
water quality and water conservation.
E4 - Biodiversity and ecosystems
Strategy
E4-1 - Transition plan and consideration of biodiversity and ecosystems in strategy and business model
UniCredit’s strategy incorporates identifying and understanding climate and environmental risks (C&E) and opportunities that the Bank may
encounter. C&E factors are related to the quality and functioning of the natural environment and its systems (Natural Capital) and include factors
such as climate change, biodiversity, energy consumption, water, pollution, and waste management.
As described in E3, in 2024 the Bank has worked on an assessment to identify which industries are most exposed to nature-related risks in terms of
impact on natural capital and dependency from natural factors. The results are still at an early stage also considering lack of data availability.
With the aim of evaluating an enhancement to our assessment methodology, we constantly monitor the evolution of industry practice/standards as
well as the availability of reliable data at counterparty level. For further details reference is made to to E3 Water and marine resources.
In the context of our ESG Strategy, we are starting to assess potential risks and business opportunities connected to natural capital.
During 2024, we performed a specific analysis for understanding the status of Natural Capital and Biodiversity in UC countries. The aim is to
support the identification of potential business opportunities for local Business based on key dimensions such as water, soil, air and biodiversity
specific aspects: ecosystems and humans. This exercise supported us in taking a view on opportunities with a nature positive approach, that
can contribute to the business and to the clients’ transition. We will set up specific working groups for starting evaluation of business opportunities.
Impact risk and opportunity management
E4-2 - Policies related to biodiversity and ecosystems
UniCredit’s commitment to addressing biodiversity related issues is steadily taking shape. Although our commitment has not yet materialized into a
dedicated policy, our ESG Product Guidelines address the material opportunity resulted from DMA, relating to Creation and promotion of
innovative financial products/services focused on green and sustainable investments, thereby contributing to the protection of natural capital,
biodiversity and conservation of land use.
According to the ESG Product Guidelines we consider as “Green” the loans financing economic activities, contributing substantially to one or more
of the environmental objectives of the EU Taxonomy criteria (including the objective 6 on the protection and restoration of biodiversity and
ecosystems).
We are committed to protecting natural capital by delivering sustainable financing solutions to clients and reducing the environmental impacts of our
direct operations. Avoid operations in areas protected for biodiversity conservation purpose as well as combat deforestation and forest
degradation are fundamental principles for the Group. Our principles are formalized in our Statement on Natural Capital and Biodiversity,
published in 2024.
272
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Additionally, within our sectorial policies, particular attention on habitat & biodiversity loss is taken into consideration for potential
environmental impacts based on internationally recognized standards. For example:
• Our Mining Industry policy aims to assess the potential environmental and social impacts of the Group’s Mining Finance transactions, and, through
the implementation of appropriate management and mitigation measures on the part of the Group’s clients or customers, to limit associated risks
to the Group’s reputation. Environmental damage or degradation, including habitat and biodiversity loss and contamination of groundwater,
surface water, sediments, soil, and air are considered.
• Our Oil& gas sector policy is considering the increasing adverse impacts that Oil & Gas-related activities, Unconventional and Arctic ones have on
the climate system and is aware of its responsibility towards society and future generations in terms of environmental preservation
(resources/ecosystem quality), as well as human health and pollution.
• Our Civil Nuclear policy provides guidelines and standards, which are based on those accepted by the industry and by other stakeholders and
represent best practice, in order to address the particular challenges posed by the nuclear sector and to minimize environmental and social risks
associated with the financing of nuclear energy activities, with particular attention, amongst others, to habitat & biodiversity loss.
• Our Water Infrastructures (Large dams) regulation aims to assess and limit risks to the Group’s reputation with particular attention to habitat &
biodiversity loss.
UniCredit’s willingness to protect ecosystems is further evidenced in its Commitment on rainforests. The objective of our Commitment on
Rainforest is to ensure that our activity does not favor deforestation or forest degradation, unless appropriately mitigated. We will not provide
financial services to customers directly involved (and in case of specific projects also indirectly) in: illegal logging; wood registered in violation of
traditional and civil rights; wood immersed in forests where high conservation values are threatened by industry; or forests converted illegally into
planting or illegal use of fire. This Commitment refers to all transactions project related with a potential impact on rainforests.
In addition, the Group has signed specific commitments regarding Human Rights, the exit from Tobacco industry and from activities that favor
deforestation or forest degradation.
Currently the Group does not have policies in place for agriculture practices. Nonetheless, the Group will evaluate a possible set-up of internal
guidelines on these practices. Also, sustainable oceans or seas practices or policies have not been adopted.
For more details on described policies, reference is made to the “MDR-P Policies adopted to manage material sustainability matters”.
E4-3 - Actions and resources related to biodiversity and ecosystems
Protecting biodiversity requires strong collaboration between financial and non-financial institutions to achieve tangible results. UniCredit is the first
Italian bank to have signed up to the Finance for Biodiversity Pledge (FfBP). The FfBP members jointly call for and commit to taking ambitious
action on biodiversity to reverse nature loss in this decade. This will be achieved through collaboration, engagement with relevant counterparts
and the assessment of our own biodiversity impact. We have also contributed to the first climate and nature nexus paper titled ‘Unlocking the
biodiversity-climate nexus. This paper lays out the key pillars, linking the issues of climate change with those of the impacts on nature.’ In
September 2024 we contributed also to the discussion paper Finance for Nature Positive”, led by the Finance for Biodiversity (FfB) Foundation and
UNEP FI. This discussion paper intends to solicit feedback from the financial sector on a proposed Finance for Nature Positive working model,
including definitions and associated practices.
Furthermore, we are members of the Working Group on Nature within the United Nations Environment Programme Finance Initiative (UNEP
FI), related to Principles for Responsible Banking (PRB). We are proud to be the only Italian bank, among 34 international peers, to have contributed
to the publication of the ‘PRB Nature Target Setting Guidance’. Such guidance is designed for banks to set nature ambitions, particularly for PRB
signatories who have identified nature as one of their most significant impact areas to fulfill their commitments towards setting PRB targets. It
provides a set of model targets especially at the practice level which will be fine-tuned and improved over time as more banks gain experience with
this topic. It reflects the goals and targets of the GBF (Global Biodiversity Framework), which demonstrates the global commitment by governments
to take urgent and meaningful action to address nature and biodiversity loss.
Dialogue with stakeholders is fundamental. This is reason why external points of view are always taken into consideration also in setting up our
guidelines and policies.
We are following and participating in discussions at European level on regulatory frameworks (e.g. on deforestation, agriculture). We are members
of the IIF Sustainable Finance Nature Expert, a platform to address evolving nature related issues and to support advocacy efforts related to
nature initiatives. In 2024 we contributed to the IIF Report on Nature-related Finance: “Responding to Nature-related Risks and Opportunities.
During 2024 we also adhered to the TNFD Forum.
Following our strengthened engagement with NGOs and civil society at large, we have dedicated initiatives with the most significant
organizations to assess any gaps identified by them in our ESG strategic positioning and to highlight the Group’s improvements in areas of
sustainability, focusing on material topics such as Biodiversity, Net Zero and policy updates.
273
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
To make good on our commitment, in 2024 we replicated our ESG Day. The one-day event saw more than 13,000 participants, joined either online
from all the countries or in-person at our offices in Milan. At its core, the event was an opportunity to stimulate stakeholder dialogue while continuing
to raise awareness of climate change, social inequalities, biodiversity, as well as our own role in fostering the necessary change in mindset.
Attendees included colleagues, clients and partners, alongside a host of renowned experts who dived into a series of engaging discussions covering
the full spectrum of ESG topics (for example we had the Convener of Nature Positive Initiative in a specific panel on biodiversity). The session
entitled: "The way forward: from responsibility to response-ability", which focused on the importance of establishing alternative models and
approaches in order to foster more sustainable ways of doing business, was focused on practical steps forward in the face of the natural challenges.
Examples included service providers offering rewards such as better pricing for customers that demonstrate sustainable tendencies. Similarly, this
approach could be applied to investors, with creditors who contribute to a company's sustainability goals earning a better return.
A double interview with relevant international experts in nature positive and biodiversity strategy underlined the importance of COP 15 in Montreal, in
which the world agreed on a plan to halt and reverse nature loss for the first time. Not only climate topics, but even Nature topics were put in the
international agendas across the world. With the COP 16, the financial sector participates with a wider presence, giving the signal that the attention
is increasing. It is important disclosing data to define measurement framework that can give comparability to the data and increase the awareness.
Moreover, our commitment also applies to internal stakeholders as it is fundamental for us to disseminate awareness on biodiversity. This is the
reason why set up a specific training available to all employees starting from 2025. Biodiversity is also included in the Skills for Transition training
program which provides training for the workforce of UniCredit's corporate clients, offering specific learning paths to address key skill gaps. The
training courses started to be delivered in November 2024 via a digital platform in workers' local languages. More info on Skills for Transition
program is available in the ESRS S3 - Affected Communities.
As stated in our Group reputational risk management global policy, UniCredit Group applies minimum requirements for supporting single deals.
Any deals for which a Legal Entity of the Group is going to provide any financial product or service must not involve or affect any of the following:
• UNESCO World Heritage Sites;
• IUCN I-IV protected areas;
• Ramsar Convention on Wetlands;
• Critical Natural Habitat;
• Primary Tropical Moist Forests;
• Conservation Value Forests.
UniCredit group does not provide any financial support or service for activities not compliant with the UN Declaration on the Rights of Indigenous
Peoples.
Environmental and social risk assessments are guided by our sustainability policies and by our Human Rights Commitment.
For transactions in Non-Designated Countries which are subject to the Equator Principles (EP), we work to ensure that potential environmental and
social risks are determined, assessed and managed in line with the IFC’s Performance Standards on Environmental and Social Sustainability (PS).
PS 6 refers specifically to Biodiversity Conservation and Sustainable Management of Living Natural Resources.
UniCredit set the following ambitions:
• Since it is fundamental for us to disseminate awareness on biodiversity, we are working on an Internal training path which will be available for
all the employees in 2025;
• External training for our clients on biodiversity through the Skills for Transition training program;
• Business opportunities will be evaluated to support our clients in the green transition. We will set up specific working groups to start evaluating
business opportunities.
E-4-4 - Targets related to biodiversity and ecosystems
Since large-scale quantitative information on biodiversity for the financed portfolio is not yet available, the Group, by adopting the transitional
provision, has not yet equipped itself with quantitative objectives for this environmental topic.
274
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
E5 - Resource use and circular economy
Impact risk and opportunity management
E5-1 - Policies related to resource use and circular economy
UniCredit considers circularity a lever to reduce impact on the environment. The commitment of UniCredit on circular economy derives from the
awareness that sustainability is a core corporate responsibility and contributes to the long-term business, addressing environmental issues which
need to be tackled now. Notwithstanding the commitment of the Bank towards circular economy, it has not yet materialized into a dedicated policy to
cover material impacts resulted from the DMA process:
• Contribution to high inflow and use of resources, and to high waste by sectors such as construction, power generation, manufacture, and waste-
intensive sectors in which UniCredit clients operate;
• Fostering awareness and commitments related to waste production and waste management from UniCredit clients.
However, UniCredit has undertaken some analyses on the sectors which are considered more controversial, based on the discussions underway in
the various international working groups. The aim is to assess the drawing up of a cross-sectoral policy which addresses the interruption of the virgin
resources use among the financed sectors.
Within our sectoral policies, waste management is addressed with the objective to regulate waste production and disposal in order to mitigate
negative environmental impacts. For instance:
• Our Civil Nuclear policy applies to any specific transaction financing, irrespective of the subject, related to nuclear waste processing activities;
• Our Mining Industry policy applies to activities related to the development, construction, and operation of facilities to mine, process, and transport
ore, as well as supporting infrastructure, such as tailings and other waste management facilities.
Circular economy is also mentioned in our ESG Product Guidelines. We consider as “Green” the loans financing economic activities, contributing
substantially to one or more of the environmental objectives of the EU Taxonomy criteria (including the objective 4 “The transition to a circular
economy”).
For more details on the described policies, reference is made to the “MDR-P Policies adopted to manage material sustainability matters”.
E5-2 - Actions and resources related to resource use and circular economy
UniCredit has carried out and promoted awareness and commitment actions and activities aimed at creating awareness among its clients on
circularity and on waste production and management.
UniCredit’s commitment on circularity is also mentioned in the Statement on Natural Capital and Biodiversity published in May 2024. Also, the
Natural Capital Framework developed by the Bank mentions circularity as enabler to reach Net Zero targets. Circular economy can significantly
contribute to a just and fair transition for our clients in different ways, by providing loans, advisory, creating synergies and establishing
partnerships.
In December 2022 UniCredit signed a membership with the Ellen MacArthur Foundation, a pioneer and leader charity in circularity topics at
international level. The participation to working groups organized by the charity has a double significance: on the one hand the Bank has access to a
specific know-how focused on circular economy; on the other hand, the Bank established new contacts and made networking with companies
belonging to other sectors, identifying specific needs and assessing how it can support them in their green transition.
In 2023 UniCredit started to take part in a working group designed and proposed by UNEP FI, in which also other banks take part, with the aim of
drawing up a position paper on the nexus between climate and circular economy, supplemented by an operational guidance and supplements
dedicated to priority sectors (Building/Construction, Textile). This guidance also includes some tangible actions that banks can implement to support
its clients and promote circularity. The full set prepared by UNEP FI with the contribution of other banks was published in July 2024. In September
2024 UNEP FI launched Phase 2 of the working group which aims at making a deep dive on other sectors.
In February 2024 UniCredit organised a webinar entitled “Straight ahead with circularity”, exploring the shift from linear to circular business
models in various sectors, discussing the challenges ahead and the opportunities offered by the transition. The event was also addressed to clients
and experts from oil&gas, steel and fashion which took part to the webinar to discuss the circular business models implementation feasibility.
Circular economy was also mentioned as crucial during our second ESG Day. For more information on our ESG Day, reference is made to section
S3 - Affected Communities.
275
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
These events promote debated on sustainability and encourage the adoption of resilient and sustainable business models in various sectors,
highlighting the correlation between circular actions, fight against climate change, natural capital preservation and promotion of healthy and inclusive
economies.
UniCredit set some ambitions on various streams:
• Since it is fundamental for us to disseminate awareness on circular economy, we are working on an Internal training path on circularity
topics, which will be available for all the employees starting from the beginning of 2025;
• External training for our clients which embrace circular business models and processes through the Skills for Transition training program via a
digital platform in workers' local languages;
• Business opportunities will be evaluated to support our clients in the green transition. UniCredit has started to execute a first analysis on sectors
considered as priority because of their energy consumption.
UniCredit’s strategy incorporates identifying and understanding climate and environmental risks (C&E) and opportunities that the Bank may
encounter. C&E factors are related to the quality and functioning of the natural environment and its systems (Natural Capital) and include factors
such as climate change, biodiversity, energy consumption, water, pollution, and waste management.
As described in E3, in 2024 the Bank has worked on an assessment to identify which industries are most exposed to nature-related risks in terms of
impact on natural capital and dependency from ecosystem services. The results are still at an early stage also considering data availability. For
further details reference is made to section E3 Water and marine resources.
To prevent and mitigate various potential negative environmental impacts at our premises level, alongside energy efficiency, we have introduced
measures to optimise the use of limited natural resources and to foster a circular economy. We have also launched several projects aimed at
reusing and rethinking our redundant furniture. For example, in 2024 in Italy a national agreement with Croce Rossa Italiana has been signed to
manage the donation of dismissed furniture when not internally reused. In Austria a furniture donation to Caritas has been completed in the occasion
of new learning cafe opening in Bank Austria Campus. In Hungary the resale of unused office furniture is in place. These activities are pretty circular
since they focus on reuse, which is one of the R-principles of circular economy.
E-5-3 – Targets related to resource use and circular economy
Since large-scale quantitative information on resource use and circular economy for the financed portfolio is not yet available, the Group, by
adopting the transitional provision, has not yet equipped itself with quantitative objectives for this environmental topic.
Social Information
S1 - Own workforce
Impact risk and opportunity management
S1-1 - Policies related to own workforce
UniCredit's policies comprehensively address and manage material impacts and opportunities identified through the DMA process.
Impacts:
• Promotion of employee well-being through the implementation of dedicated well-being activities and benefits within a healthy and stimulating
working environment.
• Positive contribution to the objectives of ensuring equal opportunities, secure employment, generation of quality employment, the payment of
adequate wages also through the promotion of social dialogue, collective bargaining agreements and workers' associations.
• Improved employees’ skills through training and professional development activities, general and technical programmes, also linked to
personalised growth and evaluation objectives (e.g. career development plans).
• Contribution to the development of young talents through partnerships with national and international Universities, collaborations with communities
in the IT and tech sector, often with a focus on women and creation of employee networks on several diversity traits.
• Respect for diversity and promotion of an inclusive work environment through anti-discrimination activities and initiatives.
• Increase in digital skills, knowledge, and opportunities of employees.
276
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Opportunities:
• Becoming an employer of choice with widespread diversity, a culture of inclusion and concrete work-life balance solutions which encompass a
flexible approach.
• Improvement of employees’ productivity through the implementation of effective training programs, anticipating future trends.
• Ensure and guarantee transparent performance review systems and professional growth plans for the Group's entire population, empowering
employees to thrive and unlock their potential.
Key focus area include:
• Well-Being, Inclusion, and Respect: Fostering a supportive, inclusive, and healthy work environment that values diversity, encourages a sense
of belonging, empowers employees to thrive, and ensures dedicated channels for reporting unacceptable behaviors, maintaining a respectful and
safe workplace for all.
• Fair Opportunities: Ensuring equal opportunities for all employees based on merit and inclusive practices, while promoting social dialogue.
• Skill Building and Development: Enhancing employee skills through tailored training programs, upskilling, and career development plans.
The commitment to respect human rights is the principle of UniCredit’s approach to people's interests within and outside the organisation. The
Commitment is inspired by internationally recognised declarations, conventions, standards, principles, and guidelines and ensures that human rights
are guaranteed to all.
UniCredit requires its employees to contribute to creating and maintaining a work environment that is respectful, safe, and inclusive, where
differences in gender identity, age, race, ethnicity, sexual orientation, ability, background, religious or ethical values system and political beliefs or
any other category protected by law in the local jurisdiction are embraced and promoted.
UniCredit’s commitment to creating an inclusive environment incorporates efforts that promote our employees’ well-being and help them to
effectively manage personal and professional challenges. We support our employees and their families across all stages of their lives, providing
benefits designed to enhance their work-life balance.
This aligns with our aim to improve the working environment and create a stronger sense of inclusion and belonging, which will ensure a higher
quality of life at work.
Our employees selected our Values of Integrity, Ownership and Caring as they represent our Culture.
• Integrity is doing the right thing.
• Ownership is being accountable for our actions and commitments and feeling free to speak up when something doesn’t look right.
• Caring for one another is about respecting and valuing our differences.
As a financial services provider, UniCredit’s principal asset is its highly skilled workforce. Thus, UniCredit does not use child labour or forced labour
in its business practices and is in full compliance with ILO’s Tripartite Declaration of Principles Concerning Multinational Enterprises and Social
Policy, the UN Guiding Principles on Business and Human Rights or, when more rigorous, with current labour laws in each country where UniCredit
operates.
At UniCredit, we recognise that an equitable and diverse workforce is essential to our business, creating a fairer, more inclusive working
environment. We believe that when Diversity, Equity, and Inclusion (DE&I) work in harmony, great things happen:
• people feel respected and valued for their contributions, directly enhancing productivity.
• people experience a sense of belonging, connection, and shared pride, positively impacting well-being.
• people feel free to express their views and ideas, fueling creativity and innovation.
• people sense their potential is recognised, unlocking talent and boosting performance and job satisfaction.
These foundations position us as an employer of choice by fostering a diverse workforce, an inclusive culture, and tangible work-life balance
solutions. This approach drives sustainable business growth while delivering value to our clients, communities, and shareholders.
Our approach to diversity emphasises understanding, accepting, and valuing individual differences. We foster equity throughout the organisation in
recruitment, development, retention and our products and services. Inclusion is rooted in respect and accessibility, ensuring a barrier-free
environment where everyone has a voice and is encouraged to thrive.
In line with our 2009 Joint Declaration on “Equal Opportunities and Non-Discrimination”, UniCredit reaffirms its commitment to a Culture of
inclusion and equal opportunity. Discrimination is not tolerated in any form: racial and ethnic origin, colour, sex, sexual orientation, gender identity,
disability, age, religion, political opinion, national extraction or social origin, or other forms of discrimination covered by Union regulation and national
law.
277
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Additionally, by signing the Global Framework Agreement with the UNI Global Union on Human Rights and Fundamental Labour Rights,
UniCredit strengthens its commitment to combating discrimination.
UniCredit adopts a Zero-tolerance approach to unacceptable behaviour. Since 2019, our Global Policy against Harassment, Sexual
Misconduct, Bullying, and Retaliation set the rules against harassment and increases awareness of inappropriate behaviours, while highlighting
Whistleblowing and other channels.
By fostering a ‘speak up’ Culture, we ensure employees feel heard, supported and protected when reporting suspected misconduct. Our aim is to
create and maintain a respectful and safe workplace where everyone can raise concerns in good faith, without fear of retaliation.
Our DE&I Global Policy aligns with our Culture transformation, increasing transparency and guiding us towards positive change across all diversity
dimensions, while setting out the principles by which we enhance inclusion throughout the whole organisation, aiming to ensure that our policies,
procedures, and behaviours promote diversity, equity and inclusion and create a workplace where individual differences are valued. The policy
principles go beyond guidelines, they’re ingrained in our mindset and visible in all internal and external interactions.
Our Code of Conduct underscores inclusion principles, focusing on objectivity, competence, professionalism, and equal opportunity in people-
related processes while providing procedures to address discrimination, mobbing, or bullying.
As part of our Group Remuneration Policy, UniCredit is committed to equal pay, ensuring fair treatment in remuneration based on role,
responsibility, performance, and contribution quality, regardless of gender identity, age, race, ethnicity, sexual orientation, ability, or cultural
background. Our gender-neutral remuneration and incentive policies foster genuine equality, guaranteeing equal pay for equal work and equal
access to opportunities for all. Achieving gender parity at all organisational levels is integral to UniCredit’s DE&I approach, reflecting our belief in the
transformative power of gender diversity within our organisation and society.
As part of our broader ESG commitments, UniCredit’s CEO signed the “Net Zero Gender Gap” pledge, solidifying our commitment to gender
equality and DE&I on our corporate agenda, with specific goals and frameworks for meaningful progress.
We are dedicated to challenging biases, micro-aggressions, and stereotypes, cultivating a Culture of inclusion. Our DE&I Global Policy applies to
every stage of the employee journey, from recruitment and onboarding to learning, development, performance management, and compensation,
ensuring unbiased, merit-based decisions and pay equality, irrespective of diversity traits.
• Recruitment: We strive for a gender-balanced, bias-free recruitment process, removing discriminatory or non-inclusive language from job
descriptions to encourage diverse applicants.
• Onboarding: New joiners receive comprehensive support, tools and opportunities to help them fully realise their potential.
• Learning and Development: We provide equal learning opportunities to ensure all employees can meet business priorities. Training focuses on
inclusive leadership, psychological safety, trust, recognising and addressing unconscious bias, preventing harassment, misconduct, bullying, and
retaliation.
• Performance Management: We maintain consistent performance standards with gender-balanced and diverse succession planning and
promotion pathways.
• Compensation: Compensation is based on merit and aligned with DE&I goals, promoting pay equality and diversity commitments across all
levels.
Specifically, the recruiting process fosters the development of young talents through partnerships with universities and collaborations with
communities in the IT and tech sectors, with an emphasis on diversity and inclusion. This approach allows UniCredit to cultivate a diverse workforce,
strengthen its talent pipeline, drive innovation, and support its long-term talent acquisition goals.
For information on policies, refer to the section “MDR-P Policies adopted to manage material sustainability matters”.
Fostering a safe and respectful work environment
Although the double materiality assessment has proved that UniCredit only has positive material impacts on its workforce, our Bank pledges to
protect its people.
UniCredit is committed to ensuring and guaranteeing the respect of human rights, principles and values of Code of Ethics and Code of Conduct and
in numerous company policies.
278
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
This commitment, aimed at avoiding potential negative impacts on the workforce, consists of specific channels for employees, identified in the
Global Policy against harassment, sexual misconduct, bullying and retaliation. These channels allow us to manage and monitor the specific
situations Legal and Labour function oversees.
As part of the continuous social dialogue, the Company collects reports from employees through their representatives to implement, improve and
modify company processes and the working environment, where possible.
S1-2 - Process for engaging with own workers and workers' representatives about impacts
In 2021, UniCredit’s group Culture and DE&I function engaged individuals, some workers representatives as detailed below across the organisation
to define UniCredit’s Values: Integrity, Ownership and Caring. This process involved meetings, surveys and focus groups alongside a Culture
Diagnostic to assess the current state and set a direction for Culture transformation to support UniCredit’s strategic industrial plan: UniCredit
Unlocked.
The function also conducts internal surveys to gauge employee satisfaction following events, training sessions, and other activities, using this
feedback to guide improvements to these initiatives. UniCredit uses the InMoment platform, verified for cybersecurity and privacy compliance, to
gather employee insights through surveys, helping us manage potential and actual impacts on employees.
UniCredit’s Group Culture and DE&I function aims to make Culture a core driver for achieving UniCredit Unlocked strategic goals. The Group has
mobilised volunteer Culture Sponsors and Champions to support this transformation. As of today, there is representation across all 13 countries and
every Competence Line where UniCredit operates, with 24 Culture Sponsors paired with 28 Culture Champions.
They design and execute local initiatives to inspire and accelerate Culture Transformation within their teams. The Group Culture and DE&I function
engages with them regularly through various initiatives, including Culture Bootcamps, Group Culture Days, and CEO Culture Progress Meetings.
The frequency of these engagements varies depending on the project, ranging from bi-monthly to quarterly. Their first point of engagement was the
Culture Bootcamp, designed to equip volunteers for their roles.
Additionally, the Group Culture and DE&I function conducts on-demand surveys for feedback on key employee interactions such as training, events,
and IT application experiences. Feedback is always anonymous and voluntary, with responses used to drive improvements.
For surveys designed to assess the effectiveness of training, events, or other forms of employee engagement, the Group Culture and DE&I function
is responsible for survey setup, including platform management, obtaining necessary work council approvals, and reporting.
UniCredit is committed to respecting and enforcing sovereign state legislation on collective agreements, bargaining and freedom of association. As
international principles may not be fully ratified in each country where our Group operates, UniCredit pledges to shape its relationships with
employees and its business practices around stricter and more recent international conventions.
At UniCredit, we believe that social dialogue contributes to value creation over time by strengthening our ability to collaborate, listen and understand
national and international labour needs. Our continuous commitment to improving the social dialogue throughout the Group led to the 2007 creation
of an international body, the European Works Council (EWC), composed of workers’ representatives of the countries where UniCredit is present.
The UniCredit European Works Council (UEWC) reflects UniCredit’s commitment to improving constantly the social dialogue's level in every
geography of the Group and ensuring that employees’ rights to information and consultation are upheld consistently across the Group. The UEWC
represents employees from UniCredit group companies where UniCredit holds at least 50% of the share capital in EU Member States and other
European countries. It enhances the Group's European identity, fosters social cohesion, and promotes constructive dialogue between management
and employees.
Key functions of the UEWC:
• Information Sharing: Central Management provides timely and relevant data on significant transnational matters that affect employees across
multiple countries.
• Consultation: UEWC members engage in dialogue with Central Management on Company measures, providing their view and feedback to
support UniCredit in empowering accountable and sustainable progress in the best interest of our employees, customers and communities.
The UEWC meets twice a year with Group Top Management to receive updates on UniCredit strategy and discuss major transnational topics,
particularly those impacting employees. Between these plenary meetings, the Central Management engages in dialogue with the Select Committee
whenever a relevant cross-border issue arises, ensuring a vital link between employees and management.
279
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Over the years, UniCredit has strengthened social dialogue through various Joint Declarations, covering Training, Learning, and Professional
Development (2008); Equal Opportunities and Non-Discrimination (2009); Responsible Sales (2015); Work-Life Balance (2019); and Remote Work
(2020). This commitment was further reinforced in 2019 by signing a Global Framework Agreement (GFA) with UNI Global Finance, the global trade
union for the banking and insurance sectors.
Channels used
In Italy, the Company holds periodic meetings with workers’ representatives based on legal and sector regulations, to allow the sharing of workers’
concerns and needs.
UniCredit has established dedicated channels through which employees can report incidents of discriminations and harassment.
They can report:
• Through the channels outlined in the Whistleblowing procedure in force within the relevant legal entity.
• To the People and Culture department of their legal entity.
• To their direct Line Manager.
• Through any other possible channels made available by the Group legal entity.
Effectiveness of engagement
For various initiatives, such as training, events and meetings, feedback collection is a key step. The goal is to gather ideas and suggestions for
continuous improvement. For example, at the executive development level, surveys assess the quality of delivered programmes to refine future
editions. This process involves clustering feedback to identify actionable improvements.
UniCredit is dedicated to addressing the needs of vulnerable and marginalised groups within its workforce, including women, people with disabilities,
and individuals from diverse cultural backgrounds. Employee Networks are voluntary groups of employees, with more than 1,000 active members,
that come together based on shared identity or life experiences, building community engagement. Key initiatives the Group is addressing include
supporting Employee Networks (e.g. Women’s Networks, REaCH Networks - Race, Ethnicity and Cultural Heritage, Disability Networks, Unicorns
Networks - LGBTQ+ and allies, Caregiving Network, Generations networks) to gather insights, partnering with NGOs to understand the challenges
faced by these communities, implementing safe reporting channels, and using HR data analytics to track workforce diversity and pay equity.
UniCredit emphasises inclusive recruitment, accessible workplace practices, such as flexible work options and accessibility enhancements, anti-
discrimination policies, and regular inclusion training. Transparent reporting on diversity metrics reinforces UniCredit’s commitment to fair treatment
and equal opportunity for all employees.
S1-4 - Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing
material opportunities related to own workforce, and effectiveness of those actions
Fostering Inclusivity and Well-being at UniCredit
UniCredit is committed to creating an inclusive Culture where every employee feels a sense of belonging. To promote awareness and celebrate
diversity, equity, and inclusion (DE&I), UniCredit organises Group-wide DE&I and Well-being Days, marking events such as International Women’s
Day, Transgender Day of Visibility, World Health Day, International Day of Family, International Day against Homophobia, Transphobia and
Biphobia, World Day for Cultural Diversity, Pride Month, World Mental Health Day, International Day for Elimination of Violence against Women and
International Day of Persons with Disabilities. These events reflect UniCredit’s dedication to DE&I and our goal of building a truly inclusive
workplace.
Concrete actions in place
UniCredit is dedicated to fostering a workplace free of barriers, where all employees have a voice and a sense of belonging. Our Diversity, Equity,
and Inclusion (DE&I) Strategy is integrated across the employee lifecycle, promoting behaviours and initiatives that advance an equitable, inclusive
Culture.
• Comprehensive parental leave and family support - Beyond legally mandated leave, UniCredit offers a Group-wide minimum standard for
parental support, along with flexible work arrangements, including smart-working options. Additional welfare benefits for child-related activities
underline UniCredit’s support for parents throughout their careers.
• Inclusive culture programmes - UniCredit’s DE&I guidelines promote inclusive language, recruitment practices, and gender transition support,
reducing unconscious bias and celebrating diversity. DE&I-specific training, available in local languages via the PLUS online learning platform, has
achieved a 70% completion rate and an average satisfaction score of 7.9 out of 10.
280
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
• Mentorship programme - Focused on supporting women, men and underrepresented groups, UniCredit’s mentorship initiatives aim to enhance
diverse leadership representation and nurture an inclusive environment for talent.
Holistic well-being approach encompasses physical, mental, social, financial, and career well-being. Resources such as the Well-being
navigator, an interactive guide with tools and tips, digital learning pills on stress & burnout, menopause, dementia as well as a dedicated playlist on
key well-being topics are available on Plus learning platform for all Group colleagues to support prioritising well-being across all life stages.
Additionally, dedicated well-being workshops have been delivered across the Group countries. This comprehensive approach reinforces UniCredit’s
DE&I commitment and fosters a Culture of care and connection.
Building a positive work environment
Our people are our greatest asset. We are dedicated to a positive, safe, and collaborative environment, ensuring equal opportunities and supporting
personal growth through a comprehensive well-being framework. Flexible working solutions, welfare offerings, and well-being initiatives across all
regions meet diverse needs and promote a healthy workplace.
Our specific well-being programmes include:
• Mental well-Being: our “Ask for Help” helpline provides free psychological support across all countries.
• Physical well-Being: health and lifestyle programmes offer medical check-ups, nutrition advice, and sports initiatives.
• Career well-Being: initiatives such as “Talento Diffuso” in Italy support personal career growth.
• Social well-Being: programmes in Slovenia, such as the Family and Friends Certificate, support reintegration after leave, offer a free day for
parents on the first day of school, onboarding after longer leave, free psychological support.
• Financial well-Being: Ladies Finance Day in Germany offers financial literacy and management workshops for women, covering retirement
savings and financial independence.
Through this well-being framework, UniCredit aims to be an employer of choice, attracting and retaining talent by fostering an inclusive Culture and
offering cross-country initiatives to ensure equal treatment for all employees.
EDGE certification and DE&I recognition
UniCredit is the first pan-European bank to achieve Global EDGE Certification, recognising its work in gender equity and inclusion. This certification,
spanning 10 countries, positions UniCredit as a global leader in advancing DE&I. Being a champion in gender diversity, equity and inclusion is an
integral part of our culture and reinforces our commitment to a clear set of principles and values as a crucial component of our continued business
success. The rich diversity within our team creates the inclusive environment needed to provide best-in-class solutions to our growing client base
across Europe.
EDGE certification is the leading global standard for Diversity, Equity, and Inclusion (DE&I), centred on a workplace gender and intersectional equity
approach. It offers a holistic framework which organisations are measured against worldwide. To achieve this certification, UniCredit's banks
underwent a rigorous third-party review of representation across the succession pipeline, pay equity, the effectiveness of policies and practices, and
the inclusiveness of the organisation's culture.
Culture programmes and Champions
Major events like Group Culture Day and Culture Bootcamps have engaged thousands of employees, and over 200 local initiatives advance the
Group’s goal of a unified and inclusive workplace across geographies.
UniCredit has developed Group-wide initiatives to support individual and organisational growth. Key components include:
• Employee value proposition: Updating the UniCredit Employer Brand Promise to align with Group purpose and values.
• Digital channels: Promoting job opportunities through UniCredit’s website, LinkedIn, and job boards.
• Events and partnerships: Collaborating with universities and receiving awards including Universum and Top Employer.
• Targeted programmes: Offering tailored internships and graduate programmes.
Learning and development
In 2022 UniCredit established its Corporate Academy, UniCredit University, initially launched in Italy before expanding across all countries and
functions. This Global Learning & Development Framework provides a unified and transparent approach to training and development opportunities
throughout the entire Group, in coherence with our purpose of empowering our people to progress.
The primary aim of UniCredit University is to strengthen learning as a tool for both professional and personal growth among Group employees, with
a focus on supporting crucial phases of the employee lifecycle such as onboarding, upskilling, reskilling and offboarding.
281
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
UniCredit University mission, consistently with UniCredit purpose of empowering our people to progress, is to:
• Expand training opportunities, broaden the range of programs available to all employees.
• Develop targeted training paths that strengthen role-specific competencies, thereby improving employees' knowledge and skills to better address
clients evolving needs.
• Boost employee engagement by providing new opportunities for professional development.
UniCredit University is structured to provide a personalized learning offer to all employees through differentiated learning programs by targets (e.g.:
executives, high potentials, newly hired, etc.), roles, responsibility levels.
Specifically for executives, UniCredit University developed a targeted offer at Group level, embedded in UniCredit strategic priorities, aimed at
supporting our Group in laying the foundation for a fully transformed UniCredit and elevating trust, empowerment and ownership.
It encompasses a multi-modal development experience with initiatives that go beyond the traditional concept of formal classroom and are fully
integrated into people's business challenges, including:
• Group Executive Programmes on strategic topics, such as Leadership, ESG and Digital;
• Bespoke initiatives, such as Mentoring and Coaching;
• Immersive workshop and team coaching to support the Bank transformation and foster new leadership imperatives.
UniCredit Universities, developed at country and business function level in coherence with the global framework, are delivered both leveraging on
technology, with a dedicated platform hosting more than 80.000 titles that ensure consistent delivery of contents, learning experiences and
approaches, and on in person training recognising the value of human interaction to disseminate and spread knowledge across peers, different
generations at work and personal backgrounds.
Training contents are consistent with UniCredit strategy and designed to guarantee the sustainable growth of the Bank in the areas of leadership,
digital, risk management, ESG, wellbeing, generational mix and future proof skills by role being continuously updated to meet the evolving needs of
our clients. The contents are defined to offer employees a tailored and continuous learning experience that aligns with both their current role
requirements and future skill needs; moreover, they are complemented by yearly mandatory training programmes that serve as an important lever to
prevent and mitigate risks, ensure the organizational internal and external reputation and spread risk culture at all levels of the organization.
The learning offers provided by UniCredit University is established through a structured annual process: needs are identified by dedicated meetings
with the business, analysed and translated into tailored training solutions delivered at either local and global level, also involving workforce
representatives as needed to ensure a positive social dialogue and the involvement of all relevant stakeholders in the design and delivery of our
employees’ skills and knowledge.
Learning initiatives are designed and delivered leveraging on internal faculties and content experts that ensure the coherence to business and
employees needs and that are ambassadors of UniCredit values of caring and accountability: in 2024 over 13 functional/country University
catalogues were finalised with approximately 2.5 million learning hours delivered at Group level.
Our well-being programmes focus on positive impacts across physical, mental, social, career, and financial well-being, with flexible work policies to
improve work-life quality. Development opportunities, inclusive leadership programmes, community engagement, and transparent communication
channels build trust and collaboration, fostering a supportive and engaging work environment.
Additionally, UniCredit’s recruiting process supports young talent development through partnerships with universities and the tech sector,
emphasising diversity and inclusion. This strategy strengthens UniCredit’s talent pipeline, supporting innovation, inclusivity, and long-term talent
acquisition goals.
UniCredit is committed to building a better tomorrow for all the stakeholders by championing diversity and equality at all levels of organisation. The
primary focus is to unlock the full potential of people fostering a positive and inclusive work environment. This approach ensures sustainable growth,
new business opportunities, and a cohesive work environment focused on productivity, personal and professional well-being, and the continuous
engagement of people. At UniCredit, we are striving to create value for everyone, everywhere. We look forward to continuing this journey together
and achieving our shared goals keeping our Values of Integrity, Ownership and Caring at the centre of everything we do.
282
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Actions taken: effectiveness and results
UniCredit employs a robust tracking and assessment framework to evaluate the effectiveness of DE&I and learning initiatives. This includes
monitoring specific metrics and KPIs, conducting regular feedback sessions, and benchmarking against industry standards. For DE&I, regular
reports ensure transparency and accountability, with leadership evaluated on their progress toward DE&I goals during performance reviews.
Similarly, all Learning and Development activities are systematically recorded in the Group’s Learning Management System (currently MyLearning),
ensuring comprehensive monitoring and evaluation. These approaches collectively foster continuous improvement, enabling to drive meaningful
impact and support a Culture of inclusivity and growth.
UniCredit remains committed to drive equal pay for equal work, ensuring fair remuneration based on role, responsibilities, and contributions without
discrimination across any diversity strands.
Investments in training and development for people: UniCredit University, the Group's Learning and Development Framework, offers structured
leadership and functional expertise programmes for professional and personal growth. Partnerships with educational institutions support career
development and continuous learning. Work-life balance solutions, including flexible working arrangements and well-being resources, further support
our employees. These initiatives strengthen UniCredit’s position as an employer of choice.
In 2024, at Group level, significant investments were made in training and development initiatives (€22.5 million). UniCredit remains committed to
further investing in its people allocating dedicated resources to fostering a supportive, inclusive environment that enhances well-being and
professional growth.
UniCredit proactively addresses workforce risks and opportunities through comprehensive policies and frameworks focused on well-being, equal
opportunities, and career growth. The Human Rights Commitment, aligned with international standards, promotes fair wages, quality employment,
and social dialogue, along with skill development through dedicated training programmes. Complementary policies, like the Group remuneration
policy, ensure that compensation aligns with risk-adjusted performance and sustainability goals while discouraging excessive risk-taking. The
diversity, equity and inclusion global policy fosters an inclusive culture, actively preventing discrimination and enhancing employee performance
through innovative training. UniCredit’s global policy against harassment and bullying promotes a respectful workplace, reinforcing its reputation as
an employer of choice. Recruiting initiatives focus on building a diverse talent pipeline through partnerships with universities and the tech sector,
ensuring long-term innovation and inclusivity. These efforts are supported by mandatory training programmes designed to uphold business conduct
and safeguard the Group’s reputation. The effectiveness of these actions is monitored through transparent performance reviews, career
development plans, and continuous dialogue with employees, ensuring alignment with UniCredit’s strategic goals.
Mandatory training at the Group level plays a critical role in preventing and mitigating business conduct risks, with implications for internal and
external reputation, and legal liability of both employees and management.
UniCredit fosters career growth, inclusivity, and work-life balance through the following initiatives:
• Skill building and development: UniCredit provides comprehensive training programs, including mandatory and role-specific courses, to support
upskilling, reskilling, and digital skills enhancement. UniCredit University, launched in 2022, offers a unified framework for learning and
development, delivering tailored programs aligned with career phases like onboarding and professional growth. Accessible through a dedicated
platform and in-person training, the programs focus on strategic areas such as Leadership, ESG, Digital, and Risk Management.
• Fair opportunities and growth: UniCredit ensures equal opportunities for all employees through merit-based and inclusive practices, while
fostering a respectful work environment and promoting social dialogue.
• DE&I and well-being: UniCredit advances diversity, equity, and inclusion by promoting inclusive hiring practices, mentorship programs for
underrepresented groups, and dedicated training initiatives. Employee networks (e.g., LGBTQIA+, gender, and cultural diversity) and regular pay
equity analyses underscore the company’s commitment to equity. A safe workplace is supported by the Global Policy Against Harassment, which
includes dedicated channels for reporting unacceptable behaviours.
UniCredit reinforced its commitment to employee engagement with the following actions in 2024:
• two plenary Ordinary meetings with UEWC members and UCI top management (GEC level) have been held in Milan, in January and July;
• two Select Committee meetings have been organized to discuss the new Digital Organizational Model (on February) and the CSRD new EU
directive (in December);
• relevant cross-border updates were shared promptly with the UEWC Select Committee, ensuring transparency and continuous engagement.
In addition, a significant number of employees, from all Competence Lines and from 13 countries, has been successfully involved in the Group
culture transformation programme. Presently, we have a Culture Network comprising over 1,000 individuals who have committed to being agents of
283
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
transformation. Some of these agents have participated in training sessions offered through our culture learning programs. These include the
Culture Bootcamp, Culture Boostcamp, and other training initiatives for Culture Champions and Employee Networks. It should be noted that the
mentioned programs are not exhaustive, as additional training opportunities have been available under the Culture Learning offer. Moreover, these
agents have also attended Culture progress events and actively contributed to brainstorming and implementing culture initiatives.
Metrics and targets
S1-5 - Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities
UniCredit is committed to fostering a culture that empowers individuals, enhances the Company’s reputation, strengthens talent attraction, and
promotes engagement and belonging.
Our DE&I initiatives are related to dedicated goals in areas such as:
• Awareness and Education on DE&I: Initiatives like the DE&I global policy and dedicated guidelines support employee understanding of biases,
encouraging an inclusive mindset. Training covers inclusive language, recruitment practices, and gender transition support.
• Behavioural and Cultural Change: We encourage employees to embrace inclusive behaviours, fostering a diverse, equitable environment that
values each colleague.
UniCredit supports a Culture of inclusion across all levels and geographies, working to be an employer of choice with a strong DE&I Culture.
Employee Networks (e.g., LGBTQIA+, gender, disability, and cultural diversity) offer safe spaces, amplify diverse voices, and support communities.
UniCredit DE&I ambitions include gender parity, ensure equal pay for equal work, wider ethnic and cultural diversity, a fully accessible environment
for employees and clients, and promoting DE&I across all organisational levels, including stakeholders and suppliers. Accountability is maintained
through DE&I Accountable Executives and Local Managers, supported by tools like the Diversity Dashboard and regular surveys.
Progress towards DE&I targets is tracked and disclosed through transparent reporting. Regular updates are provided to the Group Executive
Committee and other management bodies. Tools such as the Diversity Dashboard, Gender Pay Gap Analysis, and internal surveys provide real-time
insights, ensuring UniCredit’s DE&I goals remain on track with corrective actions as needed.
Progress is also acknowledged externally through recognition and awards, such as:
• Recognised as one of Europe's Top Employers for the ninth year in a row, as a testament to commitments to creating a better workplace for our
people and to our enriched DE&I practices.
• Included in 2024 Top 100 Globally for Gender Equality by Equileap for the third time in a row, ranking #2 in Italy (the only Bank) and #18 in the
global financial sector.
• Awarded Diversity and Inclusion Initiative of the Year EMEA 2024 in the influential magazine Environmental Finance’s annual Sustainable
Company Awards for Group holistic well-being approach.
• Recognised as one of Europe’s Diversity Leaders 2025 by the Financial Times for the fourth consecutive year, among the top 40 out of 850
European companies and at the very top in Italy, improving by over 150 places.
By fostering a diverse, inclusive and supportive environment, UniCredit enhances organisational success and individual well-being, aligning with
sustainable growth and stakeholder expectations.
284
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
S1-6 - Characteristics of the undertaking’s employees
Information on employee head count by gender
GENDER
NUMBER OF EMPLOYEES
(HEAD COUNT)
NUMBER OF EMPLOYEES
(HEAD COUNT - ANNUAL
AVERAGE)
Male
31,293
31,891
Female
43,971
44,032
Other
1
1
Not reported
-
-
Total employees
75,265
75,923
All figures are reported in head count as at the end of the period (31 December of the reporting year). Our HR system provides 100% coverage and
uses actual data, not estimates. Moreover, the total workforce figures are the same as indicated in the Financial Statement, but with different splits
requested by the Italian Regulator.
The metrics have not undergone independent assurance by an external body.
Employee head count in countries where the undertaking has at least 50 employees representing at least 10% of its total number of
employees
COUNTRY
NUMBER OF EMPLOYEES
(HEAD COUNT)
NUMBER OF EMPLOYEES
(HEAD COUNT - ANNUAL
AVERAGE)
Italy
35,317
35,707
Germany
9,995
10,461
Information on employees by contract type, broken down by gender (head count)
HEAD COUNT
FEMALE
MALE
OTHER
NOT REPORTED
TOTAL
Number of employees (head count)
43,971
31,293
1
-
75,265
Number of employees (head count - annual average)
44,032
31,891
1
-
75,923
Number of permanent employees (head count)
42,747
30,573
-
-
73,320
Number of permanent employees (head count -
annual average)
42,800
31,145
-
-
73,945
Number of temporary employees (head count)
1,224
720
1
-
1,945
Number of temporary employees (head count - annual
average)
1,232
746
1
-
1,978
Number of non-guaranteed hours employees (head
count)
-
-
-
-
-
Number of non-guaranteed hours employees (head
count - annual average)
-
-
-
-
-
Number of full-time employees (head count)
35,168
30,218
1
-
65,387
Number of full-time employees (head count - annual
average)
34,895
30,746
1
-
65,642
Number of part-time employees (head count)
8,803
1,075
-
-
9,878
Number of part-time employees (head count - annual
average)
9,137
1,145
-
-
10,281
285
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Information on employees by contract type, broken down by region (head count)
HEAD COUNT
ITALY
GERMANY
AUSTRIA
BOSNIA AND
HERZEGOVINA
BULGARIA
CROATIA
CZECH
REPUBLIC
HUNGARY
ROMANIA
Number of employees (head count)
35,317
9,995
5,334
1,521
3,914
3,321
2,450
1,920
5,527
Number of employees (head count -
annual average)
35,707
10,461
5,662
1,530
3,982
3,376
2,446
1,936
4,530
Number of permanent employees (head
count)
34,964
9,732
5,080
1,381
3,713
3,308
2,278
1,920
5,302
Number of permanent employees (head
count - annual average)
35,363
10,198
5,369
1,403
3,774
3,361
2,258
1,936
4,346
Number of temporary employees (head
count)
353
263
254
140
201
13
172
-
225
Number of temporary employees (head
count - annual average)
344
263
294
127
208
15
188
-
184
Number of non-guaranteed hours
employees (head count)
-
-
-
-
-
-
-
-
-
Number of non-guaranteed hours
employees (head count - annual
average)
-
-
-
-
-
-
-
-
-
Number of full-time employees (head
count)
30,944
7,014
3,588
1,513
3,897
3,305
2,179
1,729
5,467
Number of full-time employees (head
count - annual average)
31,167
7,365
3,774
1,525
3,963
3,339
2,180
1,750
4,486
Number of part-time employees (head
count)
4,373
2,981
1,746
8
17
16
271
191
60
Number of part-time employees (head
count - annual average)
4,540
3,096
1,888
6
19
37
267
186
44
Continued: Information on employees by contract type, broken down by region (head count)
HEAD COUNT
RUSSIA
SERBIA
SLOVENIA
SLOVAKIA
LUXEMBOURG
USA
UNITED
KINGDOM
TOTAL
Number of employees (head count)
2,979
1,390
501
1,016
79
1
-
75,265
Number of employees (head count - annual
average)
3,287
1,380
511
1,040
77
1
-
75,923
Number of permanent employees (head count)
2,929
1,280
408
948
76
1
-
73,320
Number of permanent employees (head count -
annual average)
3,212
1,282
419
951
75
1
-
73,945
Number of temporary employees (head count)
50
110
93
68
3
-
-
1,945
Number of temporary employees (head count -
annual average)
76
98
92
89
3
-
-
1,978
Number of non-guaranteed hours employees
(head count)
-
-
-
-
-
-
-
-
Number of non-guaranteed hours employees
(head count - annual average)
-
-
-
-
-
-
-
-
Number of full-time employees (head count)
2,803
1,389
497
985
76
1
-
65,387
Number of full-time employees (head count -
annual average)
3,125
1,380
508
1,008
74
1
-
65,642
Number of part-time employees (head count)
176
1
4
31
3
-
-
9,878
Number of part-time employees (head count -
annual average)
163
1
3
32
4
-
-
10,281
286
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Characteristics of the undertaking’s Employees
NUMBER AND RATE OF EMPLOYEE TURNOVER
TOTAL
Employees who have left undertaking
(3,940)
Turnover rate
-5.1%
Number of employees previous year
76,580
Includes the employees who left voluntarily or due to dismissal, retirement, or death in service.
S1-7 - Characteristics of non-employee workers in the undertaking’s own workforce
For non-employees, we will report data in terms of Head Count (HC).
The categories are as follows:
• Leased Workers: Individuals whose workforce is leased to Group Legal Entities, typically through external agencies (such as Adecco, Manpower,
etc.), for a limited period. This is based on a contract between the agency and the Group Legal Entities. (NACE Code N78);
• Contractors: Individuals with temporary contracts related to a specific project or task, who have a direct contract with the company (e.g.,
COCOPRO contracts for Italian legal entities).
All figures are reported in HC as of the end of the period (31 December of the reporting year).
UniCredit HR system provides 100% coverage and uses actual data, not estimates, including for non-employees.
As at 31 December 2024, the number of non-employees’ workers is 1,135.
The metrics have not undergone independent assurance by an external body.
S1-8 - Collective bargaining coverage and social dialogue
Collective bargaining coverage and social dialogue
COLLECTIVE BARGAINING COVERAGE
SOCIAL DIALOGUE
COVERAGE RATE
EMPLOYEES – EEA (FOR
COUNTRIES WITH >50
EMPLOYEES REPRESENTING
> 10% TOTAL EMPLOYEES)
EMPLOYEES – NON-EEA
(ESTIMATE FOR REGIONS
WITH >50 EMPLOYEES
REPRESENTING > 10% TOTAL
EMPLOYEES)
WORKPLACE
REPRESENTATION (EEA
ONLY)(FOR COUNTRIES WITH
>50 EMPLOYEES
REPRESENTING > 10% TOTAL
EMPLOYEES)
0-19%
Hungary
Serbia
Hungary
20-39%
-
-
-
40-59%
Germany
-
-
60-79%
Luxembourg
Bosnia
-
80-100%
Austria, Bulgaria, Croatia,
Czech Republic, Italy,
Romania, Slovakia, Slovenia
Russia, Usa
Austria, Bulgaria, Croatia,
Czech Republic, Germany,
Italy, Luxembourg, Romania,
Slovakia, Slovenia
Note:
The collective bargaining agreement refers to national, sector and company level.
The above table refers to percentage of employees covered by collective bargaining agreements and social dialogue, in countries where applicable.
Maintaining proactive and regular dialogue with our workforce strengthens UniCredit’s spirit of collaboration and helps us unlock value creation. We
have a proud track record of consistent engagement with our people at both national and international levels across the Group, and this has enabled
us to manage the many market challenges we have faced over the years. At the heart of our drive to maintain effective and mutually beneficial
industrial relations is our unwavering commitment to respecting local laws and the terms and conditions of collective agreements, including
employees’ rights to exercise freedom of association and collective bargaining.
At the national level, workers’ interests may be represented in our Group by trade unions, works councils or other representatives in line with
applicable labour laws and local industrial relations systems. Workers’ representation and dialogue with their union representatives is carried out in
compliance with applicable local legislation and current union agreements. The Company allows workers’ representatives to carry out union
activities in accordance with applicable local legislation and current union agreements.
Employees can find information about the global policy channels on local intranets.
The metrics have not undergone independent assurance by an external body.
287
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
S1-9 - Diversity metrics
Gender distribution at top management level
NUMBER OF EMPLOYEES
AT TOP MANAGEMENT
LEVEL
PERCENTAGE OF
EMPLOYEES AT TOP
MANAGEMENT LEVEL BY
GENDER
Male
6
50.0%
Female
6
50.0%
Total
12
100.0%
In the Top Management figures are considered the Group Executive Committee (GEC) that is the Group’s most senior executive committee and is
chaired by the CEO.
Employee distribution by Age Group
NUMBER OF EMPLOYEES (HEAD COUNT) BY AGE GROUP
NUMBER OF EMPLOYEES
%
Under 30 years old
7,466
9.9%
30-50 years old
40,654
54.0%
Over 50 years old
27,145
36.1%
The age distribution of employees is determined by categorising the total headcount into three groups: employees under 30, employees between 30
and 50 and employees aged over 50. The headcount in each category is then divided by the total workforce, including both male and female
employees, to ensure consistency in reporting.
The metrics have not undergone independent assurance by an external body.
S1-10 - Adequate wages
All employees receive adequate wages. Adequate wages are defined in accordance with collective agreements where such agreements exist. In
countries where collective agreements are not applicable, adequate wages are defined as the prevailing minimum wage established by local
regulations. The metrics have not undergone independent assurance by an external body.
S1-11 - Social protection
All employees are covered by social protection through national programmes in accordance with local laws (e.g., INPS in Italy) for major life events.
The metrics have not undergone independent assurance by an external body.
S1-12 - Persons with disabilities
Employees with disabilities
NUMBER OF EMPLOYEES
TOTAL
Employees with disabilities
2,361
Total number of employees
75,265
Percentage of employees with disabilities
3.1%
A person with disabilities is an individual whose health status limits their ability to perform certain activities, such as movement, work, or social
inclusion. This includes individuals officially recognised as having a disability according to the legal and regulatory standards of their country. This
definition accommodates regional legal frameworks and ensures a standardised approach to identifying and reporting employees with disabilities
across different jurisdictions in compliance with CSRD requirements.
The metrics have not undergone independent assurance by an external body.
S1-13 - Training and skills development metrics
Training hours are defined as the time dedicated to training and skills development, including in-presence and virtual sessions, online courses,
workshops, certification programmes, educational opportunities. This measure does not encompass trainee programmes, course development, or
instructors’ teaching time.
288
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
To calculate training hours per employee, disaggregated by gender, we divide the total recorded training hours in the reporting period by the
headcount of each gender. All employees within UniCredit are included in these headcounts, thereby meeting CSRD requirements for consistent
and transparent reporting of training and professional development data.
The metrics have not undergone independent assurance by an external body.
The percentage of employees participating in performance appraisals is calculated using the total headcount from the S1-6 disclosure as the
denominator. This total includes employees who are not appraisal-eligible but remain part of the workforce, thereby preventing the metric from
reaching 100%. Because all individuals in excluded categories are counted as non-participants, the rate does not reflect only those who are eligible
and participate in appraisals.
The number of hours for the “Other” category will not be reported due to data privacy rules.
The metrics have not undergone independent assurance by an external body.
Training and skills development indicators by gender
TOTAL NUMBER OF
EMPLOYEES
TOTAL NUMBER OF
EMPLOYEES THAT
PARTICIPATED IN
REGULAR
PERFORMANCE AND
CAREER DEVELOPMENT
REVIEWS
PERCENTAGE OF
EMPLOYEES THAT
PARTICIPATED IN
REGULAR
PERFORMANCE AND
CAREER DEVELOPMENTS
REVIEWS
Male
31,293
29,146
93.1%
Female
43,971
39,197
89.1%
Other
1
1
100.0%
Total
75,265
68,344
90.8%
Average number of training hours by gender
TOTAL NUMBER OF
EMPLOYEES
TOTAL NUMBER OF
TRAINING HOURS
AVERAGE NUMBER OF
TRAINING HOURS PER
EMPLOYEE
Male
31,293
1,039,999
33
Female
43,971
1,408,958
32
Other
1
-
-
Total
75,265
2,448,956
33
S1-15 - Work-life balance metrics
Percentage of entitled employees that took family-related leave by gender
NUMBER OF ENTITLED
EMPLOYEES THAT TOOK
FAMILY-RELATED LEAVE
PERCENTAGE OF ENTITLED
EMPLOYEES THAT TOOK
FAMILY-RELATED LEAVE
Male
7,161
10.1%
Female
14,397
20.3%
Total
21,558
30.4%
At UniCredit, all employees are entitled to take family related leave.
We guarantee employees the right to family related leave, as outlined in our formal employment policies, handbooks, and contractual terms. This
commitment aligns with applicable labour regulations and supports our CSRD obligations by promoting a supportive and inclusive work environment.
The metrics have not undergone independent assurance by an external body.
289
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
S1-16 - Compensation metrics (pay gap and total compensation)
The gender pay gap is determined at the legal-entity level based on gross hourly pay (including variable components) for male and female
employees. To derive a country-level figure, weighted averages are applied across all relevant legal entities within each country. The calculation
subtracts the average gross hourly pay of female employees from that of male employees, then divides by the average gross hourly pay of male
employees, and finally multiplies by 100.
The metrics have not undergone independent assurance by an external body.
Gender Pay Gap - by country
COUNTRY
GENDER PAY GAP
Italy
20.0%
Germany
29.2%
Austria
30.4%
Bosnia e Herzegovina
13.7%
Bulgaria
33.5%
Croatia
20.6%
Czech Republic
27.5%
Hungary
24.2%
Romania
27.3%
Russia
36.3%
Serbia
30.1%
Slovenia
17.9%
The total compensation ratio of the CEO to the median Group employee is 1:137 as at December 2024.
The total remuneration ratio is determined by dividing the total annual remuneration of the highest-earning employee (in this case, the CEO) by the
median salary of employees within UniCredit group.
To calculate the median salary, all legal entities were requested to provide a comprehensive dataset including total pay, which consists of gross
salary and variable compensation. The remuneration of the highest-earning employee was calculated considering the value of the total remuneration
as stated on Consob Table n.1, including also the year’s fair value, related to the remuneration in equity instruments, ensuring transparency and
consistency in the calculation process.
The metrics have not undergone independent assurance by an external body.
S1-17 - Incidents, complaints and severe human rights impacts
Number of incidents of discrimination and number of complaints
31.12.2024
Total number of incidents of discrimination
7
Total number of complaints filed through channels for people in own workforce to raise concerns
52
Total number of complaints filed to National Contact Points for OECD Multinational Enterprises
1
In the contest of global policy against harassment, sexual misconduct, bullying and retaliation and diversity, equity and inclusion global policy in
2024 in the Group, No.60 reports were received and investigated and for No.7 of these disciplinary sanctions were imposed.
It should be noted that no costs referred to work-related incidents of discrimination have been recognized during financial year 2024.
Finally, as per request of ESRS S1-17 par.104, no cases of severe human rights incidents have occurred during the year.
The metrics have not undergone independent assurance by an external body.
290
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
S2 - Workers in the value chain
Impact risk and opportunity management
S2-1 - Policies related to value chain workers
UniCredit is aware of the importance of human rights, including in its relationship with its value chain. Despite this, UniCredit’s commitment to
addressing value chain workers’ human rights has not materialised into a dedicated policy. The respect and guarantee of human rights are
addressed by the Group through its human rights commitment, which covers the material impact resulted from the DMA:
• Awareness and dissemination of the culture of ethics and human rights (child and forced labour) by business partners and other stakeholders
increases responsibility and fair practices across value chains.
For instance, the Human Rights Commitment applies to UniCredit’s clients and their workers as indirect social stakeholders. The Commitment
fosters the awareness and dissemination of the culture of ethics and human rights among UniCredit’s stakeholders, while increasing responsibility
and fair practices across value chains.
UniCredit is aware of the importance of a tracking system to ensure that human rights performances are monitored. Potential cases of non-respect
of human rights are identified and adverse human rights impacts are correctly managed and, if any exist, they are addressed. The monitoring of the
effectiveness of the Human Rights Commitment leverages on existing processes linked to the policies and principles mentioned within this
document and managed by the related functions. Our ESG Dashboard, for instance, allows us to monitor a set of social KPIs measuring relevant
impacts also from the human rights perspective.
We have identified specific sensitive sectors for which we have adopted a monitoring cycle based on an additional set of provisions and rules
described in specific internal regulations, also taking into account adverse human rights risks deriving from our intervention in those sectors.
In relation to the Principles for Responsible Banking Commitment on Financial Health and Inclusion, in our ESG Dashboard we have implemented a
specific tool to collect all contributions from our different countries and consolidate it at Group level, measuring our achievements towards target.
In addition, according to our Impact Measurement Model, we assess the social dimensions impacting the human rights that are relevant in our
lending activity, aiming to measure the positive impacts on individuals and the community and prevent the negative impacts.
Our Group also adopts an “outside-in” approach in order to monitor stakeholders’ views on reputational risks of the banking sector. Stakeholders’
views are assessed and monitored through the double materiality analysis that we run and update yearly. This approach aims at improving the
Group capability to prevent, minimize and manage the reputational risks that may occur, leveraging also on the results of our periodic stakeholder
engagement activities.
In addition, in 2023, UniCredit published a Statement on Modern Slavery Act and Human Trafficking, addressing trafficking in human beings, forced
labour and child labour: the Statement is willing to disseminate our culture of ethics and respect for human rights.
For more details on our Statement on Modern Slavery Act and our Human Rights Commitment, reference is made to “MDR-P Policies adopted to
manage material sustainability matters”.
S2-2 - Processes for engaging with value chain workers about impacts
We currently do not have any specific engagement process targeting workers of our clients.
S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns
Currently we do not have any specific channel for raising concerns dedicated to the workers of our clients.
S2-4 - Taking action on material impacts on value chain workers, and approaches to managing material risks and
pursuing material opportunities related to value chain workers, and effectiveness of those action
Currently we do not have any specific action targeting the workers of our clients, since they do not represent a direct stakeholder target of our
activities. Therefore, we are not in the position of taking direct actions against them.
291
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Metrics and targets
S2-5 - Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities
Currently we do not have any specific targets on the workers of our clients, since they do not represent a direct stakeholder target of our activities.
Therefore, we are not in the position of taking direct actions against them.
S3 - Affected communities
Impact risk and opportunity management
S3-1 - Policies related to affected communities
UniCredit’s relationship with affected communities is highlighted by existing policies which address material impacts and opportunities resulted from
the DMA process:
Impacts:
• Contributions to various social causes with positive socioeconomic impacts such as education, health, and community development programmes;
• Improving access to credit and disseminating financial culture in the communities, with a focus on supporting younger and more vulnerable and/or
low-income groups through dedicated products and services in order to enhance economic development and investor confidence.
Opportunities:
• Strategic community partnerships, collaborations with local organisations, industry and professionals' associations and community groups to
create sustainable and impactful programmes;
• Improvement of relationships / consolidation of positioning within territories and communities of reference through the promotion of initiatives of
financial inclusion targeting vulnerable groups;
• Establish and promote employee volunteering programmes that contribute to the well-being and development of local communities and support
associations and projects in the area;
• Increase in market share through the expansion of product offerings with positive social impact, such as those related to the third sector;
• Opportunities for the Bank to gain an improved image among competitors and attract socially conscious investors, if it is able to anticipate and
react to political and societal changes.
Reference is made to “MDR-P Policies adopted to manage material sustainability matters”.
Our Human Rights Commitment also applies to the affected communities, guaranteeing that the human rights of communities are respected in line
with the generally accepted international instruments. As highlighted in the general section, our Commitment is aligned with internationally
recognized instruments, including the UN Guiding Principles on Business and Human Rights, ILO Declaration on Fundamental Principles and Rights
at Work or OECD Guidelines for Multinational Enterprises that involve affected communities. There have been no cases of non-compliance with
reference to affected communities.
Reference is made to “ESRS 2 General information”.
UniCredit strives to make a positive contribution in the countries where we operate, going beyond business conduct based on best practices to
actively contribute to the well-being and advancement of the people. This includes acknowledging and promoting the importance of human rights
and related topics among communities.
Our long tradition in supporting communities is based on the strong bond between cultural and economic investment, sustainability, and social
inclusion, fostering a sense of belonging and promoting shared knowledge and common dialogue, on art, music and sport. Through strategic
partnerships, sponsorships, and targeted projects, we strive to make these more accessible, with a focus on involving younger generations. We also
react to emergencies by putting our bank’s skills and infrastructure at the service of our communities.
Through the UniCredit Foundation, UniCredit is committed to supporting education across Europe and making a genuine impact on the prospects of
young people. Investing in education is a linchpin for ensuring comprehensive growth and development across society and fostering a better future
for individuals and their communities.
292
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
As responsible financial habits are fundamental to stimulating real cultural change and community development, UniCredit also develops a range of
financial education programmes and tools across Group countries in order to improve the personal financial management skills of our citizens.
In line with UniCredit’s values, the Foundation is also dedicated to involving Group employees in social initiatives. This involves matching their
donations and supporting local communities in times of crisis or need. As formalized in our People & Culture Framework, UniCredit promotes
employee volunteering programs that contribute to the well-being and development of local communities.
As part of its product offering, UniCredit positively affects communities through Social Financing, aiming at providing access to financial services for
vulnerable categories and supporting companies to become more socially oriented.
As highlighted in the ESG Product Guidelines, Social Financing perimeter consists of four categories:
• Inclusive Financing, which aims at including those at risk of economic and social exclusion through microcredit;
• Impact Financing, which supports projects and initiatives that, in addition to generating economic returns, have objectives of positive, tangible, and
measurable social impacts;
• Social Housing, which supports real estate and urban interventions that aims to help low-income people to access decent housing at affordable
prices;
• Loans with high impact on society, such as loans to Not for profit organizations, loans to religious bodies, loans supporting the realization of health
and social infrastructures.
For more information on the described policies, reference is made to “S2 Workers in the Value Chain”.
S3-2 - Processes for engaging with affected communities about impacts
UniCredit is directly involved with the communities in delivering offer, products and services or any support provided.
We continuously involve the communities within our activities, engaging the different stakeholders with many different initiatives, and also organising
specific events in order to reinforce our connections with the territories and social partners and communities. The frequency of the engagement
depends on the type of initiative organised (refer below for more details).
The Stakeholder Engagement function at Group level and Territorial Relationship functions at local level have the responsibility for ensuring an
effective engagement of the communities in which we operate.
Following specific events and initiatives, we always ask for feedback from the involved stakeholders in order to gather their views.
This is especially done with reference to stakeholders that could mainly be affected by impact (meaning vulnerable categories such as low income
people, people at risk of social and financial exclusion, young people and students, people with disabilities, women, the elderly, etc.).
To ensure communities’ sustainable progress, we leverage our social contribution, focusing on specific projects related to youth, education and a
just transition. This is in line with our commitment to fostering the financial inclusion of clients and vulnerable individuals as stated in the Principles
for Responsible Banking (PRB) Report.
Investing in long-term stakeholder relationships
Engaging with our stakeholders on a deep and meaningful level represents a crucial building block for a relationship based on trust.
Engaging with NGOs
We have strengthened our engagement with NGOs and civil society at large, carrying out dedicated initiatives where appropriate to assess any gaps
identified in our ESG strategic positioning and highlight the Group’s improvements regarding sustainability material topics, such as just and fair
transition, Net Zero, biodiversity, policy updates (e.g. weapons), STEEL principles and decarbonisation. During the year, we continuously engaged
with NGOs in order to:
• receive their feedback to update our sector policies;
• share our targets on official commitments before disclosure (for example, Net Zero);
• participate in and contribute to banking surveys and engagement questionnaires;
• interact on relevant reports and roundtables;
• involve them in our stakeholder engagement initiatives.
Employee volunteering initiatives
In alignment with our purpose of “Empowering our communities to progress” UniCredit encourages its employees to participate in activities to
support the communities in which we operate through corporate volunteering initiatives promoted by the Group, in addition to those carried out by
employees individually beyond working hours. All Group employees have a minimum of one paid day off a year to dedicate to volunteering activities.
293
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Engaging with the community
The ESG Day (also disclosed in the ‘Stakeholder Engagement’ section).
On 14 November 2024, UniCredit held the second ESG Day: “A challenged future: choosing the path ahead”. The one-day event put the focus on
our clients and provided a forum to discuss challenging issues and sustainability trade-offs, with a view to defining concrete solutions. The event saw
more than 13,000 participants join in either online or in person across ten different Group locations.
This year, we also incorporated a pan-European dimension, with local events taking place in many of our markets beyond Italy to reflect our clients'
different ESG experiences.
The event served as a forum to review and assess the concrete solutions available to us as we seek to address a range of pressing challenges.
How can we go about solving the trade-off between environmental and social concerns? How can we balance profit and sustainability? And how can
we best accompany our clients as they navigate a complex transition? We probed into all of this and more through a series of panels, with expert
speakers challenging the status quo without losing focus on the importance of building this path together.
Skills for Transition is a social programme, fully funded by UniCredit.
It delivers strategic training to young people, including students and those not in education, employment or training (NEETs), and companies
expected to be impacted by the green transition, helping them to develop the skills they need to meet the demands of a changing environment whilst
generating a measurable social impact.
The initiative sits firmly in line with UniCredit's strong commitment to promoting a just and fair transition, as well as its consistent support for
education - a key driver for Europe's future. Together, these form part of the bank's stated purpose of empowering its communities to progress and
underpin many of its ESG goals.
The Skills for Transition programme runs across six UniCredit group countries: Italy, Germany, Bulgaria, Czech Republic, Slovakia and Romania.
Fondazione per la Scuola Italiana
The new non-profit body, entirely financed by private companies, that aims to support the Italian school system to invest in future generations.
Italian schools face several challenges such as digitization, school dropout, modernization of infrastructure and creation of new infrastructure, etc. In
order to address these challenges and adequately prepare young people by providing them with technical and soft skills that will facilitate job
placement, public investments need to be matched by private investments.
By participating and contributing as a founding member the Bank is consistent with the implementation of its social strategy, which has among its
pillars “youth and education”. Moreover, considering the social importance and capillarity of the Italian school system, the Bank is consistent with its
goal of being close to the territories in which it operates and creating impact with its social initiatives.
UniCredit thus confirms its active role in promoting an innovative and inclusive school system, aiming to reduce the educational gap and increase
private investments in education, essential for the growth and progress of the country.
S3-3 - Processes to remediate negative impacts and channels for affected communities to raise concerns
As of today, we do not have specific channels or processes to remediate negative impacts in communities.
However, we have in place our Global Policy - Anti-retaliation with the aim of preventing, investigating and protecting employees and third parties
from acts of retaliation.
Reference is made to “MDR-P Policies adopted to manage material sustainability matters”.
S3-4 - Taking action on material impacts on affected communities, and approaches to managing material risks and
pursuing material opportunities related to affected communities, and effectiveness of those actions
We support communities and vulnerable people, for whom we provide a wide range of financial education programmes to increase awareness of
economic topics and reduce social gaps. We continuously support communities through our Social Strategy, focusing on social finance, our own
social contribution to our communities, and the support we give our people.
The effectiveness of all our initiatives is tracked in different ways based on the specific intervention considered. This is mainly represented by
feedback sessions, ad hoc surveys, interviews, satisfaction questionnaires, workshops, engagement events and awareness campaigns.
We are committed to building strong relationships with local communities through initiatives that run year-on-year, targeting the communities across
all countries in which we operate. Following a qualitative description of these initiatives:
294
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Community contributions
Our goal is to grow by offering development opportunities to communities, clients and the local area. We do this through our work and by building
financial and social inclusion with corporate citizenship and philanthropic initiatives.
Our customised solutions offer for communities
- Low-income and vulnerable individuals and families:
• Discounted accounts with basic functionalities and debit cards for people with reduced personal financial management abilities and clients who
have basic banking needs (transactional products such as BasisKonto, Libretto One, My Genius Green, My Genius Base).
• A dedicated product for citizens coming from Ukraine or clients of Ukrainian nationality, an ordinary current account for consumers, with economic
benefits for refugees/asylum seekers.
• NEW: ‘MicroCredito di Libertà’ (Italy only): an agreement signed between the Minister for Equal Opportunities and the Family, ABI, Federcasse,
Ente Nazionale per il Microcredito (ENM) and Caritas Italiana, to facilitate the granting of financing, in the form of social microcredit, in favour of
women who are victims of gender-based violence. The project aims to emancipate these women from forms of economic subordination through
guaranteed financing, at 100% of the amount disbursed, by a specially established guarantee fund with public resources from the Department of
Equal Opportunities called the Guarantee Fund for Social Microcredit.
• Social microcredit financing is intended for the purchase of goods or services necessary to meet one’s own basic needs or those of household
members, excluding an abusive spouse or partner, and including, but not limited to, medical expenses, rental fees, expenses for retrofitting one’s
main home and energy upgrading, fees for access to essential public services such as transportation and energy services, expenses necessary for
access to schooling and training.
- Young people:
• A simplified opening process for single parents, free savings account and student account with cards and student loans, guaranteed first home
mortgages for young people.
- People with disabilities:
• Special credit offer for physically and visually impaired people (ATM accessible without using the standard touch-screen and via wheelchair, debit
card with Braille, cash delivery home service) and barrier-free branches.
• Improving digital channels and accessibility, including for elderly clients.
Microcredit for micro-entrepreneurs at risk of financial exclusion
• Offer with a tailored-made service model supporting individuals at risk of financial exclusion, micro-entrepreneurs and start-ups.
• Our microcredit service model supports micro-entrepreneurs and strengthens their skills with an end-to-end process, from business plan
development to support during the first period of business activity and leverages local and international partnerships.
Fostering financial inclusion
We offer a broad range of customized solutions to enable individuals and businesses to gain ready access to financial products and services. At the
same time, we are strongly committed to helping improve personal financial skills, enabling people and businesses to make responsible decisions.
The numerous projects and initiatives implemented by UniCredit can be grouped in the following categories:
• Promoting and supporting culture;
• UniCredit Foundation contribution;
• Territories initiatives for disadvantaged categories, third sector entities and employees;
• Financial education.
295
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Promoting and supporting culture
UniCredit is proud to support arts and culture as an engine of social, economic and sustainable development, with a focus on youth and education.
Our collaborations are built on a shared commitment to social issues, embodying UniCredit’s pan-European aim to strengthen bonds with its
communities and help improve quality of life and togetherness.
The Group continued its strategic partnerships, such as with the Filarmonica della Scala (Ambrogino d’Oro in 2024), Arena di Verona Foundation
and Teatro San Carlo in Italy, and renewed its support to other national examples of excellence, including the Bavarian State Opera and
Kunsthalle Munich in Germany and the Albertina Museum in Austria.
This is in addition to smaller, renewed cooperations, including over a decade with the Osservatorio Permanente Giovani-Editori.
Unicredit Art Residency Prizes
Cariverona Foundation: Tomorrows UniCredit residency and production award
For the 19th edition of the ArtVerona modern and contemporary art fair, UniCredit and the Cariverona Foundation, with the cooperation of Urbs Picta,
launched a new prize for an artistic residency in Italy or abroad, allowing the winning artist and/or collective the opportunity to understand different
cultural, artistic and scientific experiences, to develop a research project focused on biodiversity and urban regeneration, and to produce an artwork
(or cycle of works).
Fondazione Pistoletto: Ecosystems as Living Communities award
Supported by the UniCredit Foundation, realised in collaboration with Cittadellarte, Fondazione Pistoletto is promoting a new connective residency
between two artists for research and artistic production about contemporary ecological issues, through the interdisciplinary combination of scientific,
technological and humanistic research. The artistic project applications can focus on technological research, educational or pedagogical practices or
sustainability and circularity in the fashion industry, to actively contribute to the sustainable transformation of society.
The UniCredit Art Collection continues to develop the website showcasing our core portfolio, updated regularly with new content including
artworks, artist biographies, video interviews, themed online exhibitions and news on art initiatives in the Group’s countries. One new feature was
the output of an extremely high-quality digital recreation of the masterpiece “Il Risveglio di Venere” (the awakening of Venus) by Giovanni Luteri,
known as Dosso Dossi, made viable through a project designed to perform a precise and scientific check on the artwork’s state of conservation.
The website also includes a Learning Centre, where children can explore the Collection through educational cards designed with highly readable
Easy Reading font to ensure inclusivity for visually impaired users, with visual markers to facilitate the memorisation of information. Our youth are
also invited to explore the world of art with their primary school teachers via a course provided on the SOFIA platform of the Italian Ministry of
Education and Merit, including the use of innovative and engaging teaching forms inspired by our collection.
The Open Studio project sees the public restoration of an artwork from our collection in an open and accessible space at the Lampugnano offices in
Milan, raising awareness among colleagues on art conservation and sustainability, in collaboration with Cesmar 7 (Centro per lo Studio dei Materiali
per il Restauro), a non-profit association. The project includes teaching moments with an in-depth analysis with major national and local restoration
schools and colleagues.
Extraordinary opening - Palazzo Magnani, Bologna
In 2024, we participated in the International Museum Day and European Heritage Days by opening the Palazzo Magnani in Bologna. Over 1,000
visitors admired the palace, Carracci frescoes room and other masterpieces.
“Contemporary Museum Watching” exhibition by Alex Trusty in Bologna
We are the main sponsor of this cultural project that explores the relationship between people and art. Trusty’sphotographs present a broad
narrative on society. They depict works by significant artists who have shaped history while creating a new composition using contemporary figures,
settings and cultures.
UniCredit Foundation contribution
The UniCredit Foundation invests in young people to ensure equal access to opportunities for growth and development in partnership with national
and international Non-Profit Organisations, and Educational Institutions. Ultimately, the aim is to give young people the chance to realise their full
potential in society. UniCredit Foundation concentrates its activity in the countries of operation of the Group with a special focus on the most
underserved communities.
Furthermore, UniCredit Foundation strives to support the brightest talents in the fields of economics and finance through scholarships, research
grants and research awards in the countries in which the Group operates.
296
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Finally, UCF actively fosters the engagement and participation of UniCredit people in line with the Group value of caring. Creating opportunities for
employees to contribute strengthens internal cohesion, ignites a sense of belonging and responsibility, and builds meaningful connections.
UniCredit Foundation’s priorities (School, Job and University) are reached via distinct channels of actions.
International partnerships
UCF is leading two multi-year international partnerships with global education network organizations to deliver sustainable outcomes across our
operating countries.
The 3 years partnership with Junior Achievement is covering 10 countries (Austria, Bulgaria, Czech Republic, Germany, Hungary, Italy, Serbia,
Slovenia, Slovakia and Romania) and is focused on vulnerable young (age 10-19) which will be inspired, empowered and mobilized to see new
possibilities for themselves and increase their awareness about the long-term benefits of education, while being inspired to find careers they are
passionate about.
With Teach For All the Foundation launched a 3 years partnership operating in 6 UniCredit countries (Italy, Germany, Austria, Slovakia, Romania
and Bulgaria). The TFA program recruits and trains promising teachers who are committed to teaching in marginalized schools for at least two
years. Through ongoing training and development, these teachers become strong classroom leaders and determined advocates for their students. In
2024 the Foundation supported TFA in the implementation of a community-centered approach, aimed to deepen impact and accelerate systemic
transformation in schools within vulnerable areas in three target countries: Austria, Italy and Romania.
Grassroots initiatives
The Foundation is driving grassroots initiatives with an approach focused on capacity building, identifying and implementing best practices with high
potential for scaling. These efforts are supported by the introduction of monitoring and impact measurement tools to track progress and ensure
effectiveness, paving the way for broader expansion.
In 2024 the Foundation oversaw the implementation of 26 non-profit organizations projects selected and funded through the 2022-2023 Calls for
Education.
The Calls were aimed at identifying and supporting programs combating educational disadvantage in 10 different European countries where
UniCredit operates. These programs are dedicated to secondary school students (age 11-19) focusing on tackling early school leaving, encouraging
university attainment, and acquiring adequate skills to enter the job market.
Edu-Fund Platform
In July 2024 UniCredit Foundation launched the Edu-Fund Platform, a year-round granting scheme to support educational interventions that, with a
multidimensional approach, help address the educational challenges faced by young people across the countries where UniCredit operates. The
platform, with a substantial funding pool of up to €14 million, will remain open until April ’25, offering three streams of funding opportunities, ranging
from €100,000 to over €1 million, to cater to a range of program scales. These streams are designed to engage a diverse array of entities committed
to fostering quality education and regional development, ensuring a comprehensive and inclusive response to the educational needs of the
community.
Research Educational Lab
Fostering a strong research foundation, the Lab aims to attract the attention of prestigious educational institutions at the international level. It seeks
to enhance its credibility as a forward-thinking organization, driving engagement with top-tier academic and educational organizations. Initially
focused on economics and finance, the lab will broaden its scope to cover a range of interdisciplinary topics.
Fostering Excellence in Academia
The Foundation strives to support the best talents in the fields of economics and finance by launching scholarships, research grants and research
awards in the countries in which the Group operates.
Finally, the Foundation supports employee’s social contribution trough dedicated initiatives including Gift Matching Program, Rest-Cent, Summer
School & Volunteering.
Territories initiatives targeting disadvantaged categories, third-sector entities and employees
Territorial enhancement: UniCredit supports the initiatives of third-sector entities that respond to the needs of communities, enhance the territory
and promote the inclusion of fragile and vulnerable subjects. Above all, we focus on local realities and projects, starting with identifying local needs
and co-designing initiatives that respond to real and concrete needs. An example of this approach is the “Semi di Bene” campaign in collaboration
with CSV Verona. UniCredit, through donations, also supports the initiatives of third-sector entities operating in Italy with a logic of proximity.
Description of Impact: Support the growth of third-sector entities that contribute to social causes and to the well-being and development of local
communities. An example is the “Carta Etica Project” .
Through the "Carta Etica Project", UniCredit supports Third Sector organizations that respond with their projects to the needs of communities,
enhance the territory and promote the inclusion of fragile and vulnerable subjects.
297
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Thanks to this Project, for every expense made in the month with one of the Ethical credit cards issued by the Bank, and without any charge to the
cardholder, UniCredit allocates an amount equal to 2 per thousand of the expense (with the (exclusion of cash withdrawals) to a Fund dedicated to
supporting solidarity projects that make a difference in the lives of many people.
Since 2005, the year of activation of the “Carta Etica Project”, UniCredit has allocated over €39 million to support 1,300 socially useful initiatives and
projects carried out by non-purpose organizations of profit throughout Italy. We focus on local realities and projects as well as on broader projects,
carried out by companies operating at a national level.
Some examples in 2023 include:
• the “Pepe” project, a solidarity initiative alongside Caritas, to fight educational poverty and offer young people a better future;
• initiatives with the Community of Sant'Egidio, in support of individuals and families in conditions of economic-social fragility and housing
precariousness, who risk falling beyond the threshold of absolute poverty;
• projects with AIL, the Italian Association against Leukemia, Lymphoma and Myeloma, of which UniCredit is an Institutional Partner, to train and
raise awareness among young people about health and the importance of solidarity with the program for schools "Every gift is a knot” and to
expand reception and psychological support services in AIL shelters for patients and their caregivers.
Project development: supporting social projects is our strategy to provide concrete responses to the needs of communities. We support fundraising
with our dedicated website (ilmiodono.it) and with campaigns of Carta Etica Funds, with donations granted to support third-sector entities projects
selected with a transparent process that enhances those with, immediate and measurable social impacts.
Ecosystem activation: To create a relationship based on sharing values and social objectives, leveraging the main strengths of each partner. For
example, our innovation project with Elis and AICCON, and Cantieri ViceVersa inititiative, in order to support awareness campaigns on social issues.
Financial education
In 2024, we carried out several financial education and awareness initiatives across our countries, focusing on priority beneficiaries such as the
young, women and vulnerable individuals and using new communication channels such as social networks and web platforms.
Banking Academy contribution (focus on Italy perimeter)
Education is a fundamental aspect of Italy’s ESG strategy. The Banking Academy programme aims to promote social inclusion by providing training
and information to young people, the elderly, women, people with disabilities, entrepreneurs, small and medium-sized enterprises, and third-sector
organisations.
A profound economic and social transformation is underway, comprised of constantly evolving economic scenarios, increasing digitalisation, and
weakening welfare.
For this reason, it is important to support professionals and citizens in facing this transformation through skills growth, which the Banking Academy
provides.
Education is a key driver of positive social impact in communities through training and information on the following topics:
• Banking and finance;
• Sustainability and ESG;
• Entrepreneurship;
• Export management;
• Use of digital banking and financial tools;
• Economic violence.
Through the Banking Academy we create paths that lead to changes in the behaviour of citizens and professionals who benefit from the initiatives.
Through our activities we activate strategic partnerships, professional networking, alliances with local communities, networks of competent
volunteers, responses to local community needs and the country’s production chains.
Around 600 volunteers, colleagues and former colleagues, support the aforementioned training activities of the Banking Academy. This is
volunteering based on skills encouraged by the Bank's social strategy, i.e. the possibility of donating one's know-how to communities.
Thanks to them, in 2024 UniCredit won the voluntary@work award that the Terzjus foundation organizes for companies, third sector entities and
non-profit organizations that promote volunteering based on skills.
Every year, the Banking Academy, in addition to coordinating the volunteers' activities, organizes events and training sessions to keep this important
community alive.
The former colleagues are part of the UniGens volunteer association, created in 2017 to allow retired people to make their time, skills and passion
available to support social inclusion initiatives, the development of micro-entrepreneurship and social enterprises by supporting both the Banking
Academy's training projects and those specific of the association.
298
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
All this is transformed operationally into the following initiatives:
CONVERSAZIONI SUL DENARO (Money Talks - IV edition)
“Conversazioni sul denaro” (Money Talks) is the financial education path to learn how to manage money and increase awareness. It is aimed at all
people interested in deepening their relationship with money, gaining financial knowledge and awareness of the impact of culture and gender bias in
economic management.
The 2024 edition of the programme that involved around 44,000 beneficiaries and recorded an average of 89% acquisition of financial education
knowledge, offered a structured format to create culture on how the relationship with money changes in the different stages of life and which banking
products\services and financial use with greater awareness.
The innovative format offers three different moments of in-depth analysis:
• Money Talks initiatives in 4 different cities in Italy involved experts (economists, entrepreneurs, writers, philosophers, educators, psychologists,
bankers) to talk about the relationship with money in the different stages of someone’s life cycle, covering money management from childhood to
adolescence, entry into the world of work to building one’s life as an adult to money management in adulthood and old age, exploring topics such
as economic planning, diversification, savings and investments, risk management and retirement planning. Each meeting offered an in-depth look
at how to recognise how economic violence manifests and how financial skills are closely linked to the possibility of self-determination and
advocacy;
• The new Money Lab formatlaboratories to explore locally the topics covered in the Talks, held by Banking Academy volunteers to provide
mentorship opportunities in collaboration with local stakeholders;
• Five financial education video lessons on youtube channel to freely explore more technical topics explained in simple and engaging language.
The main beneficiaries of the programme are women.
ROAD TO SOCIAL CHANGE 2024 (IV edition)
This is a free training and cultural programme on integral sustainability, structured by the UniCredit Banking Academy - ESG Italy, to grow the skills
of enterprises, non-profit organisations and institutions to generate a positive social impact.
The fourth edition in 2024 was organised by UniCredit Banking Academy - ESG Italy, in collaboration with AICCON, Fondazione Italiana Accenture
ETS, Istud Business School, Cottino Social Impact Campus, and TechSoup.
The programme includes:
• Five live talks across Italy: inspirational meetings centred on real stories and concrete practices;
• Training: on-demand content and technical insights available on a digital platform;
• Accompaniment: a training and assessment pathway on ESG topics;
• Skills certification: issuance of an Open Badge certifying an exclusive professional role, the Social Change Manager.
The challenge of the 2024 edition is to apply integral sustainability within some of the key productive sectors driving the country’s economy,
including fashion and textiles, materials and ceramics, food, tourism, and cosmetics.
Special attention is given to the relationship between innovation, digitalisation, and sustainability in business organisations, focusing on the culture of
sustainability (change management) to be nurtured and developed within companies.
As in previous editions, the “Social Change Manager”, certified by the Cottino Social Impact Campus and IStud business school, has been
developed. This role creates a unique community of change enablers trained through participation in digital talks and completing on-demand
content. For those who have already obtained certification in previous editions, an exclusive section with in-depth content has been created.
In the 2024 edition we reached over 24.800 beneficiaries including enterprises, non-profit organisations, institutions, and anyone interested in
deepening their understanding of integral sustainability and acquiring the tools to apply it within organisations and institutions.
STARTUP YOUR LIFE (VII edition)
The financial and entrepreneurial education programme, with ESG insights, launched nine years ago and is recognised by the Ministero Istruzione e
Merito (MIM) valid as “percorsi per le competenze trasversali e l'orientamento - PCTO” (former school-work alternation).
The programme offers two PCTO courses (one in financial education and one in entrepreneurial education) and a short course in financial education
that schools can use to teach Civic Education.
In 2024, Startup Your Life received another important recognition: it was included among the projects recognized by the MIM for the “Registro delle
eccellenze” (Register of Excellence).
• Financial education is divided into three main phases: individual study (students acquire knowledge in finance, savings and investments to make
citizens aware and capable of fully participating in the economic life of the country); individual simulation, where students playing with their avatar,
have the opportunity to experiment with what they have learned; and group project work, where students put into practice some of the transversal
skills envisaged by GREENCOMP, the European skills framework for sustainability (such as systemic thinking, critical thinking and the value of
sustainability).
299
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
• Entrepreneurship education is divided into two phases: individual study (students acquire useful knowledge in the entrepreneurial field, a work
context and active citizenship) and project work in class, where students put into practice some of the transversal skills required by ENTRECOMP,
the European framework of entrepreneurial skills (such as teamwork, creativity and problem-solving).
Creating project works allows students to participate in a contest in which their works are evaluated and rewarded by Territorial and National
Commissions made up of UniCredit managers. The winning classes participate in the Startup Your Life Championships, where students can discuss
important topics for their future professional lives (such as digitalisation and AI, sustainability and ESG and fintech) directly with UniCredit managers.
In both paths, the students have the support of UniCredit Competences volunteers who hold lessons, meet and interact with students, integrate
digital study with their knowledge and support them in implementing the project work.
Even teachers and class tutors can participate in the training courses as learners and enhance the training on their professional CV through the
SOFIA platform of the Ministero Istruzione e Merito (MIM).
In the last edition, over 24,500 students from 415 schools and almost 1,750 classes were reached, with over 1,340 teachers involved.
“Startup Your Life Financial Education and Sustainability Championships”:
During the course, students learn fundamental skills in the world of work and, through project work, participate in the “Startup Your Life Financial
Education and Sustainability Championships”.
Every year, participants can compete in the Startup Your Life Championships by nominating their project works and passing three evaluation levels:
• peer to peer: evaluation between students;
• territorial: a regional commission;
• national: a national commission.
Among the more than 1.142 Project Works created in the last edition, the 7 winners have been identified.
In this edition, the winning classes were invited to the Bank’s headquarters in Milan for the final event of the Startup Your Life Championships, in
which students from all over Italy, together with teachers, took part in experiential workshops organised with UniCredit managers, to collaborate with
bank managers and simulate the market launch of projects carried out during the year. The students were tested on various topics, including product
communication, ESG strategies, stakeholder engagement strategies, the financial sustainability of projects, innovation and startups, artificial
intelligence and social communication. Next, the students prepared to present their design work by taking the Elevator Pitch challenge, where they
had three minutes to convince a jury composed of managers and other students.
The day ended with the awarding of prizes: experiential workshops organised with local companies identified as champions on ESG issues.
The beneficiaries are young people, in particular secondary school students.
ITS STARTUP YOUR LIFE (II edition)
The new, innovative and free financial and entrepreneurial training programme dedicated to ITS Academy students, ITS Startup Your Life is
designed to complete the ITS Academy training offer, transferring useful knowledge to students to acquire greater awareness of themselves and the
world around them, addressing financial, banking, entrepreneurial issues, integral sustainability and entry into the world of work.
The programme was approved by the Ministero dell’Istruzione e Merito (MIM) and the National Association Rete ITS Italy.
The path launched this year offers:
• interactive content on a digital platform, usable from any device, 24/7;
• lessons held by UniCredit Competences volunteers (colleagues and former colleagues and members of the UniGens Association), who make their
skills available to the communities in which they live and work.
Each ITS Academy can customise the path by selecting content that is accessible online and divided into four modules, through a simple and
dynamic digital platform that allows students to receive certificate of participation.
The beneficiaries are young people, in particular ITS Academy students.
300
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
SAVE4YOUNG 2024 (V edition)
The financial education programme is for university students and, as of 2024, has been extended to secondary school students. It was created with
the Skuola.net platform, a point of reference and digital place where the target audience spontaneously conducts in-depth research.
The goal is to support student empowerment and allow them to make sustainable economic choices. The programme was created in 2020 with an
initial survey to identify knowledge gaps on basic banking and finance topics. It continues in 2024 with different methods to reach young people
including:
• In-depth articles: on money management, savings, investments, planning, payments, pensions, protection and ESG topics.
• A web game: in the style of an 8-bit platform video game from the 80s created to improve users’ financial literacy (there are 12 levels that can only
be overcome by solving financial education questions related to the students’ life cycle).
• Videos on ESG and sustainable finance topics for social channels.
• For 2024, a new survey was carried out, returning to investigate the behaviours and knowledge of male and female students on financial
education topics four years after the first survey. From 2020 to today, over 190,000 students have been involved, of which 60,900 in the last year.
The course stands out for its innovative approach in capturing the interest of students and for the timely monitoring of the knowledge learned by
participants who have highlighted, in the last year, an average rate of improvement in financial education of 45% with even higher results, such as
+91% on the topic of the payment cards.
The beneficiaries are young people, in particular university students and high school students.
IN-FORMATI 2024 (ongoing from 2011)
In-formati is the UniCredit financial education programme for individuals and SMEs, both clients and non-clients. It offers free educational courses
held by volunteer colleagues of the bank, on topics related to banking, finance and entrepreneurship.
The training model is based on:
• Live courses provided locally on demand at UniCredit offices in the country and at local stakeholder offices, or online if necessary.
• A path structure customised to the needs of the stakeholder, based on the 15 courses in the catalogue.
The beneficiaries are: citizens (young people, students, workers, families, seniors), small and medium-sized enterprises, third-sector organisations.
CON ME AL CENTRO 2024 (III edition)
The 2024 edition of Con Me al Centro, the entrepreneurial and financial training course for those who want to get or get back into the game by
starting a micro business.
Free training and an orientation path offered through a digital platform offer cognitive and in-depth networking tools for entrepreneurs, especially
female entrepreneurs looking for the tools to start an independent business or a micro-enterprise with a strong focus on the social and
environmental impacts generated.
The path is divided into five modules:
• 1. “Mi Oriento”: the participants, thanks to a practical self-assessment tool, have the opportunity to recognise their aptitudes in product orientation
to marketing, sales and finance, and to enhance them as a strengths;
• 2. “I learn more - the basics of business”;
• 3. “I learn more - development of the company”. Participants in these two modules can experiment with transforming an idea into an economic
activity. They study and engage in the implementation of SWOT analysis, construct the Business Model Canvas and Business Plan of their idea
and define the brand identity. They also learn how to segment the market and what strategy marketing to adopt for their project;
• 4. “I compare myself”. Participants hear the experiences of entrepreneurs who have managed to transform their ideas into businesses and take
advantage of the advice of professionals on the use of banking and financial instruments, corporate legal forms and tax implications and the main
digital tools to support sales and marketing;
• 5. “Programme”. We make the finalisation of the Business Plan available to the participants along the way, effectively creating a useful document
to make the business idea concrete. This new edition of the project has been launched with the support of the University of Milan-Bicocca and
AIDDA.
FINANCE4FUTURE 2024 (I edition)
Finance4Future is a digital project we developed in collaboration with the Giffoni Innovation Hub, a prestigious creative organisation that originated
from the Giffoni Film Festival. Their contribution has allowed us to connect with young people in a more innovative and engaging way.
We have created 10 short, ironic, and engaging videos made by Genn Z for Gen Z.
Ten ambassadors, young talents from Italian universities selected from over 1,500 applications, interviewed over 100 students in over 10 Italian
cities to understand how much they knew about financial education topics.
301
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
The topics covered range from payment tools and financial planning to more sensitive issues such as economic abuse and gender bias in money
management.
The videos are directed and linked to the Banking Academy’s training content to further explore the themes that emerged from the interviews.
The main beneficiary is young people born between 1997 and 2012 (Gen Z).
The Banking Academy uses different formats to reach multiple targets: on-demand content on digital platforms, inspirational talks, widespread
lessons (live streaming with physical rooms connected from all over Italy), Video Pills (with formats that change according to the distribution
channel), podcasts, web games, surveys and educational articles.
Many partners and local and national stakeholders are involved in the Banking Academy programmes. They create a partnership made up of
regulators, sector experts, trade associations, research institutions, high schools and universities, non-profit organisations and territorial institutions.
The programme can count on Competences volunteers, both employees and former employees (UniGens), who are active in providing physical and
digital live lessons. The commitment of Competence volunteers allows for intergenerational transmission of knowledge (from the elderly to the young
and vice versa). It supports the alliance between generations with a common goal: building a better and more inclusive future.
Impact financing
We support enterprises and organizations that are committed to achieving a positive social impact and addressing the main social needs of our
community. With this social lending we finance projects and activities that, in addition to an economic return, have the intention of generating a
concrete, positive and measurable social impact on individuals and communities.
Metrics and targets
S3-5 - Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities
Since the measurement of the positive impacts on the communities generated by our activity has not yet been measured by the Bank, we currently
do not have targets related to advancing positive impacts and managing material opportunities.
S4 - Consumers and end users
Impact risk and opportunity management
S4-1 - Policies related to consumers and end-user
UniCredit is aware that the financial sector plays an important role in the economy, ensuring stable markets and providing financial support to our
society. Banks also have an important social function that goes far beyond lending. They act as one of the engines of social progress and help
clients and communities make meaningful progress towards a more sustainable, inclusive and equitable society in the long term.
Our principles towards clients are formalized within our policies, which address impacts, risks and opportunities resulted as material during the DMA
process.
Impacts:
• Ensure the UniCredit transformation of the distribution and production model, making it more sustainable through greater digitalisation, the
creation of new technologies, the access to information, the adoption of cloud solutions, the use of AI.
• Breach and loss of customer data and poor cybersecurity management.
• Informed decisions to customers through transparent, neutral and fair advice, also providing the possibility to express their feedbacks.
• Increased and improved customer satisfaction and end-users experience by meeting their expectations.
Risks:
• Operational risk: Risk of operating losses due to unauthorized access to customer data (data Breach) with the purpose of obtaining a personal
advantage and due to cyber attacks.
• Reputational risk: failure to meet the consumers and end-user’ needs and/or to guarantee the customers' data integrity that may lead to negative
impacts.
Opportunities:
• Creation of a long-term relationship with customers through a strong and safe ICT systems.
• Expansion of market shares and improvement of retention thanks to the implementation of solutions, products and digital / innovative services.
302
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
• Enhance client loyalty and retention through the optimization of corporate assets in terms of privacy and data security and quality information.
• Enhancement of relationships with clients and shareholders through clear and transparent communication.
Our Human Rights Commitment also applies to our clients and we regularly update it to ensure compliance with the main international standards
and norms (such as UN Guiding Principles on Business and Human Rights, ILO Declaration on Fundamental Principles and Rights at Work or
OECD Guidelines for Multinational Enterprises). In 2024, there have been no cases of non-compliance with these rules with reference to the clients.
Reference is made to “MDR-P Policies adopted to manage material sustainability matters”.
Sales and financial advice activities shall responsibly meet clients’ needs, leveraging on our employees’ competencies and professional conduct, our
best-in-class products and services, our simplified business model driven by UniCredit’s values of integrity, ownership and caring and the alignment
between the incentive system and the achievement of long-term value creation and sustainable results. Our Code of Conduct and Code of Ethics
formalize our commitment to guaranteeing that our clients are provided with clear, neutral and fair advice, and transparent communication, while
providing the possibility to express their feedback. UniCredit has in place mechanisms (e.g., whistleblowing procedures, customers' complaint
management, etc.) allowing us to collect information on stakeholders' feedback and grievances with reference to Group practices and any negative
impact that we may have caused or contributed to via our own activities. We analyse processes from the client’s perspective, for example, by
identifying complexities that could be removed and ways we could enhance the customer experience through all channels. All the data and feedback
collected are analysed to help us redesign processes and improve operations to meet client needs better. Group-wide, our complaints management
system allows us to identify sources of concern and promptly resolve them to the satisfaction of our clients.
For more information on our Whistleblowing procedures, reference is made to “G1-1 Business conduct policies and corporate culture”.
A tangible example of our commitment is the Joint Declaration on “Responsible Sales”, signed with the European Works Council. The declaration
defines the fundamental shared principles on which the conduct at the root of the Group’s commercial approach must be based. These principles
are oriented toward achieving sustainable strategic targets and maintaining high labour environmental standards.
UniCredit aims to meet customers' expectations by providing innovative solutions, including the development of tailored financial products and
services designed for clients and the broader community, while also addressing the needs of vulnerable individuals and specific client segments, as
highlighted in the ESG Product Guidelines.
UniCredit is committed to the following principles/rights relevant to all Group stakeholder categories, including clients, both individuals and
enterprises, with particular attention to those presenting social and economic vulnerability:
Privacy and data protection
As formalized in our Group Privacy Policy and our Customer Protection rules, UniCredit is aware of the importance of respecting our
stakeholders’ privacy (e.g. the personal data and confidential information of employees and clients), including disclosing such information to third
parties. Our approach to privacy and data protection is in line with the local laws and regulations governing the topic. It applies to all forms of
personal data, independent of the stakeholder they refer to and/or the channel they have been received through. To mitigate risks regarding data
breaches, we use appropriate administrative, technical, physical and security measures to meet legal requirements and to safeguard personal data
against loss, theft and unauthorized access, use or modification. This approach permits to enhance client loyalty and retention, through the
optimization of corporate assets.
Sanctions
The Group is firmly committed to complying with all applicable sanctions’ regulations. In addition, the Group may decide to introduce further
restrictions on business activities involving certain countries, organisations, persons, entities or goods, irrespective of whether they are the subject of
a particular sanction imposed by a country or international organisation.
UniCredit recognizes that certain sectors and activities require a tailored approach to ensure that transactional and related risks are
comprehensively understood and managed. For this reason, UniCredit embedded in its Reputational risk policies the principles related to
international agreements, guidelines and standards (e.g. World Bank Group’s Environmental, Health and Safety Guidelines, the UN Global Compact
principles) considering their respect and alignment as minimum requirement for the client relationship avoiding potential social and environmental
impacts. Through the implementation of appropriate management and mitigation measures UniCredit aims to limit the risks associated with
transactions or projects financed for its clients and counterparts. On applying the sector policies, we have developed specific reputational risk
assessment systems/tools, some that assess aspects of human rights, in order to evaluate and track clients’ risks and performances.
For more details on the mentioned policies, reference is made to “MDR-P Policies adopted to manage material sustainability matters”.
303
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
S4-2 - Processes for engaging with consumers and end-users about impacts
Engaging with our customers
While capturing new business opportunities and facilitating stakeholder engagement, the service we provide is measured by identifying and
prioritising interventions in areas where improvement is required. Since the beginning of the Covid-19 pandemic, this activity has become even more
significant. Our strategic plan uses the Net Promoter Score (NPS) as a key performance indicator. NPS is fundamental to understanding the degree
of clients’ recommendation and experience of our banking services and this guides our interventions. Starting with key client journeys and
touchpoints, the NPS is regularly measured, monitored, analysed and discussed and any written feedback from clients on specific areas is
examined.
The responsibility of this activity is both at global and local level, within the respective Functions responsible for Market research.
After years of experience and knowledge acquired through gathering insights from customers and prospects, in 2017 UniCredit defined an
integrated approach with a benchmarking study which provides us with a view of customers’ and prospects’ perception of customer experience,
brand reputation and business indicators in local markets. It allows for:
• a fair comparison between UniCredit and its competitors thanks to a random selection of customers by the research provider (no customer lists
provided by the Bank) and no mention of UniCredit as survey commissioner (double-blind approach); mixed interviews of main and secondary
Bank customers;
• a unique and comparable cross-country and segment view of how the Bank is perceived.
The main KPI is the Net Promoter Score (NPS), a metric used across industries to measure customer experience. It is based on the sole question,
“How likely are you to recommend our Bank to …, on a scale of 0 to 10?” In the numeric scale, 0 corresponds to not at all likely and 10 to extremely
likely. The score is calculated as the difference in percentage between promoters (customers who gave a 9 to 10 score) and detractors (customers
who gave a 0 to 6 score). Within the Benchmarking Study, the KPI is more specifically referred to as the Strategic Net Promoter Score to clarify the
goal of assessing the overall positioning on high-level topics/areas.
Design-thinking and process-mapping are important tools for improving the customer experience. In this way, we analyse processes from the client’s
perspective, for example, by identifying complexities that could be removed and ways we could enhance the customer experience through all
channels. All the data and feedback collected are analysed to help us redesign processes and improve operations to meet client needs. Group-wide,
our complaints management system allows us to identify sources of concern and promptly resolve them to the satisfaction of our clients. Our Group
remains committed to strengthening consumer protection and improving awareness.
S4-3 - Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
UniCredit has mechanisms in place to collect information on stakeholders’ feedback and grievances with reference to the Group practices and any
negative impact that we may have caused or contributed to via our own activities (e.g. whistleblowing procedures allowing both employees and third
parties to report their good faith concerns, clients’ complaint management, complaints global policy, etc).
For further information on our grievance mechanisms, reference is made to “S4-1 Policies related to consumers and end-users”.
For further information on our Human Rights Commitment, reference is made to “MDR-P Policies adopted to manage material sustainability
matters”.
The Whistleblowing Procedure or the Anti-Retaliation Policy applies to clients too.
Reference is made to “S4-1 Policies related to consumers and end-users”.
Cybersecurity incident management activities aim to ensure the prompt detection of and adequate response to cybersecurity incidents, minimising
negative impacts and contributing to ensuring the best possible levels of information confidentiality, integrity and availability. Security incidents are
managed through strong detection processes and Single Points of Contact based on Security Operation Centre capabilities (24 by 7 basis in main
countries). In addition, training and awareness activities are in place.
S4-4 - Taking action on material impacts on consumers and end-users, and approaches to managing material risks
and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions
An internal regulation for ICT Security Incidents is in place. It applies at the Group level and includes roles and responsibilities for ICT Security
Incident management. If a security event is detected, it gets classified, communicated, escalated, resolved and duly reported. The process is directly
linked to Crisis Management to make sure appropriate levels of communication and support are achieved in case of need. Following Incidents,
eradication activities are defined to reduce the possibility of recurrence.
304
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Training and awareness described in the initiative B.1 Foster Security Culture
UniCredit is aware of the materiality of positive impacts on consumers and end-users from a digital and security perspective, and the need to
prevent any potential negative impact and mitigate any risks on consumers and end-users. For this reason, we have planned and implemented
numerous actions.
2024 Main Actions
Main improvements related to the Digital Risk framework came into force in January 2024:
• A straightforward definition of the digital risk oversight perimeter and the Legal Entities’ responsibilities, resulting in NBO reductions;
• Enforced guidelines for the Digital Risk Indicators tracking and monitoring;
• Enhanced Digital Risk Library, including third-party risk, coherent with the digital ecosystem evolution;
• AI and Cloud Risk assessment definition and implementation;
• Overall Second Level Control enhancements to support the evolution of the risk context and Digital Strategy;
• Continuous alignment with digital risk capabilities, according to industry standards, required to digital risk staff across the Group.
Cyber risk appetite
The mission of the Function (Digital Risk) responsible for ICT and Cyber Risks evolved to be responsible for the group-wide evaluation, monitoring
and supervision of digital risks to enable UniCredit to be a safe, secure and resilient digital bank. As a proactive partner to the different stakeholders,
Digital Risk has to steer the risk profile.
Current risk appetite metrics allow the Board to understand and cover digital risks quickly through selected metrics. In 2024, continuous monitoring
of digital risk Risk Assessment Framework (RAF) KPIs was conducted, increasing the scope to third-party risk as well.
Digital risk dashboard
The results of the executed digital second-level controls are reflected in the “Digital Risk Dashboard”. This allows the Second Line of Defense to
have comprehensive and structured information, and aims to provide an independent, synthetic and managerial view of the Digital Risk to which the
Bank is exposed.
The “Digital Risk Dashboard” outcomes are discussed with Group Digital &Information monthly. Key results are discussed quarterly in Group Non
Financial Risk Committee and Central Europe & Eastern Europe Non Financial Risk Committee. The “Digital Risk Dashboard” is fed by a variety of
second level controls (risk assessment, control monitoring) on Group and Local digital processes.
Starting from the first quarter of 2024, ICT and cyber risk evaluations merged into a unified Digital Risk Dashboard (previously reported in two
separate dashboards, one for ICT and one for Cyber risks) to monitor and report Group ICT and cyber risks.
Second-level control (2LCs) enhancements in 2024 covering mostly Identity and Access Management, Application Security and Disaster Recovery
clusters leading to new indicators and ad hoc assessment with digital experts to address specific risks. Furthermore, 2LCs have been extended on
Hardware, Software Infra and application obsolescence.
Moreover, some assessments have been reinforced:
Risk and Control Self-Assessment (RCSA) was extended to the global digital end-to-end process.
Cyber Security Risk Assessment (Cyber SRA) was integrated with an evaluation of obsolete software and improved in the front-end features to
enable automation in 2LCs.
Third-party cybersecurity risk
Monitoring the implementation of the ICT Security risk control framework on third-parties across the Group, including escalation processes where
needed (high/medium-high residual risk).
Risk validation for outsourcing and non-outsourcing arrangements of critical or important contracts.
Digital risk thematic review
• Enforcement of the Digital Risk scenarios to increase their effectiveness and coverage, leveraging on both the evolution of the digital threats
landscape and audit outcomes (i.e. IT Disaster Recovery, Identity & Access Management), to proactively identify potential digital risks, increasing
organisational preparedness and resilience.
• Anticipate, simulate, identify and prepare for potential digital risks and evaluate mitigation strategies.
• Review the current set of second-level controls on specific ICT and security clusters as part of the continuous improvement in risk monitoring.
305
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
The new Group Digital Strategy, issued in June 2024, supports Governance Functions, specifically Strategy and ESG.
The new strategy has been issued to all directly controlled legal entities of the Group.
The Digital Strategy has been presented by the Group Digital CIO and approved by the Group Board of Directors. The new Digital Strategy targets
internal ESG stakeholders to support its sustainability strategy.
The new Digital Strategy includes:
• A continuous enhancement and rollout of the ESG Global Infrastructure used for collecting, enriching, and aggregating granular ESG data,
supporting the customers in their decarbonisation journey in terms of transition.
• Integration of ESG KPIs in the Credit and Pricing process of the Bank, leveraging on a set of harmonised tools across all the countries and
integration of the ESG applications with the local underwriting tools and core systems services.
To support the ESG strategy and initiatives, provided with digital infrastructure and KPIs for credit and pricing processes, the new digital strategy
includes the following actions:
• Sustainable lending at 360°: coverage of a wide array of ESG indicators;
• Integrated Strategic Enabling: future ESG integrations across operations;
• Supporting client-financed emission reductions in line with Net Zero targets.
In alignment with the purpose of the sustainability reporting, focusing on impacts and opportunities for consumers and users, UniCredit Digital
highlights five key areas of action:
• Digital Banking Solutions leveraging innovative technologies like cloud computing, AI, UX, etc.;
• Security;
• Data and AI;
• Infrastructure;
• Digital Culture.
In each of them, the 2024 UniCredit Digital strategy was implemented or there are planned actions for the future.
Each key action is described below in terms of expected outcomes and how their implementation contributes to the achievement of policy objectives
and targets, scope (i.e. upstream and/or downstream value chain, geographies, affected stakeholder groups, etc.), time horizon and, where
available, status and quantitative and qualitative information regarding the progress (KPIs).
A. Digital Banking Solutions
To provide high-value digital banking services for customers such as payments, core banking and other banking digital solutions. Digitalisation,
leveraging on innovative technologies such as cloud computing, artificial intelligence, analytics and advanced user-experience platforms aim to
improve the “dematerialised” experience making it easier, faster, more flexible, more available and accessible (“always and everywhere”), safer and,
last but not least, more sustainable for the customer.
A.1) Key action: Payments - International payment
Description: Global PayFX (GFX) is a cloud-based application that allows customers to convert payment orders from one currency to another, with
the possibility to trade about 120 different currencies.
The initiative introduced two new real-time conversion products: Predict (real-time conversion of euros to another foreign currency) and Direct (real-
time conversion from euros to the currency used in the beneficiary’s country) allowing different types of FX payment orders for corporate and third-
party financial institutions. GFX provides real-time conversions from an account in euros or a foreign currency to a beneficiary account in one of 33
worldwide foreign currencies (such as US dollars). It also provides conversion from euros to about 90 less common currencies used worldwide. The
GFX application provides conversion to all client segments (retail, corporate, private) and also to third-party financial institutions.
Scope: Italy and Germany.
Time horizon: the application went live in 2024 in Italy and is planned to go live in Germany in 2025.
A.2) Key action: Payments - AI (Artificial Intelligence) on cheques Italy controls
Description: the introduction of AI capabilities to simplify and automate the check done on cheque images.
The new AI capabilities, introduced by the project improved the efficiency of the Operations Team (back office).
The functionality has been released in waves, with the last one to be released in the second quarter of 2025.
The average volume of processed cheques is 5,000 a day, with a peak of 10,000 a day.
Scope: Italy and Germany.
Time horizon: the application went live in 2024 in Italy and is planned to go live in Germany in 2025.
306
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
A.3) Key action: Core Banking – Balance Sheet certifications for Auditing Firms and forced printing of paper contracts for non-digitised customers
Description: the goal of the project was to introduce PEC (Posta Elettronica Certificata) email in the balance sheet certification process and to
automatically archive emails. The automatic sending of certification via PEC emails directly to the auditing firm replaced the old channel, i.e. delivery
of paper certifications through an external provider in charge of printing and sending.
Benefit for customers: the process was simplified, leading to quicker delivery times for customers. Consequently, there was greater customer
satisfaction and fewer customer complaints.
Scope: Italy - Retail customers.
Time horizon: went live in May 2024.
A.4) Key action: Core Banking – ID document acquisition
Description: This project has enabled the digitisation of the identity document acquisition process for branches, allowing the operator to
automatically upload and archive the document image during customer onboarding and/or customer data updates, avoiding the management of
paper copies.
Benefit for customers:
• Improved user experience: reduced waiting times and greater precision in data collection and management;
• Improved traceability: digital documents can be easily indexed, organised, and retrieved, enhancing visibility and control over business processes;
• Security: digital systems allow documents to be encrypted and protected with controlled access, reducing the risks of data loss, theft, or damage;
• Sustainability: a reduction in the use of paper, toner, ink and transport for documents.
Scope: Italy - Retail customers.
Time horizon: went live in May 2024.
A.5) Key action: Other Banking Digital Solutions – Bank insurance
Description: in January 2023, a multi-year programme called the “Global Protection Platform” was launched. It will run from 2023 to 2025 and aims
to renew the commercial offer of more than 20 insurance products, making them available through an omnichannel cloud digital sales experience
across multiple countries.
In June 2023, the first four products were rolled out: the MyCareFuturo, MyCareFamily and GeniusCare for Italy and Privatschutz for Germany.
Other products and modules will be released based on feedback and suggestions from clients.
These are the first of several new products planned, each taking advantage of the omnichannel features of our Global platform, such as bundling
insurance offerings together with other banking products.
Benefit for customers: these will provide customers with a more flexible, innovative and modern sales journey.
Time horizon: 2023-2025.
A.6) Key action: Other Banking Digital Solutions - Accounts and Onboarding solutions
Description: within the “E2E Services” programme, digital channels for customers and employees improved significantly, having reduced the use of
paper in many daily operations.
Improvements include:
• The optimisation of the Daily Transaction Limit process with 87% digital usage and 4.500 digital limit changes per month.
• The introduction of a new end-to-end process for changes of address with 48% digital usage and 4,500 digital address changes overall and 2,800
digital address changes in Remote Sales & Services per month.
• The implementation of a comprehensive end-to-end process for all relevant contact data, including Valyou and the phone number for OLB
administration, with 30% digital usage for phone number changes (3,000 changes in August 2024) and 47% digital usage for email changes (4,400
changes in August 2024).
• The introduction of a data confirmation pop-up, which combines the self-KYC-check (more than 400,000 self-KYC-Checks since the Go Live), plus
a data quality check (more than 500,000 confirmations and more than 40,000 data changes).
• The first stage of the account closure process has been launched, enabling a fully digital request for closures of current and savings accounts.
There have already been approximately 20 digital requests per day instead of paper requests in-branch.
• The launch of the new Service Hub section on HVB.de, and online and mobile banking to enable easy digital access.
Benefit for customers and users: the improvements will enhance the digital experience for our customers and streamline processes for employees.
307
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
A.7) Key action: Genius Care
Description: Genius Care is a new, unique Italian product for individuals, that includes current accounts, debit cards (bio/digital), online banking and
the “MyCare Famiglia” insurance module. The product is developed on the Global UCX platform, to maximise the reusability of components.
Benefit for customers and users: the initiative will simplify customers’ current account catalogues from 5 to 2 package accounts and will contribute to
simplify customer experience and access to insurance. It will also enable up and cross-selling actions. It will boost the switch to bio/digital cards and
the digitalisation of customers, reducing paper-based processes.
Scope: Approximately 600,000 customer target baseline (330,000 existing and 259,000 new to the bank), of which 70% are sensitive to protection.
Target 7.7% account conversion from traditional accounts to Genius Care accounts.
A.8) Key action: Design Studio
Description: the Design Studio develops innovative, customer-centric digital solutions that provide clients with a seamless interaction with the Bank
and its partners. Empathy, vision and creativity are key features of the design process.
Benefit for customers and users: the Design Studio aims to significantly improve customer experience. In 2024, the Design Studio has focused on
expanding its impact on the Bank's most relevant solutions, contributing to the design of approximately 50 solutions and conducting interviews and
surveys with approximately 700 clients and 150 UniCredit colleagues.
Time horizon: Design Studio started in 2022 and will continue to support future projects.
B. Security
Actions to mitigate risk
The Group’s Operational Risk Management framework, as foreseen within the Group Operational Risk Management Global Policy, provides a
comprehensive set of principles and rules on how to achieve the Non-Financial Risk management goals - Identification, Assessment, Response,
Monitoring and Reporting. Notably, the GP 04717 provides general rules to: a) identify and assess the Non-Financial Risks related to any material
product, activity, process and system; b) implement a process to regularly monitor Non-Financial Risks and material exposures to losses; c)
implement strategies, policies, processes and procedures to control and/or mitigate material Non-Financial risks.
The “ICT and Cyber Risk Management Framework” (i.e. the Digital Risk framework) has been established and ruled since 2022 (GOR UC_04179,
former 1913), providing guidelines to assess the digital risks within the Group, based on an effective Second Level Control Framework to enable
proper protection of digital assets coherently with the Group Operational Risk Management framework and with relevant best practices.
Actions aimed at managing impacts
Group Security is progressing in line with the Group Security Strategy updated in September 2023 and based on the following key actions:
• Foster Security Culture;
• Enable secure Business Transformation;
• Continue to secure Digital Foundation.
B.1) Key action: Foster Security Culture
Description: Group Security continues the development of security proficiency, considering that security threats, increasing in frequency, scale and
sophistication, require increasingly strong skills and specific expertise.
As part of the UCG University Security initiative, we continue to invest in training to maintain a solid knowledge base on security topics and give our
employees the tools to recognise and counter security risks. Also, increasing the security awareness of employees is key to supporting the
minimisation of related risks.
In such context, a series of awareness initiatives have been deployed such as internal phishing campaign. These aim to assess our employees'
susceptibility to phishing attacks and create a proactive and security-conscious culture. In 2024, we carried out eight Group-wide exercises involving
around 98% of the Group population and at least two local exercises in every geography we are present in.
308
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
We also focus on increasing our customers’ risk awareness, engaging and inspiring them through social media and our range of communication
channels. During the year, we raised awareness among customers, stakeholders and colleagues by developing internal and external initiatives that
coincided with various relevant events. We developed initiatives to reflect World Password Day (May) and then, to an even greater extent, during
European Cybersecurity Month (October). To support the latter event, we launched our annual campaign on several security threats. We carried out
a series of internal communication activities for the benefit of Group colleagues in collaboration with UniCredit Digital University.
We supported the CERTFin cybersecurity awareness campaigns, together with other Italian financial institutions and banks.
Materiality Clusters impacted: Cyber Security, by contributing to the protection of corporate assets through increased awareness on security topics.
Scope: Group-wide.
Time horizon: Continuous. Awareness activities are deployed to support a continuous-improvement approach and to respond to the ever-changing
threat landscape.
Status: Thirty-five training modules for our staff between 2020 and 2024 (a further three courses released in 2024) and about 300,000 hours of
training delivered. A teach-in on cyber security for the board of directors.
Awareness: 2024 European Cybersecurity Month (October): we organised several events for staff. The topics ranged from the new password policy
(more than 800 participants and around 60 interactions) to a data breach caused by human error.
B.2) Key action: Enable secure Business Transformation
Description: The enablement of secure Business Transformation has progressed through the ongoing extension of Secure Internet Access. A cloud
proxy solution has been adopted on major legal entities and is being extended to Central and Eastern Europe Legal Entities. The solution allows for
management of all user web traffic in a more scalable and sustainable way. It overcomes on-premises proxy architecture challenges due to the
Company’s cloud adoption and remote work strategies, which are increasing the number of concurrent connections and quantity of data that are
being processed by the proxies.
Materiality Clusters impacted:
• UX, thanks to the improved end-user experience.
• Digitalisation and new technologies, through the adoption of a cloud solution able to support scalability.
• Cyber Security, through the security capabilities offered by the aforementioned solution.
• Single Sign-on and Authentication: continuing the integration of further applications in Single Sign-on, thus enhancing and harmonising the
authentication processes for Legal Entities of the Group.
Scope: Group-wide.
Time horizon: 2024 and early 2025. The initiatives mentioned are planned to be completed in the next few months.
Status: Secure Internet Access: completed adoption (100%) for Trader and VDI users on centrally managed LEs; ongoing extension for Bank Users,
Traders for CE&EE.
Single Sign-on and Authentication: 75% applications integrated in SSO (scope extended versus 2023).
B.3) Key action: Securing the Digital Foundation
Description: after extending the scope of information processed by our Security Operation Centre, further improvements have been implemented for
our Detection and Response capabilities through the release of additional alerts and playbooks.
Materiality Clusters impacted: Cyber Security, through the aforementioned enhanced capabilities.
Scope: Group-wide.
Time horizon: 2024: the initiative was completed in 2024. Nevertheless, further detection and response-related initiatives are envisaged for the near
future.
Status: Detection and Response improvement: Completed with100% alerts released in production and 100% playbooks implemented.
C. Data and Artificial Intelligence (AI)
In 2024, AI integration has enhanced our business processes and indirectly benefiting consumers, while in others, AI has delivered direct, tangible
advantages to clients. Refer to our key actions for more information. The ongoing development of the AI governance framework aims to establish
responsible AI principles and measures to ensure ethical AI usage. This framework is expected to be fully implemented by the end of 2025.
309
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
C.1) Key Action: LISTENING ENGINE
Description: the project aims to listen to what clients want and react by supplying products and services in line with their needs.
The initiative is finalised to investigate the needs of customers and receive feedback from branches about client requirements, competitors’
offerings, and our products and processes to help the bank to react quickly to emerging requests of customers.
Scope: the Listening Engine initiative currently involves Croatia, Hungary, Serbia, Italy, Germany, Austria. It aims to build:
A tool that uses generative AI to summarise information from the survey filled out by colleagues from the network about our services and products,
insights on competitor conditions and suggestions for other business ideas using customers’ feedback.
The tool will run weekly, generating weekly and monthly summaries that will be used as a basis for the dashboard. A dashboard in Power BI where
the user can see the summary of the survey according to different topics, time (weekly/monthly of the current year) and reference country to
Understand the number of surveys regarding a given topic and see their evolution.
Time horizon: Start date: June 2024. Roll out starting in September 2024 for Croatia, Hungary and Slovenia. End date: The final release was in
November 2024.
C.2) Key action: MOONSHOT
Description: the initiative aims to improve the Mergers and Acquisitions (M&A) platform by implementing more accurate industry classifications for
companies and conducting a study to predict better potential buyers and sellers engaging in M&A.
Scope: The initiative is part of a broader programme with two primary objectives:
Improve company description and classification: currently, searching for companies by type is inaccurate due to the unreliability of the NACE code
registered with the Chamber of Commerce, which often misrepresents a company’s sector. Moreover, the NACE code does not provide a clear
description of the company’s services and products.
The proposed solution is to develop a machine learning model able to analyse company descriptions, generate a more accurate sector classification
and extracts relevant keywords to better capture the business activities, served markets, products, and geography presence.
A machine learning model to predict M&A by providing a buyer/seller distinction that would involve the propensity scores for M&A deals, as well as
providing other computed KPIs on top (e.g. company keywords, sectors). The deliverable will be an evolved M&A model, that can be applied to
UniCredit clients that is able to distinguish and match buyers and sellers’ companies, through a data-driven company matching criteria.
Time horizon: Start date: September 2024. Roll out: December 2024.
Benefit for customers: General KPIs, whose estimation is under assessment with the Business, are the following:
• Reduction in manual workload;
• Processing throughout;
• Integration into workflows.
C.3) Key action: UNIMATE
Description: UniMate it is a RAG-based (Retrieval Augmented Generation) search system designed, developed and fully deployed by UniCredit
employees leveraging OpenAI LLM (Large Language Models). It provides UniCredit employees with a modern search experience, empowered with
generating answering capabilities, over the content of UniContact. UniContact is an internal knowledge base, available in many different languages,
that contains information regarding a variety of topics, such as banking applications governance, general processes, technical topics, and
procedures for branch users.
Scope: The initiative aims to revolutionise the way employees access corporate information through three relevant phases:
• Enhancing the search functionality in UniContact leveraging OpenAI providing relevant information while reducing the number of tickets open to
request information.
• Creating a friendlier user-journey: users can use the Q&A functionality in their own language.
• Chat functionality (as a long-term goal) enables more use cases since the user can prompt customised questions.
Benefit for customers: target informative ticket reduction -30%.
Time horizon: Start date: August 2023 with a POC (Proof of Concept) Pilot on a restricted number of users: February 2024. Roll out in Lombardia
region (Italy): July 2024.
310
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
C.4) Key action: RESPONSIBLE AI GOVERNANCE FRAMEWORK
Description: the EU has established the first-ever comprehensive legal framework on AI (AI Act), which sets the global standards for human-centric
and trustworthy AI. The AI Act introduces a uniform framework for AI Systems across all EU countries, based on a forward-looking definition of AI
and a risk-based approach (defining a classification system of the AI practices risk into four main categories: prohibited, high risk, lower and minimal
risk).
The EU AI Act imposes a wide range of requirements on the various providers and deployers in the lifecycle of AI systems, including requirements
on human oversight, data training and governance, technical documentation and transparency, record keeping, technical fairness/bias detection and
robustness, transparency and cybersecurity.
UniCredit needs to adapt to it, since compliance with the AI Act is mandatory for all businesses and organisations that develop, deploy, or use AI
systems. One of the key priorities for UniCredit in 2024 is to identify and mitigate the ICT AI prohibited systems (the ones that pose a clear threat to
the fundamental rights and values) and to put the basis for implementing a global responsible AI framework to regulate the lifecycle of AI systems,
from design to deployment and monitoring, in line with the AI ACT requirements.
Scope: the AI ACT: AI Governance Framework Design & Implementation initiative is designed to create a structured approach to managing AI within
our organisation.
The Responsible AI Governance Programme will be built on the responsible AI principles (structured around five key pillars and designed to achieve
specific goals, from establishing a clear governance framework to enhancing AI literacy across the organisation):
• Governance Model, Processes, and First Level Controls: is focused on creating a governance model with clear processes and 1st effective
controls, so we will include here the publication of the global policy, all the process (new or already in place which must be updated/created, the AI
classification and mapping).
• Risk Assessment, Second and Third Level Controls and Conformity Checks: This pillar is about implementing the risk assessment processes and
layered control mechanisms, like second and third level controls.
• Third-party and Outsourcing Contracts Management: Managing third-party and outsourcing contracts is crucial to minimise exposure to external
risk. We are focusing on additional new requirements for third parties, contracts updates.
• IT Tools and enablers: all the tools and enablers needed to streamline operations and enhance compliance (AI governance platform, project
portfolio management, ecc.)
• AI Literacy: focus on increasing the awareness and cross-fertilisation of the AItopics.
Time horizon: 2024-2027. In 2024, the focus has been on prohibited AI to ensure compliance with the first regulatory deadline (February 2025). It
also requires a hybrid approach, applying tactical solutions. We also laid down the foundations for the target AI responsible framework.
D. Infrastructure
D.1) Key action: Wi-Fi Hardware Refresh in Main Buildings and Branches
Description: replacement of outdated access points on the Italian Wi-Fi infrastructure:
Cisco access points of 21 main buildings will be replaced with new equipment using Huawei technology.
Cisco access points of 435 branches will be replaced with new equipment with Fortinet technology.
Scope: Italian branches and main buildings. The main positively impacted users are:
• Italian UniCredit branches: non-employees and end-users (customers) and employees.
• Main UniCredit buildings: employees-only.
Benefits: main benefits expected from the initiative are the following:
• Wi-Fi technology refreshes with the latest Wi-Fi six technologies in Italian main buildings and branches.
• Improvement of Office365 user experience and Teams calls regarding audio/video quality and stability.
• More efficient network statistics and diagnostic tools.
• Security patching is easier to manage and deploy.
• Improved end-users’ satisfaction thanks to more efficient and faster services in branch and by access to Wi-Fi in-branch, where possible.
Time horizon: 2024.
Status: in September 2024, the project’s progress is: 100% of branches and 67% of main buildings.
311
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
D.2) Key action: Unified Communication Transformation
Description: the Unified Communication Transformation project has significantly impacted our digitalisation efforts, aligning with our ESG goals.
Scope: this initiative spans across Italy, Germany, Austria, UK, Singapore, US, Poland, and Romania. The project directly impacts UniCredit
employees and benefits customers who place phone calls in our branches.
Benefits for users and customers: The Unified Communication project has significantly modernised and enhanced our communication infrastructure,
providing numerous distinct benefits and advantages.
Seamless Collaboration: By integrating all communication and collaboration tools into a single platform, we have streamlined workflows, enhanced
productivity, and fostered a more connected work environment.
Removing Physical Phones: Except for emergency and top-management uses, the removal of physical phones has led to decommissioning
outdated infrastructures.
Sustainability Impact: This project underscores our commitment to sustainability by adopting eco-friendly solutions that contribute to our ESG goals.
The energy savings and reduced environmental impact are a testament to our dedication to a greener future.
Enhanced Customer Experience: The introduction of personalized Interactive Voice Response systems for our Italian branches, with specific
opening hours, has increased the response rate and customer satisfaction. This innovation ensures our clients receive timely and accurate
information, enhancing their overall experience.
Cost Efficiency: Consolidating communication tools has led to substantial cost savings, allowing us to allocate resources more effectively and invest
in further innovations.
Time Horizon: 2022-2024.
Status: approx. 85%.
E. Digital Culture: Digital University activity
The UniCredit Digital University is a platform to enhance our in-house digital capabilities.
It offers differentiated learning opportunities, in three major streams: upskilling, knowledge sharing and reskilling.
E.1) Key action: Upskilling Activities
Description: learning opportunities designed for people working in the Group Digital Information Office perimeter. The paths were designed to
answer the needs of each job role and improve its related skills. Special attention is dedicated to the enhancement of technical competencies and
the development of soft skills.
In 2024, we leveraged hugely on e-learning platforms, i.e. self-mode learning, allowing a larger portion of colleagues to benefit from the training.
These platforms offer a high degree of flexibility, allowing access to training materials per each user’s needs and covering both technical and
behavioural needs.
The e-learning platforms used are Coursera and O’Reilly, and our Group platform PLUS. Paths designed with experts (SMEs /line managers) to
focus on topics useful for improving the daily working experience.
In addition, classrooms (virtual and/or in presence) led by internal and/or external teachers are organized to address specific learning needs and
requests.
In 2024, the University also supported the organisation of 9 bootcamps (2 Python Bootcamps; 1 Green IT Bootcamp and 6 AI Bootcamps). These
were very successful peer-peer events focusing on specific topics, where a restricted number of participants were invited to very interactive learning
sessions.
Scope: digital perimeter (GDIO).
Benefits: the main benefits expected from the initiative are the following: increase and improve colleagues’ core competencies to facilitate the
UniCredit digital transformation process and support the internalisation of skills.
Time horizon: 2024. The e-learning platform model is to be replicated in 2025.
Status: at the end of December, the project’s progress is:
• Colleagues involved in trainings: 2,100;
• No. of trainings completed: 4,400;
• No. of training hours completed: 33,700.
312
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
The diffusion of an online course for all Group colleagues, made in-house on “Digital Accessibility”, was also boosted by the activity of the Digital
University. As at the end of 2024, a total of 900+ colleagues completed that course on the internal platform PLUS, and the trend is growing also in
the first weeks of January 2025, showing commitment towards the topic.
E.2) Key action: Knowledge-sharing
Description: Within the framework of the UniCredit Digital University we offer a variety of learning products to reach everyone across the Group,
using different channels and tools to meet different needs and ambitions.
The range of formats used for sharing digital knowledge spans from our most popular product, the Digital Pitch (live web-streaming presentations by
external or internal experts on cutting-edge technologies), to Tune-up (team calls by SMEs, dealing with highly technical topics, with an extended
Q&A session), which was new for 2024.
There was also a two-day event, Digital Days held remotely and in person across the Group where well-known guests participated as speakers. All
our content is published on the Digital Knowledge Hub, allowing Group colleagues to easily find it whenever needed. Thanks to our partnership with
SDA Bocconi’s DevoLab, this platform also presents academic research on forefront digital technologies.
Scope: digital perimeter (GDIO) with activities and content open to the whole Group.
Benefits: the main benefits expected from the initiative are the following: Updating and developing digital literacy across the Group.
Time horizon: 2024, also planned for 2025.
Status: the project’s progress as of the end of December is:
• 9 Digital Pitches, attended by a total of 4,500+ colleagues remotely;
• 13 Tune Ups.
Digital Days: A two-day event in October:
• 11 countries participating;
• more than 12,000 connections on the live streams;
• more than 3,500 colleagues joining events in person across our countries.
E.3) Key Action: Reskilling Activities
Description: reskilling activities have been organized for internal staff to support professional role changes. The aim is to target positions currently
covered by external staff, thus reducing costs.
Ad hoc training paths designed for some job roles in 2024: i) Technical Analyst, ii) Product Management Technical (PMT), iii) key Data Roles and iv)
Delivery Lead.
Scope: digital perimeter (GDIO).
Benefits: the main benefits expected from the initiative are the following:
• To reduce reliance on external personnel;
• To allow the acquisition of core competencies in the context of digital transformation.
Time Horizon: 2024.
Status: the project’s progress is: KPI - 80 colleagues reskilled by the end of the year.
Metrics and targets
S4-5 - Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities
Security incidents and other cyber security KPIs have been set for internal monitoring purposes. They do not represent official targets to be achieved
within the ESG and Digital strategy.
The Principles for Responsible Banking (PRB) Commitment on Financial Health and Inclusion
As a signatory bank of the PRB Commitment on Financial Health and Inclusion, we have also set new targets for 2025 related to the group of clients
we have identified as the most relevant strategic target, namely young people (meaning people aged 17 to 30).
In the first data collection of actual data for the selected indicators in 2023, we reviewed in detail figures and processes, also implementing specific
tools and reports to collect and consolidate them. To align figures and ensure consistency across all the countries, some adjustment was required,
thus resulting in a change of the official targets previously communicated. New targets are more challenging for both indicators, estimating a greater
growth compared to the baseline.
313
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Targets on financial inclusion of young people:
• CS028 indicator: Percentage of young customers with two or more active financial products from different categories, with the Bank = 12.3%
(2023); 12.6% (2024); 13.0% (2025);
• CS036 indicator: Percentage of new customers that are young people per month = 36.2% (2023); 37.0% (2024); 37.7% (2025).
Those targets, increasing the financial inclusion of young clients, also positively affect the community.
Reference is made to “S3 - Affected Communities”.
Governance information
G1 - Business conduct
Impact risk and opportunity management
G1-1 - Business conduct policies and corporate culture
Business conduct policies
UniCredit’s corporate culture is built upon policies on business conduct which address material impacts, risks and opportunities resulted from the
DMA process:
Impact:
• Contribution to the creation of an environment of fair competition, encouraging businesses to compete based on innovation and efficiency rather
than aggressive tax practices and reducing national tax evasion.
• Maximum generation of value and its distribution to shareholders/stakeholders.
• Awareness and dissemination of the culture of ethics, by management, employees, business partners and other stakeholders in own operations.
• Ensure solid relationships with its suppliers and respect of agreed terms.
• Prevent the possible events of corruption and/or bribery through the training activities involving employees, top management and other relevant
stakeholder.
Risk:
• Operational Risk: The risk of money laundering, sanctions violations, bribery and corruption, and KYC failure.
Opportunities:
• Improvement in the quality of products and services purchased through a more sustainable supply chain and certified products (incorporating
minimum environmental criteria).
• Enhancement of reputation through investing in the development of innovative tools to manage, monitor and prevent corruption and bribery.
At the core of our corporate culture lies our Human Rights Commitment and our Code of Conduct49 which serve as the foundation for all our
actions and decisions. These documents are not merely formalities, they embody our commitment to integrity, transparency and respect in every
aspect of our operations, including a zero-tolerance approach with respect to fraud, bribery, and corruption. We believe that adhering to these
principles is essential for fostering trust among stakeholders and ensuring long-term sustainability. By promoting ethical behaviour and setting clear
standards, we aim to create a workplace environment where responsibility and collaboration thrive, aspiring to the maximum generation of value and
driving individual and collective success.
Our Zero-tolerance approach is also formalized through ad-hoc policies: the Anti-Fraud Policy, and the Anti-Bribery and Anti-Corruption Policy,
which illustrate our principles and procedures willing to mitigate any risks of money laundering, sanctions violations, bribery and corruption, and KYC
failure. UniCredit is investing in the development of tools to manage, monitor and prevent fraud, corruption and bribery, as described below.
49 UniCredit S.p.A. has established additional rules of conduct in the Code of Ethics 231/2001 as an integral part of the Organization and Management Model pursuant to the Legislative Decree 231/2001 (“Model”). Each
Legal Entity falling within the Group's L.D. 231/2001 perimeter has adopted its own Model and its own Code of Ethics 231/2001 within the Model pursuant to the Legislative Decree 231/2001.
314
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Corporate Culture
Our Culture is a crucial lever in driving the success of our UniCredit Unlocked strategic industrial plan. To chart a course for our Culture
Transformation, UniCredit's Group Culture and Diversity, Equity, and Inclusion (DE&I) function actively involved employees from all levels of
the organization in 2021 to assess our current state and outline a direction of travel. This Culture Diagnostic involved a comprehensive survey,
interviews, and focus groups, ultimately defining our core Values: Integrity, Ownership, and Caring.
To date, our foundational pillars for the Culture Transformation program have been:
1. In 2022, the Culture Network was established, consisting of 24 Culture Sponsors and 28 Culture Champions representing all of UniCredit’s Legal
Entities and Competence Lines. These volunteers assist in designing and implementing local initiatives aimed at inspiring and accelerating the
culture transformation within their teams and by involving colleagues locally, now totaling over 1,500 participants. The Group Culture and DE&I
Function collaborates with them through various initiatives to support their efforts, ensuring ongoing progress and positive change within our
organization.
2. Culture learning sessions to create strong alignment around our Values and to implement effective solutions for integrating these Values into
every aspect of our professional lives. Since October 2022, we have organized over 50 workshops and training sessions across various countries
and group functions, impacting more than 4,000 colleagues. In 2024, we launched our Culture Boostcamp, a training format for managers that
focuses on Culture, Values, and well-being workshops. The first session was delivered in May, engaging over 50 colleagues who are now
empowered to cascade this workshop further starting in 2025.
3. We organised an Annual Culture Day and Culture Roadshows across all entities to celebrate our culture in all regions. This year's Culture Day
took place in June as a group event in Munich, which was live-streamed and viewed by 15,000 colleagues. Additionally, we hosted culture treasure
hunts, which engaged over 4,500 colleagues. Our Culture Roadshow began at the end of 2022, and to date, we have visited 12 UniCredit banks,
plus one virtually. Over 10,000 colleagues have participated in these events. Additionally, we hosted 15 business clients as guest speakers and
welcomed 19 external experts from various fields who contributed diverse perspectives to our discussions.
4. The “Culture Jour Fixe” in all UniCredit branches is a regular team gathering dedicated to exchanging ideas regarding culture, both within the
organization and externally. This format was introduced in 2023 and has been positively received as a group-wide initiative involving 23,000
colleagues across 3,000 branches in 13 countries. In 2025, a revised model will be implemented in the sales and central units, encompassing all
divisions and organizational levels, reinforcing our commitment to fostering a dialogue around culture.
Our culture is evolving through daily interactions and by incorporating our Values into essential moments of the employee lifecycle. Our CEO's
commitment and direct reports are vital to this effort. They actively participate in regular touchpoints, including the CEO’s annual culture progress
meeting. The Board of Directors is informed about our progress and invited to relevant events. Our culture Sponsors, Culture Champions, and
Culture Network propose and implement culture transformation initiatives relevant to their local contexts.
Information on tax management
UniCredit group's approach to taxation is described in the global policies adopted internally and made available to employees.
Chief among them is the UniCredit group Tax Strategy policy, which defines the guidelines and principles of UniCredit group for the management
of tax matters and associated risks (both financial and reputational), with the aim of avoiding and mitigating tax risk as much as possible,
contributing to the creation of a fair competition environment.
UniCredit group is guided by the following principles in relation to the tax management of its business activities:
• foster a Culture of tax compliance and awareness of relevant tax laws and of the tax risk management throughout the Group, also including
organisational units not directly working within the tax departments of the Group;
• compliance with form and substance of all relevant tax laws, regulations and practices applicable in every jurisdiction where the Group carries out
its business;
• establishment of relations of mutual trust, co-operation and transparency with tax authorities in the various jurisdictions where the Group operates,
including through participation in projects of co-operative compliance;
• prohibition from using aggressive tax planning and from using tax avoidance schemes grounded on the so-called Base Erosion and Profits Shifting
(provided for by OECD) as well as on all regulations aimed at countering such phenomena (e.g. regulations pertaining to so-called hybrid entities
or structures and, more generally, all the regulations aimed at implementing EU Directives);
• application of a tax strategy that is consistent with the general rules of the Group in its approach to risk and the Values on which it is based;
• use of professional risk management standards for all risks associated with tax and ensuring that the procedures applied each time to that end are
appropriate.
315
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
Mechanisms for identifying, reporting and investigating concerns about unlawful behaviour
Another core part of our Corporate Culture is represented by the protection of whistleblowers, as highlighted in the global policy on
Whistleblowing which promotes a corporate culture based on ethical behaviour and good corporate governance by governing reports of
unacceptable conduct by employees and third parties. The policy is intended to:
• grant a corporate environment where employees and third parties feel able to report any unacceptable conduct;
• define adequate communication channels for the receipt, analysis and use of the reports.
Management of this process is designed to ensure the greatest possible protection and confidentiality of the whistleblower’s identity and the accused
individual and to prevent any possible retaliatory or discriminatory behavior in response to the report. Our data protection protocols ensure that
information received during whistleblowing is processed lawfully, for a defined purpose, and accessed only by authorised personnel on a “need to
know'’ basis. We ensure compliance with privacy rules both internally and externally.
UniCredit group grants the protection of the whistleblower and of the witness against any form of retaliation, including threats of retaliation and
attempts of retaliation, discrimination or penalty as a result of having made the report in good faith, in line with our global policy against
harassment, sexual misconduct, bullying and retaliation.
At the local level, UniCredit has identified Compliance as the function responsible for internal whistleblowing systems and for ensuring that the
procedure is followed correctly. The procedure, which describes the management of the process and responsibilities related to the reporting of
unacceptable conducts (Whistleblowing) in UniCredit S.p.A. and confirms the prohibition of retaliation, is compliant with the L.D. 24/2023
implementing the Directive (EU) 2019/1937 of the European Parliament and of the Council. The Whistleblowing procedure also enables the
management and investigation of any corruption and bribery incidents detected.
UniCredit provides the following channels (some of which are available 24 hours a day) for employees and third parties to make whistleblowing
reports, anonymously if desired:
• on the website, where the UniCredit SpeakUp web service allows a written report to be submitted, with the option of remaining anonymous;
• by phone - the UniCredit SpeakUp line allows a voice message report to be left, with the option of remaining anonymous;
• by email to the company whistleblowing email address;
• by letter to the dedicated postal address;
• by physical meeting.
The Group provides all employees with mandatory, up-to-date training on whistleblowing, outlining the relevant procedures to follow and potential
consequences. It is committed to promoting the regular global communication, implementation and enforcement of this rule across the Group
worldwide, including third parties.
Information about internal channels, process description and external channels provided by the National Competent Authority is available for third
parties on the Group’s institutional website and on the UniCredit commercial website as well as employees in the section dedicated to
whistleblowing on the Group’s intranet.
An annual report on whistleblowing process has been submitted to the Board of Directors of each legal entity of the Group.
Training on business conduct
Training and education are key elements in strengthening business conduct awareness and preventing possible events of corruption or bribery.
The Compliance function, in collaboration with People & Culture, is responsible for developing training on non-compliance risks. A target approach is
applied to training courses (including mandatory ones) which are available through a common Group platform, to all employees at Group level.
Training courses are assigned to the Group employees in accordance with their role and responsibilities (including new entries) and are planned to
be finalised within a set period of time (usually 60 days from the start date).
Each course is periodically updated according with new/updated regulatory requirements, internal rules as well as business needs.
In 2024, 6 Compliance mandatory trainings have been developed to reinforce Business Conduct capability, of which 5 addressed to all Group
employees (Unfair Commercial Practices, Whistleblowing, Anti-Corruption, Financial Sanction classroom and online) and 1 addressed to UniCredit
S.p.A.’ employees (Organization and Management of Model 231/01). In addition, a training on “Confidential Information” was rolled out in 2024 for a
selected population in the Parent Company perimeter.
316
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Sustainability statements
Corruption and bribery: functions most at risk
UniCredit group has defined the areas that are most at risk of corruption/bribery as defined in the internal regulation as follows:
• dealing with public officials;
• gifts and business hospitality;
• engagement of third parties and donations/sponsorships/memberships;
• HR activities;
• merger and acquisitions activities.
G1-2 - Management of relationships with suppliers
Policy to prevent late payments, specifically to SMEs
The global policy Expenditure Regulation has the purpose to define principles and minimum requirements necessary to manage expenditures and
investments, from invoice to pay, covering the risk of execution, delivery and process management of the expenditure process.
The Budget Owner, or a delegate of the Budget Owner, must get all the information necessary to verify the compliance of the invoice in relation to
the goods delivered and/or the service provided.
The Budget Owner, or a delegate thereof, gives the approval to the registration of the invoice; then approves the bank transfer.
It should be noted that the standard terms establish that payments are made within 60 days from the date in which the invoice is issued (in Italy;
reference is made to standard “G1-6 Payment Practices” for standard terms in the other countries in which the Group operates), unless otherwise
provided in the contract. Current Group policies do not foresee a differentiated treatment on the basis of the legal status or size of the supplier.
Approach in regard to relationships with suppliers, taking account risks related to supply chain and impacts on
sustainability matters
Suppliers are required to respect national and international laws and comply with the standards of the International Labour Organization and the
group’s Environmental Policy. Suppliers must meet certain minimum sustainability requirements and are selected in compliance with the standards
of various conventions of the International Labour Organization relating to fundamental human rights including child labour, freedom of association,
working conditions, health and safety.
Suppliers must also comply with the standards of our Environmental Policy. On the supplier level, the criteria are integrated into an overall supplier
evaluation process.
In addition, our Group aims to increase awareness among suppliers/service providers of social, environmental and labour law issues.
Social and environmental criteria taken into account for selection of supply-side contractual partners
In UniCredit, 100% of centrally selected new suppliers are screened using socio-environmental criteria.
UniCredit has in place a supplier qualification process that aims to screen suppliers based on compliance, sustainability, and economic-financial
aspects. The qualification is delivered for centralised purchases related to “in scope” categories (those managed centrally by Procurement) and
amounts of over €10,000. Suppliers who successfully complete the qualification process are enrolled in the Suppliers Group Register and can be
used in the purchasing processes.
In the framework of the screening, suppliers are requested to:
• Confirm that they meet the applicable legislation and comply in all their locations with the standards of the International Labor Organization.
• Confirm that the management of the company is not prosecuted for alleged corruption or Tax fraud crimes.
• Declare that they are not involved in any legal procedures for violation of environmental or labor laws.
• Commit to respecting the ten fundamental principles of the United Nations Global Compact.
• Confirm that they have an Environmental Policy which is coherent with the fundamental principles of the Environmental Policy of UniCredit group
or they are in any case committed to respecting.
G1-3 - Prevention and detection of corruption and bribery
UniCredit adopts a zero-tolerance policy towards acts of corruption. The Bank’s approach to fighting corruption is set out in the dedicated Group
Compliance Policy, published on the UniCredit group website, and associated Group Operational Rule. The Group policy and Group operational rule
are reviewed periodically.
Whenever local rules in a country of operation are stricter than those in the group policy, stricter local rules apply.
Each company is responsible for developing and implementing an effective local anti-corruption programme.
Moreover, Italian Group legal entities have also implemented the Organisational and Management Model according to Italian Legislative Decree
231/01 (Administrative liability of Legal entities, companies and associations). This model foresees specific Protocols, among other things, to
address bribery and corruption issues.
317
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Sustainability statements
The anti-bribery and anti-corruption programme include the following measures to prevent, identify, report, address and investigate concerns of
possible cases of corruption and/or bribery:
• The implementation of detailed internal regulations regarding the risk areas dealing with public officials, gifts and business hospitality, engagement
of third parties, donations/sponsorships/memberships, HR practices and M&A activities.
• Regarding gifts and business hospitality, among other things, implementing a tool in which gifts and business hospitality above defined thresholds
have to be documented and approved by at least the line manager so that these benefits are double-checked.
• Regarding the engagement of third parties and the provisions of donations/sponsorships/membership fees, implementation of a tool that supports
due diligence of third parties and beneficiaries of donations/sponsorships/memberships. This tool allowed us to create an anti-corruption register of
external suppliers used by the Group and automate due diligence to combat corruption within the decentralised process.
• Independent second-level controls are carried out by a dedicated compliance function.
• On a regular basis the results of compliance risk assessments and of internal audit reviews on anti-bribery and corruption areas are reported to
the internal controls committees.
• Mandatory (web-based) training.
• The appointment of a Group Anti-Corruption Officer and the set-up of a team that, among other things, provides advice regarding anti-corruption
matters, implements policies, reviews individual cases and (depending on the scope and size of the case) is involved in investigations regarding
possible cases of corruption. The team is part of the independent compliance department so that possible cases are investigated and evaluated
promptly, objectively and independently of the chain of management involved in the matters.
• Regular reporting within the annual compliance report to the Board of Directors, and (if necessary) ad hoc reports to the top management.
• Potential acts of corruption can also be reported in accordance with the global policy on Whistleblowing.
UniCredit group publishes its anti-bribery and anti-corruption regulations via its internal regulation platform. An excerpt of the UniCredit global policy
on anti-bribery and anti-corruption (ABC) is published on UniCredit’s official website portal with the main guidelines.
The basis is web training that covers the ABC risk areas and must be conducted by all employees. In addition, UniCredit S.p.A. offers classroom
workshops on selected topics, holds dedicated information sessions for selected units and/or directly contacts centrally concerned employees to
provide more detailed information. 100% of functions-at-risk are covered by training programmes.
All new supervisory and executive board members and new members of the top management receive an inductions training which covers also ABC.
Metrics and targets
The UniCredit group has zero tolerance for acts of corruption and prohibits them in any form, whether direct or indirect. No specific targets are
defined.
The Internal Control System guarantees monitoring the effectiveness of the policies and actions related to ABC matters.
G1-4 - Confirmed incidents of corruption or bribery
No incidents relating to acts of corruption or bribery within the Group, including incidents involving actors in its value chain where the Group or its
employees were directly involved, were reported during 2024. Consequently, no fines for violation of anti-corruption and anti-bribery laws have been
accounted for.
G1-6 - Payment practices
In the absence of specific guidelines on invoices categories to be considered, given the fact that the requirement explicitly refers to suppliers, the
Group has decided to take into consideration only invoices registered in line items Other administrative expenses and Other operating expenses. It
should be noted that, for some entities of the Group for which it was not possible to analyze 100% of the invoices due to considerable effort in
retrieving the requested data (absence of local automatized IT infrastructures), a sampling approach was pursued. In particular, a statistical model
has been used, which allowed the selection of a representative sample of the population with a confidence level conventionally set at 90%.
UniCredit group mostly pays invoices in line with the standard payment terms of the different countries in which it operates (30 days for Germany,
Austria, Bosnia & Herzegovina, Czech Republic, Croatia, Hungary and Romania, 60 days for Italy, Bulgaria, Serbia and Slovenia), with an average
of 19 days.
The most relevant category is ICT services, which encompasses approximately 60% of UniCredit group annual administrative expenses relevant for
the analysis, followed by marketing, consulting and logistic services expenses, which contribute to approximately 22% of the analyzed administrative
expenses.
The remaining 18% of the categories of the analyzed administrative expenses (including capitalised expenses), together with line item Other
Operating Expenses, individually are not relevant.
It should be noted that at the date of the present document, there are no relevant pending legal proceedings associated with late payments.
318
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Other information
Other information
Report on corporate governance and ownership structure
Within the meaning of Art.123-bis par.3 of the Legislative Decree 58 dated 24 February 1998, the “Report on corporate governance and ownership
structure” is available in the “Governance” section of the UniCredit website (https://www.unicreditgroup.eu).
An explanatory chapter on the corporate governance structure is likewise included in this document (“Corporate Governance”).
Report on remuneration
Pursuant to Art.123-ter of the Legislative Decree dated 24 February 1998, 58 and of Art.84-quater, of the Consob Issuers’ Regulations, the “Group
Remuneration Policy and Report” is available on UniCredit’s website (https://www.unicreditgroup.eu).
Research and development projects
Research activities during 2024 were mainly focused on quantum, deep learning and cryptography. In detail:
• 6 Papers published or accepted or submitted for publications;
• ongoing research topics: Interpretability, Quantum, Fairness and Deep Learning;
• within Rome Technopole, UniCredit successfully coordinated 6 universities and several public and private companies in activities and
developments related to human centric artificial intelligence throughout 2024. The initiative will continue to advance its mission into 2025;
• as part of this effort, UniCredit launched an initiative called the Artificial Intelligence & Analytics HUB.
Group activities development operations and other corporate transactions
Transactions and initiatives involving shareholdings
Acquisition of Alpha Bank Romania
In November 2024, UniCredit finalised the acquisition of a 90.1% stake in Alpha Bank Romania S.A. for a consideration equal to (i) 9.9% of the
share capital of UniCredit Bank S.A. (UniCredit Romania) and (ii) approximately €254 million.
The transaction is part of the strategic partnership between UniCredit and Alpha Services and Holdings, announced on 23 October 2023.
Investment in Commerzbank
As of 31 December 2024, UniCredit has a stake of around 28% in the share capital of Commerzbank AG, of which 9.5% through an equity direct
stake and around 18.5% through derivative instruments.
UniCredit has submitted regulatory filings for acquiring a stake in Commerzbank in excess of 10% and up to 29.9%, as communicated in September
2024.
The majority of UniCredit's economic exposure has been hedged to provide it with full flexibility and optionality to either retain its shareholding, sell
its participation with a floored downside, or increase the stake further.
Investment in Vodeno and Aion Bank
On 24 July 2024, UniCredit announced that it entered into a binding agreement for the acquisition of the entire share capital of Vodeno Sp. z o.o.
("Vodeno") and Aion Bank SA/NV ("Aion Bank").
Aion Bank and Vodeno combine an innovative, scalable, and flexible cloud-based platform with banking services based on Aion's ECB licence to
enable fully end-to-end Banking-as-a-Service (BaaS) for both financial and non-financial companies across Europe. The companies are able to
embed financial solutions, including accounts, deposits, lending and payment propositions, directly into the customer journeys of retailers, e-
Commerce marketplaces, fintechs, financial technology providers and banks.
The Vodeno Cloud Platform is a state-of-the-art, cloud-native core banking system built with smart contracts technology and API-based, integrated
with the processes and procedures of a fully-fledged bank. The transaction represents one of the first moves by a bank to acquire full ownership of a
new technology without any dependencies from third party core banking providers.
The combined purchase price for the 100% acquisition of the two companies is around €370 million (subject to customary price adjustments). The
closing of the transaction is expected to occur in the first quarter 2025, subject to regulatory approvals.
Voluntary public exchange offer launched by UniCredit S.p.A. for all of the shares of Banco BPM
S.p.A.
On 25 November 2024 UniCredit announced the decision to launch a voluntary public exchange offer in respect of all the ordinary shares of Banco
BPM S.p.A. (”Banco BPM”), in a notice issued pursuant to Article 102 of the Legislative Decree 58, dated 24 February 1998, and Article 37 of
CONSOB Regulation no.11971 of 14 May 1999 (the “Notice”).
The offer remains subject to the receipt of the relevant regulatory authorisations and to the conditions set out in the Notice, including, among others,
the approval of the proposal for the delegation concerning the share capital increase reserved to the offer by the shareholders of UniCredit at the
relevant shareholders’ meeting and of the offer document by Consob upon completion of the relevant review period.
319
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Other information
The exchange ratio has been set at 0.175 newly issued shares of UniCredit for each existing share of Banco BPM, subject to adjustment in case
prior to the settlement of the offer UniCredit and/or Banco BPM pay(s) a dividend to its/their shareholders, or otherwise the coupon relating to
dividends declared but not yet paid by UniCredit and/or Banco BPM is detached from the relevant shares and/or Banco BPM approves or gives
effect to any transaction on its share capital.
The offer concerns 1,515,182,126 Banco BPM’s Shares and its execution is expected to be completed by June 2025. Following the completion of
the offer, UniCredit envisages to proceed with the activities aimed at the potential delisting of Banco BPM, also depending on the result of the offer
and, subject to the prior approval by the competent internal bodies and the necessary authorizations from the competent authorities, with the
commencement of the activities aimed at merging Banco BPM into the same UniCredit, even without the delisting of Banco BPM.
In the event of a positive outcome of the Offer, UniCredit will strengthen its franchise by adding a highly qualified and complementary network with
strong roots in the reference territories such as that of Banco BPM. In addition, UniCredit will provide Banco BPM’s customers with direct access to
an international franchise and a wide range of products and services dedicated to individuals, corporates and SMEs, offering the expertise of a
strong pan-European commercial bank, with a fully integrated corporate and investment banking business and a unique network in Western and
Central-Eastern Europe.
The Transaction would also envisage the achievement of efficiencies arising from economies of scale and improved operating efficiency, leveraging
on the UniCredit group’s proven ability to both operate efficiently on a pan-European scale and invest in innovation and technology.
The Transaction will allow to deliver the full potential of the Banco BPM Group and of the UniCredit group in Italy and in the EU and will thus ensure
the strengthening of a solid pan-European entity with the size and resources necessary to support the economy in an even more effective way and
to create sustainable value for the benefit of all the stakeholders involved.
Exercise of the rights to acquire full control of CNP UniCredit Vita S.p.A. and UniCredit Allianz Vita
S.p.A.
In the second half of 2024 UniCredit exercised: (i) the termination of the shareholders' agreement with CNP Assurances S.A. and the simultaneous
exercise of the call option on the entire stake (51%) held by CNP Assurances S.A. in CNP UniCredit Vita S.p.A. and (ii) the termination of the
shareholders' agreement with Allianz S.p.A. and the related acquisition of the entire stake (50%) held by Allianz S.p.A. in UniCredit Allianz Vita
S.p.A.
The exercise of the call option on CNP UniCredit Vita S.p.A. is based on the terms of the shareholders' agreement entered in 2017, as amended
from time to time. Under this agreement, the purchase price will be determined through a specific procedure based on agreed methodologies.
The exercise of the termination right from the agreement with Allianz S.p.A. and related acquisition of the Allianz S.p.A. stake in UniCredit Allianz
Vita S.p.A. is based on the terms of the shareholders' agreement originally entered in 1996, last renewed in 2022. Also under this agreement, the
purchase price will be determined through a specific procedure based on agreed methodologies. The process, among other, foresees the
engagement of an independent expert to certify the purchase price.
Closing of each of the transactions is subject to the standard authorizations by the competent authorities and is expected in 2025.
320
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Other information
Other information on Group activities
FINO project
In relation to the FINO Project (started in 2016 and completed in 2018), as at 31 December 2024, following the redemptions made, the Notes (Asset
Backed Securities) owned by UniCredit S.p.A. amount to €44 million (€32 million recorded under item “30. Financial assets at fair value through
other comprehensive income” pertaining to the Senior securities and in part to the Mezzanine securities, and €12 million recorded under item “20.
Financial assets at fair value through profit or loss c) other financial assets mandatorily at fair value” in connection with the remaining Mezzanine
securities and all the Junior Notes).
During the year 2024, the evaluation of the notes classified among other assets mandatorily at fair value led to a negative impact of €6 million while,
for the Notes classified among financial assets at fair value through other comprehensive income, an impairment has been recognised for €14
million, both due to the change in estimation of expected cash flows of the underlying securitised loans.
The receivables related to the Deferred Subscription Price (DSP/Deferred Purchase Price-DPP), owed to UniCredit S.p.A. by third-party entities
belonging to the relevant third-party investor's groups, and deriving from the securitisation transactions completed during 2017, have been fully
reimbursed in 2020, according to the contractual provisions.
Prisma transaction
In relation to Prisma transaction, finalised in the fourth quarter 2019 and referring to the securitisation of a non-performing loan Residential Mortgage
Portfolio of €4.1 billion gross book value originated by UniCredit S.p.A. and transferred to the securitisation vehicle Prisma SPV S.r.l., issuer of the
Asset Backed Securities (named also ABS or Notes), it should be noted that as at 31 December 2024, following the redemptions made, the total
amount of the Notes owned by UniCredit S.p.A. amount to €430 million (of which €430 million recorded under item “30. Financial assets at fair value
through other comprehensive income” pertaining to the Senior securities and €0.1 million recorded under item “20. Financial assets at fair value
through profit or loss c) other financial assets mandatorily at fair value” in connection with the Mezzanine and Junior Notes).
During the year 2024, with reference to the notes recorded among the other financial assets mandatorily at fair value, a negative impact for €1,4
million was recognised in the Income statement while, for the Notes classified among financial assets at fair value through other comprehensive
income, no impairment has been recognised in the Income statement.
Relais transaction
In relation to Relais transaction, realised in the fourth quarter 2020, and referring to the securitisation of a non-performing real estate lease portfolio
of €1.6 billion claim originated by UniCredit Leasing S.p.A. (UCL) and transferred to the securitisation vehicle Relais SPV S.r.l., issuer of the Asset
Backed Secured Notes (Senior, Mezzanine e Junior), it should be noted that, as at 31 December 2024, following the redemptions made, the notes
amount to €223 million (Senior note for €211 million held by UniCredit S.p.A. and for €11 million held by UCL recognised in item “30. Financial asset
at fair value through other comprehensive income”, Mezzanine and Junior notes for €1 million held by UCL and recognised under item “20. Financial
assets at fair value through profit or loss c) other financial assets mandatorily at fair value”).
During the year 2024, with reference to both the notes recorded among the Other financial assets mandatorily at fair value and the notes classified
among Financial assets at fair value through other comprehensive income, no significant amount was recognised in the Income statement.
Olympia transaction
In relation to Olympia transaction, finalised in the fourth quarter 2021, and referring to the securitisation of a non-performing secured and unsecured
loans, of €1.6 billion in terms of gross book value originated by UniCredit S.p.A. and transferred to the securitisation vehicle Olympia SPV S.r.l.,
issuer of the Asset Backed Securities (named also ABS or Notes), it should be noted that, as at 31 December 2024, following the redemptions
made, the total amount of the Notes owned by UniCredit S.p.A. amount to €112 million (of which €111 million recorded under item “30. Financial
assets at fair value through other comprehensive income” pertaining to the Senior securities and €1 million recorded under item “20. Financial
assets at fair value through profit or loss c) other financial assets mandatorily at fair value” in connection with the Mezzanine and Junior Notes).
During the year 2024, with reference both to the notes recorded among the Other financial assets mandatorily at fair value and the notes classified
among Financial assets at fair value through other comprehensive, no material impacts have been recognised in the Income statement.
321
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Other information
Itaca transaction
In relation to Itaca transaction finalised in the second quarter 2022, and referring to the securitisation of a non-performing secured and unsecured
loans of €0.9 billion in terms of gross book value originated by UniCredit S.p.A. and transferred to the securitisation vehicle Itaca SPV S.r.l., issuer of
the Asset Backed Securities (named also ABS or Notes), it should be noted that, as at 31 December 2024, following the redemptions made, the total
amount of the Notes owned by UniCredit S.p.A. amount to €31 million (of which €30 million recorded under item “30. Financial assets at fair value
through other comprehensive income” pertaining to the Senior securities, and €1 million recorded under item “20. Financial assets at fair value
through profit or loss c) other financial assets mandatorily at fair value” in connection with the Mezzanine and Junior Notes).
During the year 2024, with reference to both the notes recorded among the Other financial assets mandatorily at fair value and the notes classified
among Financial assets at fair value through other comprehensive, no material impacts have been recognised in the Income statement.
With reference to the regulatory treatment applied, following the notification to the European Central Bank, starting from 30 June 2022, UniCredit
represents the related significant risk transfer when reporting the transaction above outlined.
On 10 June 2022, the Ministry of Economy and Finance granted the GACS guarantee on the Senior notes.
Altea transaction (Panthers Project)
In relation to Altea transaction, finalised in the second quarter 2022 and referring to the securitisation of Unlikely to Pay secured and unsecured loan
Portfolio of €2 billion gross book value originated by UniCredit S.p.A. and transferred to the securitisation vehicle Altea SPV S.r.l., issuer of the Asset
Backed Securities (named also ABS or Note), it should be noted that, as at 31 December 2024, following the redemptions made, the total amount of
the Notes owned by UniCredit S.p.A. amount to €255 million (of which Senior notes for €249 million recorded under item “40. Financial assets at
amortised cost”, Mezzanine and Junior notes for €6 million recorded under item “20. Financial assets at fair value through profit or loss c) other
financial assets mandatorily at fair value”).
During the year 2024, with reference to both the notes recorded among the Financial assets at amortised cost and to the notes recorded in Other
financial assets mandatorily at fair value, no material impacts was recognised in the Income statement.
With reference to the regulatory treatment applied, following the notification to the European Central Bank, starting from 30 June 2022, UniCredit
represents the related significant risk transfer when reporting the transaction above outlined.
Purchase of Aurora fund
On 2 January 2024, UniCredit S.p.A. perfected the purchase of the 100% of the quota of Fondo Aurora, a real estate fund, from Fondo Pensione
UniCredit.
Placement of a Tier 2 bond
On 9 January 2024 UniCredit S.p.A. placed a €1.0 billion Tier 2 benchmark, targeted to institutional investors.
The bond, with 10.25 years maturity callable after 5.25 years, pays a fixed coupon of 5.375% until April 2029 and has an issue price of 99.847%,
equivalent to a spread of 280 bps over the reference mid swap rate. If not redeemed by the issuer, the coupon will be reset based on the then
applicable 5-year swap rate, increased by the initial spread.
Placement of €1 billion Senior Non-Preferred bond
On 16 January UniCredit S.p.A. issued a fix-to-floater Senior Non-Preferred Bond for €1 billion with 7 years maturity and a call after year 6, targeted
to institutional investors. A fixed coupon of 4.30% is paid with an issue/re-offer price of 99.751%.
The bond will have a one-time issuer call at year 6, as to maximise regulatory efficiency. Should the issuer not call the bond after 6 years, the
coupons for the subsequent periods until maturity will reset to a floating rate equal to 3-months Euribor plus the initial spread of 180 bps, paid
quarterly.
Early redemption of notes for €1 billion
On 23 January 2023 UniCredit S.p.A. announced that, with reference to the notes Fixed Rate Resettable Tier 2 Subordinated Callable, ISIN
XS1953271225 dated 18 February 2019 for €1 billion, in accordance with the terms and conditions for the notes, it received the European Central
Bank authorisation; the option to early redeem in whole the notes was exercised on 20 February 2024.
Issue of Senior Preferred Notes for €1.25 billion
On 27 February 2024 UniCredit S.p.A. issued a fixed rate Senior Preferred Bond for €1.25 billion with 10 years maturity, targeted to institutional
investors.
The initial guidance of 170 bps over the 10-year mid swap rate has been revised downwards and set at 125 bps, resulting in a fixed coupon of
4.00% paid annually, with an issue/re-offer price of 99.935%.
Share Buy-Back Programmes
On 16 January UniCredit S.p.A. cancellation of No.72,239,501 treasury shares was ordered, without reduction of the share capital, pursuant to the
resolutions passed by the Shareholders' Meeting on 31 March and 27 October 2023.
The number of shares cancelled is equal to the sum of the remaining shares purchased in execution of the “2022 Buy-Back Program” and not
previously cancelled and the shares purchased in execution of the “First Tranche of the 2023 Buy-Back Program” up to the date of 29 December
2023.
322
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Other information
Last March 2024 UniCredit S.p.A. announced the completion of the "First Tranche of the Buy-Back Programme 2023", communicated to the market
on 30 October 2023 and initiated on the same date, purchasing No.95,995,258 shares for a total consideration of €2,500 million.
In the same month, UniCredit ordered the cancellation of No.37,815,422 treasury shares, without reduction of the share capital.
The number of shares cancelled is equal to the remaining shares purchased in execution of the “First Tranche of the 2023 Buy-Back Program” and
not previously cancelled.
Following the ECB authorisation for the execution of the remainder of the 2023 share buy-back programme, on 12 April 2024 the Shareholders’
Meeting approved the share buy-back programme as part of the overall remuneration to shareholders: a first distribution, for a maximum
disbursement of €3,085 million to be carried out also in several tranches during the 2024 relating to the residual part of the overall payout for the
2023 financial year (the "2023 SBB Residual") and a second distribution as an anticipation of the expected distributions for the 2024 financial year
(the "2024 SBB Anticipation") defined on the base the Company’s results for the half 2024. The new remuneration policy, defined by the UniCredit
Board of Directors also envisages the distribution of an interim cash dividend.
On 9 May 2024 the "Second Tranche of the Buy-Back Programme 2023 was launched for a maximum amount of €1,585 million as part of the
residual amount of the overall payout for the 2023 financial year equal to €3,085 million ("2023 SBB Residual") and completed on 20 June 2024 with
the purchase of No.44,859,171 treasury shares for a total consideration equal to the maximum expenditure authorised. On 26 June 2024 the shares
purchased were canceled without reduction of the share capital.
At the end of June 2024, the third and final tranche of the 2023 share buy-back programme for a maximum amount of €1,500 million (the "Third
Tranche of the Buy-Back Programme 2023"); this is the last part of the residual amount of the overall payout for the 2023 financial year equal to
€3,085 million ("2023 SBB Residual").
On 20 August 2024 UniCredit S.p.A. announced the completion, on 19 August 2024, of the share buy-back programme (the Third Tranche of the
Buy-Back Programme 2023).
On 13 September 2024 UniCredit S.p.A. informed having received the ECB authorization for the execution of the first tranche of the 2024 share buy-
back programme for a maximum of €1.7 billion.
On 16 September it also announced the measures for the execution of the share buy-back programme related to the anticipation of the expected
distributions for the 2024 financial year (the 2024 SBB Anticipation) for an amount equal to the maximum granted.
On 15 November 2024 UniCredit S.p.A. announced the completion, on 14 November 2024, of the 2024 SBB Anticipation.
For further information refer to paragraph “Group and UniCredit share historical data series” of this Consolidated report on operations.
Appointment of Chair and Chief Executive Officer of UniCredit S.p.A.
On 12 April 2024 UniCredit informed that the Board of Directors of UniCredit S.p.A. appointed Director Pietro Carlo Padoan as Chair of the Board of
Directors and Director Andrea Orcel as Chief Executive Officer (CEO) with all the powers and authorisations necessary for this purpose.
It also appointed Director Elena Carletti as Deputy Vice Chair.
Moreover, the Board of Directors appointed the members of the Board Committees.
Early redemption of notes for USD 1,250 million
On 19 April 2024 UniCredit informed that, with reference to the notes Non Cumulative Temporary Write-Down deeply Subordinated Fixed Rate
Resettable, ISIN XS1046224884 issued on 3 April 2014 for USD 1,250 million, in accordance with the terms and conditions of the notes, it received
the European Central Bank authorisation; the option to early redeem in whole the notes was exercised on 3 June 2024.
Early redemption of notes for €1,250 million
On 3 June 2024 UniCredit announced that, with reference to Fixed to Fixed to Floating Rate Callable Senior Notes, ISIN XS2017471553 issued on
25 June 2019 for €1,250 million, in accordance with the terms and conditions for the notes, it received the Single Resolution Board authorisation; the
option to early redeem in whole the notes was exercised on 25 June 2024.
Early redemption of notes for €750 million
On 3 June 2024 UniCredit announced that, with reference to Fixed to Floating Rate Callable Non-Preferred Senior Notes ISIN XS2021993212
issued on 3 July 2019 for €750 million, in accordance with the terms and conditions for the notes, it received the Single Resolution Board early
redemption authorisation.
On 3 July 2024 UniCredit S.p.A. exercised the option to early redeem.
323
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Other information
Issues of Senior Non-Preferred bonds for an amount of €2 billion
On 4 June 2024, UniCredit successfully issued dual tranche Senior Non-Preferred bonds: €1 billion with 4 years maturity, callable after 3 years, and
€1 billion with 10 years maturity, targeted to institutional investors.
For the 4 years bond, the initial guidance of 120 bps over the 3-year mid swap rate has been revised downwards and set at 85 bps, resulting in a
fixed coupon of 3.875% paid annually, with an issue/re-offer price of 99.822%.
For the 10 years bond, the initial guidance of 180 bps over the 10-year mid swap rate has been revised downwards and set at 145 bps, resulting in a
fixed coupon of 4.20% paid annually, with an issue/re-offer price of 99.904%.
MREL requirements set by Resolution Authorities
On 17 June 2024 it has been announced that, following the communication received by the Single Resolution Board (SRB) and Banca d'Italia, the
Minimum Requirements for Own Funds and Eligible Liabilities (MREL) to be applied to UniCredit S.p.A. on a consolidated basis.
Early redemption of notes for €1,250 million
On 30 August 2024 UniCredit S.p.A. announced that, with reference to the notes €1,250,000,000 Fixed Rate Resettable Tier 2 Subordinated
Callable Notes ISIN XS2055089457 (the Notes), in accordance with the applicable terms and conditions, having received the European Central
Bank authorisation, it would have exercised the option to early redeem in whole the Notes on 23 September 2024 (the Optional Redemption Date").
Issue of €1 billion Additional Tier 1 notes
On 9 September 2024 UniCredit S.p.A. issued Additional Tier 1 Non-Cumulative Temporary Write-Down Deeply Subordinated Fixed Rate
Resettable Notes targeted to institutional investors, for a total amount of €1 billion.
Moody's upgrade of Senior Preferred outlook and affirming of the rating
On 1 August 2024 UniCredit announced that the rating agency Moody's has improved the outlook of UniCredit S.p.A.'s Senior Preferred (unsecured)
debt rating from negative to stable.
At the same time, UniCredit S.p.A.'s Senior Preferred debt and long-term deposit ratings have been affirmed at Baa1.
On 2 October 2024 UniCredit S.p.A. communicated that Moody's has affirmed the Senior Preferred (unsecured) debt and long-term deposit ratings
with a stable outlook.
At the same time, the rating agency stated that, in the event of UniCredit acquiring Commerzbank, it will consider the potential for UniCredit's stand-
alone rating (Baseline Credit Assessment) currently at Baa3 to be upgraded to Baa2, one notch above Italy's sovereign rating. This would lead to
higher ratings on senior non-preferred and junior debt as well.
On 27 November 2024 UniCredit S.p.A. also announced that the rating agency Moody's, reaffirming Senior Preferred (unsecured) debt and long-
term deposit ratings with a stable outlook, specified that, should the acquisition of Banco BPM be finalized, the creditworthiness of UniCredit would
remain broadly stable.
The affirmation also reflects the rating agency's assessment that the acquisition of Banco BPM would not prevent UniCredit's potential acquisition of
Commerzbank AG with a possible rating improvement as illustrated above.
Early redemption of notes for €100 million
On 25 October 2024 UniCredit S.p.A. announced that, with reference to €100,000,000 6.30 per cent Fixed Rate Senior Notes due 14 November
2036 ISIN IT0005571051 (the Notes), pursuant to the Condition 19 (Issuer Call) of the relevant Final Terms and to Condition 10.5 and 15 the Terms
and Conditions for the Dematerialised Notes included in the Base Prospectus dated 10 May 2023 as supplemented from time to time, it exercised
the option to early redeem in whole the Notes on 14 November 2024 (the Optional Redemption Date).
The early redemption of the Notes was at par, together with accrued and unpaid interest as per Condition 13(b) (Interest Payment Date(s)) of the
relevant Final Terms. Interest shall cease to accrue on the Optional Redemption Date.
Early closure of the offer period relating to €77 million of notes
On 31 October 2024 UniCredit S.p.A. announced the early closure of the offer period relating to €77,000,000 Fixed to Floating Rate Senior Notes
due 14 October 2037 (ISIN IT0005617375) issued by UniCredit S.p.A.
324
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Other information
Fitch: upgrade issuer rating to one notch above the Italian sovereign and improvement of the
outlook
On 31 October 2024 UniCredit S.p.A. communicated that the rating agency Fitch Ratings has upgraded UniCredit S.p.A.'s Long-Term Issuer Default
Rating (IDR) and Senior Preferred rating by one notch to 'BBB+' and improved the outlook from stable to positive. The rating is now one notch above
the Italian sovereign.
The Viability Rating (i.e. standalone rating) has been upgraded to 'bbb+', while the corresponding long-term deposit, Senior Non-Preferred, Tier 2,
and Additional Tier 1 ratings have each been upgraded by one notch.
The Short-Term Issuer Default Rating has been affirmed at 'F2'.
On 2 December 2024 UniCredit S.p.A. announced that the rating agency affirmed the Long-Term Issuer Default Rating (IDR) and Senior Preferred
rating at 'BBB+' with a positive outlook. The rating therefore remains one notch above the Italian sovereign.
The rating action follows UniCredit's exchange offer on Banco BPM according to which Fitch Ratings expects that a potential transaction with Banco
BPM would not alter the Group's credit profile to an extent that would affect its ratings.
2024 interim dividend approval
On 5 November 2024 the Board of Directors of UniCredit S.p.A. approved a resolution to distribute an interim dividend to shareholders on the 2024
results, for a total amount of 1,440,000,000 euro, equal to a "per share" amount for each of No.1,554,803,184 outstanding and having the right
shares at 4 November 2024 and, therefore, also deducting the No.72,497,676 of the treasury shares in portfolio at the same date, of 92.61 euro/cent
(DPS), before tax.
Issues of €1 billion Senior Preferred Bond
On 13 November 2024 UniCredit S.p.A. issued a €1 billion floating rate Senior Preferred Bond with 4 years maturity, callable after 3 years, targeted
to institutional investors.
2024 EU-wide Transparency Exercise
On 2 December 2024 UniCredit has noted the announcements made by the European Banking Authority (EBA) and the European Central Bank
(ECB) regarding the information of the 2024 EU-wide Transparency Exercise and fulfilment of the EBA Board of Supervisors' decision.
The EBA Board of Supervisors approved the package for the 2024 EU-wide Transparency Exercise, which since 2016 is performed on an annual
basis and published along with the Risk Assessment Report (RAR).
Capital requirements set by ECB
On 11 December 2024 Following the communication received from the ECB in relation to the 2024 Supervisory Review and Evaluation Process
(SREP), UniCredit' announced that its Pillar 2 Capital Requirement (P2R) remains at 200 basis points.
From 1 January 2025 UniCredit will respect the following capital requirements on a consolidated basis:
• 10.27 per cent CET1 ratio;
• 12.14 per cent Tier 1 ratio;
• 14.64 per cent Total Capital ratio.
The above capital ratios include the Combined Buffer Requirement to be met with CET1 instruments, composed by 2.50 per cent Capital
Conservation Buffer (CCB), 1.50 per cent O-SII buffer, 0.44 per cent Countercyclical Capital Buffer (CCyB) and 0.20 per cent Systemic Risk Capital
buffer (SyRB).
325
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Other information
Organisational model
Significant organisational changes
During 2024, the organizational set up was reviewed in line with the simplification and strengthening of the Group’s business and operating model, as
follows:
• within the Italy division, through the “buddy Revolution” project: the new buddy service model strengthens the Bank’ commercial offer (“on
demand” Bank), widening the range of products and services offered to customers, via an off-site offering model for on-demand services through
consultants and authorized agents;
• within the Central Europe & Eastern Europe division, by streamlining the set-up leveraging more on the support of central governance functions
and the Group Client Solutions product lines;
• within Group Client Solutions, by reorganizing “Payments Solutions” activities (Acquiring, Issuing and payment Cards services) and centralizing
from UC Bank Gmbh to UniCredit S.p.A. product development activities in the payments, trade finance and working Capital products, as well as
most Client Risk Management trading activities and related operations ones, fostering a simplification of current trading framework. Moreover, the
process of clients’ investment strategies definition has been strengthened through the set-up of a dedicated hub responsible at Group level for
market research and investment strategy definition (also integrating macroeconomic and strategic research activities) for all the customers
segments. Furthermore, investment and protection products across all Countries/customer segments have bene rationalized and strengthened
through: Group Insurance responsible for steering the insurance products and related offer, and Group Investment Product Solutions, focused on
the steering of investment products and services development and offering, strengthening the coordination of internal Asset Management factories
and partnerships. Finally, the International Network’ simplification / rationalization has been carried forward;
• within the Group Digital & Information division, by reviewing the first reporting line to ensure the alignment of the organizational set-up with the
new operating model, further progressing in the related simplification;
• within Group Chief Operating Office (Group COO), by creating a new Service Line - Group Products COO - to steer a robust “End to End” Product
Processes governance and operating model, furthering higher harmonization and simplification. A dedicated structure within Italy division (Italy-
Products COO) represents the local Products COO function with the aim to coherently design and improve processes with reference to local value
chains;
• within all the governance functions of the Bank (including Group Risk Management, Group Compliance, Group Legal, Group Finance, Group
People & Culture, Group Stakeholder Engagement, Group Strategy & ESG, Internal Audit) a further simplified organizational setup has been
implemented.
Organisational structure
UniCredit adopts an organizational and business model which guarantees, on the one hand, the autonomy of countries/local banks on specific activities
– to ensure greater proximity to customers and efficient decision-making processes – and maintains, on the other hand, a divisional structure for
business/products governance, as well as global control over Digital and Operation functions.
More specifically, the current organizational structure of the Holding company can be broken down into:
• Group Finance, Group Risk Management, Group Legal, Group Compliance, Group People and Culture, the functions identified, together with
Internal Audit, as Competence Lines (CL): aim at steering, coordinating and controlling, for their area of competence, the management of activities
and related risks both at Group and single Legal Entities level;
• Italy, Germany, Central & Eastern Europe: business functions responsible for proposing and implementing the business strategies to maximize the
risk adjusted value creation for the relevant perimeter. With reference to related customer segments/geographies, these functions are responsible
for the service model definition as well as business product development in alignment with Group Client Solutions. Germany represents the
synthesis point of the Group's business in the reference Country, maintaining an executive role at local level;
• Group Client Solutions: develops best-in-class products for different types of customers, serving business across countries;
• Group Digital & Information division: defines and executes “Group Technology, Digital and Data” management and transformation, driving value
creation through technological and data management skills, embedded into digital solutions that optimize execution and improve customer
experience;
• Group Chief Operating Office (Group COO): responsible for supporting the sustainable growth of Group business and generating value added for
Countries/Group Legal Entities through the oversight of the operating machine, in line with Group strategies, by ensuring synergies, costs savings
and operational excellence;
• Group Stakeholder Engagement: oversees communication activities and relations with multiple Group stakeholders, ensuring the delivery of
coordinated and consistent messages (investor relations, identity and communication activities, relationships with institutional counterparties and
with the European Banking Supervisory Authorities - e.g., EBA, ECB - and Banca d’Italia), preserving Group’s reputation;
• Group Strategy & ESG: responsible for supporting strategic initiatives, including the integration of ESG into the Group's strategy.
The Group Strategy & ESG, Group Stakeholder Engagement and Group CEO Staff functions represent the “CEO Office” aimed at supporting CEO
developing and implementing strategic initiatives.
326
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Other information
Conversion of Deferred tax assets (DTAs) into tax credits
Referring to fiscal year 2023, UniCredit S.p.A., UniCredit Leasing S.p.A., UniCredit Factoring S.p.A. and UniCredit Bank GmbH registered a profit in
their separate financial statements (respectively €11,264 million, €23 million, €77 million and €139 million), therefore, the conditions to carry out, in
2024, a new transformation of deferred tax assets, for IRES and IRAP, into tax credits were not met.
Certifications and other communications
With reference to the “Rules of Markets organised and managed by Borsa Italiana S.p.A.” dated 4 January 2021 (Title 2.6 “Obligations of issuers”,
Art.2.6.2. “Disclosure requirements”, paragraph 10) the satisfaction of conditions provided by article 15 of Consob Regulation No.20249/2017, letters
a), b) and c) is hereby certified.
With reference to paragraph 8 of Art.5 - “Public information on transactions with related parties" of Consob Regulation containing provisions relating
to transactions with related parties (adopted by Consob with Resolution No.17221 of 12 March 2010, as subsequently amended by Resolution
No.21624 of 10 December 2020), it should be noted that:
a) according to the Global Policy “Transactions with related parties, associated persons and Corporate Officers ex Art.136 CBA50” adopted by the
Board of Directors of UniCredit S.p.A. on 12 December 2024, and published on the website www.unicreditgroup.eu, during 2024 the Bank’s
Presidio Unico received no reports of transactions of greater importance ended in the period;
b) during 2024, no transactions with related parties as defined by article 2427, paragraph 22-bis of the Civil Code were conducted, under different
conditions from normal market conditions and materially affecting the Group’s financial and economic situation;
c) during 2024, there were no changes or developments in the individual transactions with related parties already described in the latest annual
report that had a material effect on the Group’s financial position or results during the reference period.
For more information on related-party transactions refer to Part H - Related-party transactions of the Notes to the consolidated accounts.
Information on risks
For a complete description of the risks and uncertainties that the Group must face under the current market conditions, refer to Part E - Information
on risks and related hedging policies of the Notes to the consolidated accounts.
50 Corresponding to Italian Testo Unico Bancario.
327
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated report on operations
Subsequent events and outlook
Subsequent events and outlook
Subsequent events51
On 2 January 2025 UniCredit S.p.A. informed that, with reference to Fixed to Floating Rate Callable Non-Preferred Senior Notes for €1,250 million
(ISIN XS2104967695), having received the Single Resolution Board authorisation, it would have exercised the option to early redeem in whole on 20
January 2025.
On the same date UniCredit S.p.A. also informed the early redemption of the Fixed to Floating Rate Callable Non-Preferred Senior Notes (ISIN
XS2257999628) exercising the option in whole on 20 January 2025.
On 9 January 2025 UniCredit S.p.A. communicated the issue of a dual tranche Senior Non-Preferred bonds comprising of a €1 billion with 4.5 years
maturity, callable after 3.5 years, and €1 billion with 8 years maturity, callable after 7 years, both targeted to institutional investors.
On 2 February 2025 UniCredit S.p.A. informed to hold an equity stake of circa 4.1% in the share capital of Generali, acquired through market
purchases over time. The stake is a pure financial investment of the bank that significantly exceeds its return metrics and has a negligible impact on
CET1. An additional circa 0.6% is held as part of ordinary services for clients and related hedge.
On 18 February 2025 UniCredit S.p.A. issued "Additional Tier 1” Non-Cumulative Temporary Write-Down Deeply Subordinated Fixed Rate
Resettable Notes targeted to institutional investors, for a total amount of €1 billion. Notes pay fixed rate coupons of 5.625% per annum up to June
2033 on a semi-annual basis; if not called, coupon will be reset every 5 years.
51 Up to the date of approval by the Board of Directors’ Meeting of 20 February 2025 which, on the same date, authorised the publication also in accordance with IAS10.
328
UniCredit 2024 Annual Reports and Accounts
Consolidated report on operations
Subsequent events and outlook
Outlook
Global growth remains stuck in moderate gear, with limited prospects of improvement in the near term amid increasing trade tensions. The outlook
for the US will be shaped by the country's economic policy mix. We think that the upward effects on GDP growth from looser fiscal policy and
reduced regulation would offset the downward effects from higher tariffs and tighter immigration, leading to slightly-above-trend growth this year and
next (2.2% in 2025 and 2.3% in 2026). In China, increased challenges to exports related to higher tariffs are likely to expose weakness in domestic
demand given a lack of bold consumption-enhancing measures. It is expected a structural deceleration in China’s economic growth, with GDP set to
expand by 4.5% in 2025 and by 4.2% in 2026, from 5.0% this year.
In the Eurozone, we forecast that GDP is expected to expand by 0.9% in 2025, while the recovery is likely to gain some traction in 2026, with activity
set to rise at a pace broadly in line with potential rate (at 1.2%). Economic activity will be supported by a moderate acceleration in private
consumption as real wages return towards pre-pandemic levels, despite elevated economic uncertainty and a weakening labor market. Moreover,
the normalization of monetary policy should support the construction sector and bring relief to capex at a time of reduced visibility regarding the
outlook for external demand.
Italy is expected to grow slightly less than the Eurozone, increasing by 0.8% in 2025 and by 1.0% in 2026. We see household spending benefitting
from a continued expansion in employment and real income, with its pace of growth accelerating in the coming quarters, supporting GDP growth.
Foreign demand for Italian goods is likely to gradually recover, but Italy’s large manufacturing sector will be particularly exposed to an increase in
tariffs. Fixed-investment growth will also be hampered by a correction in construction investment due to the reduction of incentives related to building
renovation, which will be partly offset by an acceleration in non-residential investment given the ongoing implementation of the national recovery and
resilience plan.
Disinflation in the Eurozone is on track, and headline inflation will probably settle in line with the ECB’s 2% target over the course of 2025. Therefore,
given rising risks to the growth and employment outlook, the ECB’s deposit rate is expected to move to 2% by the end of 2025 then remaining
unchanged in 2026, as inflation will probably fluctuate around 2% if no major shock to commodity prices occurs.
Within the macroeconomic context outlined, the Group will remain focused on pursuing quality growth, characterised by a sustainable and profitable
net interest margin net of loan provisions, an increasing weight of commissions on total revenues, as well as a constant focus on operational and
capital efficiency; these elements together with the constant attention paid to the customer, the structural initiatives implemented and the
investments made will ensure future growth, allowing the Group to face the challenges and possible risks linked with the uncertainty of the global
economic scenario. The combination of these elements will create further value for all stakeholders.
Milan, 20 February 2025
THE BOARD OF DIRECTORS
CHAIRMAN
CEO
PIETRO CARLO PADOAN
ANDREA ORCEL
329
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
330
UniCredit 2024 Annual Reports and Accounts
Corporate Governance
Governance structure
Corporate Governance
Governance structure
The information in this section refers to the date of 20 February 2025 (the approval date by the Board of Directors of the 2024 Report and Accounts -
General Meeting Draft of UniCredit S.p.A. and of the 2024 Consolidated Report and Accounts of UniCredit group).
Introduction
The overall corporate governance framework of UniCredit, i.e., the system of rules and procedures that its corporate bodies refer to steer the
principles of their behavior and fulfil their various responsibilities towards the Group’s stakeholders, has been defined in compliance with current
national and european provisions, as well as the recommendations contained in the Italian Corporate Governance Code (hereinafter, also the
“Code”).
In line with practice on major international markets, the Code identifies goals for a sound corporate governance, as well as the behaviors deemed
appropriate for their achievements recommended by the Italian Corporate Governance Committee to companies listed in Italy, to be applied
according to the “comply or explain” principle that requires explanation in the corporate governance report of any reasons for failure to comply with
one or more recommended best practices.
Moreover, UniCredit is subject to the provisions contained in the Supervisory Regulations issued by Banca d’Italia and, specifically with regards to
corporate governance issues, to regulations on banks’ corporate governance (Circular 285/2013, First Part, Title IV, Chapter 1).
In compliance with the aforementioned Supervisory Regulations, as a significant bank subject to the direct prudential supervision of the European
Central Bank, as well as being a listed bank, UniCredit qualifies as a bank of large size or operational complexity and consequently complies with
provisions applicable to such banks.
Since 2001, UniCredit has adopted the Code, which is publicly available on the Italian Corporate Governance Committee website
(https://www.borsaitaliana.it/comitato-corporate-governance/codice/codice.en.htm).
On an annual basis, UniCredit draws up a corporate governance report for its shareholders, institutional and non-institutional investors, and the
market. The report conveys appropriate information about the UniCredit corporate governance system.
Consistently with applicable legal and regulatory obligations, and in line with the provisions of the Code, in its version approved as at January 2020,
the 2024 Report on corporate governance and ownership structure was drafted, in accordance with article 123/bis of the Legislative Decree 58
dated 24 February 1998 (Consolidated Law on Finance, hereinafter also TUF).
The Report on corporate governance and ownership structure, approved by the Board of Directors in its meeting held on 20 February 2025, is
disclosed at the same time as the Report on Operations via the Issuer’s website (https://www.unicreditgroup.eu/en/governance/our-governance-
system.html). For further information on the UniCredit corporate governance system see the first of the above documents.
As an issuer of shares that are also listed on the Frankfurt and Warsaw regulated markets, UniCredit also fulfils legal and regulatory obligations
related to listings on said markets, as well as the provisions on corporate governance stipulated under the Polish Corporate Governance Code
issued by the Warsaw Stock Exchange.
Starting from 12 April 2024, UniCredit had adopted the one-tier corporate governance system in lieu of the traditional one. The one-tier model is
based on the existence of a Board of Directors, which is in charge of the strategic supervision and management of the Company, and of an Audit
Committee, established within the Board itself, performing specific control functions, both appointed by the Shareholders’ Meeting. The Audit
Committee also carries out the Supervisory Body's duties in accordance with the Legislative Decree 231/2001.
Legal accounting supervision is entrusted by the Shareholders’ Meeting to an external audit firm, upon proposal of the Audit Committee, in
compliance with applicable provisions.
In addition to the Audit Committee, in compliance with the applicable laws and regulations, other Board Committees are provided for supporting the
Board of Directors, vested with research, advisory and proposal-making powers, and diversified by sector of competence.
UniCredit believes that the one-tier model is suitable for managing the business efficiently, while ensuring effective controls and thus for
guaranteeing the sound and prudent management of a complex and global banking group like the UniCredit group. The one-tier model also ensures
a greater effectiveness of controls through the integration of the control body within the Board.
331
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Corporate Governance
Governance structure
Shareholders' Meeting
The ordinary Shareholders’ Meeting of UniCredit is convened at least once a year within 180 days of the end of the financial year, to resolve upon
the issues for which it is responsible pursuant to applicable laws and the Articles of Association. An extraordinary Shareholders’ Meeting is
convened, instead, whenever it is necessary to resolve upon the matters that are exclusively attributed to its jurisdiction by applicable laws.
The Agenda of the Shareholders’ Meeting is established in accordance with legal requirements and to the Articles of Association by whomever
exercises the power to call a Meeting.
The ordinary Shareholders’ Meeting has adopted rules oriented towards ensuring the orderly and effective conduct of ordinary and extraordinary
meetings.
The Regulations governing general meetings are available on the Governance/Shareholders Section of the UniCredit website.
Board of Directors
The Board of Directors of UniCredit may be composed of between a minimum of 9 and a maximum of 19 members, of whom at least 3 Directors,
and, in any case, no more than 5, make up the Audit Committee. At the approval date of this document, the Board of Directors is made up of 14
Directors, of whom 1 is an executive and 13 are non-executive Directors.
Directors’ term in office is 3 financial years, unless a shorter term is established at the time they are appointed and ends on the date of the
Shareholders’ Meeting called to approve the financial statements relating to the last year in which they are in office.
The term in office of the current Board of Directors, which was appointed by the Shareholders’ Meeting of 12 April 2024, will end on the date of the
Shareholders’ Meeting called upon to approve the 2026 financial statements.
In accordance with applicable legal and regulatory provisions, Directors are appointed on the basis of a slate voting mechanism (“voto di lista”) in
compliance with composition criteria concerning, inter alia, minority and independent Directors, as well as gender balance, pursuant to the
procedures specified in Clause 20 of the Articles of Association. The legitimate parties who are entitled to submit slates of candidates are the Board
of Directors and shareholders, who individually, or jointly with others, represent at least 0.5% of share capital in the form of shares with voting rights
at ordinary Shareholders’ Meetings.
The UniCredit Articles of Association envisage that, regardless of the total number of Board members, 2 Directors, other than members of the Audit
Committee, shall be appointed from the second slate receiving the highest votes, without any connection with the shareholders who, even jointly,
filed, or voted for, the slate first by number of votes.
The Board establishes its qualitative and quantitative composition deemed to be optimal for the effective fulfillment of the duties and responsibilities
entrusted to the body with supervisory functions by law, by the Supervisory Provisions and by the Articles of Association, according to current
provisions applicable on such topics, also concerning time commitments and the limits upon the maximum number of offices that UniCredit Directors
may hold.
Moreover, Directors, included the members of the Audit Committee, must take into account the provisions of Art.36 of Law Decree 201/2011 (a “ban
on interlocking directorships”), which was approved as a statute under Law 214/2011, which establishes that the holder of a seat on managerial,
supervisory or controlling bodies, as well as top management officers in companies or group of companies active in banking, insurance and financial
markets, are forbidden from holding similar offices, or to exercise similar duties, in competing companies or groups of companies.
The function and competencies of the Board of Directors are set forth in the UniCredit Board and Board Committees Regulation, available on the
Governance/Corporate Bodies Section of the UniCredit website.
Independence of Directors
In compliance with the provisions in force from time to time as well as in line with the criteria envisaged under the Italian Corporate Governance
Code, the independence of non-executive Directors, included the members of the Audit Committee, shall be assessed by the Board of Directors
upon their appointment, as well as during the mandate upon the occurrence of circumstances concerning their independence and, in any case, at
least once a year, on the basis of information provided by the Directors themselves or however available to the Company, also considering any
circumstance that affects or could affect such requirement, as well as the outcomes of the evaluation carried out by the Audit Committee (as body
charged with control functions) with reference to its members.
The Nomination Committee and the Board of Directors assessed with a positive outcome the independence requirements of the Directors based on
the declarations made by the concerned parties and on information available to the Company. In 2024, the Board ascertained the Directors’
independence requirements during the evaluation carried out for the renewal of the Board of Directors in its meeting held on 6 May 2024, following
the evaluation carried out by the body charged with control function for the perimeter under its remit.
332
UniCredit 2024 Annual Reports and Accounts
Corporate Governance
Governance structure
With specific reference to the independence requirements laid down by the Italian Corporate Governance Code, the information contemplated
therein was taken into account, including the information relating to the existence of direct or indirect relationships (credit, business/professional and
employee relationships, as well as significant offices held) that Directors and their other connected subjects may have with UniCredit and Group
Companies.
In order to assess the potential significance of these relationships, the Board decided to consider not only predefined economic thresholds, which, if
exceeded, could "automatically” indicate that the independence was compromised, but to make an overall evaluation of both objective and
subjective aspects. Therefore, the following criteria were taken into account: (i) the nature and characteristics of the relationship; (ii) the amount in
absolute and relative terms of the transactions; and (iii) the subjective profile of the relationship.
More specifically, for the purposes of assessing the significance of such a relationship, the Board considered the following information, where
available:
• for credit relationships, the amount in absolute value of the credit granted, its weighting in relation to the system and, where appropriate, the
economic and financial situation of the borrower;
• for business/professional relationships, the nature of the transaction/relationship, the amount of the consideration and, where appropriate, the
economic and financial situation of the counterparty;
• for offices held in Group companies, the total amount of any additional remuneration.
In all of the above cases, all the parties involved (Director or family member; UniCredit or Group company) and, for relationships with
companies/entities, the nature of the “connection" (post held/controlling interest) with the Director or the family member were taken into account.
With reference to the Board of Directors’ composition at the approval date of this document, the number of independent Directors as defined in the
provisions of the Code is equal to 13.
333
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Corporate Governance
Governance structure
Status and activities of the Directors
In the following chart the information regarding the members of the Board of Directors in office at the approval date of this document, as well as any
changes that occurred during the 2024 financial year are reported.
IN OFFICE
SLATE (M/m) (*)
EXECUTIVE
NON-EXECUTIVE
INDEPENDENT AS CODE
INDEPENDENT AS TUB
INDEPENDENT AS TUF
BOARD MEETINGS ATTENDANCE % (**)
NUMBER OF OTHER POSITIONS (***)
POSITION
MEMBERS
SINCE
UNTIL
Chair
Padoan Pietro Carlo
04.12.2024
Approval of 2026 financial statements
M
X
X
X
X
100
--
Deputy Vice Chair
Carletti Elena
04.12.2024
Approval of 2026 financial statements
M
X
X
X
X
100
--
CEO
Orcel Andrea
04.12.2024
Approval of 2026 financial statements
M
X
100
2
Director
Bergamaschi Paola
04.12.2024
Approval of 2026 financial statements
M
X
X
X
X
93.33
1
Director
Camagni Paola
04.12.2024
Approval of 2026 financial statements
M
X
X
X
X
100
3
Director
Cariello Vincenzo
04.12.2024
Approval of 2026 financial statements
m
X
X
X
X
100
1
Director
Domingues António
04.12.2024
Approval of 2026 financial statements
M
X
X
X
X
100
2
Director
Galbo Julie Birgitte
04.12.2024
Approval of 2026 financial statements
M
X
X
X
X
100
3
Director
Hedberg Jeffrey Alan
04.12.2024
Approval of 2026 financial statements
M
X
X
X
X
100
--
Director
Lara Bartolomé Beatriz
Ángela
04.12.2024
Approval of 2026 financial statements
M
X
X
X
X
100
2
Director
Pierdicchi Maria
04.12.2024
Approval of 2026 financial statements
M
X
X
X
X
100
2
Director
Rigotti Marco Giuseppe
Maria
04.12.2024
Approval of 2026 financial statements
m
X
X
X
X
100
1
Director
Tondi Francesca
04.12.2024
Approval of 2026 financial statements
m
X
X
X
X
95.65
--
Director
Villa Gabriele
04.12.2024
Approval of 2026 financial statements
M
X
X
X
X
100
3
----- Directors who left during the Period -----
Deputy Vice Chair
Andreotti Lamberto
04.15.2021
04.12.2024
M
X
X
X
X
62.50
1
Director
Marcus Johannes Chromik (1) 04.15.2021
12.11.2024
M
X
X
X
X
92.86
1
Director
Molinari Luca
04.15.2021
04.12.2024
M
X
X
X
X
87.50
1
Director
Wagner Renate
04.15.2021
04.12.2024
M
X
X
X
87.50
6
Director
Wolfgring Alexander
04.15.2021
04.12.2024
M
X
X
100
2
Quorum required for the submission of the slates for the latest appointment: 0.5%
Number of meetings held during the financial year: 23
Notes:
(*) M = Member elected from the slate that obtained the majority of the shareholders’ votes.
m = Member elected from the slate voted by the shareholders’ minority.
(**) Meetings’ attendance percentage (number of meeting attended/number of meetings held during the concerned party’s term of office with regard to the reference period).
(***) Number of positions of management and control held in other listed companies or large companies. A list of such companies for each Director is attached to the Report on corporate governance and ownership
structure.
The CEO is the director in charge of the internal controls and risks management system.
(1) Resigned effective from 11 December 2024.
334
UniCredit 2024 Annual Reports and Accounts
Corporate Governance
Governance structure
Audit Committee
The Audit Committee, appointed by the Shareholders’ Meeting within the Board of Directors, is composed of at least 3, and, in any case, no more
than 5, Directors, who serve for the term of the Board of Directors in which they were appointed. The number of members of the Audit Committee is
established by the Shareholders’ Meeting.
The UniCredit Articles of Association envisage that a member of the Audit Committee, or 2 members, if the Audit Committee is composed of 5
Directors, shall be appointed from minorities. The Chair of the Audit Committee is appointed by the Shareholders’ Meeting among the Directors
elected by the minorities.
The members of the Audit Committee must meet the requirements set forth by the applicable laws and regulations, as well as those established
under the Articles of Association, and may hold positions as director or statutory auditor in other companies within the limits provided by the laws
and regulations.
With reference to the meeting of the experience requirements, at least 1 of the members of the Audit Committee, or at least 2, if the Committee is
composed of more than 3 members, must be enrolled with the Legal Auditors Register and must have practiced legal auditing of accounts for a
period of no less than three years.
Regarding the Company's activities, the members who are not enrolled with the Legal Auditors Register must have at least three years' overall
experience in the exercise, also alternatively, of the specific activities recalled in Clause 20, paragraph 2, of the Company's Articles of Association.
The Chair of the Audit Committee must be enrolled with the Legal Auditors Register and must have practiced legal auditing of accounts for a period
of not less than five years or must have at least five years' overall experience in the exercise, also alternatively, of the specific activities provided
under current provisions.
The ordinary Shareholders’ Meeting held on 12 April 2024, set at 4 the number of the members of the Audit Committee and appointed its members,
based on a slate voting mechanism, for the financial years 2024-2026, whose term runs until the date of the Shareholders’ Meeting called to
approve the 2026 financial statements.
In the following chart the information regarding the members of the Audit Committee in office at the approval date of this document is reported.
The table footnotes also show the composition of the Board of Statutory Auditors prior to the adoption of the one-tier model and the relevant
percentages of attendance at its meetings.
Audit Committee
DIRECTORS MAKING UP THE AUDIT
COMMITTEE
POSITION/STATUS
IN OFFICE
SLATE (M/m)
(*)
% (**)
SINCE
UNTIL
Rigotti Marco Giuseppe Maria
Chair of the Audit Committee –
non-executive and independent as per Code, TUB and
TUF
04.12.2024
Approval of 2026 financial statements
m
100%
Camagni Paola
Member of the Audit Committee –
non-executive and independent as per Code, TUB and
TUF
04.12.2024
Approval of 2026 financial statements
M
100%
Galbo Julie Birgitte
Member of the Audit Committee –
non-executive and independent as per Code, TUB and
TUF
04.12.2024
Approval of 2026 financial statements
M
100%
Villa Gabriele
Member of the Audit Committee –
non-executive and independent as per Code, TUB and
TUF
04.12.2024
Approval of 2026 financial statements
M
100%
----- Members who left during the Period -----
--
Quorum required for the submission of the slates for the latest appointment: 0.5%
Number of meetings held during the financial year: 27
Notes:
(*) M = Member elected from the slate that obtained the majority of the shareholders' votes;
m = Member elected from the slate voted by the shareholders’ minority.
(**) Meetings’ attendance percentage (number of meetings attended/number of meetings held during the concerned party's term of office with regard to the reference period).
Board of Statutory Auditors in office as at the date of the adoption of the one-tier model and relevant meeting’s attendance percentage: Mr. Marco Giuseppe Maria Rigotti (Chair, 100%); Permanent Statutory
Auditors Mr. Claudio Cacciamani (100%), Ms. Benedetta Navarra (91%), Mr. Guido Paolucci (100%); Ms. Antonella Bientinesi (95%).
335
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Corporate Governance
Governance structure
Other Committees of the Board of Directors
With the exception of the Audit Committee, which is inherent to the one-tier model adopted by the Company and is appointed by the Shareholders’
Meeting, the Board of Directors, in order to better assess the topics under its remit, also in line with the provisions of the Code, has established five
Committees, vested with research, advisory and proposal-making powers and competent in different areas, according to the applicable provisions:
Governance and Sustainability Committee, Risk Committee, Nomination Committee, Remuneration Committee and Related-Parties Committee.
Their duties are carried out in accordance with the rules set by the Board.
The Committees consist, as a rule, of 3 up to 5 members. The members of each Committee, and among them the Chair, are appointed and
dismissed by the Board of Directors. The term in office of Committee members is the same as that of the Board of Directors.
The Committee members must have the necessary knowledge, skills and experience to perform the roles, duties and tasks assigned to them and
ensure that any other corporate positions they hold in other companies or entities (including non-Italian ones) are compatible with their availability
and commitment to serve as a Committee member.
Considering the size of the Board of Directors and the number of independent members of the Board, the Board ensured that Committees are not
composed of the same group of members that forms another committee.
In particular, the Risk Committee, the Nomination Committee and the Remuneration Committee are composed of non-executives Directors and
predominantly by independent Directors; the Related-Parties Committee is composed only by independent Directors within the meaning of the Italian
Corporate Governance Code. Such Committees must be differentiated from each other by at least one member and, if a Director appointed by the
minorities is present among Board members, that Director is a member of at least one Committee. The Chair of each Committee shall be chosen
from the independent members.
The Board of Directors does not have under its remit any of the functions which are assigned to the specialist Committees on appointments, risks
and remuneration in the Code. Committee functions have been allocated among the various Committees consistently with the Code’s provisions.
None of these Committees performs multiple functions pertaining to two or more committees as envisaged under the Code.
The Committee’s tasks are coordinated by the Chair, who exercises all necessary powers for the proper functioning of the Committee. Each
Committee draws up an annual plan of activities to ensure the fulfilment of its tasks. Committee meetings are convened by the Chair with a
frequency adequate to the fulfilment of Committee tasks and plan of activities and whenever events or circumstances reasonably require a meeting
to be called upon.
Upon invitation of Committee Chairs, or as provided for in the Board and Board Committees Regulation and upon prior information to the CEO,
persons other than its members may attend Committee meetings. Attendees include without being limited to managers of the corporate functions of
the Company and of the other entities belonging to the Group that are competent on the matters on the Agenda of the meeting or persons appointed
in the corporate bodies of said entities.
If the Committee has availed of an external expert, then said expert can be invited by the Chair of the Committee to attend the meeting(s) when the
matter in scope of his/her engagement is discussed, subject to adequate confidentiality undertakings by said expert with respect to the discussion
partaken and any content related thereto (in whatever form it becomes known to him/her).
In line with the Italian Corporate Governance Code recommendation, Audit Committee member(s) can attend meetings of any other Committee.
To perform their duties, Board Committees have access to the financial resources necessary to guarantee their operational independence and,
within the limitations of the budget approved by the Board of Directors, may consult external experts; in the event of specific requirements, the
relevant budget may be supplemented.
The Chair of each Committee reports on the activities carried out during the Committee meetings at the first available Board meeting, as well as
whenever requested to do so by the Board of Directors or by applicable laws and regulations, with the support of specific documentation. The Chair
of each Committee also reports to the Board the opinions that the Committee he/she chairs provided pursuant to laws and regulations.
The Board Committees’ composition, functions and competencies are set forth in the Board and Board Committees Regulation, available on the
Governance/Corporate bodies Section of the UniCredit website.
336
UniCredit 2024 Annual Reports and Accounts
Corporate Governance
Governance structure
Governance and Sustainability Committee
According to the provisions of the Board and Board Committees Regulation, the Governance and Sustainability Committee consist of four
independent Directors. One of the members is the Chair of the Board of Directors, who is also the Chair of the Committee.
The composition of the Governance and Sustainability Committee at the approval date of this document is the following: Mr. Pietro Carlo Padoan
(Chair), Ms. Elena Carletti, Mr. Vincenzo Cariello and Mr. Jeffrey Alan Hedberg.
All members of the Committee comply with the independence requirements provided under the Italian Legislative Decree 58/1998 and the Italian
Civil Code, the Decree issued by the Ministry of Economics and Finance 169/2020, as well as the Italian Corporate Governance Code.
In 2024, the Committee held 5 meetings.
Duties
The Governance and Sustainability Committee provides advice and support to the Board of Directors on matters related to corporate governance
and in fulfilling its responsibilities while pursuing a sustainable success as integral component of the Group’s business strategy and long-term
performance.
As to the Governance, the Governance and Sustainability Committee supports the Board of Directors with reference to the design and the
implementation of UniCredit corporate governance system, corporate structure and Group governance models and guidelines and on special
projects pertaining to the above (if any). To this purpose, the Committee:
i) oversights the consistency of the Bank’s corporate governance with applicable laws, rules and regulations (in particular with the Italian Corporate
Governance Code) and monitors their developments as well as international and national best practices, updating the Board of Directors where
material changes thereof are detected and have repercussions on the existing Company corporate governance;
ii) reviews the Corporate Governance report to be published;
iii) submits to the Board of Directors, when appropriate or necessary, proposal for amendments to the corporate governance system, corporate
structure and Group governance models and guidelines (e.g., Board and Board Committees roles, responsibilities and functioning, delegation of
powers), providing the rationale for said amendments to be adopted;
iv) liaises with corresponding corporate bodies of the Group entities on corporate governance matters brought to its attention as appropriate.
As to Sustainability, the Committee supports the Board of Directors on Sustainability and ESG related matters (with the exception of all risk related
ESG components, e.g. Climate and Environmental risks, which fall under the Risk Committee remit). To this purpose, the Committee upon
evaluation of its Chair and the CEO, carries out preliminary activities, analyzes and submits proposal on the sustainability and ESG framework,
policies and guidelines.
Risk Committee
According to the provisions of the Board and Board Committees Regulation, the Risk Committee consists of four non-executive Directors.
The composition of the Risk Committee at the approval date of this document is the following: Ms. Elena Carletti (Chair), Ms. Paola Bergamaschi,
Mr. Marco Giuseppe Maria Rigotti and Ms. Francesca Tondi.
All members of the Committee comply with the independence requirements provided under the Italian Legislative Decree 58/1998 and the Italian
Civil Code, the Decree issued by the Ministry of Economics and Finance 169/2020, as well as the Italian Corporate Governance Code.
The members of the Committee have the experience required under applicable provisions, covering the provided areas of competence, related to
finance and risk assessment and management.
The Group Risk Officer and the Head of Internal Audit attend the Committee meetings. Upon invitation of the Committee Chair, the Chief Executive
Officer, other Directors, the Manager in charge of drafting the company financial reports, as well as personnel belonging to the Company and the
Group, may attend Committee meetings.
In 2024, the Committee held 13 meetings.
337
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Corporate Governance
Governance structure
Duties
In the context of the one-tier model adopted by the Company, the Risk Committee provides advice and support to the Board of Directors on risk
management related matters, according to the provisions of laws and regulations, performing all the activities instrumental and necessary for the
Board to make a correct and effective determination of the “Risk Appetite Framework” and of the risk management policies.
More in detail, the Committee carries out preliminary activities, analyzes and submits proposals to support the Board of Directors including on the
following topics:
• defining and approving risk management strategic guidelines, framework and policies (including the non-compliance risk, climate and
environmental risks, risk data quality). Within the RAF, the Committee performs those tasks as necessary for the Board of Directors to define and
approve the risk objectives (risk appetite) and the tolerance threshold (risk tolerance);
• examining the annual funding plan;
• verifying correct implementation of risk strategies, management policies and RAF, and
• defining policies and processes for evaluating corporate activities, including verification that the price and conditions of client transactions comply
with the risk-related business model and strategies.
The Risk Committee also examines the risk assessments carried out and those planned by the corporate control functions on yearly basis for
determining their own annual plans of activity.
Pursuant to the Italian Corporate Governance Code, the Risk Committee opines on aspects relating to the identification of the main corporate risks
and supports the Board in assessments and decisions concerning the management of risks attached to prejudicial occurrences which the same
Committee became aware of.
Based on the succession plans prepared by the Nomination Committee, the Risk Committee identifies and proposes to the Board of Directors the
candidate suitable for the appointment as Head of the Risk Management function or assesses his/her termination. Moreover, the Chair of the Risk
Committee is consulted beforehand for the identification and appointment of the Head of Group Compliance.
Without prejudice to the competences of the Remuneration Committee, the Risk Committee checks that the incentives underlying the remuneration
and incentive system comply with the RAF, particularly taking into account risks, capital and liquidity.
Nomination Committee
According to the provisions of the Board and Board Committees Regulation, the Nomination Committee consists of three non-executive Directors.
The composition of the Committee at the approval date of this document is the following: Mr. Jeffrey Alan Hedberg (Chair), Mr. António Domingues
and Ms. Beatriz Ángela Lara Bartolomé.
All members of the Committee comply with the independence requirements provided under the Italian Legislative Decree 58/1998 and the Italian
Civil Code, the Decree issued by the Ministry of Economics and Finance 169/2020, as well as the Italian Corporate Governance Code.
In 2024, the Committee held 9 meetings.
Duties
The Nomination Committee supports the Board of Directors on matters related to its composition and to the nomination and succession planning of
the Management of the Company.
The Nomination Committee:
a) submits proposals to the Board regarding the optimal qualitative and quantitative composition of the Board, and the maximum number of seats
held by Directors in other companies considered compatible with effectively fulfilling these roles at UniCredit;
b) submits proposals, at least once every three years, to the Chair of the Board of Directors concerning the selection of external advisor supporting
the Board in conducting the Board’s self-assessment process, as well as opines and supports the Board in the self-assessment process, as directed
by the Chair of the Board of Directors;
c) sets targets for the least well represented gender in corporate bodies as well as for management and staff belonging to the Group, and prepares a
plan to achieve said targets.
338
UniCredit 2024 Annual Reports and Accounts
Corporate Governance
Governance structure
The Nomination Committee provides opinions and support to the Board of Directors also regarding:
a) the assessment on the compliance of Board Directors with the requirements provided by applicable laws and the Articles of Association (including
the ban on interlocking directorships laid down by applicable laws), and the assessment that they collectively and individually abide by the optimal
qualitative and quantitative composition of the Board identified by the Board itself;
b) the selection of candidates for the seats of Chair, Chief Executive Officer and Director of UniCredit, in the event of co-optation, and, should the
Board present its own list of candidates for the position of independent Director for approval by the UniCredit Shareholders’ Meeting, taking into due
account any recommendations from shareholders, as per the process approved by the Board;
c) the appointment of the Chief Executive Officer and, upon proposal of the Chief Executive Officer, of the General Manager, Deputy General
Managers and other Executives with strategic responsibilities;
d) the assessment on the compliance of the General Manager, the Manager in charge of preparing the company’s financial reports and the other
Heads of the main corporate functions, with the requirements provided by applicable laws and the Articles of Association, if any;
e) the definition of appointment and succession plans for the Chief Executive Officer, General Manager, Deputy General Managers;
f) the definition of policies for the succession plans for the Executives with strategic responsibilities;
g) the contribution to the identification of candidates proposed to the Board for the roles of Heads of corporate control functions, in compliance with
the specific policies approved by the Board, coordinating with the Risk Committee and the Audit Committee for the proposals which are under their
remit;
h) the definition of the policy for the appointment of corporate officers (members of the Board of Directors, Board of Statutory Auditors and
Supervisory Board) in Group companies;
i) the designation of corporate officers (members of the Board of Directors, Board of Statutory Auditors and Supervisory Board) in the main
companies;
l) the performance of market scouting /assessments /hiring proposals for specific roles that fall in the remit of the Board.
Remuneration Committee
According to the provisions of the Board and Board Committees Regulation, the Remuneration Committee consists of 3 non-executive Directors.
The composition of the Remuneration Committee at the approval date of this document is the following: Mr. António Domingues (Chair), Ms. Paola
Bergamaschi and Ms. Maria Pierdicchi.
All members of the Committee comply with the independence requirements provided under the Italian Legislative Decree 58/1998 and the Italian
Civil Code, the Decree issued by the Ministry of Economics and Finance 169/2020, as well as the Italian Corporate Governance Code.
At least one member of the Committee has adequate knowledge and experience in finance or remuneration policies.
Upon request of the Chair, an external advisor may attend the meetings of the Remuneration Committee which is selected by it pursuant to the
internal policies of the Company. The involvement and attendance of the external advisor is intended to (i) ensure that the incentives included in the
compensation and incentive schemes are consistent with the Bank’s risk, capital and liquidity management, and (ii) receive updates on the market
trends, compensation levels and any applicable legal or regulatory developments.
Upon request of the Chair, the Group Risk Officer (or his/her delegate) is invited to attend Committee meetings where appropriate to ensure that
incentive schemes are updated so as to take into account all the risks that the Bank has taken on and relevant risk policies.
The Remuneration Committee aligns with Risk Committee to ensure that the incentives underlying the remuneration and the incentive system
comply with the RAF, particularly considering risks, capital, and liquidity.
When the Remuneration Committee is called upon to express its opinion on remuneration of any of its member because of his/her specific
assignments, then said member whose remuneration is under discussion shall not attend meetings when the proposal for such remuneration is
discussed and/or calculated.
In 2024, the Committee held 10 meetings.
339
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Corporate Governance
Governance structure
Duties
The Remuneration Committee is established to provide opinion and support to the Board of Directors on the adoption and implementation of
appropriate remuneration policies and decisions, ensuring their update also based on the results of the Company and any other circumstances.
The Remuneration Committee:
a) submits to the Board proposals on the remuneration of the Board of Directors, and on the remuneration and the performance goals associated
with the variable portion of the remuneration for CEO and, upon proposal from the CEO, of the General Manager, Deputy General Managers, Heads
of the corporate control functions (excluding the Head of Internal Audit, whose proposals are formulated by the Audit Committee) and/or Executives
with strategic responsibilities and other personnel whose remuneration and incentive systems are decided upon by the Board;
b) monitors and oversees the criteria for remunerating the most significant employees, as identified pursuant to the relevant Banca d’Italia
provisions, as well as on the outcomes of the application of such criteria.
Furthermore, the Committee issues opinions to the Board on:
• Group remuneration policy as well as the remuneration and incentive systems for CEO, General Manager, Deputy General Managers, Heads of
corporate control functions, Executives with strategic responsibilities and other Group Material Risk Takers as identified according to applicable
regulation;
• Group incentive schemes based on financial instruments;
• the remuneration policy for corporate officers (members of the Board of Directors, Board of Statutory Auditors and Supervisory Board) in Group
companies.
Additionally, the Committee:
a) supervises the process for identifying Material Risk Takers on an on-going basis;
b) directly oversees the correct application of rules regarding the remuneration of the Heads of corporate control functions, working closely and
liaising with the Audit and Risk Committees as necessary;
c) works and liaise with the other Committees, particularly the Risk Committee, to verify that the incentives included in compensation and incentive
schemes are consistent with the RAF, ensuring the involvement of the corporate functions responsible for drafting and monitoring remuneration and
incentive policies and practices;
d) provides appropriate feedback on its activities to the Board of Directors, Audit Committee and the Shareholders’ Meeting;
e) where necessary drawing on information received from the relevant corporate functions, expresses its opinion on the achievement of the
performance targets associated with incentive schemes, and on the other conditions laid down for bonus payments.
Related-Parties Committee
According to the provisions of the Board and Board Committees Regulation, the Related-Parties Committee consist of 3 Directors who are all
independent within the meaning of the Italian Corporate Governance Code.
The composition of the Related-Parties Committee at the approval date of this document is the following: Ms. Maria Pierdicchi (Chair), Mr. Vincenzo
Cariello and Ms. Francesca Tondi.
In 2024 the Committee held 16 meetings.
Duties
The Related-Parties Committee oversees issues concerning transactions with related parties pursuant to CONSOB Regulation 17221/2010 and with
associated parties pursuant to Banca d’Italia Circular 285/2013 (Part III, Chapter 11), carrying out the specific role attributed to independent
Directors by the aforementioned provisions. Furthermore, it carries out any other duties assigned to it within the Global Policy for the management of
transactions with persons in conflict of interest, as applicable from time to time.
In order to enable the Related-Parties Committee to carry out its duties, the Company’s competent offices ensure a constant monitoring of
transactions in scope of the procedures for the identification and management of transactions with related and/or associated parties, also in view of
enabling the Committee to assess cases of voluntary exemption and to propose corrective actions.
340
UniCredit 2024 Annual Reports and Accounts
Corporate Governance
Governance structure
In the exercise of the duties assigned to it under applicable laws and regulations, the Related-Parties Committee provides the Board of Directors
with:
• advance and justified opinions, also binding, on the overall adequacy of internal procedures governing the identification and management of
transactions with related parties and/or associated parties undertaken by UniCredit and/or Group companies, as well as relevant amendments,
pursuant to CONSOB Regulations for transactions with related parties and Banca d’Italia Regulations for transaction with associated parties;
• advance and justified opinions issued, as expressly envisaged, on any interest in completing transactions with related parties and/or associated
parties undertaken by UniCredit and/or Group companies, as well as on the propriety and substantive correctness of the related conditions, in the
event that the Board of Directors’ decision is requested.
For each individual transaction subject to assessment, Committee members must be different from the counterparty, its associated parties and/or
any entities related to it.
If a Committee member is a counterparty to the transaction under examination (or is related/associated with the counterparty), he/she must promptly
inform the Chair of the Board of Directors and the Committee Chair (provided he/she is not in a conflict of interest situation), and abstain from
attending Committee meetings and supporting the activities pertaining to the transaction in which the relationship exists. Having consulted with the
Committee Chair (provided he/she is not in a conflict of interest situation), the Chair of the Board of Directors shall immediately take steps to
temporarily replace the member who has this conflict of interest with another member from the Board of Directors who qualify as independent
pursuant to the Italian Corporate Governance Code.
If the Chair of the Committee acknowledges that (i) a transaction needs to be analysed urgently or an opinion is required in the context of a
negotiation process which is underway, and (ii) the majority or all members of the Related-Parties Committee are unable to meet or carry out the
required activities in time to enable the accomplishment of the transaction within the timeline envisaged for that, then he/she shall promptly inform
the Chair of the Board of Directors of this situation and, in any case, no later than the day after the he/shew as informed that the majority or all
Committee members were not available.
Having consulted with the Chief Executive Officer and determined that the transaction cannot be delayed, the Chair of the Board of Directors
immediately takes steps to identify up to three independent Directors to temporarily sit on the Related-Parties Committee and replace those who
were not available so that the functioning of the Committee is not prejudiced.
In both the aforementioned cases, the replacing member(s):
• must be provided with available information on the transaction to be opined upon in due time before the Related-Parties Committee meeting in
which said transaction has to be analysed;
• retain the duties inherent in the role undertaken until the specific transaction in scope of their replacement is conclusively decided by the
competent bodies, and, remain(s) involved in the decisions taken by the Related-Parties Committee.
Status and activities of the other Board Committees
In the following chart the information regarding the members of the other Board Committees in office at the approval date of this document, as well
as any changes that occurred during the 2024 financial year are reported, following the adoption of the one-tier management and control system.
The table footnotes also show the composition of the Board Committees prior to the adoption of the one-tier model and the relevant percentages of
attendance at their meetings.
341
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Corporate Governance
Governance structure
GOVERNANCE AND
SUSTAINABILITY
COMMITTEE
RISK COMMITTEE
NOMINATION
COMMITTEE
REMUNERATION
COMMITTEE
RELATED-
PARTIES
COMMITTEE
MEMBERS
POSITION/STATUS
(*)
(**)
(*)
(**)
(*)
(**)
(*)
(**)
(*)
(**)
Padoan Pietro Carlo
Chair of the Board of Directors –
non-executive and independent as per
Code, TUB and TUF
C
100%
Carletti Elena
Deputy Vice Chair –
non-executive and independent as per
Code, TUB and TUF
M
100%
C
100%
Orcel Andrea
Chief Executive Officer –
executive
Bergamaschi Paola
Director –
non-executive and independent as per
Code, TUB and TUF
M
100%
M
100%
Camagni Paola
Director and member of the Audit
Committee –
non-executive and independent as per
Code, TUB and TUF
Cariello Vincenzo
Director –
non-executive and independent as per
Code, TUB and TUF
M
100%
M
100%
Domingues António
Director –
non-executive and independent as per
Code, TUB and TUF
M
100%
C
100%
Galbo Julie Birgitte
Director and member of the Audit
Committee –
non-executive and independent as per
Code, TUB and TUF
Hedberg Jeffrey Alan
Director –
non-executive and independent as per
Code, TUB and TUF
M
100%
C
100%
Lara Bartolomé Beatriz
Ángela
Director –
non-executive and independent as per
Code, TUB and TUF
M
100%
Pierdicchi Maria
Director –
non-executive and independent as per
Code, TUB and TUF
M
100%
C
100%
Rigotti Marco Giuseppe
Maria
Director and Chair of the Audit
Committee –
non-executive and independent as per
Code, TUB and TUF
M
100%
Tondi Francesca
Director –
non-executive and independent as per
Code, TUB and TUF
M(1)
--
M
92.31%
Villa Gabriele
Director and member of the Audit
Committee –
non-executive and independent as per
Code, TUB and TUF
----- Members who left during the Period -----
Chromik Marcus
Johannes
Director –
non-executive and independent as per
Code, TUB and TUF
M(2)
76.92%
Number of meetings held during the financial year
GSC: 5
RiskC: 13
NC: 9
RemC:10
RPC:16
342
UniCredit 2024 Annual Reports and Accounts
Corporate Governance
Governance structure
Notes:
(*) A “C” (Chair) or an “M” (Member) shows that the member of the Board of Directors belongs to the Committee and also indicates his/her position.
(**) Meetings’ attendance percentage (number of meetings attended/number of meetings held during the concerned party's term of office with regard to the reference period).
(1) Office held since 28 January 2025.
(2) Office held until 11 December 2024.
Composition of the Committees until 12 April 2024 (traditional model) - number of meetings carried out from 1 January to 12 April 2024, and relevant attendance percentage:
• Internal Controls & Risks Committee (no 8 meetings): Ms. Elena Carletti (Chair, 100%), Mr. Pietro Carlo Padoan (100%), Ms. Francesca Tondi (100%) and Mr. Alexander Wolfgring (100%);
• Corporate Governance & Nomination Committee (no 3 meetings): Mr. Lamberto Andreotti (Chair, 100%), Ms. Maria Pierdicchi (100%) and Mr. Alexander Wolfgring (100%);
• ESG Committee (no.3 meetings): Ms. Francesca Tondi (Chair, 100%), Mr. Jeffrey Alan Hedberg (100%) and Ms. Beatriz Ángela Lara Bartolomé (100%);
• Remuneration Committee (no.6 meetings): Mr. Jeffrey Alan Hedberg (Chair, 100%), Mr. Luca Molinari (83.33%) and Ms. Renate Wagner (83.33%)
• Related-Parties Committee (no.3 meetings): Ms. Maria Pierdicchi (Chair, 100%), Mr. Vincenzo Cariello (100%) and Ms. Elena Carletti (100%).
343
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Corporate Governance
Governance structure
Share capital
As at 31 December 2024, the fully subscribed and paid up UniCredit share capital amounted to Euro 21,367,680,521.48, divided into
No.1,551,419,850 ordinary shares with no nominal value. The ordinary shares are issued in a dematerialised form and are indivisible as well as
freely transferable. Each share entitles holders to the right to cast one vote at ordinary and extraordinary Shareholders’ Meetings.
No other types of shares, equity instruments or convertible or exchangeable bonds have been issued.
Major Shareholders
On the basis of the communications received in accordance with Art.120 of the Consolidated Law on Finance, direct and indirect relevant equity
holdings as at 31 December 2024, registered on the Shareholders Register are stated below. The shareholders listed below hold more than 3%, and
do not qualify for disclosure exemptions (as provided under Art.119/bis of CONSOB Rule 11971/99).
DECLARANT
DIRECT SHAREHOLDER
% (up to the third decimal)
OF ORDINARY CAPITAL
% (up to the third decimal)
OF VOTING CAPITAL
BlackRock Group
7.407%
7.407%
BlackRock Fund Advisors
2.034%
2.034%
BlackRock Institutional Trust Company, National
Association
1.943%
1.943%
BlackRock Advisors (UK) Ltd
1.178%
1.178%
BlackRock Asset Management Deutschland Ag
0.971%
0.971%
BlackRock Investment Management (UK) Ltd
0.479%
0.479%
BlackRock Investment Management, Llc
0.353%
0.353%
BlackRock Advisors, Llc
0.152%
0.152%
BlackRock Asset Management Canada Ltd
0.103%
0.103%
BlackRock Japan Co. Ltd
0.079%
0.079%
BlackRock Investment Management (Australia) Ltd
0.061%
0.061%
BlackRock Financial Management, Inc.
0.045%
0.045%
BlackRock Asset Management North Asia Ltd
0.005%
0.005%
Aperio Group Llc
0.002%
0.002%
Blackrock (Singapore) Ltd
0.000%
0.000%
Blackrock International Limited
0.000%
0.000%
FMR LLC
3.102%
3.102%
Fidelity Management & Research Company LLC
1.851%
1.851%
LIAM LLC
0.408%
0.408%
Strategic Advisers LLC
0.322%
0.322%
Fidelity Institutional Asset Management Trust Company
0.270%
0.270%
Fidelity Management Trust Company
0.194%
0.194%
FMR Investment Management (UK)
0.057%
0.057%
Participation Rights
Eligible to attend Shareholders' Meetings are those who hold voting rights and in respect of whom the Company has received, from the broker
holding the relevant securities account, the notification within the deadline set forth by applicable law (record date, seven market trading days before
the Shareholders’ Meeting date).
Those who hold voting rights may arrange to be represented in the Shareholders’ Meeting, in compliance with the provisions of the prevailing law.
UniCredit has always encouraged its shareholders to exercise their participation and voting rights and, for that reason, some time ago it adopted the
Regulations governing Shareholders’ Meetings to ensure their regular conduct. Said Regulations are available on UniCredit website on the
Governance/Shareholders’ Meeting Section.
344
UniCredit 2024 Annual Reports and Accounts
Corporate Governance
Governance structure
Company Report
Other
Strategic Review
Financial Review
ESG Review
UniCredit 2024 Annual Reports and Accounts
345
Consolidated Report
The Group Executive Committee (GEC) is a Managerial
Committee that has been set up in order to ensure the effective
steering, coordination and control of Group business, as well
as an effective managerial alignment across the Group.
Andrea Orcel
Group Chief Executive Officer
and Head of Italy
Teodora Petkova
Group Head of Central Europe
and Eastern Europe
Marion Höllinger
Head of Germany
Richard Burton
Head of Client Solutions
Gianfranco Bisagni
Group Chief Operating Officer
Stefano Porro
Chief Financial Officer
Group Executive Committee (GEC)
Corporate Governance
346
UniCredit 2024 Annual Reports and Accounts
Siobhán McDonagh
Head of Group People & Culture
Joanna Carss
Head of Group Stakeholder
Engagement
Ali Khan
Group Digital & Information Officer
TJ Lim
Group Risk Officer
Remo Taricani
Permanent Guest To GEC
Deputy Head Of Italy
Rita Izzo
Head of Group Legal
Fiona Melrose
Head of Group Strategy & ESG
Serenella De Candia
Group Compliance Officer
347
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Andrea Orcel
UniCredit Group CEO and
Head of Italy
Vincenzo Cariello
Director
Paola Bergamaschi
Director
Paola Camagni
Director
Elena Carletti
Deputy Vice Chair
Pietro Carlo Padoan
Chairman of the Board
of Directors
Our Board of Directors can be made from a minimum of 9 up to a maximum of 19 members, of whom at least 3 –
and, in any case, no more than 5 – make up the Audit Committee.
Directors' term in office is three financial years, unless a shorter term is established at the time of their appointment,
and ends on the date of the Shareholders' Meeting called for the approval of the financial statements relating to
the last financial year in which they are in office.
The Board of Directors currently in office was appointed by the ordinary Shareholders’ Meeting on April 12, 2024
for the financial years 2024 – 2026, on the basis of a proportional representation mechanism ("voto di lista"), and
its terms of office ends on the date of the Shareholders' Meeting called to approve the 2026 financial statements.
As regards the actions taken in recent years to strengthen our governance and align it with international best
practices, improving the composition and functioning of the Board of Directors has been a fundamental
commitment for our Group.
Board of Directors
Corporate Governance
348
UniCredit 2024 Annual Reports and Accounts
Beatriz Lara Bartolomé
Director
Francesca Tondi
Director
Gabriele Villa
Director
Antonio Domingues
Director
Julie B. Galbo
Director
Maria Pierdicchi
Director
Marco Rigotti
Director
Jeffrey Alan Hedberg
Director
349
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
350
UniCredit 2024 Annual Reports and Accounts
350
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Consolidated accounts
Consolidated accounts
Consolidated financial statements
Consolidated accounts
Consolidated balance sheet
Consolidated balance sheet
(€ million)
AMOUNTS AS AT
ASSETS
31.12.2024
31.12.2023
10. Cash and cash balances
41,442
61,000
20. Financial assets at fair value through profit or loss:
61,677
65,014
a) financial assets held for trading
55,083
57,274
b) financial assets designated at fair value
247
220
c) other financial assets mandatorily at fair value
6,347
7,520
30. Financial assets at fair value through other comprehensive income
78,019
63,097
40. Financial assets at amortised cost:
563,166
556,978
a) loans and advances to banks
66,540
53,389
b) loans and advances to customers
496,626
503,589
50. Hedging derivatives
1,351
1,925
60. Changes in fair value of portfolio hedged items (+/-)
(1,702)
(3,264)
70. Equity investments
4,393
4,025
80. Insurance assets
-
-
a) insurance contracts issued that are assets
-
-
b) reinsurance contracts held that are assets
-
-
90. Property, plant and equipment
8,794
8,628
100. Intangible assets
2,229
2,272
of which: goodwill
38
-
110. Tax assets:
10,273
11,818
a) current
685
1,069
b) deferred
9,588
10,749
120. Non-current assets and disposal groups classified as held for sale
394
370
130. Other assets
13,968
13,111
Total assets
784,004
784,974
351
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Consolidated accounts
Consolidated accounts
continued: Consolidated balance sheet
(€ million)
AMOUNTS AS AT
LIABILITIES AND SHAREHOLDERS' EQUITY
31.12.2024
31.12.2023
10. Financial liabilities at amortised cost:
659,598
658,308
a) deposits from banks
67,919
71,069
b) deposits from customers
500,970
497,394
c) debt securities in issue
90,709
89,845
20. Financial liabilities held for trading
31,349
38,022
30. Financial liabilities designated at fair value
13,746
12,047
40. Hedging derivatives
1,112
2,359
50. Value adjustment of hedged financial liabilities (+/-)
(9,247)
(12,932)
60. Tax liabilities:
1,708
1,483
a) current
1,456
1,191
b) deferred
252
292
70. Liabilities associated with assets classified as held for sale
-
-
80. Other liabilities
14,687
13,566
90. Provision for employee severance pay
294
335
100. Provisions for risks and charges:
7,916
7,543
a) commitments and guarantees given
1,043
1,284
b) post-retirement benefit obligations
3,193
3,083
c) other provisions for risks and charges
3,680
3,176
110. Insurance liabilities
-
-
a) insurance contracts issued that are liabilities
-
-
b) reinsurance contracts held that are liabilities
-
-
120. Valuation reserves
(5,422)
(4,928)
130. Redeemable shares
-
-
140. Equity instruments
4,958
4,863
150. Reserves
33,235
35,063
155. Advanced dividends (-)
(1,440)
-
160. Share premium
23
23
170. Share capital
21,368
21,278
180. Treasury shares (-)
-
(1,727)
190. Minority shareholders' equity (+/-)
400
164
200. Profit (Loss) of the year (+/-)
9,719
9,507
Total liabilities and shareholders' equity
784,004
784,974
352
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Consolidated accounts
Consolidated accounts
Consolidated income statement
(€ million)
YEAR
ITEMS
2024
2023
10. Interest income and similar revenues
34,838
33,919
of which: interest income calculated with the effective interest method
28,187
27,221
20. Interest expenses and similar charges
(20,167)
(19,571)
30. Net interest margin
14,671
14,348
40. Fees and commissions income
8,805
8,247
50. Fees and commissions expenses
(1,763)
(1,643)
60. Net fees and commissions
7,042
6,604
70. Dividend income and similar revenues
468
305
80. Net gains (losses) on trading
2,888
2,264
90. Net gains (losses) on hedge accounting
(530)
(201)
100. Gains (Losses) on disposal and repurchase of:
17
410
a) financial assets at amortised cost
(62)
199
b) financial assets at fair value through other comprehensive income
74
145
c) financial liabilities
5
66
110. Net gains (losses) on other financial assets/liabilities at fair value through profit or loss:
(286)
(502)
a) financial assets/liabilities designated at fair value
(456)
(735)
b) other financial assets mandatorily at fair value
170
233
120. Operating income
24,270
23,228
130. Net losses/recoveries on credit impairment relating to:
(763)
(663)
a) financial assets at amortised cost
(750)
(661)
b) financial assets at fair value through other comprehensive income
(13)
(2)
140. Gains/Losses from contractual changes with no cancellations
6
(13)
150. Net profit from financial activities
23,513
22,552
160. Insurance service result
-
-
a) insurance revenues from insurance contracts issued
-
-
b) insurance service costs from insurance contracts issued
-
-
c) insurance revenues from reinsurance contracts held
-
-
d) insurance service costs from reinsurance contracts held
-
-
170. Insurance finance net revenues/costs
-
-
a) insurance finance net revenues/costs arising from insurance contracts issued
-
-
b) insurance finance net revenues/costs arising from reinsurance contracts held
-
-
180. Net profit from financial and insurance activities
23,513
22,552
190. Administrative expenses:
(10,408)
(10,902)
a) staff costs
(6,684)
(6,877)
b) other administrative expenses
(3,724)
(4,025)
200. Net provisions for risks and charges:
(278)
(17)
a) commitments and financial guarantees given
267
74
b) other net provisions
(545)
(91)
210. Net value adjustments/write-backs on property, plant and equipment
(695)
(842)
220. Net value adjustments/write-backs on intangible assets
(589)
(626)
230. Other operating expenses/income
853
972
240. Operating costs
(11,117)
(11,415)
250. Gains (Losses) of equity investments
483
460
260. Net gains (losses) on property, plant and equipment and intangible assets measured at fair value
(22)
(157)
270. Goodwill impairment
-
-
280. Gains (Losses) on disposals on investments
3
11
290. Profit (Loss) before tax from continuing operations
12,860
11,451
300. Tax expenses (income) of the year from continuing operations
(3,086)
(1,917)
310. Profit (Loss) after tax from continuing operations
9,774
9,534
320. Profit (Loss) after tax from discontinued operations
-
-
330. Profit (Loss) of the year
9,774
9,534
340. Minority profit (loss) of the year
(55)
(27)
350. Parent Company's profit (loss) of the year
9,719
9,507
Earnings per share (€)
5.841
5.105
Diluted earnings per share (€)
5.781
5.045
Consolidated income statement
353
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Consolidated accounts
Consolidated accounts
Consolidated statement of total comprehensive income
(€ million)
AS AT
ITEMS
31.12.2024
31.12.2023
10. Profit (Loss) for the year
9,774
9,534
Other comprehensive income after tax not reclassified to profit or loss
66
(321)
20. Equity instruments designated at fair value through other comprehensive income
255
43
30. Financial liabilities designated at fair value through profit or loss (own creditworthiness changes)
18
(31)
40. Hedge accounting of equity instruments designated at fair value through other comprehensive income
-
-
50. Property, plant and equipment
(43)
(158)
60. Intangible assets
-
-
70. Defined-benefit plans
(161)
(186)
80. Non-current assets and disposal groups classified as held for sale
(3)
(1)
90. Portion of valuation reserves from investments valued at equity method
-
12
100. Insurance finance revenue or costs arising from insurance contracts issued
-
-
Other comprehensive income after tax reclassified to profit or loss
(581)
(129)
110. Foreign investments hedging
4
(45)
120. Foreign exchange differences
(592)
(712)
130. Cash flow hedging
100
271
140. Hedging instruments (non-designated items)
-
-
150. Financial assets (different from equity instruments) at fair value through other comprehensive income
(139)
299
160. Non-current assets and disposal groups classified as held for sale
-
34
170. Part of valuation reserves from investments valued at equity method
46
24
180. Insurance finance revenue or costs arising from insurance contracts issued
-
-
190. Insurance finance revenue or costs arising from reinsurance contracts held
-
-
200. Total other comprehensive income after tax
(515)
(450)
210. Other comprehensive income (Item 10+200)
9,259
9,084
220. Minority consolidated other comprehensive income
(57)
(28)
230. Parent Company's consolidated other comprehensive income
9,202
9,056
Consolidated statement of comprehensive income
354
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Consolidated accounts
Consolidated accounts
Statement of changes in the consolidated shareholders' equity as at 31 December 2024
(€ million)
PREVIOUS
YEAR PROFIT
(LOSS)
ALLOCATION
CHANGES IN THE YEAR
SHAREHOLDERS' EQUITY TRANSACTIONS
BALANCE AS AT 31.12.2023
CHANGE IN OPENING BALANCE
BALANCE AS AT 01.01.2024
RESERVES
DIVIDENDS AND OTHER ALLOCATIONS
CHANGES IN RESERVES
ISSUE OF NEW SHARES
PURCHASE OF TREASURY SHARES
ADVANCED DIVIDENDS
DIVIDENDS EXTRAORDINARY DISTRIBUTION
CHANGE IN EQUITY INSTRUMENTS
TREASURY SHARES DERIVATIVES
STOCK OPTIONS
CHANGES IN EQUITY INVESTMENTS
OTHER COMPREHENSIVE INCOME 2024
TOTAL SHAREHOLDERS' EQUITY AS AT 31.12.2024
GROUP SHAREHOLDERS' EQUITY AS AT 31.12.2024
MINORITY SHAREHOLDERS' EQUITY AS AT 31.12.2024
Share capital:
21,331
- 21,331
-
-
20
90
-
-
-
-
-
-
35
- 21,476 21,368
108
- ordinary shares
21,331
- 21,331
-
-
20
90
-
-
-
-
-
-
35
- 21,476 21,368
108
- other shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Share premium
50
-
50
-
-
-
-
-
-
-
-
-
-
16
-
66
23
43
Reserves:
35,124
- 35,124
6,469
- (8,245)
(90)
-
-
-
-
-
69
127
- 33,454 33,235
219
- from profits
25,399
- 25,399
6,469
- (5,017)
(90)
-
-
-
-
-
-
127
- 26,888 26,796
92
- other
9,725
-
9,725
-
- (3,228)
-
-
-
-
-
-
69
-
-
6,566
6,439
127
Valuation reserves
(4,932)
- (4,932)
-
-
-
-
-
-
-
-
-
-
-
(515) (5,447) (5,422)
(25)
Advanced dividends
-
-
-
-
-
-
-
- (1,440)
-
-
-
-
-
- (1,440) (1,440)
-
Equity instruments
4,863
-
4,863
-
-
-
-
-
-
-
95
-
-
-
-
4,958
4,958
-
Treasury shares
(1,727)
- (1,727)
-
-
-
7,598 (5,871)
-
-
-
-
-
-
-
-
-
-
Profit (Loss) for the year
9,534
-
9,534 (6,469) (3,065)
-
-
-
-
-
-
-
-
-
9,774
9,774
9,719
55
Total shareholders’ equity
64,243
- 64,243
- (3,065) (8,225)
7,598 (5,871) (1,440)
-
95
-
69
178
9,259 62,841 62,441
400
Group shareholders' equity
64,079
- 64,079
- (3,045) (8,268)
7,598 (5,871) (1,440)
-
95
-
69
22
9,202 62,441
Minority shareholders' equity
164
-
164
-
(20)
43
-
-
-
-
-
-
-
156
57
400
Statement of changes in the consolidated shareholders’ equity
The amounts disclosed in column "Stock Options" represent the effects of the delivery of shares connected with Group Executive Incentive Plans.
The cumulated change of valuation reserves, for -€515 million, mainly stems from:
• +€133 million in financial assets and liabilities at fair value;
• +€100 million in cash-flow hedges;
• +€46 million in investments valued at net equity;
• +€29 million in non-current assets and disposal groups classified as held for sale;
• -€74 million in property, plant and equipment related to the properties used in business, ruled by IAS16 "Property, plant and equipment";
• -€161 million in defined-benefit plans related to pensions and other post-retirement benefits obligations and provision for employees severance
pay;
• -€592 million in exchange differences, mainly related to effect of Russian Ruble for -€458 million, Hungarian Forint for -€88 million and Czech
Crown for -€63 million.
The change in Group share capital refers to the increase for +€90 million following the resolution of the Board of Directors of 4 February 2024 of
UniCredit S.p.A. executed through a withdrawal from the specifically constituted reserve, for the issue of the shares connected to the medium-term
incentive plan for Group personnel.
Following the resolutions of the Shareholders' Meeting of UniCredit S.p.A. of 12 April 2024, the following events occurred:
(i) allocation of the net profit of the year 2023 to “Reserves from profits” and in particular to: (a) a specific reserve for tax on banks’ extra-profits for
€1,125 million52; (b) Reserve for social, charity and cultural initiatives for €5 million; (c) Reserve for the issue of the shares connected to the medium-
term incentive plan for Group personnel for €100 million and (d) Statutory reserve for €6,989 million;
(ii) coverage of the negative reserves for a total amount of €445 million by use of: (a) the Reserve from business combinations (IFRS3) for €270
million to cover the reserve related to the payment of AT1 coupons and the Reserve deriving from payments related to the “Equity Settled Share
52 For further details reference is made to paragraph “Windfall tax Italy”, Notes to the consolidated accounts, Part A - Accounting policies, Section 5 - Other matters of the Consolidated financial statements as at 31
December 2023.
355
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Consolidated accounts
Consolidated accounts
Based Payments” settled in cash; (b) the Statutory reserve for €175 million to cover the reserve emerged from the cash-out related to the usufruct
contract connected to the “Cashes” financial instruments;
(iii) establishment of the specific unavailable reserve for €3,085 million for the execution of the “Second and Third Tranche of Share buy-back
Programme 2023” and of €1,700 million for the execution of “2024 Share buy-back Anticipation”, with withdrawal from the Statutory reserve.
The change in the item “Reserves other” includes also the payment of coupons on AT1 equity instruments for -€196 million and the allocation to
reserves of the cash-out related to the usufruct contract connected to the “Cashes” financial instruments for -€247 million.
The change in the item “Advanced dividends” in amount of -€1,440 million refers to distribution of the 2024 interim dividend based on the results of
the 2024 Financial Year approved by the Board of Directors on 5 November 2024.
The change in the item “Equity instruments” for +€95 million refers to:
(i) early redemption of the Additional Tier 1 instrument (ISIN XS1046224884) for -€898 million, net of the related transaction costs and excluding
exchange differences, in accordance with the relevant terms and conditions of the issue of securities;
(ii) issuing of an Additional Tier 1 instruments for +€993 million (ISIN IT0005611758), net of the related transaction costs.
Moreover, the change in the item "Treasury shares" for +€1,727 million refers for:
(i) -€4,171 million to the purchase of ordinary shares, under execution of “First, Second and Third Tranche of the buy-back Programme 2023”; the
“First Tranche” was completed on 7 March 2024, the “Second Tranche” was completed on 20 June 2024, while the “Third Tranche” was completed
on 19 August 2024;
(ii) -€1,700 million to the purchase of ordinary shares, under execution of “2024 Share buy-back Anticipation” programme, started on 16 September
2024 and concluded on 14 November 2024;
(iii) +€7,598 million to the cancellation of the treasury shares purchased in execution of the buy-back Programme 2022 (on 16 January 2024), “First,
Second and Third Tranche of the buy-back Programme 2023” and “2024 Share buy-back Anticipation” (on 26 March 2024, 26 June 2024 and 18
December 2024 respectively), by use of the established unavailable reserve (amount conventionally disclosed in the column “Issue of new shares”).
The change in the item “Minority shareholders' equity” substantially refers to the purchase of 90.1% shares of Alpha Bank Romania S.A by UniCredit
S.p.A. from Alpha International Holdings Single Member S.A. The payment, amongst other, is composed by 9.90% shares of ownership in UniCredit
Bank S.A. (for the further details refer to Notes to the consolidated accounts, Part G - Business combinations).
For further details about the Shareholders’ equity changes refer to Notes to the consolidated accounts, Part B - Consolidated balance sheet -
Liabilities, Section 13.
356
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Consolidated accounts
Consolidated accounts
Statement of changes in the consolidated shareholders' equity as at 31 December 2023
(€ million)
PREVIOUS
YEAR PROFIT
(LOSS)
ALLOCATION
CHANGES IN THE YEAR
SHAREHOLDERS' EQUITY TRANSACTIONS
BALANCE AS AT 31.12.2022
CHANGE IN OPENING BALANCE
BALANCE AS AT 01.01.2023
RESERVES
DIVIDENDS AND OTHER ALLOCATIONS
CHANGES IN RESERVES
ISSUE OF NEW SHARES
PURCHASE OF TREASURY SHARES
ADVANCED DIVIDENDS
DIVIDENDS EXTRAORDINARY DISTRIBUTION
CHANGE IN EQUITY INSTRUMENTS
TREASURY SHARES DERIVATIVES
STOCK OPTIONS
CHANGES IN EQUITY INVESTMENTS
OTHER COMPREHENSIVE INCOME 2023
TOTAL SHAREHOLDERS' EQUITY AS AT 31.12.2023
GROUP SHAREHOLDERS' EQUITY AS AT 31.12.2023
MINORITY SHAREHOLDERS' EQUITY AS AT 31.12.2023
Share capital:
21,273
- 21,273
-
-
-
58
-
-
-
-
-
-
-
- 21,331 21,278
53
- ordinary shares
21,273
- 21,273
-
-
-
58
-
-
-
-
-
-
-
- 21,331 21,278
53
- other shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Share premium
2,544
-
2,544
-
- (2,494)
-
-
-
-
-
-
-
-
-
50
23
27
Reserves:
31,726
- 31,726
4,556
- (1,171)
(58)
-
-
-
-
-
71
-
- 35,124 35,063
61
- from profits
23,664
- 23,664
4,556
- (2,763)
(58)
-
-
-
-
-
-
-
- 25,399 25,464
(65)
- other
8,062
-
8,062
-
-
1,592
-
-
-
-
-
-
71
-
-
9,725
9,599
126
Valuation reserves
(4,619)
- (4,619)
-
-
137
-
-
-
-
-
-
-
-
(450) (4,932) (4,928)
(4)
Advanced dividends
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Equity instruments
6,100
-
6,100
-
-
-
-
-
-
- (1,237)
-
-
-
-
4,863
4,863
-
Treasury shares
-
-
-
-
-
-
3,031 (4,758)
-
-
-
-
-
-
- (1,727) (1,727)
-
Profit (Loss) for the year
6,473
-
6,473 (4,556) (1,917)
-
-
-
-
-
-
-
-
-
9,534
9,534
9,507
27
Total shareholders’ equity
63,497
- 63,497
- (1,917) (3,528)
3,031 (4,758)
-
- (1,237)
-
71
-
9,084 64,243 64,079
164
Group shareholders' equity
63,339
- 63,339
- (1,895) (3,528)
3,031 (4,758)
-
- (1,237)
-
71
-
9,056 64,079
Minority shareholders' equity
158
-
158
-
(22)
-
-
-
-
-
-
-
-
-
28
164
The amounts disclosed in column "Stock Options" represented the effects of the delivery of shares connected with Group Executive Incentive Plans.
The cumulated change in the valuation reserves, for -€313 million, mainly stemmed from:
• +€310 million in financial assets and liabilities at fair value;
• +€272 million in cash-flow hedges;
• +€194 million in investments valued at net equity;
• -€45 million in hedges of foreign investments;
• -€147 million in property, plant and equipment related to the properties used in business, ruled by IAS16 "Property, plant and equipment";
• -€187 million in defined-benefit plans related to pensions and other post-retirement benefits obligations and provision for employees severance
pay;
• -€711 million in exchange differences, mainly related to effect of Russian Ruble for -€676 million.
The change in the Group share capital referred to the increase for +€58 million following the resolution of the Board of Directors of 16 February 2023
of UniCredit S.p.A., executed through the withdrawal from the specifically constituted reserve, for the issue of the shares connected to the medium-
term incentive plan for Group personnel.
Following the resolutions of the Shareholders' Meeting of UniCredit S.p.A. of 31 March 2023, the following events occurred:
(i) allocation of the net profit of the year 2022 to Reserves from profits and in particular to: (a) specific Reserve for social, charity and cultural
initiatives for €5 million; (b) Reserve for the issue of the shares connected to the medium-term incentive plan for Group personnel for €75 million; (c)
Legal Reserve for €100 million; (d) Statutory Reserve for €1,032 million;
(ii) coverage of the negative reserves for a total amount of €376 million by use of: (a) the Share premium Reserve for €302 million, to eliminate the
negative components related to the payment of AT1 coupons; (b) the Statutory Reserve for €74 million to cover the negative reserve related to the
cash-out related to the usufruct contract connected to the “Cashes” financial instruments;
(iii) allocation of part of the Share Premium Reserve (€2,191 million) and part of the business combination reserve (€1,152 million) to a specific
unavailable reserve (€3,343 million) dedicated to the purchases of own treasury shares for the execution of Share buy-back Programme 2022 (First
and Second tranches) authorised by the ECB on 28 March 2023.
357
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Consolidated accounts
Consolidated accounts
The change in the item “Reserves other” included also the payment of coupons on AT1 equity instruments for -€250 million.
The change in the item “Equity instruments” referred to early redemption of the Additional Tier 1 instruments (ISIN XS1619015719) issued in 2017
for -€1,237 million, net of the related transaction costs, in accordance with the relevant terms and conditions of the issue of securities.
Moreover, the negative change in the item "Treasury shares" for -€1,727 million referred for:
(i) -€3,343 million to the purchase of ordinary shares, under execution of “First and Second Tranche of the buy-back Programme 2022”; the “First
Tranche” was completed on 29 June 2023, while the “Second Tranche” was completed on 29 September 2023;
(ii) +€3,031 million to the partial cancellation of own shares performed on 12 September 2023, without reducing the share capital (amount
conventionally disclosed in the column “Issue of new shares”);
(iii) -€1,415 million to the purchase of ordinary shares under execution of “First Tranche of the buy-back Programme 2023”, communicated to the
market on 30 October 2023 and initiated on the same date, as per the authorization granted by the Shareholders' Meeting of the Company held on
27 October 2023. It should be noted that for this purpose, a specific unavailable reserve shown under the other reserves, dedicated to the purchases
of own treasury shares, was established for the maximum amount authorised of €2,500 million through a withdrawal from the “Statutory Reserve”.
Finally, for the sake of completeness, the first-time adoption of IFRS17 by bancassurance associated companies had determined an effect equal to -
€18 million disclosed in the column “Changes in Reserves”.
358
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Consolidated accounts
Consolidated accounts
Consolidated cash flow statement (indirect method)
(€ million)
YEAR
2024
2023
A. OPERATING ACTIVITIES
1. Operations
21,098
18,169
- profit (loss) for the year (+/-)
9,774
9,534
- gains/losses on financial assets held for trading and on other financial assets/liabilities at fair value
through profit or loss (-/+)
2,438
706
- gains (losses) on hedge accounting (-/+)
530
201
- net impairment losses/writebacks on impairment for credit risk (+/-)
2,897
3,147
- net value adjustments/write-backs on property, plant and equipment and intangible assets (+/-)
1,306
1,625
- net provisions for risks and charges and other expenses/income (+/-)
(140)
(403)
- net revenues/costs arising from insurance contracts issued and reinsurance contracts held
-
-
- unpaid duties, taxes and tax credits (+/-)
2,633
1,595
- impairment/write-backs after tax on discontinued operations (+/-)
-
-
- other adjustments (+/-)
1,660
1,764
2. Liquidity generated/absorbed by financial assets
(22,505)
11,801
- financial assets held for trading
(3,555)
(5,567)
- financial assets designated at fair value
(30)
118
- other financial assets mandatorily at fair value
1,301
1,148
- financial assets at fair value through other comprehensive income
(14,620)
(7,909)
- financial assets at amortised cost
(7,671)
20,643
- other assets
2,070
3,368
3. Liquidity generated/absorbed by financial liabilities
(5,669)
(71,098)
- financial liabilities at amortised cost
(202)
(67,256)
- financial liabilities held for trading
(3,224)
(791)
- financial liabilities designated at fair value
1,434
1,004
- other liabilities
(3,677)
(4,055)
4. Liquidity generated/absorbed by Insurance contracts issued and by reinsurance contracts held
-
-
- insurance contracts issued that are liabilities/assets (+/-)
-
-
- reinsurance contracts held that are assets/liabilities (+/-)
-
-
Net liquidity generated/absorbed by operating activities
(7,076)
(41,128)
B. INVESTMENT ACTIVITIES
1. Liquidity generated by
457
472
- sales of equity investments
6
89
- collected dividends on equity investments
167
106
- sales of property, plant and equipment
282
272
- sales of intangible assets
2
2
- sales of subsidiaries and business units
-
3
2. Liquidity absorbed by
(1,522)
(1,259)
- purchases of equity investments
(2)
(107)
- purchases of property, plant and equipment
(1,250)
(589)
- purchases of intangible assets
(490)
(563)
- purchases of subsidiaries and business units
220
-
Net liquidity generated/absorbed by investment activities
(1,065)
(787)
C. FUNDING ACTIVITIES
- issue/purchase of treasury shares
(5,878)
(4,763)
- issue/purchase of equity instruments
(162)
(1,250)
- dividend distribution and other
(4,950)
(2,440)
- sale/purchase of minority control
-
-
Net liquidity generated/absorbed by funding activities
(10,990)
(8,453)
NET LIQUIDITY GENERATED/ABSORBED IN THE YEAR
(19,131)
(50,368)
Key:
(+) generated;
(-) absorbed.
Consolidated cash flow statement
359
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Consolidated accounts
Consolidated accounts
Reconciliation
(€ million)
YEAR
ITEMS
2024
2023
Cash and cash balances at the beginning of the year
61,000
111,776
Net liquidity generated/absorbed in the year
(19,131)
(50,368)
Cash and cash balances: foreign exchange effect
(427)
(408)
Cash and cash balances at the end of the year
41,442
61,000
The item "Cash and cash balances" refers to the definition according to Banca d’Italia (Circular 262 of 22 December 2005 and subsequent
amendments) and is mainly related to “Current accounts and Demand deposits with Central Banks” for €31 billion, mostly part held by UniCredit
S.p.A. for €10 billion, UniCredit Bank GmbH for €5 billion, and UniCredit Bank Austria AG for €5 billion.
The reduction observed during the period in item “Cash and cash balances” is mainly given by liquidity absorbed by (i) increase of financial assets
mainly debt securities in UniCredit S.p.A. and UniCredit Bank GmbH, (ii) decrease in financial liabilities due to redemption/repurchase of financial
liabilities mainly by UniCredit S.p.A. and UniCredit Bank GmbH and (iii) funding activities for repurchase of own shares and dividends distribution in
part offset by the liquidity generated by operations.
For further details on item’s composition refer to Part B - Consolidated balance sheet - Assets, Section 1 - Cash and cash balances - Item 10 of the
Notes to the consolidated accounts.
For further details related to the change of Funding activities refer to Part B - Consolidated balance sheet - Liabilities, Section 13 – Group
shareholders ‘equity of the Notes to the consolidated accounts.
The purchase of Alpha Bank Romania S.A. generated liquidity for €220 million given by the difference between the portion of the price paid in cash
and the cash and cash balances owned by the company at acquisition date.
The information related to the significant restrictions are provided in Part A - Accounting Policies, A.1 - General, Section 3 - Consolidation scope and
methods.
360
UniCredit 2024 Annual Reports and Accounts
UniCredit 2024 Annual Reports and Accounts
361
361
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
362
UniCredit 2024 Annual Reports and Accounts
362
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Notes to the consolidated accounts
Part A - Accounting policies
A.1 - General
Section 1 - Statement of compliance with IFRS
These Consolidated financial statements have been prepared in accordance with the IFRS issued by the International Accounting Standards Board
(IASB), including the interpretation documents issued by the SIC and the IFRIC, and endorsed by the European Commission up to 31 December
2024, pursuant to EU Regulation 1606/2002 which was incorporated into Italian legislation through Legislative Decree 38 of 28 February 2005 (refer
also to Section 5 - Other matters).
These financial statements are an integral part of the Annual financial statements as required by Art.154-ter, par.1 of the Single Finance Act
(Consolidated Law on Finance - “TUF”, Legislative Decree 58 of 24 February 1998).
In Circular 262 of 22 December 2005 (and subsequent amendments), with regard to the banks and financial institutions subject to supervision,
Banca d’Italia has established the formats for the financial statements and Notes to the accounts used to prepare these Consolidated financial
statements.
363
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Section 2 - General preparation criteria
As mentioned above, these “Consolidated financial statements as at 31 December 2024” have been prepared in accordance with the international
accounting standards endorsed by the European Commission.
The following documents have been used to interpret and support the application of IAS/IFRS, even though they have not all been endorsed by the
European Commission:
• the Conceptual Framework for Financial Reporting;
• Implementation Guidance, Basis for Conclusions, IFRICs and the documents prepared by either the IASB or the International Financial Reporting
Interpretations Committee (IFRIC) supplementing the IFRS;
• Interpretative documents on the application of the IAS/IFRS in Italy prepared by the Organismo Italiano di Contabilità (the Italian Standard Setter;
OIC) and Associazione Bancaria Italiana (Italian Banking Association, that is the trade association of Italian banks; ABI);
• Coordination Table between Banca d'Italia, Consob and Ivass with regard to the application of IAS/IFRS, in particular the Document 9, dated 5
January 2021, Accounting Treatment of tax credits connected with the “Cura Italia” and “Rilancio” Law Decrees purchased following the sale
without recourse by the direct beneficiaries or previous buyers (“Trattamento contabile dei crediti d’imposta connessi con i Decreti Legge “Cura
Italia” e “Rilancio” acquistati a seguito di cessione da parte dei beneficiari diretti o di precedenti acquirenti”); such document was subsequently
updated by Banca d’Italia on 24 July 2023 with the clarification note “Credit risk - Standardised method and IRB - Clarification note” (“Rischio di
credito - Metodo Standardizzato e IRB - Nota di chiarimenti”);
• ESMA (European Securities and Markets Authority), European Banking Authority, European Central Bank and Consob documents on the
application of specific IAS/IFRS provisions also with specific reference to the presentation of the effects arising from geopolitical tensions and their
effects on the evaluation processes. In particular, it shall be made reference to the ESMA statements dated 29 October 2021,14 March 2022,13
May 2022, 28 October 2022, 25 October 2023 and 24 October 2024; and to Consob “Call for attention" dated 18 March 2022 and 19 May 2022.
The content of such communications, when relevant, has been reported in “Section 5. Other matters” of Notes to the consolidated accounts,
Part A - Accounting policies, A.1 General, in the context of valuation choices performed by the Group as at 31 December 2024.
The Consolidated financial statements include the Balance sheet, the Income statement, the Statement of other comprehensive income, the
Statement of changes in shareholders’ equity, the Cash flow statement (compiled using the “indirect method”) and the Notes to the consolidated
accounts, together with the Consolidated report on operations and Annexes. The schemes and Notes of the Consolidated financial statement as at
31 December 2024 are in line with Banca d’Italia templates as prescribed by Circular 262 dated 22 December 2005 (and subsequent amendments)
as well as 14 March 2023 communication on impacts of Covid-19 and measures to support the economy, and they present comparative figures, as
at 31 December 2023.
Figures in the Consolidated accounts and Notes to the consolidated accounts are given in millions of euros, unless otherwise specified.
Risks and uncertainty relating to the use of estimates
Under the IFRS, management must make judgments, estimates and assumptions that affect the application of accounting principles and the
amounts of assets/liabilities and income and expenses reported in the accounts, as well as the disclosure concerning contingent assets and
liabilities. Estimates and related assumptions are based on previous experience and on the available information framework with reference to the
current and expected context and have been used to estimate the carrying values of assets and liabilities not readily available from other sources.
Estimates and assumptions are regularly reviewed. Any change resulting from these reviews is recognised in the period in which the review was
carried out, provided the change only concerns that period. If the review concerns both current and future periods, it is recognised accordingly in
both current and future periods.
In particular, estimated figures have been used for the recognition and measurement of some of the main items in the Consolidated financial
statements as at 31 December 2024, as required by the accounting policies, statements and regulations described above.
The current market environment continues to be affected by uncertainty stemming from geopolitical tensions. In this respect, ECB macroeconomic
projections updated in December 202453 remark that the economic outlook continues to be surrounded by uncertainty considering tensions in the
Middle East, the war in Ukraine, the lingering weakness in the Chinese real estate market and the possibility that the next US Administration will turn
more inward - looking. Therefore, the outlook for Gross Domestic Product (GDP) growth was slightly revised downward compared to September
2024 projections; in detail, the outlook for GDP was negatively revised mainly following data revisions on investment, expectations of weaker export
growth in 2025, downward revision to the projected expansion of domestic demand in 2026.
Regarding the inflation, following a rise in late 2024, it is projected to decline and hover around ECB’s 2% inflation target from second quarter 2025.
Base effects in energy component are expected to be the main driver of the temporary increase in inflation at the start of the projection horizon.
Based on assumptions of declining oil and gas prices, energy inflation is likely to remain negative until second quarter 2025 and stay subdued
thereafter, except for an uptick in 2027 owing to the introduction of new climate change mitigation measures.
53 ECB staff macroeconomic projections for the euro area, December 2024.
364
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
The outlook for headline HICP54 inflation, compared to September 2024 projections, was revised slightly down for 2024 and 2025, mainly owing to
lower oil and electricity price assumptions.
Moreover, although high uncertainty, fiscal policies are assumed to be on a consolidation path overall, despite funds from Next Generation EU
(NGEU) program should support growth until its expiry in 2027.
In the context of persisting uncertainty explained above, UniCredit group defined different macro-economic scenarios, to be used for the purposes of
the evaluation processes related to the 2024 Consolidated financial statements.
In particular, in addition to the "Base" scenario, which reflects the expectations considered most likely concerning macro-economic trends, an
“Alternative/Recession” and a “Positive” scenario were outlined, these reflecting respectively a downward and an upward forecast of the
macroeconomic parameters and consequently in the expected profitability of the business.
The paragraphs below provide a detailed description of the characteristics associated with the above scenarios.
Features of the scenarios
• Base: it is the main reference scenario, underlying the approved budget for 2025, and the projections for 2026 and 2027. Such scenario assumes,
in terms of macroeconomic conditions: (i) moderate GDP growth expected for 2025 impacted by manufacturing sector; improving trend in 2026-
2027 mainly underpinned by internal demand; (ii) inflation declining in 2025 and stabilizing in 2026-2027; (iii) ECB monetary policy consistent with
inflation normalization; ECB Deposit Facility Rate equal to 300 bps at year end 2024, and assumed equal to 2% at year-end 2025; (iv) 3M Euribor
assumed to decrease in 2025, landing to approx. 200 bps at year-end 2025 and remaining broadly stable in 2026; (v) Russia Sovereign Rating at
CCC.
In Italy and Germany, the GDP is expected to expand in 2025 but still at a low pace, consistently with weak manufacturing sector and slow
recovery in global trade; improving growth expected in 2026 and 2027, benefiting from lower inflation and internal demand.
For Central and Eastern Europe (including Austria and excluding Russia), the Real GDP is expected to increase by 1.9% in 2025 and close to
about 2.4% in the following 2 years.
For Russia, minor growth is assumed in 2025 (after two strong years), improving trend is expected in 2026 and 2027.
With reference to the FX rates, the Base scenario assumes the Russian Ruble depreciation over time, from current levels to 149 as at year-end
2027, reflecting decreasing energy prices and gas export.
Average Inflation (UniCredit group excluding Russia) will decrease in 2025, remaining close to 2% in 2025 - 2027; still above 2% in CE&EE.
Uncertainties/risks in the short/medium term persist, both for inflation/rates and for growth (mainly for US elections impact).
Furthermore, potential pressure is assumed on BTP-Bund spread (150 bps year-end 2025, 175 bps year-end 2026 - 2027), to factor-in volatility
and uncertainties on Italian Sovereign debt and macro-economic developments.
• Alternative/Recession: this scenario embeds downward forecast of macroeconomic parameters and consequently in the expected profitability of
the business and assumes an intensification of geopolitical tensions in the Middle East and Ukraine with negative supply. Activity starts contracting
in 2025 with deepen recession in 2026. Weaker demand resulting in lower inflation vs. Base. Central Banks respond to the shocks by cutting rates
more aggressively than in the Base.
For Italy and Germany, GDP would contract in 2025-2026, turning positive in 2027 (supply chains normalization).
For Central and Eastern Europe (including Austria and excluding Russia), the growth shock is assumed to be about -5.7% (cumulated in 2025 -
2027).
For Russia, the growth shock is assumed to be -3.3% (cumulated in 2025 - 2027).
Expected inflation is lower than in the Base case as disinflation forces prevail overall (stronger impact by weaker demand).
Concerning the ECB monetary policy, Central banks cut interest rates more aggressively than in the base scenario (3M Euribor equal to 129 bps
at year-end 2025, close to 1% in subsequent years).
In addition, the pressure on BTP-Bund spread is higher compared to the Base case (223 bps for year-end 2025, 232 bps for year-end 2026),
reflecting deteriorated economic conditions.
• Positive: it exhibits upward forecast of macro-economic parameters and assumes a de-escalation of geopolitical tensions and US trade policies
less restrictive than expected. Such a scenario foresees an improved labour market, wage growth and a relatively stable inflation leading,
therefore, to a stronger consumer spending and better economic growth. On the other side, favourable risk repricing and higher demand
accelerate investment activity.
For Italy and Germany, GDP increases constantly through the 3-year forecast period by 4.8% and 5.6% respectively on cumulative basis.
For Central and Eastern Europe (including Austria and excluding Russia), GDP is expected to rise by 10.6% (cumulated in 2025-27).
For Russia, GDP would increase, by 5.8% (2025-2027), at a low pace compared to the CE&EE area.
54 Harmonised Indices of Consumer Prices
365
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
With reference to inflation, it is expected higher when compared to the Base scenario, due to the better economic growth leading to a higher
demand.
In addition, the pressure on BTP-Bund spread is lower compared to Base case (125 bps in 2025, 150 bps in 2026 and 2027), reflecting improved
economic conditions.
The table below shows the most significant macroeconomic data featuring the Base, Alternative/Recession and Positive scenarios.
INTEREST RATES, INFLATION AND YIELD ENVIRONMENT
2024
2025
2026
2027
Base Scenario 2024
Euribor 3M (EoP, bps)
271
204
202
202
Spread BTP - Bund (EoP, bps)
116
150
175
175
Real GDP growth y/y, %
Italy
0.5
0.8
1.0
1.0
Germany
(0.2)
0.7
1.2
1.4
CE & EE (excl. Russia)
1.2
1.9
2.4
2.4
Russia
3.7
0.5
1.3
1.6
Inflation average %
Italy
1.0
1.5
1.6
2.0
Germany
2.3
1.5
1.7
1.8
CE & EE (excl. Russia)
3.4
3.4
2.8
2.7
Russia
8.4
5.8
4.3
4.1
Alternative/Recession Scenario 2024
Euribor 3M (EoP, bps)
-
129
104
102
Spread BTP - Bund (EoP, bps)
-
223
232
222
Real GDP growth y/y, %
Italy
-
(0.8)
(2.1)
0.2
Germany
-
(1.0)
(2.0)
0.5
CE & EE (excl. Russia)
-
0.2
(0.5)
1.5
Russia
-
(0.2)
(1.1)
1.3
Inflation average %
Italy
-
1.3
1.0
1.6
Germany
-
1.3
0.9
1.5
CE & EE (excl. Russia)
-
3.3
2.3
2.4
Russia
-
5.6
3.8
3.7
Positive Scenario 2024
Euribor 3M (EoP, bps)
-
289
307
307
Spread BTP - Bund (EoP, bps)
-
125
150
150
Real GDP growth y/y, %
Italy
-
1.5
1.9
1.4
Germany
-
1.3
2.3
2.0
CE & EE (excl. Russia)
-
2.5
3.5
3.0
Russia
-
1.2
2.5
2.2
Inflation average %
Italy
-
1.7
1.8
2.2
Germany
-
1.9
2.0
2.0
CE & EE (excl. Russia)
-
3.7
3.1
2.8
Russia
-
6.0
4.6
4.2
366
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Measurement of credit exposures
With reference to the credit exposures as at 31 December 2024, the macroeconomic scenarios used for calculation of credit risk parameters
(Probability of Default, Loss Given Default, Exposure at Default) were updated according to the Group policies, on the basis of the features
highlighted above.
Starting from December 2024, while the Base scenario was kept at 60%, the weights of positive and alternative/recession scenarios were reviewed,
by setting them respectively at 5% and 35% (vs 0% and 40% in the previous period).
In this regard, it shall be noted that the amount of loan loss provisions is determined by considering: (i) the classification (current and expected) of
credit exposures as non-performing; (ii) the sale prices, for those non-performing exposure whose recovery is expected through sale to external
counterparties; and (iii) credit parameters (Probability of Default, Loss Given Default and Exposure at Default) which, in accordance with the IFRS9,
incorporate forward looking information and the expected evolution of the macro-economic scenario.
Therefore, also in this case, the measurement is affected by the mentioned degree of uncertainty on the evolution of the geopolitical tension as well
as the evolution of the macroeconomic conditions.
Indeed, the evolution of these factors may require, in future financial years, the classification of additional credit exposures as non-performing, thus
determining the recognition of additional loan loss provisions, also related to performing exposures, following the update in credit parameters. In
addition, adjustments to the loan loss provisions might derive from the occurrence of a macroeconomic scenario different from the one estimated for
the calculation of the credit risk parameters, or by the prevalence on the market of non-performing exposures of prices different from those used in
the measurement.
The evolution of the real estate market, in terms of downward correction of real estate prices, might impact (i) the value of properties received as
collateral requiring an adjustment to the loan loss provisions or (ii) the ability of certain counterparties operating in the real estate sector to serve
their debt.
Eventually, starting from 2024 the measurement of credit exposures reflects Climate and Environmental risk by incorporating such risk in the
evolution of Credit Risk parameters (Probability of Default, Loss Given Default as applicable) which have been calibrated considering different
assumptions in terms of implementation of transition policies and severity on physical risk. Therefore, adverse changes in climate risks which may
result in a tightening of transition policies and associated cost or in an increase severity of physical risk may require the recognition of additional loan
loss provisions.
For additional information on the measurement of credit exposures refer to the paragraph “2.1 Credit risk” of the Notes to the consolidated accounts
Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter.
Deferred tax assets
With reference to deferred tax assets, the measurement is significantly influenced by assumptions about future cash flows, which in turn incorporate
assumptions on the evolution of the macro-economic scenario. As a result, for the measurement purposes, and with the aim to reflect the
uncertainty, the Base and the Alternative scenario above outlined were considered for the estimation of future cash flows, weighting them
respectively 65% and 35% (respectively at 60% and 40% in the previous period). These weights were applied in coherence with the weights applied
for the measurement of credit exposures, by converging the positive scenario into the “Base”.
Moreover, considering that further to the cash flows, additional parameters are relevant in the calculation approach underlying the DTA sustainability
test, the evaluation of the following parameters was reviewed taking into consideration the ESMA statements on recognition of deferred tax assets
arising from the carry-forward of unused tax losses55: (i) volatility parameter, calculated on the historical series since 2007 of the pre-tax results of a
significant sample of European Banks56; (ii) confidence level used in the MonteCarlo calculation.
The results of these evaluations might be subject to changes depending on the evolution of the underlying parameters, mainly Profit Before Tax,
volatility parameter, and confidence level used in the MonteCarlo calculation, whose changes, which may also be driven by change in macro-
economic scenario, might determine a change in the valuation.
For further information on the methodology, results and base assumptions used in deferred tax assets, refer to section “Section 11 - Tax assets and
tax liabilities - Item 110 (Assets) and Item 60 (Liabilities)” of the Notes to the consolidated accounts, Part B - Consolidated balance sheet - Assets.
Measurement of real estate portfolio
Always with reference to the valuation of non-financial assets, the valuation of the real estate portfolio has become relevant following the adoption,
starting from 31 December 2019, of the fair value model (assets held for investment) and the revaluation model (assets used in the business). For
these assets, on 31 December 2024, the fair value was determined by making recourse to external appraisals, following the Group guidelines.
55 ESMA Public Statement. Consideration on recognition of deferred tax assets arising from the carry-forward of unused tax losses, issued on 15 July 2019.
56 Data from European Central Bank (ECB) Statistical Datawarehouse.
367
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
In this context, it is worth to note that, in upcoming financial years, the fair value of these assets might be different from the fair value observed as at
31 December 2024, as a result of the possible evolution of real estate market, which also depends on the evolution of the macro-economic scenario,
including but not limited to the geo-political tensions as well as the evolution of the macroeconomic conditions.
For additional information on the measurement of the real estate portfolio, refer to the paragraph “Section 9 - Property, plant and equipment - Item
90” of the Notes to the consolidated accounts Part B - Consolidated balance sheet - Assets.
Russia
UniCredit group is exposed to Russia through (i) its investments in AO UniCredit Bank, its subsidiaries OOO UniCredit Garant, OOO UniCredit
Leasing, and (ii) exposures toward Russian Counterparties held by non - Russian subsidiaries. Geopolitical tensions have been arising from the
conflict between Russia and Ukraine, leading to sanctions and countersanctions among the parties; the Russian administration also took actions
towards western investors, in terms of, e.g.: (i) temporary management by Russian entities of subsidiaries of western investors; (ii) lack of
procedures for capital repatriation from Russia; (iii) limiting ability for Russian subsidiaries to distribute dividends towards western investors; (iv)
ruling of Russian Courts which considered local subsidiaries of western investors jointly and severally liable in legal cases.
The evolution of such geopolitical tensions may affect, also significantly, the value of these assets and liabilities possibly determining the need to
recognise additional losses.
Regarding the Russian Ruble FX rate, the ECB stopped the quotation of EUR/RUB exchange rate since 2 March 2022.
Therefore, as at 31 December 2024 and in coherence with the previous years, the Group is applying an OTC foreign exchange rate provided by
Electronic Broking Service (EBS57). In this regard it cannot be excluded that, once the ECB will restart listing RUB/EUR FX rate, these quotes might
be different from EBS quotes, thus requiring the recognition of an impact in Net Equity and in P&L.
For further information about the exposures to the Group to Russian assets and liabilities reference is made Section 5 - Other matters”, Notes to the
consolidated accounts, Part A - Accounting policies, A.1 General.
Other measurements
The following additional Balance sheet items might be significantly affected in their evaluation by risks and uncertainties, even if not directly
connected with the slow-down of the economic activity and the associated uncertainty level of the economic recovery:
• fair value of financial instruments not listed in active markets;
• severance pay (in Italy) and other employee’s benefits (including defined benefit obligation);
• provisions for risks and charges.
While evaluations have been made on the basis of information deemed to be reasonable and supportable as at 31 December 2024, they might be
subject to changes not foreseeable at the moment, as a result of the evolution in the parameters used for the evaluation.
Furthermore, the following factors, in addition to those illustrated above, might influence the future results of the Group and cause outcomes
materially different from those deriving from the valuations: (1) general economic and industrial conditions of the regions in which the Group
operates or holds significant investments; (2) exposure to various market risks (e.g., foreign exchange risk); (3) political instability in the areas in
which the Group operates or holds significant investments; (4) legislative, regulatory and tax changes, including regulatory capital and liquidity
requirements, also taking into account increased regulation in response to the financial crisis; (5) adverse change in climate which may affect the
value of the assets held and/or the ability of customers to serve their debts58. Other unknown and unforeseeable factors could determine material
deviations between actual and expected results.
Statement of going concern
In their joint Document No.4 of 3 March 2010, Banca d’Italia, Consob and ISVAP made observations regarding the markets and businesses situation
and requested that information essential for a better understanding of business trends and outlook be disclosed in financial reports. Also following
such guideline, the present statement of going concern is released.
UniCredit Directors observed that during the 2024 the geopolitical tensions between Russian Federation and Ukraine and in the Middle East
persisted. Such events determined a relevant uncertainty in the macroeconomic outlook, in terms of GDP, inflation rates and interest rates.
The Directors assessed such circumstances, and concluded, with reasonable certainty, that the Group will be able to operate profitably in the
foreseeable future; as a result, in accordance with the provisions of IAS1, the Consolidated reports as at 31 December 2024 was prepared on a
going concern basis.
57 EBS is a wholesale electronic trading platform used to trade on the foreign exchange market (FX) with market-making banks. It is part of CME Group (Chicago Mercantile Exchange).
58 For additional information about climate risk and how the Group affects it refer to Part E - Information on risks and related hedging policies - Climate-related and environmental risks.
368
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
For releasing such statement and the connected evaluations, the main regulatory ratios were also taken into account at 31 December 2024, in terms
of: (i) actual figures as at 31 December 2024 (CET1 Ratio Transitional equal to 15.96%; MREL Ratio equal to 32.73% in terms of RWEA and
10.33% in terms of Leverage Exposure; Liquidity Coverage Ratio at 144% based on monthly average on 12 months); (ii) the related buffer versus
the minimum requirements at the same reference date (CET1 Ratio Transitional: excess of 559 basis points; MREL Ratio: excess of 523 basis
points in terms of RWEA and 424 in terms of Leverage Exposure; Liquidity Coverage Ratio: excess of about 44 percentage points); iii) the expected
evolution of the same ratios during 2025 (in particular, it is expected to stay well above the capital requirements, consistently with the UniCredit
Unlocked CET1 ratio target of 12.5-13 per cent).
On 12 April 2024 the Shareholders meeting has authorised the purchase of a maximum No.200,000,000 of UniCredit S.p.A. shares, to be carried
out, even in more transactions, within the earliest of: (i) the date which will fall after 18 (eighteen) months from the date of the authorisation of the
shareholders’ meeting; and (ii) the date of the shareholders’ meeting which will be called to approve the financial statements for the year ending on
31 December 2024. The request for authorisation to purchase treasury shares was proposed by the Board of Directors as a part of the activities
envisaged in the 2022 - Strategic Plan (“UniCredit Unlocked”) presented to the market on 9 December 2021.
In particular, the following distributions were envisaged:
• a first distribution, for a maximum disbursement of €3,085,250,000, relating to the residual part of the overall payout for the 2023 financial year
(the "2023 SBB Residual");
• a second distribution as an anticipation of the expected distributions for the 2024 financial year, for an amount to be defined by the Board of
Directors of the Company in accordance with certain criteria (the "2024 SBB Anticipation").
The shares purchased pursuant to the aforementioned programmes were subject to cancellation.
The purchase programmes were subject to the prior permissions of the European Central Bank (ECB). These permissions have been granted on 11
April 2024 and on 13 September 2024, respectively for "2023 SBB Residual" and for "2024 SBB Anticipation".
The "2023 SBB Residual" buy-back programme has been executed in two tranches during 2024:
• a tranche for an amount of €1,585,250,000 denominated “Second Tranche of the Buy-Back Programme 2023”, was initiated on 9 May 2024 and
completed on 20 June 2024;
• the final tranche for an amount of €1,500,000,081.14, denominated "Third Tranche of the Buy-Back Programme 2023", was initiated on 21 June
2024 and completed on 19 August 2024.
The execution of "2024 SBB Anticipation" for an amount of €1,700,000,000 has been launched on 16 September 2024 and initiated on the same
date, as per the authorisation granted by the Shareholders' Meeting of the Company held on 12 April 2024. On 14 November 2024 UniCredit S.p.A.
announced the completion of such share buy-back programme.
For the sake of completeness, it is worth to note that on 5 November 2024 a proposal for the distribution of interim cash dividend for €1.4 billion was
submitted for approval to UniCredit S.p.A. the Board of Directors, which approved on the same date such a distribution.
The measurement criteria adopted are therefore consistent with this assumption and with the principles of accrual-based accounting, the relevance
and materiality of accounting information, and the prevalence of economic substance over legal form.
These criteria have not changed with respect to the previous year.
369
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Section 3 - Consolidation scope and methods
The consolidation criteria and principles used to prepare the Consolidated financial statements as at 31 December 2024 are described below.
Consolidated accounts
For the preparation of the Consolidated financial statements as at 31 December 2024 the following sources have been used:
• the parent company UniCredit S.p.A. accounts as at 31 December 2024;
• the accounts as at 31 December 2024, of the other fully consolidated subsidiaries duly reclassified and adjusted to take account of consolidation
needs and, where necessary, to align them to the Group accounting principles;
• the sub-consolidated Accounts as at 31 December 2024 of Nuova Compagnia di Partecipazioni Group, including Nuova Compagnia di
Partecipazioni S.p.A. (formerly Compagnia Italpetroli S.p.A.) and its direct and indirect subsidiaries.
Amounts in foreign currencies are converted at closing exchange rates in the Balance sheet, whereas the average exchange rate for the year is
used for the Income statement.
The accounts and explanatory notes of the main fully consolidated subsidiaries prepared under IAS/IFRS are audited by leading audit companies.
Subsidiaries
Entities, including structured entities, over which the Group has direct or indirect control, are considered subsidiaries.
Control over an entity entails:
• the existence of power over the relevant activities;
• the exposure to the variability of returns;
• the ability to use the power exercised in order to influence the returns to which the Group is exposed.
In order to verify the existence of control, the Group considers the following factors:
• the purpose and design of the investee, in order to identify which are the entity's objectives, the activities that determine its returns and how these
activities are governed;
• the power, in order to understand whether the Group has contractual rights that attribute the ability to govern the relevant activities; to this end only
substantial rights that provide practical ability to govern are considered;
• the exposure held in relation to the investee, in order to assess whether the Group has relations with the investee, the returns of which are subject
to changes depending on the investee's performance;
• the existence of potential (principal - agent) relationships.
If the relevant activities are governed through voting rights, the existence of control is verified considering the voting rights held, including the
potential ones, and the existence of any shareholders' or other agreements which attribute the right to control the majority of the voting rights, to
appoint the majority of the governing body or in any case the power to determine the entity's financial and operating policies.
Subsidiaries may also include any “structured entity” in which the voting rights are not significant for establishing control, including special purpose
entities and investment funds.
In the case of structured entities, the existence of control is ascertained considering both the contractual rights that enable governance of the
relevant activities of the entity (or those that contribute most to the results) and the Group's exposure to the variability of returns deriving from these
activities.
The carrying amount of an equity interest in a fully consolidated entity held by the Parent Company or another Group company is eliminated against
the recognition of the assets and liabilities of the investee as an offsetting entry to the corresponding portion of net equity of the subsidiary
attributable to the Group.
Intragroup balances, the off-Balance sheet transactions, the income and expenses, and the gain/losses between consolidated companies are
eliminated in full, according to the method of consolidation adopted.
A subsidiary’s income and expenses are included in the consolidation from the date the Parent acquires the control. On disposal of a subsidiary, its
income and expenses are consolidated up to the date of the disposal, i.e. until the Parent ceases to control the subsidiary. The difference between
the consideration received for the disposal of an interest held in a subsidiary and the carrying amount of its net assets at the same date is
recognised (i) in the Income statement under item “280 Gains (Losses) on disposal of investments” in case the disposal determines the loss of
control; (ii) in the net equity if the sale does not entail loss of control.
The portion attributable to non-controlling interests is presented in the Balance sheet under item “190. Minority shareholders’ equity”, separately
from the liabilities and net equity attributable to the Group. In the Income statement, the portion attributable to minorities is also presented separately
under item “340. Minority profit (loss) of the year”.
370
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
With respect to companies included in the consolidation scope for the first time, the fair value of the consideration paid to obtain control of this equity
interest, is measured at the acquisition date.
Joint arrangements
A joint arrangement is a contractual agreement under the terms of which two or more counterparties arrange to jointly control an entity.
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when the decisions about the relevant activities
require the unanimous consent of the parties sharing control.
According to the standard IFRS11 - Joint Arrangements, such agreements must be classified as Joint Operations or Joint Ventures according to the
contractual rights and obligations held by the Group.
A Joint Operation is a joint arrangement in which the parties have rights on the assets and obligations with respect to the liabilities of the
arrangement.
A Joint Venture is a joint arrangement in which the parties have rights on the net assets of the arrangement.
The Group has assessed the nature of the joint arrangements and has determined that its jointly controlled equity investments are of the Joint
Venture type. These equity investments are recognised using the equity method.
Carrying amount of the Joint Ventures is tested in accordance with IAS36 as a single asset, by comparing it with the corresponding recoverable
amount (i.e. higher of value in use (VIU) and fair value (FV) less cost to sell).
Associates
An associate is an entity over which the investor has significant influence and which are not subsidiaries or joint ventures. Significant influence is
presumed when the investor:
• holds, directly or indirectly, at least 20%59 of the share capital of another entity, or
• is able, also through shareholders' agreements, to exercise significant influence through:
- representation on the governing body of the company;
- participation in the policy-making process, including participation in decisions about dividends or other distributions;
- the existence of significant transactions;
- interchange of managerial personnel;
- provision of key technical information.
It is to be pointed out that only companies which are governed through voting rights can be classified as subject to significant influence.
Investments in associates are recognised using the equity method. Carrying amount of Associates is tested in accordance with IAS36 as a single
asset, by comparing it with the corresponding recoverable amount (i.e., higher of VIU and FV less cost to sell).
Equity method
The carrying value of companies measured using the equity method include the goodwill (less any impairment loss) paid to purchase them.
The investor’s share of the profit and loss of the investee after the date of acquisition is recognised in the Income statement under item “250. Gains
(Losses) of equity investments”. Any dividends distributed reduce the carrying amount of the equity investment.
If the investor’s share of an investee’s losses is equal to or greater than its carrying amount, no further losses are recognised, unless the investor
has incurred specific obligations or made payments on behalf of the associate.
Gains and losses on transactions with associates or joint arrangements are eliminated according to the percentage interest in the said company.
Any changes in the revaluation reserves of associates or joint arrangements, which are recorded as a contra item to changes in value of the
phenomena relevant to this purpose, are reported separately in the Statement of other comprehensive income.
The following table shows the companies included in the scope of consolidation.
59 10% for listed companies.
371
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
1. Investments in Subsidiaries
OWNERSHIP RELATIONSHIP
COMPANY NAME
ADMINISTRATIVE
OFFICE
MAIN OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
BUSINESS
SECTOR (5)
HELD BY
HOLDING %
VOTING RIGHTS %
(2)
A. LINE BY LINE METHOD
1
UNICREDIT SPA
MILAN
MILAN
ITALY
HOLDING
Issued Capital EUR 21,367,680,521
2
ALLEGRO LEASING GESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
3
ALLIB LEASING S.R.O.
PRAGUE
PRAGUE
CZECH
REPUBLIC
1
4
UNICREDIT LEASING CZ, A.S.
100.00
Issued Capital CZK 100,000
4
ALMS LEASING GMBH.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
100.00
Issued Capital EUR 36,000
5
ALPHA BANK ROMANIA S.A.
BUCHAREST
BUCHAREST
ROMANIA
1
2
UNICREDIT SPA
90.10
Issued Capital RON 983,145,034
6
ALPHA RENT DOO BEOGRAD
BELGRADE
BELGRADE
SERBIA
1
38
UNIVERSALE INTERNATIONAL REALITAETEN
GMBH
100.00
Issued Capital RSD 3,285,948,900
7
ANTARES IMMOBILIEN LEASING
GESELLSCHAFT M.B.H. IN LIQU.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT GARAGEN ERRICHTUNG UND
VERWERTUNG GMBH
99.80
8
AO UNICREDIT BANK(4)
MOSCOW
MOSCOW
RUSSIA
1
2
UNICREDIT SPA
100.00
Issued Capital RUB 41,787,805,174
9
ARABELLA FINANCE DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
10
ARGENTAURUS IMMOBILIEN-
VERMIETUNGS- UND
VERWALTUNGS GMBH
MUNICH
MUNICH
GERMANY
1
38
HVB PROJEKT GMBH
100.00
Issued Capital EUR 511,300
11
ARNO
GRUNDSTUECKSVERWALTUNGS
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,337
GALA GRUNDSTUECKVERWALTUNG
GESELLSCHAFT M.B.H.
99.80
12
ARTS CONSUMER 2023 SRL
(CARTOLARIZZAZIONE: CONSUMER
2023)
VERONA
VERONA
ITALY
4
3
UNICREDIT SPA
...
(3)
13
ARTS CONSUMER SRL
(CARTOLARIZZAZIONE: CONSUMER
IV)
VERONA
VERONA
ITALY
4
3
UNICREDIT SPA
...
(3)
14
BA CA SECUND LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
15
BA EUROLEASE
BETEILIGUNGSGESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT ZEGA LEASING-GESELLSCHAFT
M.B.H.
100.00
Issued Capital EUR 363,364
16
BA GEBAEUDEVERMIETUNGSGMBH VIENNA
VIENNA
AUSTRIA
1
2
UNICREDIT BANK AUSTRIA AG
89.00
Issued Capital EUR 36,336
PAYTRIA UNTERNEHMENSBETEILIGUNGEN
GMBH
1.00
BA-CA MARKETS & INVESTMENT BETEILIGUNG
GES.M.B.H.
10.00
17
BA-CA ANDANTE LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
100.00
Issued Capital EUR 36,500
18
BA-CA LEASING DREI GARAGEN
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 35,000
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
99.80
19
BA-CA LEASING MAR IMMOBILIEN
LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
20
BA-CA MARKETS & INVESTMENT
BETEILIGUNG GES.M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT BANK AUSTRIA AG
100.00
Issued Capital EUR 127,177
21
BA-CA PRESTO LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
22
BA/CA-LEASING BETEILIGUNGEN
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 454,000
CALG DELTA GRUNDSTUECKVERWALTUNG
GMBH
99.80
23
BACA HYDRA LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
24
BACA KOMMUNALLEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
100.00
Issued Capital EUR 36,500
372
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
OWNERSHIP RELATIONSHIP
COMPANY NAME
ADMINISTRATIVE
OFFICE
MAIN OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
BUSINESS
SECTOR (5)
HELD BY
HOLDING %
VOTING RIGHTS %
(2)
25
BACA LEASING UND
BETEILIGUNGSMANAGEMENT GMBH
VIENNA
VIENNA
AUSTRIA
1
4
CALG IMMOBILIEN LEASING GMBH
98.80
Issued Capital EUR 18,287
UNICREDIT LEASING (AUSTRIA)
GMBH
1.00
UCLA IMMO-
BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
26
BAHBETA INGATLANHASZNOSITO KFT.
BUDAPEST
BUDAPEST
HUNGARY
1
4
UNIVERSALE INTERNATIONAL
REALITAETEN GMBH
100.00
Issued Capital HUF 30,000,000
27
BAL HESTIA IMMOBILIEN LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA)
GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-
BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
28
BAL HORUS IMMOBILIEN LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-
BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
CALG DELTA
GRUNDSTUECKVERWALTUNG
GMBH
99.80
29
BAL HYPNOS IMMOBILIEN LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-
BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
CALG DELTA
GRUNDSTUECKVERWALTUNG
GMBH
99.80
30
BAL LETO IMMOBILIEN LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT GARAGEN ERRICHTUNG
UND VERWERTUNG GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-
BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
31
BAL OSIRIS IMMOBILIEN LEASING
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA)
GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-
BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
32
BANK AUSTRIA CREDITANSTALT LEASING
IMMOBILIENANLAGEN GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-
BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
GALA GRUNDSTUECKVERWALTUNG
GESELLSCHAFT M.B.H.
99.80
33
BANK AUSTRIA LEASING ARGO IMMOBILIEN
LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
WOEM
GRUNDSTUECKSVERWALTUNGS-
GESELLSCHAFT M.B.H.
99.80
Issued Capital EUR 36,500
UCLA IMMO-
BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
34
BANK AUSTRIA LEASING IKARUS IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA)
GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-
BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
35
BANK AUSTRIA LEASING MEDEA IMMOBILIEN
LEASING GMBH IN LIQU.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA)
GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-
BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
36
BANK AUSTRIA REAL INVEST IMMOBILIEN-
KAPITALANLAGE GMBH
VIENNA
VIENNA
AUSTRIA
1
4
BANK AUSTRIA REAL INVEST
IMMOBILIEN-MANAGEMENT GMBH
100.00
Issued Capital EUR 5,000,000
37
BANK AUSTRIA REAL INVEST IMMOBILIEN-
MANAGEMENT GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT BANK AUSTRIA AG
94.95
Issued Capital EUR 10,900,500
38
BANK AUSTRIA WOHNBAUBANK AG
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT BANK AUSTRIA AG
100.00
Issued Capital EUR 18,765,944
39
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA)
GMBH
100.00
Issued Capital EUR 36,500
40
BF NINE HOLDING GMBH
VIENNA
VIENNA
AUSTRIA
1
38
ALLEGRO LEASING GESELLSCHAFT
M.B.H.
100.00
Issued Capital EUR 35,000
41
BREWO GRUNDSTUECKSVERWALTUNGS-
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT PEGASUS LEASING
GMBH
100.00
Issued Capital EUR 36,337
42
CA-LEASING OVUS S.R.O.
PRAGUE
PRAGUE
CZECH
REPUBLIC
1
4
UNICREDIT LEASING CZ, A.S.
100.00
Issued Capital CZK 100,000
43
CA-ZETA REAL ESTATE DEVELOPMENT
LIMITED LIABILITY COMPANY
BUDAPEST
BUDAPEST
HUNGARY
1
38
UNIVERSALE INTERNATIONAL
REALITAETEN GMBH
100.00
Issued Capital HUF 3,000,000
44
CABET-HOLDING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT BANK AUSTRIA AG
100.00
Issued Capital EUR 290,909
45
CABO BETEILIGUNGSGESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
CABET-HOLDING GMBH
100.00
Issued Capital EUR 35,000
46
CALG 307 MOBILIEN LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT ZEGA LEASING-
GESELLSCHAFT M.B.H.
100.00
Issued Capital EUR 36,500
373
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
OWNERSHIP RELATIONSHIP
COMPANY NAME
ADMINISTRATIVE
OFFICE
MAIN OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
BUSINESS
SECTOR (5) HELD BY
HOLDING
%
VOTING
RIGHTS % (2)
47
CALG 443 GRUNDSTUECKVERWALTUNG GMBH
VIENNA
VIENNA
AUSTRIA
1
4
CALG IMMOBILIEN LEASING GMBH
1.00
Issued Capital EUR 36,336
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
98.80
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
48
CALG 445 GRUNDSTUECKVERWALTUNG GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.40
Issued Capital EUR 18,168
CALG IMMOBILIEN LEASING GMBH
99.60
49
CALG ALPHA GRUNDSTUECKVERWALTUNG
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
CALG DELTA GRUNDSTUECKVERWALTUNG
GMBH
99.80
50
CALG ANLAGEN LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
51
CALG ANLAGEN LEASING GMBH, WIEN & CO.
GRUNDSTUECKSVERMIETUNG UND -
VERWALTUNG KG
MUNICH
MUNICH
GERMANY
1
4
CALG ANLAGEN LEASING GMBH
99.90
Issued Capital EUR 2,326,378
52
CALG DELTA GRUNDSTUECKVERWALTUNG
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
CALG ANLAGEN LEASING GMBH
99.80
Issued Capital EUR 36,336
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
53
CALG GAMMA GRUNDSTUECKVERWALTUNG
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,337
CALG IMMOBILIEN LEASING GMBH
99.80
54
CALG GRUNDSTUECKVERWALTUNG GMBH
VIENNA
VIENNA
AUSTRIA
1
4
CALG IMMOBILIEN LEASING GMBH
74.80
Issued Capital EUR 36,500
UNICREDIT LEASING (AUSTRIA) GMBH
25.00
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
55
CALG IMMOBILIEN LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 254,355
CALG ANLAGEN LEASING GMBH
99.80
56
CALG MINAL GRUNDSTUECKVERWALTUNG
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 18,286
CALG ANLAGEN LEASING GMBH
99.80
57
CAPITAL MORTGAGE SRL (CARTOLARIZZAZIONE:
CAPITAL MORTGAGE 2007 - 1)
VERONA
VERONA
ITALY
4
3
UNICREDIT SPA
...
(3)
58
CARD COMPLETE SERVICE BANK AG
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT BANK AUSTRIA AG
50.10
Issued Capital EUR 6,000,000
59
CASTELLANI LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT ZEGA LEASING-GESELLSCHAFT
M.B.H.
90.00
Issued Capital EUR 1,800,000
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
10.00
60
CHARADE LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
74.80
Issued Capital EUR 36,500
UNICREDIT LEASING (AUSTRIA) GMBH
25.00
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
61
CHEFREN LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
100.00
Issued Capital EUR 36,500
62
CIVITAS IMMOBILIEN LEASING GESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
63
COMMUNA - LEASING
GRUNDSTUECKSVERWALTUNGSGESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
REAL-LEASE GRUNDSTUECKSVERWALTUNGS-
GESELLSCHAFT M.B.H.
99.80
Issued Capital EUR 36,337
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
64
COMPAGNIA FONDIARIA ROMANA - SOCIETA' A
RESPONSABILITA' LIMITATA
ROME
ROME
ITALY
1
37
NUOVA COMPAGNIA DI PARTECIPAZIONI SPA
100.00
Issued Capital EUR 103,400
65
CONTRA LEASING-GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
74.80
Issued Capital EUR 36,500
JAUSERN-LEASING GESELLSCHAFT M.B.H.
25.00
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
66
CORDUSIO SOCIETA' FIDUCIARIA PER AZIONI
MILAN
MILAN
ITALY
1
3
UNICREDIT SPA
100.00
Issued Capital EUR 520,000
67
DIRANA
LIEGENSCHAFTSVERWERTUNGSGESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
38
UNIVERSALE INTERNATIONAL REALITAETEN
GMBH
100.00
Issued Capital EUR 35,000
374
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
OWNERSHIP RELATIONSHIP
COMPANY NAME
ADMINISTRATIVE
OFFICE
MAIN OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
BUSINESS
SECTOR (5)
HELD BY
HOLDING %
VOTING RIGHTS %
(2)
68
DLV IMMOBILIEN LEASING
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
90.00
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
10.00
69
DUODEC Z IMMOBILIEN LEASING
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
70
EBS FINANCE S.R.L.
MILAN
MILAN
ITALY
1
3
UNICREDIT SPA
100.00
Issued Capital EUR 10,000
71
EBS FINANCE S.R.L.
(PATR.SEPARATO)
MILAN
MILAN
ITALY
4
3
UNICREDIT SPA
...
(3)
72
ELEKTRA PURCHASE NO. 28 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
73
ELEKTRA PURCHASE NO. 31 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
74
ELEKTRA PURCHASE NO. 32 S.A. -
COMPARTMENT 1
LUXEMBOURG LUXEMBOURG
LUXEMBOURG
4
4
UNICREDIT BANK GMBH
...
(3)
75
ELEKTRA PURCHASE NO. 33 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
76
ELEKTRA PURCHASE NO. 350 DAC DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
77
ELEKTRA PURCHASE NO. 36 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
78
ELEKTRA PURCHASE NO. 37 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
79
ELEKTRA PURCHASE NO. 38 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
80
ELEKTRA PURCHASE NO. 43 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
81
ELEKTRA PURCHASE NO. 46 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
82
ELEKTRA PURCHASE NO. 54 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
83
ELEKTRA PURCHASE NO. 56 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
84
ELEKTRA PURCHASE NO. 69 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
85
ELEKTRA PURCHASE NO. 71 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
86
ELEKTRA PURCHASE NO. 74 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
87
ELEKTRA PURCHASE NO. 79 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
88
ELEKTRA PURCHASE NO. 82 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
89
EUROLEASE ANUBIS IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
90
EUROLEASE ISIS IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
91
EUROLEASE MARDUK IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
92
EUROLEASE RA IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT GARAGEN ERRICHTUNG UND
VERWERTUNG GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
93
EUROLEASE RAMSES IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
Issued Capital EUR 36,336
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
94
EUROPA BEFEKTETESI
ALAPKEZELOE ZRT (EUROPA
INVESTMENT FUND MANAGEMENT
LTD.)
BUDAPEST
BUDAPEST
HUNGARY
1
4
UNICREDIT TURN-AROUND MANAGEMENT CEE
GMBH
100.00
Issued Capital HUF 100,000,000
95
EUROPA INGATLANBEFEKTETESI
ALAP (EUROPE REAL-ESTATE
INVESTMENT FUND)
BUDAPEST
BUDAPEST
HUNGARY
4
4
UNICREDIT BANK HUNGARY ZRT.
...
(3)
96
F-E MORTGAGES SRL
(CARTOLARIZZAZIONE: F-E
MORTGAGES 2005)
VERONA
VERONA
ITALY
4
3
UNICREDIT SPA
...
(3)
97
FACTORBANK
AKTIENGESELLSCHAFT
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT BANK AUSTRIA AG
100.00
Issued Capital EUR 3,000,000
98
FINN ARSENAL LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
0.20
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
99.60
99
FOLIA LEASING GESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,336
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
99.80
375
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
OWNERSHIP RELATIONSHIP
COMPANY NAME
ADMINISTRATIVE
OFFICE
MAIN OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
BUSINESS
SECTOR (5) HELD BY
HOLDING
%
VOTING
RIGHTS % (2)
100 FONDO AURORA
MILAN
MILAN
ITALY
4
3
UNICREDIT SPA
...
(3)
101 GALA GRUNDSTUECKVERWALTUNG
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
CALG IMMOBILIEN LEASING GMBH
99.80
Issued Capital EUR 27,434
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
102 GEBAEUDELEASING
GRUNDSTUCKSVERWALTUNGSGESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
1.00
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
98.80
103 GEMEINDELEASING
GRUNDSTUECKVERWALTUNG GESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
25.00
Issued Capital EUR 18,333
CALG IMMOBILIEN LEASING GMBH
37.50
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
37.30
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
104 GEMMA VERWALTUNGSGESELLSCHAFT MBH &
CO. VERMIETUNGS KG
PULLACH
PULLACH
GERMANY
1
4
HVB PROJEKT GMBH
98.69
Issued Capital EUR 74,248,181
105 GRUNDSTUECKSVERWALTUNG LINZ-MITTE
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 35,000
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
106 H.F.S. IMMOBILIENFONDS GMBH
MUNICH
MUNICH
GERMANY
1
38
WEALTHCAP INVESTMENT SERVICES GMBH
100.00
Issued Capital EUR 25,565
107 H.F.S. LEASINGFONDS DEUTSCHLAND 7 GMBH
& CO. KG
MUNICH
MUNICH
GERMANY
1
4
HVB IMMOBILIEN AG
99.43
Issued Capital EUR 85,430,630
108 H.F.S. LEASINGFONDS GMBH
GRUENWALD GRUENWALD
GERMANY
1
38
WEALTHCAP INVESTMENT SERVICES GMBH
100.00
Issued Capital EUR 26,000
109 H.F.S. LEASINGFONDS GMBH & CO.
DEUTSCHLAND 10 KG
EBERSBERG
EBERSBERG
GERMANY
4
38
WEALTH MANAGEMENT CAPITAL HOLDING
GMBH
...
(3)
110 H.F.S. LEASINGFONDS GMBH & CO.
DEUTSCHLAND 11 KG
EBERSBERG
EBERSBERG
GERMANY
4
38
WEALTH MANAGEMENT CAPITAL HOLDING
GMBH
...
(3)
111 H.F.S. LEASINGFONDS GMBH & CO.
DEUTSCHLAND 12 KG
EBERSBERG
EBERSBERG
GERMANY
4
38
WEALTH MANAGEMENT CAPITAL HOLDING
GMBH
...
(3)
112 H.F.S. LEASINGFONDS GMBH & CO.
DEUTSCHLAND 8 KG
EBERSBERG
EBERSBERG
GERMANY
4
38
WEALTH MANAGEMENT CAPITAL HOLDING
GMBH
...
(3)
113 H.F.S. LEASINGFONDS GMBH & CO.
DEUTSCHLAND 9 KG
EBERSBERG
EBERSBERG
GERMANY
4
38
WEALTH MANAGEMENT CAPITAL HOLDING
GMBH
...
(3)
114 HVB IMMOBILIEN AG
MUNICH
MUNICH
GERMANY
1
4
UNICREDIT BANK GMBH
100.00
Issued Capital EUR 520,000
115 HVB PROJEKT GMBH
MUNICH
MUNICH
GERMANY
1
2
HVB IMMOBILIEN AG
90.00
Issued Capital EUR 25,633,778
UNICREDIT BANK GMBH
10.00
116 HVB TECTA GMBH
MUNICH
MUNICH
GERMANY
1
36
UNICREDIT BANK GMBH
6.00
Issued Capital EUR 1,534,000
HVB IMMOBILIEN AG
94.00
117 HVB VERWA 4 GMBH
MUNICH
MUNICH
GERMANY
1
4
UNICREDIT BANK GMBH
100.00
Issued Capital EUR 26,000
118 HVB VERWA 4.4 GMBH
MUNICH
MUNICH
GERMANY
1
4
HVB VERWA 4 GMBH
100.00
Issued Capital EUR 25,000
119 ICE CREEK POOL NO. 5 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
120 ICE CREEK POOL NO.1 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
121 IDEA FIMIT SGR FONDO SIGMA IMMOBILIARE
ROME
ROME
ITALY
4
3
UNICREDIT SPA
...
(3)
NUOVA COMPAGNIA DI PARTECIPAZIONI SPA
...
(3)
122 INTRO LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
PROJEKT-LEASE
GRUNDSTUECKSVERWALTUNGS-
GESELLSCHAFT M.B.H.
100.00
Issued Capital EUR 36,336
123 ISB UNIVERSALE BAU GMBH IN LIQUIDATION
BERLIN
BERLIN
GERMANY
1
38
UNIVERSALE INTERNATIONAL REALITAETEN
GMBH
100.00
Issued Capital EUR 6,288,890
124 JAUSERN-LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
100.00
Issued Capital EUR 36,336
376
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
OWNERSHIP RELATIONSHIP
COMPANY NAME
ADMINISTRATIVE
OFFICE
MAIN OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
BUSINESS
SECTOR (5) HELD BY
HOLDING
%
VOTING
RIGHTS % (2)
125 KAISERWASSER BAU- UND ERRICHTUNGS
GMBH UND CO OG
VIENNA
VIENNA
AUSTRIA
1
38
UNICREDIT BANK AUSTRIA AG
99.80
100.00
Issued Capital EUR 36,336
126 KUTRA GRUNDSTUECKSVERWALTUNGS-
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,337
CALG DELTA GRUNDSTUECKVERWALTUNG
GMBH
99.80
127 LAGEV IMMOBILIEN LEASING GESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
128 LARGO LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
VAPE COMMUNA LEASINGGESELLSCHAFT
M.B.H.
98.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
UNICREDIT LEASING (AUSTRIA) GMBH
1.00
129 LEASFINANZ ALPHA ASSETVERMIETUNG
GMBH
VIENNA
VIENNA
AUSTRIA
1
38
LEASFINANZ GMBH
100.00
Issued Capital EUR 35,000
130 LEASFINANZ GMBH
VIENNA
VIENNA
AUSTRIA
1
4
BACA LEASING UND
BETEILIGUNGSMANAGEMENT GMBH
100.00
Issued Capital EUR 218,019
131 LEGATO LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT LEASING (AUSTRIA) GMBH
25.00
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
74.80
132 LELEV IMMOBILIEN LEASING GESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
GALA GRUNDSTUECKVERWALTUNG
GESELLSCHAFT M.B.H.
99.80
133 LIPARK LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
25.00
Issued Capital EUR 36,500
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
74.80
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
134 LIVA IMMOBILIEN LEASING GESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT GARAGEN ERRICHTUNG UND
VERWERTUNG GMBH
99.80
135 M. A. V. 7., BANK AUSTRIA LEASING
BAUTRAEGER GMBH & CO.OG.
VIENNA
VIENNA
AUSTRIA
1
4
ALLEGRO LEASING GESELLSCHAFT M.B.H.
0.00
Issued Capital EUR 3,707
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
1.97
UNICREDIT LUNA LEASING GMBH
98.04
136 MBC IMMOBILIEN LEASING GESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
137 MENUETT GRUNDSTUECKSVERWALTUNGS-
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
Issued Capital EUR 36,337
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
138 MOMENTUM ALLWEATHER STRATEGIES -
LONG TERM STRATEG
HAMILTON
HAMILTON
BERMUDA
4
4
UNICREDIT SPA
...
(3)
139 MOMENTUM LONG TERM VALUE FUND
HAMILTON
HAMILTON
BERMUDA
4
4
UNICREDIT SPA
...
(3)
140 MONNET 8-10 S.A R.L. *
LUXEMBOURG LUXEMBOURG LUXEMBOURG
1
2
UNICREDIT BANK GMBH
100.00
Issued Capital EUR 60,000,000
141 NAGE LOKALVERMIETUNGSGESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT GARAGEN ERRICHTUNG UND
VERWERTUNG GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
142 NUOVA COMPAGNIA DI PARTECIPAZIONI SPA
ROME
ROME
ITALY
1
37
UNICREDIT SPA
100.00
Issued Capital EUR 200,000
143 OCT Z IMMOBILIEN LEASING GESELLSCHAFT
M.B.H
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT GARAGEN ERRICHTUNG UND
VERWERTUNG GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
144 OLG HANDELS- UND
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
100.00
Issued Capital EUR 36,336
145 OMNIA GRUNDSTUCKS-GMBH & CO. OBJEKT
HAIDENAUPLATZ KG
MUNICH
MUNICH
GERMANY
1
38
HVB IMMOBILIEN AG
94.00
Issued Capital EUR 26,000
UNICREDIT BANK GMBH
6.00
146 OOO UNICREDIT GARANT(4)
MOSCOW
MOSCOW
RUSSIA
1
2
OOO UNICREDIT LEASING
100.00
Issued Capital RUB 106,998,000
377
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
OWNERSHIP RELATIONSHIP
COMPANY NAME
ADMINISTRATIVE
OFFICE
MAIN OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
BUSINESS
SECTOR (5)
HELD BY
HOLDING %
VOTING RIGHTS %
(2)
147
OOO UNICREDIT LEASING(4)
MOSCOW
MOSCOW
RUSSIA
1
4
AO UNICREDIT BANK
100.00
Issued Capital RUB 149,160,248
148
ORBIT PERFORMANCE STRATEGIES
- ORBIT US CLASSE I U
HAMILTON
HAMILTON
BERMUDA
4
4
UNICREDIT SPA
...
(3)
149
OTHMARSCHEN PARK HAMBURG
GMBH & CO. GEWERBEPARK KG
MUNICH
MUNICH
GERMANY
1
38
HVB PROJEKT GMBH
10.00
Issued Capital EUR 51,129
T & P FRANKFURT DEVELOPMENT B.V.
30.00
T & P VASTGOED STUTTGART B.V.
60.00
150
PADEL FINANCE 01 DAC
DUBLIN
DUBLIN
IRELAND
4
4
UNICREDIT BANK GMBH
...
(3)
151
PAI (BERMUDA) LIMITED
HAMILTON
HAMILTON
BERMUDA
1
4
UNICREDIT SPA
100.00
Issued Capital USD 12,000
152
PAI MANAGEMENT LTD
DUBLIN
DUBLIN
IRELAND
1
4
UNICREDIT SPA
100.00
Issued Capital EUR 1,032,000
153
PALAIS ROTHSCHILD
VERMIETUNGS GMBH & CO OG
VIENNA
VIENNA
AUSTRIA
1
2
SCHOELLERBANK AKTIENGESELLSCHAFT
100.00
Issued Capital EUR 2,180,185
154
PAYTRIA
UNTERNEHMENSBETEILIGUNGEN
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT BANK AUSTRIA AG
100.00
Issued Capital EUR 36,336
155
PELOPS LEASING GESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
EUROLEASE RAMSES IMMOBILIEN LEASING
GESELLSCHAFT M.B.H.
99.80
Issued Capital EUR 36,337
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
156
PENSIONSKASSE DER HYPO
VEREINSBANK VVAG
MUNICH
MUNICH
GERMANY
4
38
UNICREDIT BANK GMBH
...
(3)
157
PIANA LEASING GESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
158
PIRTA VERWALTUNGS GMBH
VIENNA
VIENNA
AUSTRIA
1
38
UNICREDIT SPA
100.00
Issued Capital EUR 2,067,138
159
POLLUX IMMOBILIEN GMBH
VIENNA
VIENNA
AUSTRIA
1
2
UNICREDIT BANK AUSTRIA AG
99.80
Issued Capital EUR 36,500
PAYTRIA UNTERNEHMENSBETEILIGUNGEN
GMBH
0.20
160
POSATO LEASING GESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
25.00
Issued Capital EUR 36,500
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
74.80
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
161
PROJEKT-LEASE
GRUNDSTUECKSVERWALTUNGS-
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
25.00
Issued Capital EUR 36,500
ARNO GRUNDSTUECKSVERWALTUNGS
GESELLSCHAFT M.B.H.
74.80
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
162
QUADEC Z IMMOBILIEN LEASING
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
163
QUART Z IMMOBILIEN LEASING
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
CALG ANLAGEN LEASING GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
164
QUINT Z IMMOBILIEN LEASING
GESELLSCHAFT M.B.H
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
165
RANA-
LIEGENSCHAFTSVERWERTUNG
GMBH
VIENNA
VIENNA
AUSTRIA
1
38
UNIVERSALE INTERNATIONAL REALITAETEN
GMBH
99.90
Issued Capital EUR 72,700
166
REAL INVEST EUROPE DER BANK
AUSTRIA REAL INVEST IMMOBILIEN-
KAPI
VIENNA
VIENNA
AUSTRIA
4
4
UNICREDIT BANK AUSTRIA AG
...
(3)
167
REAL-LEASE
GRUNDSTUECKSVERWALTUNGS-
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT GARAGEN ERRICHTUNG UND
VERWERTUNG GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
168
REAL-RENT LEASING
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
Issued Capital EUR 73,000
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
169
REDEUS FUND
MILAN
MILAN
ITALY
4
3
UNICREDIT SPA
...
(3)
378
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
OWNERSHIP RELATIONSHIP
COMPANY NAME
ADMINISTRATIVE
OFFICE
MAIN OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
BUSINESS
SECTOR (5)
HELD BY
HOLDING %
VOTING RIGHTS % (2)
170
ROLIN GRUNDSTUCKSPLANUNGS-
UND -VERWALTUNGSGESELLSCHAFT
MBH
MUNICH
MUNICH
GERMANY
1
38
WEALTHCAP INVESTMENT SERVICES
GMBH
100.00
Issued Capital EUR 30,677
171
ROSENKAVALIER 2008 GMBH
FRANKFURT
FRANKFURT
GERMANY
4
4
UNICREDIT BANK GMBH
...
(3)
172
ROSENKAVALIER 2015 UG
FRANKFURT
FRANKFURT
GERMANY
4
4
UNICREDIT BANK GMBH
...
(3)
173
ROSENKAVALIER 2020 UG
FRANKFURT
FRANKFURT
GERMANY
4
4
UNICREDIT BANK GMBH
...
(3)
174
ROSENKAVALIER 2022 UG
FRANKFURT
FRANKFURT
GERMANY
4
4
UNICREDIT BANK GMBH
...
(3)
175
SCHOELLERBANK
AKTIENGESELLSCHAFT
VIENNA
VIENNA
AUSTRIA
1
2
UNICREDIT BANK AUSTRIA AG
99.99
Issued Capital EUR 20,000,000
PAYTRIA
UNTERNEHMENSBETEILIGUNGEN
GMBH
0.01
176
SCHOELLERBANK INVEST AG
SALZBURG
SALZBURG
AUSTRIA
1
4
SCHOELLERBANK
AKTIENGESELLSCHAFT
100.00
Issued Capital EUR 2,543,549
177
SECA-LEASING GESELLSCHAFT
M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA)
GMBH
25.00
Issued Capital EUR 36,500
CALG DELTA
GRUNDSTUECKVERWALTUNG GMBH
74.80
UCLA IMMO-BETEILIGUNGSHOLDUNG
GMBH & CO KG
0.20
178
SEDEC Z IMMOBILIEN LEASING
GESELLSCHAFT M.B.H. IN LIQU.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT GARAGEN ERRICHTUNG
UND VERWERTUNG GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG
GMBH & CO KG
0.20
179
SEXT Z IMMOBILIEN LEASING
GESELLSCHAFT M.B.H
VIENNA
VIENNA
AUSTRIA
1
4
CALG DELTA
GRUNDSTUECKVERWALTUNG GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG
GMBH & CO KG
0.20
180
SIGMA LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA)
GMBH
0.40
Issued Capital EUR 18,286
CALG ANLAGEN LEASING GMBH
99.40
UCLA IMMO-BETEILIGUNGSHOLDUNG
GMBH & CO KG
0.20
181
SPECTRUM
GRUNDSTUECKSVERWALTUNGS-
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
WOEM
GRUNDSTUECKSVERWALTUNGS-
GESELLSCHAFT M.B.H.
100.00
Issued Capital EUR 36,336
182
STEWE
GRUNDSTUECKSVERWALTUNGS-
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT GARAGEN ERRICHTUNG
UND VERWERTUNG GMBH
75.80
Issued Capital EUR 36,337
PROJEKT-LEASE
GRUNDSTUECKSVERWALTUNGS-
GESELLSCHAFT M.B.H.
24.00
UCLA IMMO-BETEILIGUNGSHOLDUNG
GMBH & CO KG
0.20
183
STRUCTURED INVEST SOCIETE
ANONYME
LUXEMBOURG LUXEMBOURG
LUXEMBOURG
1
4
UNICREDIT INTERNATIONAL BANK
(LUXEMBOURG) SA
100.00
Issued Capital EUR 125,500
184
T & P FRANKFURT DEVELOPMENT
B.V.
AMSTERDAM
AMSTERDAM
NETHERLANDS
1
38
HVB PROJEKT GMBH
100.00
Issued Capital EUR 4,938,271
185
T & P VASTGOED STUTTGART B.V.
AMSTERDAM
AMSTERDAM
NETHERLANDS
1
38
HVB PROJEKT GMBH
87.50
Issued Capital EUR 10,769,773
186
TERRENO
GRUNDSTUCKSVERWALTUNG GMBH
& CO. ENTWICKLUNGS- UND
FINANZIERUNGSVERMITTLUNGS-KG
MUNICH
MUNICH
GERMANY
1
38
HVB TECTA GMBH
75.00
Issued Capital EUR 920,400
187
TERZ Z IMMOBILIEN LEASING
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT GARAGEN ERRICHTUNG
UND VERWERTUNG GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG
GMBH & CO KG
0.20
188
UCLA AM WINTERHAFEN 11
IMMOBILIENLEASING GMBH & CO OG
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT ZEGA LEASING-
GESELLSCHAFT M.B.H.
50.00
Issued Capital EUR 0
UNICREDIT PEGASUS LEASING
GMBH
50.00
189
UCLA IMMO-BETEILIGUNGSHOLDUNG
GMBH & CO KG
VIENNA
VIENNA
AUSTRIA
1
4
BA EUROLEASE
BETEILIGUNGSGESELLSCHAFT
M.B.H.
90.00
Issued Capital EUR 10,000
BA-CA ANDANTE LEASING GMBH
10.00
190
UCTAM RU LIMITED LIABILITY
COMPANY(4)
MOSCOW
MOSCOW
RUSSIA
1
38
UNICREDIT TURN-AROUND
MANAGEMENT CEE GMBH
100.00
Issued Capital RUB 4,000,000
191
UFFICIUM IMMOBILIEN LEASING
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
KUTRA
GRUNDSTUECKSVERWALTUNGS-
GESELLSCHAFT M.B.H.
5.00
Issued Capital EUR 36,337
UNICREDIT LEASING (AUSTRIA)
GMBH
95.00
192
UNICOM IMMOBILIEN LEASING
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA)
GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG
GMBH & CO KG
0.20
379
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
OWNERSHIP RELATIONSHIP
COMPANY NAME
ADMINISTRATIVE
OFFICE
MAIN OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
BUSINESS
SECTOR (5)
HELD BY
HOLDING % VOTING RIGHTS % (2)
193
UNICREDIT ACHTERHAUS LEASING
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT ZEGA LEASING-
GESELLSCHAFT M.B.H.
90.00
Issued Capital EUR 35,000
UCLA IMMO-BETEILIGUNGSHOLDUNG
GMBH & CO KG
10.00
194
UNICREDIT AURORA LEASING GMBH VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA)
GMBH
100.00
Issued Capital EUR 219,000
195
UNICREDIT BANK A.D. BANJA LUKA
BANJA LUKA
BANJA LUKA
BOSNIA AND
HERZEGOVINA
1
2
UNICREDIT SPA
99.64
Issued Capital BAM 97,055,000
196
UNICREDIT BANK AUSTRIA AG
VIENNA
VIENNA
AUSTRIA
1
2
UNICREDIT SPA
100.00
Issued Capital EUR 1,681,033,521
197
UNICREDIT BANK CZECH REPUBLIC
AND SLOVAKIA, A.S.
PRAGUE
PRAGUE
CZECH
REPUBLIC
1
2
UNICREDIT SPA
100.00
Issued Capital CZK 8,754,617,898
198
UNICREDIT BANK D.D.
MOSTAR
MOSTAR
BOSNIA AND
HERZEGOVINA
1
2
ZAGREBACKA BANKA D.D.
99.30
99.31
Issued Capital BAM 119,195,000
199
UNICREDIT BANK GMBH
MUNICH
MUNICH
GERMANY
1
2
UNICREDIT SPA
100.00
Issued Capital EUR 2,407,151,016
200
UNICREDIT BANK HUNGARY ZRT.
BUDAPEST
BUDAPEST
HUNGARY
1
2
UNICREDIT SPA
100.00
Issued Capital HUF 24,118,220,000
201
UNICREDIT BANK S.A.
BUCHAREST
BUCHAREST
ROMANIA
1
2
UNICREDIT SPA
88.73
Issued Capital RON 1,177,748,253
202
UNICREDIT BANK SERBIA JSC
BELGRADE
BELGRADE
SERBIA
1
2
UNICREDIT SPA
100.00
Issued Capital RSD 23,607,620,000
203
UNICREDIT BANKA SLOVENIJA D.D.
LJUBLJANA
LJUBLJANA
SLOVENIA
1
2
UNICREDIT SPA
100.00
Issued Capital EUR 20,383,698
204
UNICREDIT BPC MORTAGE SRL
(COVERED BONDS)
VERONA
VERONA
ITALY
4
3
UNICREDIT SPA
...
(3)
205
UNICREDIT BPC MORTGAGE S.R.L.
VERONA
VERONA
ITALY
1
3
UNICREDIT SPA
60.00
Issued Capital EUR 12,000
206
UNICREDIT BROKER S.R.O.
BRATISLAVA
BRATISLAVA
SLOVAKIA
1
36
UNICREDIT LEASING SLOVAKIA A.S.
100.00
Issued Capital EUR 8,266
207
UNICREDIT BULBANK AD
SOFIA
SOFIA
BULGARIA
1
2
UNICREDIT SPA
99.45
Issued Capital BGN 285,776,674
208
UNICREDIT CAPITAL MARKETS LLC
NEW YORK
NEW YORK
U.S.A.
1
4
UNICREDIT U.S. FINANCE LLC
100.00
Issued Capital USD 100,100
209
UNICREDIT CENTER AM
KAISERWASSER GMBH
VIENNA
VIENNA
AUSTRIA
1
38
UNICREDIT BANK AUSTRIA AG
100.00
Issued Capital EUR 35,000
210
UNICREDIT CONSUMER FINANCING
EAD
SOFIA
SOFIA
BULGARIA
1
4
UNICREDIT BULBANK AD
100.00
Issued Capital BGN 2,800,000
211
UNICREDIT CONSUMER FINANCING
IFN S.A.
BUCHAREST
BUCHAREST
ROMANIA
1
4
UNICREDIT SPA
49.90
Issued Capital RON 103,269,200
UNICREDIT BANK S.A.
50.10
212
UNICREDIT DIRECT SERVICES GMBH MUNICH
MUNICH
GERMANY
1
2
UNICREDIT BANK GMBH
100.00
Issued Capital EUR 767,000
213
UNICREDIT FACTORING CZECH
REPUBLIC AND SLOVAKIA, A.S.
PRAGUE
PRAGUE
CZECH
REPUBLIC
1
4
UNICREDIT BANK CZECH REPUBLIC
AND SLOVAKIA, A.S.
100.00
Issued Capital CZK 222,600,000
214
UNICREDIT FACTORING SPA
MILAN
MILAN
ITALY
1
3
UNICREDIT SPA
100.00
Issued Capital EUR 414,348,000
215
UNICREDIT FLEET MANAGEMENT
EOOD
SOFIA
SOFIA
BULGARIA
1
2
UNICREDIT BULBANK AD
100.00
Issued Capital BGN 100,000
380
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
OWNERSHIP RELATIONSHIP
COMPANY NAME
ADMINISTRATIVE
OFFICE
MAIN OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
BUSINESS
SECTOR (5)
HELD BY
HOLDING %
VOTING RIGHTS %
(2)
216
UNICREDIT FLEET MANAGEMENT
S.R.O.
BRATISLAVA
BRATISLAVA
SLOVAKIA
1
38
UNICREDIT LEASING SLOVAKIA A.S.
100.00
Issued Capital EUR 6,639
217
UNICREDIT FLEET MANAGEMENT
S.R.O.
PRAGUE
PRAGUE
CZECH
REPUBLIC
1
38
UNICREDIT LEASING CZ, A.S.
100.00
Issued Capital CZK 5,000,000
218
UNICREDIT GARAGEN
ERRICHTUNG UND VERWERTUNG
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
EUROLEASE RAMSES IMMOBILIEN LEASING
GESELLSCHAFT M.B.H.
99.80
Issued Capital EUR 57,000
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
219
UNICREDIT GUSTRA LEASING
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT PEGASUS LEASING GMBH
90.00
Issued Capital EUR 35,000
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
10.00
220
UNICREDIT HAMRED LEASING
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT PEGASUS LEASING GMBH
90.00
Issued Capital EUR 35,000
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
10.00
221
UNICREDIT INSURANCE BROKER
EOOD
SOFIA
SOFIA
BULGARIA
1
36
UNICREDIT LEASING EAD
100.00
Issued Capital BGN 5,000
222
UNICREDIT INSURANCE BROKER
GMBH
VIENNA
VIENNA
AUSTRIA
1
36
PIRTA VERWALTUNGS GMBH
100.00
Issued Capital EUR 156,905
223
UNICREDIT INSURANCE BROKER
SRL
BUCHAREST
BUCHAREST
ROMANIA
1
36
UNICREDIT LEASING CORPORATION IFN S.A.
100.00
Issued Capital RON 150,000
224
UNICREDIT INTERNATIONAL BANK
(LUXEMBOURG) SA
LUXEMBOURG LUXEMBOURG
LUXEMBOURG
1
2
UNICREDIT SPA
100.00
Issued Capital EUR 13,406,600
225
UNICREDIT JELZALOGBANK ZRT. BUDAPEST
BUDAPEST
HUNGARY
1
2
UNICREDIT BANK HUNGARY ZRT.
100.00
Issued Capital HUF 3,000,000,000
226
UNICREDIT KFZ LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
GALA GRUNDSTUECKVERWALTUNG
GESELLSCHAFT M.B.H.
100.00
Issued Capital EUR 648,000
227
UNICREDIT LEASED ASSET
MANAGEMENT SPA
MILAN
MILAN
ITALY
1
1
UNICREDIT LEASING SPA
100.00
Issued Capital EUR 1,000,000
228
UNICREDIT LEASING (AUSTRIA)
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT BANK AUSTRIA AG
89.98
Issued Capital EUR 17,296,134
PAYTRIA UNTERNEHMENSBETEILIGUNGEN
GMBH
0.02
BA-CA MARKETS & INVESTMENT BETEILIGUNG
GES.M.B.H.
10.00
229
UNICREDIT LEASING ALPHA
ASSETVERMIETUNG GMBH
VIENNA
VIENNA
AUSTRIA
1
38
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
100.00
Issued Capital EUR 35,000
230
UNICREDIT LEASING
CORPORATION IFN S.A.
BUCHAREST
BUCHAREST
ROMANIA
1
4
UNICREDIT CONSUMER FINANCING IFN S.A.
0.05
Issued Capital RON 90,989,013
UNICREDIT BANK S.A.
99.96
231
UNICREDIT LEASING CROATIA
D.O.O. ZA LEASING
ZAGREB
ZAGREB
CROATIA
1
4
ZAGREBACKA BANKA D.D.
100.00
Issued Capital EUR 3,810,000
232
UNICREDIT LEASING CZ, A.S.
PRAGUE
PRAGUE
CZECH
REPUBLIC
1
4
UNICREDIT BANK CZECH REPUBLIC AND
SLOVAKIA, A.S.
100.00
Issued Capital CZK 981,452,000
233
UNICREDIT LEASING EAD
SOFIA
SOFIA
BULGARIA
1
4
UNICREDIT BULBANK AD
100.00
Issued Capital BGN 2,605,000
234
UNICREDIT LEASING FINANCE
GMBH
HAMBURG
HAMBURG
GERMANY
1
2
UNICREDIT LEASING GMBH
100.00
Issued Capital EUR 17,580,000
235
UNICREDIT LEASING FLEET
MANAGEMENT S.R.L.
BUCHAREST
BUCHAREST
ROMANIA
1
38
PIRTA VERWALTUNGS GMBH
90.02
Issued Capital RON 680,000
UNICREDIT LEASING CORPORATION IFN S.A.
9.99
236
UNICREDIT LEASING GMBH
HAMBURG
HAMBURG
GERMANY
1
4
UNICREDIT BANK GMBH
100.00
Issued Capital EUR 15,000,000
237
UNICREDIT LEASING HUNGARY
ZRT
BUDAPEST
BUDAPEST
HUNGARY
1
4
UNICREDIT BANK HUNGARY ZRT.
100.00
Issued Capital HUF 50,000,000
381
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
OWNERSHIP RELATIONSHIP
COMPANY NAME
ADMINISTRATIVE
OFFICE
MAIN OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
BUSINESS
SECTOR (5)
HELD BY
HOLDING %
VOTING RIGHTS %
(2)
238
UNICREDIT LEASING INSURANCE
SERVICES S.R.O.
BRATISLAVA
BRATISLAVA
SLOVAKIA
1
38
UNICREDIT LEASING SLOVAKIA A.S.
100.00
Issued Capital EUR 5,000
239
UNICREDIT LEASING SLOVAKIA A.S. BRATISLAVA
BRATISLAVA
SLOVAKIA
1
4
UNICREDIT LEASING CZ, A.S.
100.00
Issued Capital EUR 26,560,000
240
UNICREDIT LEASING SPA
MILAN
MILAN
ITALY
1
3
UNICREDIT SPA
100.00
Issued Capital EUR 1,106,877,000
241
UNICREDIT LEASING SRBIJA D.O.O.
BEOGRAD
BELGRADE
BELGRADE
SERBIA
1
4
UNICREDIT BANK SERBIA JSC
100.00
Issued Capital RSD 1,078,133,000
242
UNICREDIT LEASING TECHNIKUM
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
LEASFINANZ GMBH
99.80
Issued Capital EUR 35,000
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
243
UNICREDIT LUNA LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
244
UNICREDIT MOBILIEN UND KFZ
LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
1.00
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
98.80
245
UNICREDIT OBG S.R.L.
VERONA
VERONA
ITALY
1
3
UNICREDIT SPA
60.00
Issued Capital EUR 10,000
246
UNICREDIT OBG SRL (COVERED
BONDS)
VERONA
VERONA
ITALY
4
3
UNICREDIT SPA
...
(3)
247
UNICREDIT OK1 LEASING GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT ZEGA LEASING-GESELLSCHAFT
M.B.H.
90.00
Issued Capital EUR 35,000
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
10.00
248
UNICREDIT PEGASUS LEASING
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
CALG IMMOBILIEN LEASING GMBH
74.80
UNICREDIT LEASING (AUSTRIA) GMBH
25.00
249
UNICREDIT POJISTOVACI
MAKLERSKA SPOL.S R.O.
PRAGUE
PRAGUE
CZECH
REPUBLIC
1
36
UNICREDIT LEASING CZ, A.S.
100.00
Issued Capital CZK 510,000
250
UNICREDIT POLARIS LEASING
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
251
UNICREDIT RE SERVICES S.P.A.
MILAN
MILAN
ITALY
1
37
UNICREDIT SPA
100.00
Issued Capital EUR 500,000
252
UNICREDIT SERVICES GMBH I.L. (IN
LIQUIDATION)
VIENNA
VIENNA
AUSTRIA
1
2
UNICREDIT SPA
100.00
Issued Capital EUR 1,200,000
253
UNICREDIT STERNECK LEASING
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT PEGASUS LEASING GMBH
90.00
Issued Capital EUR 35,000
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
10.00
254
UNICREDIT TECHRENT LEASING
GMBH
VIENNA
VIENNA
AUSTRIA
1
4
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
99.00
Issued Capital EUR 36,336
UNICREDIT LEASING (AUSTRIA) GMBH
1.00
255
UNICREDIT TURN-AROUND
MANAGEMENT CEE GMBH
VIENNA
VIENNA
AUSTRIA
1
38
UNICREDIT SPA
100.00
Issued Capital EUR 750,000
256
UNICREDIT U.S. FINANCE LLC
WILMINGTON
WILMINGTON
U.S.A.
1
4
UNICREDIT BANK GMBH
100.00
Issued Capital USD 130
257
UNICREDIT ZEGA LEASING-
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
258
UNIVERSALE INTERNATIONAL
REALITAETEN GMBH
VIENNA
VIENNA
AUSTRIA
1
38
UNICREDIT BANK AUSTRIA AG
100.00
Issued Capital EUR 32,715,000
259
V.M.G.
VERMIETUNGSGESELLSCHAFT
MBH
MUNICH
MUNICH
GERMANY
1
38
WEALTHCAP INVESTMENT SERVICES GMBH
100.00
Issued Capital EUR 25,565
382
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
OWNERSHIP RELATIONSHIP
COMPANY NAME
ADMINISTRATIVE
OFFICE
MAIN OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
BUSINESS
SECTOR (5)
HELD BY
HOLDING %
VOTING RIGHTS
% (2)
260
VAPE COMMUNA
LEASINGGESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA) GMBH
25.00
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
BETEILIGUNGSVERWALTUNGSGESELLSCHAFT
DER BANK AUSTRIA CREDITANSTALT LEASING
GMBH
74.80
261
VERMIETUNGSGESELLSCHAFT MBH &
CO OBJEKT MOC KG
MUNICH
MUNICH
GERMANY
1
38
HVB IMMOBILIEN AG
89.29
89.23
Issued Capital EUR 48,728,161
262
VISCONTI SRL
MILAN
MILAN
ITALY
1
37
UNICREDIT SPA
76.00
Issued Capital EUR 11,000,000
263
WEALTH MANAGEMENT CAPITAL
HOLDING GMBH
MUNICH
MUNICH
GERMANY
1
4
UNICREDIT BANK GMBH
100.00
Issued Capital EUR 26,000
264
WEALTHCAP ENTITY SERVICE GMBH
MUNICH
MUNICH
GERMANY
1
38
WEALTHCAP REAL ESTATE MANAGEMENT
GMBH
100.00
Issued Capital EUR 25,000
265
WEALTHCAP EQUITY GMBH
MUNICH
MUNICH
GERMANY
1
4
WEALTHCAP INITIATOREN GMBH
100.00
Issued Capital EUR 500,000
266
WEALTHCAP EQUITY MANAGEMENT
GMBH
MUNICH
MUNICH
GERMANY
1
36
WEALTHCAP EQUITY GMBH
100.00
Issued Capital EUR 25,000
267
WEALTHCAP FONDS GMBH
MUNICH
MUNICH
GERMANY
1
4
WEALTHCAP INITIATOREN GMBH
100.00
Issued Capital EUR 512,000
268
WEALTHCAP IMMOBILIEN 1 GMBH & CO.
KG
MUNICH
MUNICH
GERMANY
1
36
WEALTHCAP REAL ESTATE MANAGEMENT
GMBH
100.00
50.00
Issued Capital EUR 5,000
269
WEALTHCAP IMMOBILIEN 2 GMBH & CO.
KG
MUNICH
MUNICH
GERMANY
1
36
WEALTHCAP REAL ESTATE MANAGEMENT
GMBH
94.34
50.00
Issued Capital EUR 10,600
WEALTHCAP VORRATS-2 GMBH
5.66
50.00
270
WEALTHCAP IMMOBILIEN 43
KOMPLEMENTAER GMBH
MUNICH
MUNICH
GERMANY
1
38
WEALTHCAP ENTITY SERVICE GMBH
100.00
Issued Capital EUR 25,000
271
WEALTHCAP IMMOBILIENANKAUF
KOMPLEMENTAER GMBH
MUNICH
MUNICH
GERMANY
1
38
WEALTHCAP ENTITY SERVICE GMBH
100.00
Issued Capital EUR 25,000
272
WEALTHCAP IMMOBILIENFONDS
DEUTSCHLAND 36 KOMPLEMENTAR
GMBH
MUNICH
MUNICH
GERMANY
1
38
H.F.S. LEASINGFONDS GMBH
100.00
Issued Capital EUR 25,565
273
WEALTHCAP IMMOBILIENFONDS
DEUTSCHLAND 38 KOMPLEMENTAR
GMBH
MUNICH
MUNICH
GERMANY
1
38
WEALTHCAP ENTITY SERVICE GMBH
100.00
Issued Capital EUR 25,000
274
WEALTHCAP INITIATOREN GMBH
MUNICH
MUNICH
GERMANY
1
4
WEALTH MANAGEMENT CAPITAL HOLDING
GMBH
100.00
Issued Capital EUR 1,533,876
275
WEALTHCAP INVESTMENT SERVICES
GMBH
MUNICH
MUNICH
GERMANY
1
4
UNICREDIT BANK GMBH
10.00
Issued Capital EUR 4,000,000
WEALTH MANAGEMENT CAPITAL HOLDING
GMBH
90.00
276
WEALTHCAP INVESTMENTS INC.
WILMINGTON
WILMINGTON
U.S.A.
1
38
WEALTHCAP FONDS GMBH
100.00
Issued Capital USD 312,000
277
WEALTHCAP INVESTORENBETREUUNG
GMBH
MUNICH
MUNICH
GERMANY
1
4
WEALTHCAP INVESTMENT SERVICES GMBH
100.00
Issued Capital EUR 60,000
278
WEALTHCAP
KAPITALVERWALTUNGSGESELLSCHAFT
MBH
GRUENWALD
GRUENWALD
GERMANY
1
4
WEALTH MANAGEMENT CAPITAL HOLDING
GMBH
100.00
Issued Capital EUR 125,000
279
WEALTHCAP LEASING GMBH
GRUENWALD
GRUENWALD
GERMANY
1
4
WEALTH MANAGEMENT CAPITAL HOLDING
GMBH
100.00
Issued Capital EUR 25,000
280
WEALTHCAP MANAGEMENT SERVICES
GMBH
MUNICH
MUNICH
GERMANY
1
4
WEALTHCAP PEIA MANAGEMENT GMBH
100.00
Issued Capital EUR 50,000
281
WEALTHCAP OBJEKT STUTTGART III
GMBH & CO. KG
MUNICH
MUNICH
GERMANY
1
38
WEALTHCAP IMMOBILIEN 1 GMBH & CO. KG
10.10
33.33
Issued Capital EUR 10,000
WEALTHCAP REAL ESTATE MANAGEMENT
GMBH
89.90
33.33
383
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
OWNERSHIP RELATIONSHIP
COMPANY NAME
ADMINISTRATIVE
OFFICE
MAIN OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
BUSINESS
SECTOR (5)
HELD BY
HOLDING %
VOTING RIGHTS
% (2)
282
WEALTHCAP OBJEKT-VORRAT 35
GMBH & CO. KG
MUNICH
MUNICH
GERMANY
1
36
WEALTHCAP
KAPITALVERWALTUNGSGESELLSCHAFT MBH
79.80
25.00
Issued Capital EUR 10,000
WEALTHCAP IMMOBILIEN 1 GMBH & CO. KG
10.10
25.00
WEALTHCAP IMMOBILIEN 2 GMBH & CO. KG
10.10
25.00
283
WEALTHCAP OBJEKT-VORRAT 37
GMBH & CO. KG
MUNICH
MUNICH
GERMANY
1
36
WEALTHCAP
KAPITALVERWALTUNGSGESELLSCHAFT MBH
79.80
25.00
Issued Capital EUR 10,000
WEALTHCAP IMMOBILIEN 1 GMBH & CO. KG
10.10
25.00
WEALTHCAP IMMOBILIEN 2 GMBH & CO. KG
10.10
25.00
284
WEALTHCAP PEIA KOMPLEMENTAR
GMBH
GRUENWALD
GRUENWALD
GERMANY
1
38
WEALTHCAP PEIA MANAGEMENT GMBH
100.00
Issued Capital EUR 26,000
285
WEALTHCAP PEIA MANAGEMENT
GMBH
MUNICH
MUNICH
GERMANY
1
4
UNICREDIT BANK GMBH
6.00
Issued Capital EUR 1,023,000
WEALTH MANAGEMENT CAPITAL HOLDING
GMBH
94.00
286
WEALTHCAP REAL ESTATE
MANAGEMENT GMBH
MUNICH
MUNICH
GERMANY
1
4
WEALTHCAP INVESTMENT SERVICES GMBH
100.00
Issued Capital EUR 60,000
287
WEALTHCAP SPEZIAL- AIF-SV
BUERO 8
GRUENWALD
GRUENWALD
GERMANY
4
4
WEALTH MANAGEMENT CAPITAL HOLDING
GMBH
...
(3)
288
WEALTHCAP VORRATS-2 GMBH
MUNICH
MUNICH
GERMANY
1
36
WEALTHCAP FONDS GMBH
100.00
Issued Capital EUR 25,000
289
WEICKER S.A R.L. *
LUXEMBOURG LUXEMBOURG
LUXEMBOURG
1
38
UNICREDIT BANK GMBH
100.00
Issued Capital EUR 20,658,840
290
WOEM
GRUNDSTUECKSVERWALTUNGS-
GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,336
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
291
Z LEASING ALFA IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
292
Z LEASING ARKTUR IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
293
Z LEASING AURIGA IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT GARAGEN ERRICHTUNG UND
VERWERTUNG GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
294
Z LEASING DORADO IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
CALG GRUNDSTUECKVERWALTUNG GMBH
99.80
295
Z LEASING DRACO IMMOBILIEN
LEASING GESELLSCHAFT M.B.H. IN
LIQU.
VIENNA
VIENNA
AUSTRIA
1
4
GALA GRUNDSTUECKVERWALTUNG
GESELLSCHAFT M.B.H.
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
296
Z LEASING GAMA IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
297
Z LEASING GEMINI IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT GARAGEN ERRICHTUNG UND
VERWERTUNG GMBH
99.80
298
Z LEASING HEBE IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
GEBAEUDELEASING
GRUNDSTUCKSVERWALTUNGSGESELLSCHAFT
M.B.H.
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
299
Z LEASING HERCULES IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT GARAGEN ERRICHTUNG UND
VERWERTUNG GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
300
Z LEASING IPSILON IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT GARAGEN ERRICHTUNG UND
VERWERTUNG GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
301
Z LEASING ITA IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
GALA GRUNDSTUECKVERWALTUNG
GESELLSCHAFT M.B.H.
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
302
Z LEASING JANUS IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
GALA GRUNDSTUECKVERWALTUNG
GESELLSCHAFT M.B.H.
99.80
303
Z LEASING KALLISTO IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG GMBH &
CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT LEASING (AUSTRIA) GMBH
99.80
384
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
OWNERSHIP RELATIONSHIP
COMPANY NAME
ADMINISTRATIVE
OFFICE
MAIN OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
BUSINESS
SECTOR (5)
HELD BY
HOLDING %
VOTING RIGHTS % (2)
304
Z LEASING KAPA IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
GALA GRUNDSTUECKVERWALTUNG
GESELLSCHAFT M.B.H.
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG
GMBH & CO KG
0.20
305
Z LEASING LYRA IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
GALA GRUNDSTUECKVERWALTUNG
GESELLSCHAFT M.B.H.
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG
GMBH & CO KG
0.20
306
Z LEASING NEREIDE IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG
GMBH & CO KG
0.20
Issued Capital EUR 36,500
UNICREDIT LEASING (AUSTRIA)
GMBH
99.80
307
Z LEASING OMEGA IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UCLA IMMO-BETEILIGUNGSHOLDUNG
GMBH & CO KG
0.20
Issued Capital EUR 36,500
CALG DELTA
GRUNDSTUECKVERWALTUNG GMBH
99.80
308
Z LEASING PERSEUS IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT ZEGA LEASING-
GESELLSCHAFT M.B.H.
90.00
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG
GMBH & CO KG
10.00
309
Z LEASING VENUS IMMOBILIEN
LEASING GESELLSCHAFT M.B.H.
VIENNA
VIENNA
AUSTRIA
1
4
UNICREDIT LEASING (AUSTRIA)
GMBH
99.80
Issued Capital EUR 36,500
UCLA IMMO-BETEILIGUNGSHOLDUNG
GMBH & CO KG
0.20
310
ZAGREBACKA BANKA D.D.
ZAGREB
ZAGREB
CROATIA
1
2
UNICREDIT SPA
96.19
Issued Capital EUR 850,068,233
311
ZAPADNI TRGOVACKI CENTAR D.O.O. RIJEKA
RIJEKA
CROATIA
1
38
UNIVERSALE INTERNATIONAL
REALITAETEN GMBH
100.00
Issued Capital EUR 2,655
312
ZB EPLUS
ZAGREB
ZAGREB
CROATIA
4
4
ZAGREBACKA BANKA D.D.
...
(3)
Notes to the table showing the investments in subsidiaries:
(1) Type of relationship:
1= majority of voting rights at ordinary shareholders’ meeting;
2= dominant influence at ordinary shareholders’ meeting;
3= agreements with other shareholders;
4= other types of control;
5= centralised management pursuant to paragraph 1 of Art.39 of “Legislative decree 136/2015”;
6= centralised management pursuant to paragraph 2 of Art.39 of “Legislative decree 136/2015”;
(2) Voting rights available in general meeting. Voting rights are disclosed only if different from the percentage of ownership.
(3) Companies consolidated line by line under IFRS10 as a result of the simultaneous availability of power to govern the relevant activities and exposures to variability of related returns.
(4) It should be noted that as at 31 December 2024 the voting rights that can be exercised directly or indirectly relating to subsidiaries based in Russia, or companies subject to significant influence by them, are enforceable
and there are no indications that lead to reconsider the effectiveness of the shareholding relationship with these companies on the same date.
(5) Business sector:
1= Banking Group: resident banks and ancillary companies
2= Banking Group: non resident banks and ancillary companies
3= Banking Group: resident financial companies
4= Banking Group: non resident financial companies
31= Other companies included in the consolidation scope: resident insurance companies
32= Other companies included in the consolidation scope: non resident insurance companies
33= Other companies included in the consolidation scope: resident banks
34= Other companies included in the consolidation scope: non resident banks
35= Other companies included in the consolidation scope: resident financial companies
36= Other companies included in the consolidation scope: non resident financial companies
37= Other companies included in the consolidation scope: resident non financial companies
38= Other companies included in the consolidation scope: non resident non financial companies
385
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Changes in the scope of consolidation
Companies consolidated line by line, including the Parent Company and those ones classified as non-current assets and asset disposal groups,
decreased by 13 entities compared with 31 December 2023 (4 inclusions and 17 exclusions as a result of disposals, changes of the consolidation
method and mergers), from 325 as at 31 December 2023 to 312 as at 31 December 2024.
Wholly-owned subsidiaries
The following table shows the changes in equity investments in wholly-owned subsidiaries.
Equity investments in wholly-owned subsidiaries (consolidated line by line): annual changes
NUMBER OF COMPANIES
A. Opening balance (from previous year)
325
B. Increased by
4
B.1 Newly established companies
2
B.2 Change of the consolidation method
-
B.3 Entities consolidated for the first time in the year
2
C. Reduced by
17
C.1 Disposal/Liquidation
6
C.2 Change of the consolidation method
8
C.3 Mergers in other Group entities
3
D. Closing balance
312
The tables below analyse the other increases and decreases occurred during the year by company.
Increases
Newly established companies
COMPANY NAME
MAIN OFFICE
REDEUS FUND
MILAN
ELEKTRA PURCHASE NO. 82 DAC
DUBLIN
Entities consolidated for the first time in the year
COMPANY NAME
MAIN OFFICE
FONDO AURORA
MILAN
ALPHA BANK ROMANIA S.A.
BUCHAREST
Reductions
Disposal/Liquidation
COMPANY NAME
MAIN OFFICE
COMPANY NAME
MAIN OFFICE
BAULANDENTWICKLUNG GDST 1682/8 GMBH & CO OG
VIENNA
CONSUMER THREE SRL (CARTOLARIZZAZIONE:
CONSUMER THREE )
VERONA
CA-LEASING SENIOREN PARK GMBH IN LIQU.
VIENNA
Z LEASING CORVUS IMMOBILIEN LEASING
GESELLSCHAFT M.B.H. IN LIQU.
VIENNA
BAL SOBEK IMMOBILIEN LEASING GMBH IN LIQU.
VIENNA
ANTHEMIS EVO LLP
LONDON
Change of the consolidation method
COMPANY NAME
MAIN OFFICE
COMPANY NAME
MAIN OFFICE
BARD HOLDING GMBH
EMDEN
BANK AUSTRIA BAF GMBH IN LIQU.
VIENNA
BARD ENGINEERING GMBH
EMDEN
UCTAM BALTICS SIA
RIGA
ICE CREEK POOL NO.3 DAC
DUBLIN
UCTAM BULGARIA EOOD
SOFIA
LF GAMMA GMBH IN LIQU.
VIENNA
UCTAM D.O.O. BEOGRAD
BELGRADE
386
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Mergers in other Group entities
COMPANY NAME OF THE MERGED ENTITY
MAIN OFFICE
COMPANY NAME OF THE TAKING IN ENTITY
MAIN OFFICE
NF OBJEKT FFM GMBH
MUNICH
HVB IMMOBILIEN AG
MUNICH
BIL LEASING-FONDS VERWALTUNGS-GMBH
GRUENWALD
WEALTHCAP PEIA KOMPLEMENTAR GMBH
GRUENWALD
UNICREDIT BETEILIGUNGS GMBH
MUNICH
UNICREDIT BANK GMBH
MUNICH
Entities line by line which changed the company name during the the year
COMPANY NAME
MAIN OFFICE
COMPANY NAME
MAIN OFFICE
BANK AUSTRIA BAF GMBH IN LIQU. (ex BANK AUSTRIA
FINANZSERVICE GMBH)
VIENNA
CA-LEASING SENIOREN PARK GMBH IN LIQU. (ex CA-
LEASING SENIOREN PARK GMBH )
VIENNA
Z LEASING CORVUS IMMOBILIEN LEASING
GESELLSCHAFT M.B.H. IN LIQU. (ex da Z LEASING
CORVUS IMMOBILIEN LEASING GESELLSCHAFT M.B.H)
VIENNA
LF GAMMA GMBH IN LIQU. (ex LEASFINANZ BANK
GMBH)
VIENNA
BAL SOBEK IMMOBILIEN LEASING GMBH IN LIQU. (ex
BAL SOBEK IMMOBILIEN LEASING GMBH)
VIENNA
ISB UNIVERSALE BAU GMBH IN LIQU. (ex ISB
UNIVERSALE BAU GMBH)
BERLIN
PALATIN GRUNDSTUECKVERWALTUNGS
GESELLSCHAFT M.B.H. IN LIQU. (ex PALATIN
GRUNDSTUECKVERWALTUNGS GESELLSCHAFT
M.B.H.)
ST.POELTEN
UNICREDIT SERVICES GMBH IN LIQU. (ex UNICREDIT
SERVICES GMBH)
VIENNA
Z LEASING DRACO IMMOBILIEN LEASING
GESELLSCHAFT M.B.H. IN LIQU. (ex Z LEASING DRACO
IMMOBILIEN LEASING GESELLSCHAFT M.B.H.)
VIENNA
BANK AUSTRIA LEASING MEDEA IMMOBILIEN LEASING
GMBH IN LIQU. (ex BANK AUSTRIA LEASING MEDEA
IMMOBILIEN LEASING GMBH)
VIENNA
SEDEC Z IMMOBILIEN LEASING GESELLSCHAFT M.B.H.
IN LIQU. (ex SEDEC Z IMMOBILIEN LEASING
GESELLSCHAFT M.B.H.)
VIENNA
ANTARES IMMOBILIEN LEASING GESELLSCHAFT M.B.H.
IN LIQU. (ex ANTARES IMMOBILIEN LEASING
GESELLSCHAFT M.B.H.)
VIENNA
UNICREDIT RE SERVICES S.P.A. (ex UNICREDIT SUBITO
CASA S.P.A.)
MILAN
387
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
2. Significant assumptions and assessment in determining the consolidation scope
The Group determines the existence of control and, consequently, the consolidation scope, checking, with reference to the entities in which it holds
exposures:
• the existence of power over the relevant activities;
• the exposure to the variability of returns;
• the ability to use the power exercised in order to influence the returns to which it is exposed.
The factors that have been considered for the purposes of this assessment depend on the entity's governance methods, purposes and equity
structure. On this point, the Group differentiates between entities governed through voting rights, i.e. operating entities, and entities not governed
through voting rights, which comprise special purpose entities (SPEs) and investment funds.
In the case of operating entities, the following factors provide evidence of control:
• more than half of the company's voting rights are held directly or indirectly through subsidiaries (also when they act as trustee companies) unless,
exceptionally, it can be clearly demonstrated that this ownership does not originate control;
• half, or a lower proportion, of the votes exercisable in the shareholders' meeting are held and it is possible to govern the relevant activities
unilaterally through:
- the control of more than half of the voting rights based on an agreement with other investors;
- the power to determine the entity's financial and operating policies based on a contract or a statutory clause;
- the power to appoint or remove the majority of the members of the Board of Directors or the equivalent governing body, and that board or body is
responsible for managing the company;
- the power to exercise the majority of voting rights in meetings of the Board of Directors or the equivalent governing body, and that board or body
is responsible for managing the company.
The existence and effect of potential voting rights, including those incorporated in options, way-out clauses, or instruments convertible into shares,
are taken into consideration when assessing the existence of control, in case they are substantial.
In particular, potential voting rights are considered substantial if all the following conditions are met:
• they can be exercised either immediately or at least in good time for the company's shareholders' meeting;
• there are no legal or economic barriers to exercise them;
• exercising them is economically convenient.
As at 31 December 2024 the Group holds the majority of the voting rights in all the operating entities subject to consolidation.
It should also be noted that there are no cases in which control derives from holding potential voting rights.
Special purpose entities are considered controlled if the Group is, at one and the same time:
• exposed to a significant extent to the variability of returns, as a result of exposures in securities, of disbursing loans or of providing guarantees. In
this regard it is assumed as a rebuttable presumption that the exposure to variability of returns is significant if the Group has at least 30% of the
most subordinated exposure;
• able to govern the relevant activities, also in a de facto manner. Examples of the power to govern on this point are performing the role of sponsor
or servicer appointed to recover underlying receivables, or managing the company's business.
In particular, consolidated special purpose entities include:
• Conduits in which the Group plays the role of sponsor and is exposed to the variability of returns, as a result of subscribing Asset Backed
Commercial Paper issued by them and/or of providing guarantees in the form of letters of credit or liquidity lines;
• vehicles used to carry out securitisation transactions in which the Group is the originator as a result of subscribing the subordinated tranches;
• vehicles financed by the Group and established for the sole purpose of performing financial or operating leasing in favor of customers which are
financed by the Group;
• vehicles in which, as a result of deteriorating market conditions, the Group has found itself holding the majority of the financial exposure and, at
the same time, managing the underlying assets or the related collections.
It should be noted that, in the case of special purpose entities set up as part of securitisation transactions pursuant to Italian Law 130/99, the
segregated assets are analysed separately with respect to the analysis of the SPE. For the latter, control is assessed on the basis of possession of
the voting rights attributed to the company's shares.
Investment funds managed by Group companies are considered controlled if the Group is significantly exposed to the variability of returns and if the
third-party investors have no rights to remove the management company.
In this regard it is assumed as a rebuttable presumption that the exposure to the variability of returns is significant if the Group has at least 30% as a
result of subscription of the units and commissions received for the management of the fund's assets.
388
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Investment funds managed by third-party companies are considered controlled if the Group is significantly exposed to the variability of returns and at
the same time, has the unilateral right to remove the management company.
In this regard it is assumed as a rebuttable presumption that the exposure to the variability of returns is significant if the Group has subscribed at
least 30% of the fund’s units.
With reference to 31 December 2024, it should be noted that 134 controlled entities (of which 19 belonging to the Banking Group) were not
consolidated pursuant to IFRS10, of which 132 for materiality threshold and/or liquidation procedures, while the remaining 2 companies relate to one
restructuring procedure whose risks are measured coherently as part of the credit exposures. Based on available information, it is believed that their
consolidation would not have impacted significantly the Group net equity.
3. Equity investments in wholly-owned subsidiaries with significant non-controlling interests
3.1 Non-controlling interests, availability of votes of NCIs and dividends distributed to NCIs
COMPANY NAME
MINORITIES EQUITY RATIOS
(%)
MINORITIES VOTING RIGHTS
(%)
DIVIDENDS TO MINORITIES
(€ million)
UNICREDIT BANK S.A.
11.27
11.27
2
ZAGREBACKA BANKA D.D.
3.81
3.81
17
3.2 Equity investments with significant non-controlling interests: accounting information
(€ million)
COMPANY NAME
TOTAL
ASSETS
CASH AND
CASH
EQUIVALENTS
FINANCIAL
ASSETS
TANGIBLE AND
INTANGIBLE
ASSETS
FINANCIAL
LIABILITIES
NET
EQUITY
NET INTEREST
MARGIN
UNICREDIT BANK S.A.
14,573
1,043
13,243
164
12,518
1,726
423
ZAGREBACKA BANKA D.D.
21,134
3,959
16,857
192
18,422
2,312
588
continued: 3.2 Equity investments with significant non-controlling interests: accounting information
COMPANY NAME
OPERATING
INCOME
OPERATING
COSTS
PROFIT
(LOSS)
BEFORE TAX
FROM
CONTINUING
OPERATIONS
PROFIT
(LOSS) AFTER
TAX FROM
CONTINUING
OPERATIONS
PROFIT (LOSS)
AFTER TAX
FROM
DISCONTINUED
OPERATIONS
PROFIT
(LOSS)
(1)
OTHER
COMPREHENSIVE
INCOME AFTER
TAX
(2)
OTHER
COMPREHENSIVE
INCOME
(3) = (1) + (2)
UNICREDIT BANK S.A.
612
(245)
356
293
-
293
(1)
292
ZAGREBACKA BANKA D.D.
788
(264)
547
450
-
450
15
465
The exposures above refer to the amounts of individual accounts of the subsidiaries as at 31 December 2024.
It should be noted that the minority shareholders of UniCredit Bank S.A. increased during the year due to the purchase of 90.1% shares of Alpha
Bank Romania S.A. by UniCredit S.p.A., through the payment to the counterpart, as part of the price, of 9.90% shares in UniCredit Bank S.A.
389
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
4. Significant restrictions
Shareholder agreements, regulatory requirements and contractual agreements can limit the ability of the Group to access the assets or settle the
liabilities of its subsidiaries or restrict the latter from distribution of capital or dividends.
With reference to shareholder agreements, it should be noted that to the consolidated entities UniCredit BPC Mortgages S.r.l. and UniCredit OBG
S.r.l. companies established according to Law 130/99 for the execution of securitisation transactions or the issuance of covered bonds,
shareholders’ agreements allow the distribution of dividends only when the credit claims of guaranteed lenders and bearer of covered bonds are
satisfied.
In the course of the demerger of the CEE Banking Business from UniCredit Bank Austria AG (UCBA) to UniCredit S.p.A. effected in 2016, UniCredit
S.p.A. undertook an agreement with UniCredit Bank Austria AG and its minority shareholders that, until 30 June 2024, envisaged: (i) the restriction,
as shareholder of UniCredit Bank Austria AG, from resolving on any dividend distributions of the latter in case UniCredit Bank Austria AG’s
consolidated and solo CET1 ratios, as a consequence thereof, fall below (a) 14% or (b) the higher minimum CET1 ratio required at the time by the
applicable regulatory framework, plus any required buffers, and (ii) the support to any management decision and board resolution of UCBA aimed at
safeguarding such CET1 ratios.
UniCredit group is a banking group subject to the rules provided by: (i) Directive (EU) 2024/1619 of the European Parliament and of the Council of
31 May 2024 amending Directive 2013/36/EU as regards supervisory powers, sanctions, third-country branches, and environmental, social and
governance risks (CRD VI); (ii) Directive (EU) 2019/878 of the European Parliament and of the Council (so-called CRD V), amending Directive (EU)
2013/36 on “access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms”; (iii) Regulation (EU)
2024/1623 of the European Parliament and of the Council of 31 May 2024 amending Regulation (EU) No 575/2013 as regards requirements for
credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor; (iv) Regulation (EU) 2019/876 of the European
Parliament and of the Council (so-called CRR2), amending Regulation (EU) 575/2013 on “prudential requirements for credit institutions and
investment firms” and that controls financial institutions subject to the same regulation; (v) Regulation (EU) 2019/877 of the European Parliament
and of the Council of 20 May 2019 amending Regulation (EU) 806/2014 as regards the loss-absorbing and recapitalization capacity of credit
institutions and investment firms; and (vi) Directive (EU) 2019/879 of the European Parliament and of the Council of 20 May 2019 amending
Directive (EU) 2014/59 as regards the loss-absorbing and recapitalization capacity of credit institutions and investment firms and Directive 98/26/EC
(BRRD 2); (vii) Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and
resolution of credit institutions and investment firms (BRRD).
The ability to distribute capital or dividends of the banks and of the other regulated entities controlled may be restricted to the fulfilment of these
requirements in terms of capital, leverage and MREL ratios and, in case the requirements are not met, to the “Maximum Distributable Amount”, as
well as to the fulfillment of further eventual regulation applicable at national level and of recommendations issued, time by time, by competent
authorities.
With reference to the current geopolitical tensions, UniCredit group operates in Russia through its subsidiary AO UniCredit Bank and its controlled
companies. In this regard it is worth to note that (i) in March 2022 the President of Russian Federation issued a Decree subordinating the sale of
shares to the permission of the Government Commission for the Control of Foreign Investments in Russia and (ii) in August 2022 an additional Decree
was issued which banned the sale of shares of Russian credit institutions identified by a specific list to be approved by the President of the Russian
Federation on the proposal of the Government of the Russian Federation, agreed with the Central Bank of Russia.
Moreover, in March 2022 the President of Russian Federation issued a Decree establishing that payments of dividends for an amount exceeding 10
million rubles should be made to a special account whose utilization requires special permission from the Governmental commission for the Control
of Foreign Investments in Russia, unless specific authorization is obtained.
On 25 Apr 2023, the President of Russian Federation signed Decree 302 (on temporary management over certain assets), which allows for the seizure
of assets owned by individuals and companies from “unfriendly” countries. This decree enables the Russian government to place such assets under
external management, effectively nationalizing them.
Additionally, in August 2023, Russia passed a decree barring foreign investors from “unfriendly” countries from holding investments in major Russian
businesses. This measure allows the government to transfer shares from overseas investors to Russian entities, further consolidating control over
foreign-owned assets.
The capital ratios requested for 2025 to UniCredit group by European Central Bank (ECB), also because of the Supervisory Review and Evaluation
Process (SREP) performed in 2024, are higher than the minimum requirements set by the mentioned regulations. For the disclosure on UniCredit
group Capital Requirements, refer to the paragraph “Capital ratios” of the chapter “Capital and value management” in the Consolidated report on
operations.
With reference to subsidiaries, we note that in some jurisdictions and for some foreign entities of the Group, commitments to maintain local
supervisory capital higher than regulatory thresholds may exist also because of SREP performed at local level.
390
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
With reference to free flow among entities based in different countries, available liquidity at Group level bears some restrictions related to the Large
Exposure prudential limits, according to both CRR definition and decisions adopted by Member States (with reference to cross border intragroup
exposures) some of them recently implemented: consequently, a portion of available liquidity may suffer impediments that hinder its transfer among
group entities. Further details are reported in paragraph “2.4 Liquidity risk” of the Notes to the consolidated accounts, Part E - Information on risks
and related hedging policies, Section 2 - Risk of the prudential consolidated perimeter.
With reference to contractual agreements, UniCredit group has issued financial liabilities whose callability, redemption, repurchase or repayment
before their contractual maturity date, is subject to the prior permission of the competent authority. The carrying value of these instruments as at 31
December 2024 is equal to €45,630 million and includes capital instruments and MREL eligible instruments.
5. Other information
For information on jointly-controlled companies and companies subject to significant influence that have not been consolidated in accordance with
IFRS10 as at 31 December 2024, in addition to the controlled ones disclosed in previous paragraph 2. Significant assumptions and assessment in
determining the consolidation scope, reference is made to the paragraph “7.6 Valuation and significant assumptions to establish the existence of
joint control or significant influence” of the Notes to the consolidated accounts, Part B - Consolidated balance sheet - Assets, Section 7 - Equity
investments - Item 70.
Section 4 - Subsequent events
No material events60 have occurred after the Balance sheet date that would make it necessary to change any of the information given in the
Consolidated financial statements as at 31 December 2024.
For a description of the significant events61 after year-end, refer also to the information evidenced in the paragraph “Subsequent events” of the
Consolidated report on operations, Subsequent events and outlook, and to the information below.
On 10 February 2025 UniCredit Bank Austria AG entered into a Share Purchase Agreement to dispose its 50.1% share in Card Complete Service
Bank AG (“Transaction”). The Transaction is subject to Regulatory Approvals from competent Governmental Authorities and shall be completed at
closing which is envisaged during the year 2025. No negative financial effects are expected from the transaction.
60 Events happened subsequently to Financial Statements’ reporting date that are adjusting events in accordance with IAS10.
61 Events happened subsequently to Financial Statements’ reporting date that are non adjusting events in accordance with IAS10.
391
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Section 5 - Other matters
In 2024 the following standards, amendments or interpretations of the existing accounting standards came into force:
• amendments to IFRS16 Leases: Lease Liability in a Sale and Leaseback (EU Regulation 2023/2579);
• amendments to IAS1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current; Classification of Liabilities as
Current or Non-current - Deferral of Effective Date and Non-current Liabilities with Covenants (EU Regulation 2023/2822);
• amendments to IAS7 Statement of Cash Flows and IFRS7 Financial Instruments: Disclosures: Supplier Finance Arrangements (EU Regulation
2024/1317).
The entry into force of these new standards, amendments or interpretations has not determined substantial effects on the amounts recognised in
balance sheet or income statement.
As at 31 December 2024, the following document, applicable to reporting starting from 1 January 2025, has been endorsed by the European
Commission:
• amendments to IAS21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (EU Regulation 2024/2862).
The Group does not expect significant impacts arising from the entry into force of such amendments.
As at 31 December 2024 the IASB issued the following accounting standards, amendments or interpretations of the existing accounting standards,
whose application is subject to completion of the endorsement process by the competent bodies of the European Union:
• IFRS18 Presentation and Disclosure in Financial Statements (issued on 9 April 2024);
• IFRS19 Subsidiaries without Public Accountability: Disclosures (issued on 9 May 2024);
• amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS9 and IFRS7) (issued on 30 May 2024);
• Annual Improvements Volume 11 (issued on 18 July 2024);
• Contracts Referencing Nature-dependent Electricity – Amendments to IFRS9 and IFRS7 (issued on 18 December 2024).
With regard to the amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS9 and IFRS7) the Group is
assessing the impacts of new requirements, and it expects to update the Group policies coherently.
Implications of geopolitical tensions between Russia and Ukraine on Consolidated financial statements
UniCredit group holds assets and liabilities potentially exposed to the consequences of the geopolitical tensions between Russia and Ukraine,
specifically: (i) the Russian Subsidiaries included in the accounting scope of consolidation; (ii) the financial assets held by UniCredit S.p.A. and its
non-Russian subsidiaries towards Russian counterparties.
The following sections outline further details specifically for Russian Subsidiaries (section “Assets and liabilities of Russian subsidiaries”) and for
financial assets held by UniCredit S.p.A. and its non-Russian subsidiaries toward Russian counterparties (section “Financial assets held by
UniCredit S.p.A. and its non-Russian subsidiaries toward Russian counterparties”).
1. Assets and liabilities of Russian subsidiaries
The Group holds investments in Russia through AO UniCredit Bank and its subsidiaries OOO UniCredit Garant, and OOO UniCredit Leasing.
The line-by-line consolidation determined the recognition of total assets for €5,597 million vs €8,668 million as at 31 December 2023. The difference
in total assets is mainly attributable to a reduction in financial assets at amortised cost.
As at 31 December 2024, the revaluation reserves, recycling through P&L, are equal to -€3,321 million mainly arising from the foreign exchange
revaluation reserve resulting from the conversion of assets and liabilities of these companies in EUR; the negative delta for -€446 million vs year-end
2023 (-€2,875 million), is mainly due the depreciation of the Russian Ruble over the period62.
The loss of control over AO UniCredit Bank would determine the derecognition of net assets having a carrying value of €5,947 million63 (also
embedding the negative revaluation reserves), with a correspondent negative effect through P&L, in case the events leading to the derecognition
would not envisage cash-in receivables; under a regulatory perspective over CET1 capital, the negative effect related to the revaluation Reserves (-
€3,321 million) is basically neutral since it is already considered according to its nature and sign (also taking into account regulatory filters).
The following tables present the Balance sheet of such entities, together with their incidence over the corresponding consolidated (UniCredit group
level) Balance sheet line item64.
62 Indeed the Ruble exchange Euro as at 31 December 2024 was equal to 118.18 vis a vis 99.17 as at 31 December 2023.
63 Amount which includes the recognition in P&L, following loss of control, of impairment losses on intercompany loans and the recycling of the Foreign investments hedging reserve.
64 The reported amounts provide the contribution of the mentioned subsidiaries to the consolidated financial statements thus net of intercompany assets and liabilities.
392
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
(€ million)
AMOUNTS AS AT
% OVER
CONSOLIDATED ITEM
ASSETS
31.12.2024
10. Cash and cash balances
1,510
3.6%
20. Financial assets at fair value through profit or loss:
73
0.1%
a) financial assets held for trading
73
0.1%
b) financial assets designated at fair value
-
0.0%
c) other financial assets mandatorily at fair value
-
0.0%
30. Financial assets at fair value through other comprehensive income
5
0.0%
40. Financial assets at amortised cost:
3,793
0.7%
a) loans and advances to banks
2,188
3.3%
b) loans and advances to customers
1,605
0.3%
50. Hedging derivatives
5
0.4%
60. Changes in fair value of portfolio hedged items (+/-)
(28)
1.6%
70. Equity investments
-
0.0%
80. Insurance assets
-
0.0%
a) insurance contracts issued that are assets
-
0.0%
b) reinsurance contracts held that are assets
-
0.0%
90. Property, plant and equipment
103
1.2%
100. Intangible assets
14
0.6%
of which: goodwill
-
0.0%
110. Tax assets:
91
0.9%
a) current
2
0.3%
b) deferred
89
0.9%
120. Non-current assets and disposal groups classified as held for sale
31
7.9%
130. Other assets
-
0.0%
Total assets
5,597
0.7%
(€ million)
AMOUNTS AS AT
% OVER
CONSOLIDATED ITEM
LIABILITIES AND SHAREHOLDERS' EQUITY
31.12.2024
10. Financial liabilities at amortised cost:
3,756
0.6%
a) deposits from banks
269
0.4%
b) deposits from customers
3,487
0.7%
c) debt securities in issue
-
0.0%
20. Financial liabilities held for trading
18
0.1%
30. Financial liabilities designated at fair value
-
0.0%
40. Hedging derivatives
37
3.3%
50. Value adjustment of hedged financial liabilities (+/-)
(2)
0.0%
60. Tax liabilities:
17
1.0%
a) current
16
1.1%
b) deferred
1
0.4%
70. Liabilities associated with assets classified as held for sale
-
0.0%
80. Other liabilities
1,374
9.4%
90. Provision for employee severance pay
-
0.0%
100. Provisions for risks and charges:
491
6.2%
a) commitments and guarantees given
17
1.6%
b) post-retirement benefit obligations
21
0.7%
c) other provisions for risks and charges
453
12.3%
110. Insurance liabilities
-
0.0%
a) insurance contracts issued that are liabilities
-
0.0%
b) reinsurance contracts held that are liabilities
-
0.0%
Equity
(94)
Total liabilities and shareholders' equity
5,597
0.7%
393
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
1.1 IFRS9 macroeconomic scenario
The IFRS9 macroeconomic scenarios for the Russian subsidiaries were updated as at 31 December 2024 consistently with other geographies of the
Group.
In line with IFRS9 standard and ESMA recommendations, the ECL is computed based on multi-scenario approach, specifically the following
scenarios, coherently with the Budget/Multiyear Plan, were considered:
• Baseline scenario, which assumptions are aligned with the scenario used for the Shareholding Impairment Test and the Deferred Tax Assets
Sustainability Test. It represents the reference central scenario with the higher probability of realization (60%);
• Adverse scenario, which is in line with the alternative/recession scenario adopted for Budget/Multiyear Plan and embedding a worsened evolution
of macro-economic context, but with a lower probability of realization vis-à-vis the baseline (35%);
• Positive scenario, reflecting better macroeconomic forecast than the baseline scenario, with a lower probability than the other two scenarios (5%).
The update of the IFRS9 macroeconomic scenario for the Russian subsidiaries led to recognize, for the full year 2024, not material effects on LLPs.
For a description of main assumptions behind IFRS9 scenarios and related probability of realization, refer to Part A - Accounting policies, A.1
General, Section 2 - General preparation criteria.
1.2 Classification and re-rating of loans exposure
Starting from 31 March 2022, in line with the IFRS965 provisions, the AO UniCredit Bank loan exposures were entirely classified in Stage 2 as a
significant increase in credit risk was triggered by macro-economic circumstances, given the geopolitical crisis and the expected decrease in
Russian GDP for the period 2022-2024, observed starting from the first quarter 2022.
In addition, the internal ratings of Russian Sovereign exposures (resulting from IRB Groupwide Sovereign PD Model) were reviewed throughout
2022; and ultimately downgraded to timely embed the worsening of Russia creditworthiness, triggered by the severity of Western countries’
sanctions, the Russian authorities’ response (ban on transfer of FX abroad) and the economic effects of the war.
The downgrade of the Sovereign internal ratings triggered the downgrades of Groupwide Multinationals (i.e., MNC) and Banks (the bulk of
downgrades), which had Russia as country of risk. These downgrades determined an increase in the Expected Credit Losses (resulting from the
combination of PD, LGD and EAD parameters) and Loan Loss Provisions.
Starting from June 2024, the classification to Stage 2 for AO UniCredit Bank loan exposures was removed: consequently, staging is driven by the
ordinary IFRS9 framework. The reasons underlying the removal of collective staging measures are motivated by the following risk analyses
observed throughout an approx. 2 years’ time span:
• regular repayment performance of local portfolio;
• low level of default in-flows;
• significant portfolio de-risking achieved since first quarter 2022 thus further reducing the expected future default and loss risks;
• local portfolio progressively re-rated, thus incorporating quali-quantitative information representative of a post-crises outbreak in the Financial and
Qualitative modules;
• substantial irrelevance of government moratoria supporting measures activated in 2022;
• lower riskiness of onshore domestic portfolio compared to Russian cross-border/offshore portfolio booked outside AO UniCredit Bank.
As at 31 December 2024 the related stock of LLP amounts to -€33 million, with reference to a gross exposure of €3,251 million toward performing
counterparties. It should be noted that out of this gross exposure:
• €2,194 million are represented by exposures towards banks (as at December 2023 the Gross exposure was equal to €2,672 million);
• €1,057 million are represented by exposures towards customers (as at December 2023 the Gross exposure was equal to €2,919 million).
As a result of the removal of the Stage 2 Classification, the credit exposures reported in Stage 1 are equal to €748 million, almost entirely towards
customers.
The decrease in the exposures compared to previous period is basically stemming from the de-risking and downsizing activity which led to reduce
the operations of Russian subsidiaries.
1.3 Classification and re-rating of Russian government bonds
During the 2022, the Russian debt securities belonging to the Amortized cost and FVtOCI portfolios were classified in Stage 2 and downgraded,
given the increase in credit risk according to the internal models, in coherence with the loan exposures66.
65 IFRS9 par. B5.5.17.
66 For the sake of completeness, it should be noted that further Russian Government bonds are held by other Group legal entities in the held for trading portfolio for a not material carrying value.
394
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
As at 31 December 2024:
• the collective staging measure was removed for AO UniCredit Bank Debt securities portfolio as well, with non-material LLP impact;
• the related LLPs stock amounts to -€66 million (-€132 million as of year-end 2023) with reference to €640 million gross exposure (€766 million as
of year-end 2023), decrease in LLPs mainly stems from the removal of (i) the stage 2 classification and (ii) previous fixing of LLPs to the level of
March 2022.
With reference to the fair value calculation, starting from 28 February 2022, the Moscow Stock Exchange (MOEX) closed, and RUB bonds quotes
became rare, disperse and actually not executable. Despite the MOEX progressively resumed trading starting from 21 March 2022, the bonds
quotes were deemed to be not suitable for valuation purposes at consolidated level: as a matter of fact, from the perspective of UniCredit group (i.e.,
a western based financial institution), the Russian market is not accessible and it cannot be representative of the fair value for consolidated
purposes’ evaluation; as a consequence, the fair value of the Russian Government debt securities was determined by applying a mark-to-model
approach, instead of a mark-to-market approach.
In more detail, the implied spreads related to the Russian Federation debt in USD were used by the UniCredit group to evaluate Russian Federation
RUB bonds, adjusted according to the effective trades’ prices observable on the offshore Market within 90 days’ time-horizon rolling, leading to an
extra spread, added flat on L1 curve used to compute the Mark-to-Model prices.
As at 31 December 2024, the Russian government bonds continue to be valued according to the methodology summarized above, with the
introduction of an additional adjustment to reflect the increased lack of liquidity observed in 2023/2024 and applied since end of June 2023.
1.4 Overlays
During the 2022, given the uncertainties over the evolution of the crisis and the related effects on AO UniCredit Bank loan portfolio, some actions
were taken to cope with potential future default migrations.
Specifically, an overlay was applied on the loan portfolio at amortized cost, since the second quarter of 2022, and aimed to: (i) fix the LLPs to the
level of 31 March 2022 (i.e., after application of LLPs aimed at covering Russia direct risk); (ii) re-scale the LLPs with respect to the Loan-to-
Customer portfolio evolution factoring-in repayment and exposure reduction if any, in order to ensure a minimum coverage representative of the
situation after Russian-Ukraine crisis.
On June 2024, this LLP overlay has been removed for the same rationales underlying the removal of the collective staging measure (refer to
previous sections 1.2 and 1.3), bearing non-material LLP impact.
1.5 Asset quality
The following table provides the breakdown of financial assets held by Russian subsidiaries broken down by accounting portfolio and Credit quality.
(€ million)
NON-PERFORMING ASSETS
PERFORMING ASSETS
TOTAL (NET
EXPOSURE)
PORTFOLIOS/QUALITY
GROSS
EXPOSURE
OVERALL
WRITEDOWNS NET EXPOSURE
OVERALL
PARTIAL
WRITE-OFFS
GROSS
EXPOSURE
OVERALL
WRITEDOWNS NET EXPOSURE
1. Financial assets at amortised cost
290
259
31
-
3,850
88
3,762
3,793
2. Financial assets at fair value through other
comprehensive income
-
-
-
-
4
-
4
4
3. Financial assets designated at fair value
-
-
-
-
X
X
-
-
4. Other financial assets mandatorily at fair value
-
-
-
-
X
X
-
-
5. Financial instruments classified as held for sale
12
8
4
-
37
10
27
31
Total 31/12/2024
302
267
35
-
3,891
98
3,793
3,828
1.6 Derivative exposures
In 2022, the sanctions and restrictions led the derivatives’ counterparties to interrupt servicing (stopping settlement and disregarding margin call),
thus resulting in the activation of close-out process according to ISDA Master Derivatives Agreements/Credit Support Annex. Such circumstance
determined the recognition of Trading Profit/Losses in 2022 for -€94 million and of LLPs in 2022 and 2023 for -€45 million (the latter mainly refer to
the write-downs recognised in “excess” of collaterals posted by counterparties and measured in Group Balance sheet at amortized cost). No
additional LLPs have been recognised in 2024. The relevant net claim is equal to €14 million, unchanged vs year-end 2023.
With reference to the Fair value calculation, an update of XVA methodology, in particular regarding calibration of risk inputs, was introduced since 31
March 2022, to reflect offshore risk (i.e., Russian risk assessment outside Russia). Indeed, till February 2022, the CVA risk mapping assimilated the
country risk “Russia” to the average risks of Eastern Europe counterparties; then, since March 2022, a new CVA risk mapping was introduced to
assess Russian counterparty credit risk, by referencing the Russian Sovereign Credit Default Swap (CDS), separated from the Eastern Europe
counterparties in light of the changed geopolitical framework.
395
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
The overall impact stemming from XVA in 2024 was equal to +€33 million, arising from the already mentioned de-risking activity which determined a
decrease in the perimeter of instruments subject to such adjustments.
1.7 Real estate portfolio
The real estate portfolio of Russian subsidiaries (mainly composed by owned instrumental assets located in Moscow and Saint Petersburg
Commercial Business District) was subject to external independent appraisals right before 31 December 2024; the evaluation, aimed to update the
fair value of the assets, led to recognise not-material effects.
2. Financial assets held by UniCredit S.p.A. and its non-Russian subsidiaries toward Russian counterparties
The present section provides information about the credit exposures subject to Russian risk held by UniCredit S.p.A. and its non-Russian
subsidiaries (i.e., such exposures include neither the positions held by the Russian Legal Entities belonging to UniCredit group, nor Letters of
Credit).
The overall Gross Book Value for €454 million is composed as follows:
• €279 million attributable to the credit exposures of the Russia operating segment, entirely on-balance exposures with an overall coverage for
approx. 42%;
• €175 million basically related to the exposures held by the Group Entities not belonging to the Russian Operating Segment, mainly having the
following features:
- on-balance exposures benefitting from ECA guarantees for approx. €162 million;
- the related coverage substantially reflects the presence of ECA guarantees for most of the exposures.
The reduction for -€250 million compared to year-end 2023 (gross exposure for €704 million and overall write down for -€139 million) is mainly
attributable to redemptions of On-Balance exposures and closing of Off-Balance exposures occurred in the period.
PERFORMING ASSETS
GROSS EXPOSURE
OVERALL WRITEDOWNS
NET EXPOSURES
Deposits
-
-
-
Financial assets held for trading
-
-
-
Financial assets at FV through OCI
-
-
-
Financial assets at amortized cost
454
121
333
Total on balance exposures
454
121
333
Off Balance
-
-
-
Total 31.12.2024
454
121
333
Total 31.12.2023
704
139
565
Note:
Non-performing assets report a gross exposure (GBV) of €243 million and overall writedowns (LLP) of -€25 million (o/w Non-ECA amounting to €65 million in terms of GBV and -€24 million in terms of LLP).
2.1 Classification and re-rating of loans toward Russian counterparties held by UniCredit S.p.A. and its non-Russian subsidiaries
During 2022, the assessment reported in the previous paragraph (i.e., reclassification into Stage 2 and rating downgrade) was also applied to
exposures held by UniCredit S.p.A. and its non-Russian subsidiaries toward Russian counterparties.
Furthermore, an analysis was performed on the amount of LLPs to grant that they would be able to reflect in the measurement the differentiation in
asset valuation between onshore and offshore investors, where the latter are penalized in their ability to recover the claims against investments in
Russia. Indeed, in the perspective of an offshore investor exposed towards obligors with direct risk on Russia, such exposures are expected to
suffer from higher risk of missed fulfilment of credit obligation, as a consequence of sanctioning limitations and potential accelerated de-leveraging
actions.
Such analysis is still valid as at 31 December 2024; indeed, the persisting sanctions against Russia indicates that the mentioned differentiation in
asset valuation observed in 2022 continues to exist, thus justifying the maintenance of both (i) collective staging, differently from the removal of
collective staging for AO UniCredit Bank portfolio; and (ii) specific measures.
In this regard, the additional LLPs were quantified by assuming a coverage ratio comparable with the proactive classification of these exposures as
unlikely to pay. As at 31 December 2024 the stock of overall write downs is equal to -€121 million (-€139 million as of year-end 2023).
2.2 Geopolitical overlay resulting from Russia-Ukraine crisis
For further information on geopolitical overlay refer to the paragraph “2.3.1 Staging Allocation and Expected Credit Losses Calculation”, Notes to the
consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.1
Credit risk, Qualitative information, 2. Credit risk management policies, 2.3 Measurement methods for expected losses.
396
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
3. FX rate used as at 31 December for the conversion of exposures denominated in Rubles
As a result of the geopolitical tension, the ECB suspended the EUR/RUB listing since 2 March 2022 (last fixing on 1 March 2022), while Central
Bank of Russia (CBR) continued to provide a fixing versus other currencies. Despite such suspension, the availability of RUB FX rate is needed for
preparing the Consolidated financial statements for the conversion into EUR of:
• RUB denominated exposures held by UniCredit S.p.A. and subsidiaries having a presentation currency different from RUB;
• Russian subsidiaries’ net assets (and related FX reserve) in the consolidated financial results of UniCredit group.
In light of the IAS21 requirements (which establish that when several exchange rates are available, the rate used is the one at which the future cash
flows represented by the transaction could have been settled if those cash flows had occurred at the measurement date), the Group decided to
adopt the RUB quotes listed by the Electronic Broking Service (EBS) in substitution of the lacking EUR/RUB quote. The choice of the provider was
executed following qualitative and quantitative assessment, which reported the following outcome: (i) the RUB quotes published by the platform are
representative of effective transactions between participants to the market; (ii) the FX quotes are substantially aligned with those provided by other
sources; (iii) the EBS RUB quotes resulted from actual transactions by non-Russian based operators, thus granting that such quote effectively
represents a market participant assessment of the value of the RUB and therefore of the economic conditions of Russia67. In more detail, the
mentioned EBS rate was used both for converting RUB denominated exposures held by entities having EUR as presentation currency, as well as for
consolidating the net assets of AO UniCredit Bank (Russia) and determining the related FX reserve.
In addition to the above, it is worth reminding those exposures held by Russian subsidiaries and denominated into currencies different from RUB
shall be first converted into RUB for the purpose of consolidated financial statements preparation. In this regard, while the adoption of EBS RUB
quote would be appropriate, the conversion into RUB of exposures denominated in foreign currencies held by Russian Subsidiaries was executed
considering the rate provided by CBR in line with the approach followed in the previous years.
4. Claims in relation to guarantees and sanctions
It should be noted that, in August 2023, UCB GmbH was named as a defendant in a lawsuit pertaining to guarantee claims commenced by a
Russian energy company before a court in Saint Petersburg, Russia. For additional information about this lawsuit refer to Part E - Information on
risks and related hedging policies, 2.5 Operational risks, B. Legal risks.
In addition, UniCredit S.p.A. has made an application to the General Court of European Union (GCEU) to obtain definitive legal clarification of the
obligations set by the European Central Bank's (ECB) requirements to further reduce the risks associated with UniCredit's activities in Russia,
carried out by subsidiaries including AO UniCredit Bank. In this regard it should be noted that since Russia's invasion of Ukraine in February 2022,
UniCredit has been adopting a series of strategies to reduce its Russian presence resulting in a significant reduction of its cross-border and
domestic exposures. However, the unprecedented circumstances, the complexities inherent in the geo-political and economic scenario the lack of a
harmonized regulatory framework applicable to it and the potential for serious unintended consequences of implementing the decision that would
impact not only the Russian subsidiaries but UniCredit S.p.A., have compelled the Board of Directors of UniCredit to seek for clarity and certainty of
the duties and of the actions to be undertaken. To this purpose, UniCredit filed the application to the GCEU to get clarity about the obligations that
UniCredit shall abide by. This application has been made in the full knowledge of the ECB. While this application is being heard, UniCredit has
requested an interim suspension of the Decision pending the proceeding, which was denied by the GCEU in November 2024. The proceedings on
the merits are ongoing.
***
The Company financial statements of UniCredit S.p.A. and the Consolidated financial statements of UniCredit group as at 31 December 2024 are
audited by KPMG S.p.A. pursuant to Legislative Decree No.39 of 27 January 2010 and to the resolution passed by the Shareholder’s Meeting on 9
April 2020.
UniCredit group prepared and published within the time limits set by law and in manner required by Consob, the Consolidated first half financial
Report as at 30 June 2024, subject to limited scope audit, as well as the Consolidated interim reports as at 31 March and 30 September 2024, both
as press releases.
The Company financial statements of UniCredit S.p.A. and the Consolidated financial statements of UniCredit group as at 31 December 2024 have
been approved by the Board of Directors’ meeting of 20 February 2025, which authorised its disclosure to the public also pursuant to IAS10.
Directive 2004/109/EC (the "Transparency Directive") and Delegated Regulation (EU) 2019/815 introduced the obligation for issuers of securities
listed on regulated markets of the European Union to draw up the annual financial report in the language XHTML, based on the European Single
Electronic Format (ESEF), approved by ESMA. For the year 2024 the consolidated financial statements have been "marked" with the ESEF
taxonomy, using an integrated computer language (iXBRL).
The whole document is filed in the competent offices and entities as required by law.
67 Such conclusions are also corroborated by the meeting held by ECB - Foreign Exchange Contact Group during May 2022 in which EBS representative reported that EBS EUR/RUB Market continue to function, and that
liquidity in the Russian ruble is below pre-invasion levels, with activity concentrated mostly among larger banks in offshore markets.
397
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
A.2 - Main items of the accounts
It should be noted that the descriptions of the main items of the accounts reported below are also valid for the Company financial statements of
UniCredit S.p.A., unless differently stated.
1 - Financial assets at fair value through profit or loss
a) Financial assets held for trading
A financial asset is classified as held for trading if it is:
• acquired or incurred principally for the purpose of selling or repurchasing it in the short term;
• part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-
term profit-taking;
• a derivative contract not designated under hedge accounting, including derivatives with positive fair value embedded in financial liabilities other
than those valued at fair value with recognition of income effects through profit or loss.
Like other financial instruments, on initial recognition, at settlement date, a held-for-trading financial asset is measured at its fair value, usually equal
to the amount paid, excluding transaction costs and income, which are recognised in profit and loss even when directly attributable to the financial
assets. Held for Trading derivatives are recognised at trade date.
After initial recognition these financial assets are measured at their fair value through profit or loss.
A gain or loss arising from sale or redemption or a change in the fair value of a held for trading financial asset is recognised in Income statement in
item “80. Net gains (losses) on trading”, including gains or losses related to derivative contracts that are linked to assets and/or liabilities designated
at fair value and other financial assets mandatorily at fair value. If the fair value of a financial instrument falls below zero, which may happen with
derivative contracts, it is recognised in item “20. Financial liabilities held for trading”.
A derivative is a financial instrument or other contract that has all three of the following characteristics:
• its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index
of prices or rates, credit rating or credit index, or other variable (usually called the “underlying”) provided that in case of non-financial variable, this
is not specific of one of the parties to the contract;
• it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be
expected to have a similar response to changes in market factors;
• it is settled at a future date.
An embedded derivative is a component of a hybrid (combined) instrument that also includes a non-derivative host contract, with the effect that
some of the cash flows of the combined instrument vary in a way similar to a stand-alone derivative.
An embedded derivative is separated from financial liabilities other than those measured at fair value through profit or loss and from non-financial
instruments, and is recognised as a derivative, if:
• the economic characteristics and risks of the embedded derivative are not closely relating to those of the host contract;
• a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative and;
• the hybrid (combined) instrument is not measured entirely at fair value through profit or loss.
When an embedded derivative is separated, the host contract is accounted for according to its accounting classification.
b) Financial assets designated at fair value through profit or loss
A non-derivative financial asset can be designated at fair value if the abovementioned designation avoids accounting mismatches that arise from
measuring assets and associated liabilities according to different measurement criteria.
These assets are accounted for alike “Financial assets held for trading” however gains and losses, whether realised or unrealised, are recognised in
item “110. Net gains (losses) on other financial assets/liabilities at fair value through profit or loss: a) financial assets/liabilities designated at fair
value”; such item also includes changes in fair value on “financial liabilities designated at fair value” linked to own credit risk, if such a designation
creates or increases an accounting mismatch in Income statement according to IFRS9.
398
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
c) Other financial assets mandatorily at fair value
A financial asset is classified as financial asset mandatorily at fair value if it does not meet the conditions, in terms of business model or cash flow
characteristics, for being measured at amortised cost or at fair value through other comprehensive income.
Specifically, the following assets have been classified in this portfolio:
• debt instruments, securities and loans for which the business model is neither held to collect nor held to collect and sell but which are not part of
the Trading book;
• debt instruments, securities and loans with cash flows that are not solely payment of principal and interest;
• units in investment funds;
• equity instruments not held for trading for which the Group does not apply the option granted by the standard of valuing these instruments at fair
value through other comprehensive income.
These assets are accounted for alike “Financial assets held for trading”, however gains and losses, whether realised or unrealised, are recognised in
item “110. Net gains (losses) on other financial assets/liabilities at fair value through profit or loss: b) Other financial assets mandatorily at fair value”.
2 - Financial assets at fair value through other comprehensive income
A financial asset is classified at fair value through other comprehensive income if:
• its business model is held to collect and sell;
• its cash flows are solely the payment of principal and interest.
This category also includes equity instruments not held for trading for which the Group applies the option granted by the standard of valuing the
instruments at fair value through other comprehensive income.
On initial recognition, at settlement date, a financial asset is measured at fair value, which is usually equal to the consideration paid, plus transaction
costs and revenues directly attributable to the instrument.
After initial recognition, the interests accrued on interest-bearing instruments are recorded in the Income statement according to the amortised cost
criterion in item “10. Interest income and similar revenues” if positive, or in item “20. Interest expenses and similar charges” if negative.
The gains and losses arising from changes in fair value are recognised in the Statement of other comprehensive income and reported under item
“120. Valuation reserves” in shareholders' equity (item “110. Valuation reserves” in the Company financial statements).
These instruments are tested for impairment as illustrated in the specific section 16 - Other Information - Impairment.
Impairment losses are recorded in the Income statement in item “130. Net losses/recoveries on credit impairment relating to: b) financial assets at
fair value through other comprehensive income” with contra-entry in the statement of other comprehensive income and also reported under item
“120. Valuation reserves” in shareholders' equity (item “110. Valuation reserves” in the Company financial statements).
In the event of disposal, the accumulated profits and losses are recorded in the Income statement in item “100. Gains (Losses) on disposal and
repurchase of: b) financial assets at fair value through other comprehensive income”.
Amounts deriving from financial assets carrying amount adjustment, gross of cumulated write-downs, in order to reflect modifications on contractual
cash flows that do not give rise to accounting derecognition, are recognised in Income statement in item “140. Gains/Losses from contractual
changes with no cancellations”; such line does not include the impact of contractual modifications on the amount of expected loss recognised in item
“130. Net losses/recoveries on credit impairment relating to: b) financial assets at fair value through other comprehensive income”.
Such item can also include on-balance credit exposures which are already non-performing on initial recognition. These exposures are qualified as
“Purchased Originated Credit Impaired - POCI”.
The amortised cost and the interest income generated by these assets are calculated by considering, in the estimate of future cash flows, the
expected credit losses over the entire residual duration of the asset.
This expected credit loss is subject to periodic review thus determining the recognition of impairment or write-backs.
For further information on "Purchased Originated Credit Impaired” assets refer to the paragraph “2.1 Credit risk” of the Notes to the consolidated
accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter with reference to the
Consolidated financial statements and to the paragraph “Section 1 - Credit risk” of the Company financial statements of UniCredit S.p.A., Notes to
the accounts, Part E - Information on risks and related hedging policies with reference to the Company’s financial statements.
399
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
With regard to equity instruments, the gains and losses arising from changes in fair value are recognised in the Statement of other comprehensive
income and reported under item “120. Valuation reserves” (item “110. Valuation reserves” in the Company financial statements).
In the event of disposal, the accumulated profits and losses are recorded in item “150. Reserves” (item “140. Reserves” in the Company financial
statements).
In accordance with the provisions of IFRS9, no impairment losses on equity instruments are recognised in the Income statement. Only dividends are
recognised in Income statement within item “70. Dividend income and similar revenues”.
3 - Financial assets at amortised cost
A financial asset, loan or debt securities, is classified as financial asset measured at amortised cost if:
• its business model is held to collect;
• its cash flows are solely the payment of principal and interest.
These items also include the net value of finance leases of assets under construction or awaiting lease, provided the leases have the characteristics
of contracts entailing the transfer of risk.
On initial recognition, at settlement date, financial assets at amortised cost are measured at fair value, which is usually equal to the consideration
paid, plus transaction costs and incomes directly attributable to the instrument.
After initial recognition at fair value, these assets are measured at amortised cost which requires the recognition of interest on an accrual basis by
using the effective interest rate method over the term of the loan. Such interest is recognised in item “10. Interest income and similar revenues” if
positive or in item “20. Interest expenses and similar charges” if negative.
The amount of financial assets at amortised cost is adjusted in order to take into account impairment losses arising from valuation process as
illustrated in the specific section 16 - Other information - Impairment.
Impairment losses are recorded in the Income statement, in item “130. Net losses/recoveries on credit impairment relating to: a) financial assets at
amortised cost”.
In the event of disposal, the accumulated profits and losses are recorded in the Income statement in item “100. Gains (Losses) on disposal and
repurchase of: a) financial assets at amortised cost”. It is worth to note that, in light of the fact that the business model is aimed at collecting
contractual cash flows, disposals might happen when (i) caused by an increase in the assets’ credit risk, (ii) performed close to maturity (iii)
infrequent or (iv) not significant. In this regard, the Group has adopted policies to assess that these requirements are met, in particular through
internal thresholds set for verifying that sales are not significant.
Amounts deriving from financial assets carrying amount adjustment, gross of cumulated write-downs, in order to reflect modifications on contractual
cash flows that do not give rise to accounting derecognition, are recognised in Income statement in item “140. Gains/Losses from contractual
changes with no cancellations”; such line does not include the impact of contractual modifications on the amount of expected loss recognised in item
“130. Net losses/recoveries on credit impairment relating to: a) financial assets at amortised cost”.
Such item can also include on-balance credit exposures which are already non-performing on initial recognition. These exposures are qualified as
“Purchased Originated Credit Impaired” (POCI).
The amortised cost and the interest income generated by these assets are calculated by considering, in the estimate of future cash flows, the
expected credit losses over the entire residual duration of the asset.
This expected credit loss is subject to periodic review thus determining the recognition of impairment or write-backs.
For further information refer to the paragraph “2.1 Credit risk” of the Notes to the consolidated accounts, Part E - Information on risks and related
hedging policies, Section 2 - Risks of the prudential consolidated perimeter with reference to the Consolidated financial Statements and to the
paragraph “Section 1 - Credit risk” of the Company financial statements of UniCredit S.p.A., Notes to the accounts Part E - Information on risks and
related hedging policies with reference to the Company’s financial statements.
4 - Hedge accounting
Hedging instruments are created to hedge market (interest-rate, currency and price) and/or credit risk to which the hedged positions are exposed.
They may be described as follows:
• fair value hedge: a hedge of the exposure to changes in fair value of a recognised asset or liability, or an identifiable portion of such an asset or
liability;
• cash flow hedge: a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or
liability or a highly probable forecast transaction which could affect profit or loss in future periods;
• hedge of a net investment in a foreign entity, whose operations are based or conducted in a currency other than euro.
It should be noted that the Group has exercised the option to continue applying the existing IAS39 hedge accounting requirements for all its hedging
relationships until the IASB completes the project on accounting for macro-hedging.
Hedging derivatives are initially recognised on trade date and are valued at their fair value.
400
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
A hedging relationship qualifies for hedge accounting if there is formal designation and documentation of the hedging relationship including the risk
management objective, the strategy for undertaking the hedge, and how the hedging instrument’s prospective and retrospective effectiveness will be
assessed. It is necessary to assess the hedge’s effectiveness, at inception and in subsequent periods, in offsetting the exposure to changes in the
hedged item’s fair value or cash flows attributable to the hedged risk.
Generally, a hedge is regarded as highly effective if, at the inception of the hedge and in subsequent periods, it is determined prospectively to
remain highly effective, and retrospectively verified that the hedge ratio (i.e., the changes in fair value of hedged items and hedging instruments) is
within a range of 80-125%. The hedge is assessed on an ongoing basis and thus must prospectively remain highly effective throughout the financial
reporting periods for which the hedge has been designated.
The assessment of effectiveness is made at each balance-sheet date or other reporting date.
If the assessment does not confirm the effectiveness of the hedge, from that time on hedge accounting is discontinued in respect of the hedge and
the hedging derivative is reclassified as a held-for-trading instrument.
In addition, the hedging relationship ceases when (i) the hedging instrument expires or is sold, terminated or exercised, (ii) the hedged item is sold,
expires or is repaid, (iii) it is no longer highly probable that the forecast transaction will occur.
Hedging instruments are so designated when identifiable with an ultimate counterparty outside the Group.
Hedging derivatives are measured at fair value. Specifically:
• fair value hedging, an effective fair value hedge is accounted for as follows: the gain or loss from remeasuring the hedging instrument at fair
value is recognised through profit or loss in item “90. Net gains (losses) on hedge accounting”; the gain or loss on the hedged item attributable to
the hedged risk adjusts the carrying amount of the hedged item and is recognised through profit or loss in the same item. Hedging ineffectiveness
is represented by the difference between the change in the fair value of hedging instruments and the change in the fair value of hedged item. If the
hedging relationship is terminated for reasons other than the sale of the hedged item, the difference between the carrying amount of the hedged
item on termination of the hedging and the carrying amount it would have had if the hedge had never existed, is recognised through profit or loss in
interest receivable or payable over the residual life of the original hedge, in the case of interest-bearing instruments; if the financial instrument does
not bear interest, the difference is recognised in profit or loss under item “90. Net gains (losses) on hedge accounting” at once. If the hedged item
is sold or repaid, the portion of fair value which is still unamortised is at once recognised through profit or loss in item “100. Gains (Losses) on
disposal and repurchase”;
• cash flow hedging, hedging instruments are valued at fair value. Change in the fair value of a hedging instrument that is considered effective is
recognised in equity item “120. Valuation reserves” (item “110. Valuation reserves” in the Company Financial Statements). The ineffective portion
of the gain or loss is recognised through profit or loss in item “90. Net gains (losses) on hedge accounting”. If a cash flow hedge is determined to
be no longer effective or the hedging relationship is terminated, the cumulative gain or loss on the hedging instrument that remains recognised in
item “120. Valuation reserves” (item “110. Valuation reserves” in the Company financial statements) from the period when the hedge was effective
remains separately recognised in revaluation reserves until the forecast hedged transaction occurs or is determined to be no longer possible; in
the latter case gains or losses are transferred through profit or loss to item “80. Net gains (losses) on trading”. The fair value changes are recorded
in the Statement of other comprehensive income and disclosed in item “120. Valuation reserves" (item “110. Valuation reserves” in the Company
financial statements);
• hedging a net investment in a foreign entity, hedges of a net investment in a foreign entity whose activities are based or conducted in a country
or currency other than those of the reporting entity are accounted for similarly to cash flow hedges. The gain or loss on the hedging instrument
relating to the effective portion of the hedge that has been recognised directly in equity is recognised through profit or loss on disposal of the
foreign entity. The fair value changes are recorded in the Statement of comprehensive income and disclosed in item “120. Valuation reserves (item
“110. Valuation reserves” in the Company Financial Statements)"; the ineffective portion of the gain or loss is recognised through profit or loss in
item “90. Net gains (losses) on hedge accounting”;
• macro-hedges of financial assets (liabilities), IAS39 allows a fair-value item hedged against interest rate fluctuations to be not only a single
asset or liability but also a monetary position contained in a number of financial assets or liabilities (or parts of them); accordingly, a group of
derivatives can be used to offset fair-value fluctuations in hedged items due to changes in market rates. Macro-hedging may not be used for net
positions resulting from the offsetting of assets and liabilities. As for fair value micro-hedging, macrohedging is considered highly effective if, at the
inception of the hedge and in subsequent periods, changes in the fair value attributable to the hedged position are offset by changes in fair value
of the hedging instrument and if the hedge ratio is retrospectively assessed falling within the range of 80-125%. Net changes, gains or losses, in
the fair value of the macro-hedged assets and liabilities attributable to the hedged risk are recognised in asset item “60. Changes in fair value of
portfolio hedged items (+/-)” or liability item “50. Value adjustment of hedged financial liabilities (+/-)”, respectively and offset the profit and loss
item “90. Net gains (losses) on hedge accounting“.
The ineffectiveness of the hedging arises to the extent that the change in the fair value of the hedging item differs from the change in the fair value
of the hedged monetary position. The extent of hedge ineffectiveness is in any case recognised in profit and loss item “90. Net gains (losses) on
hedge accounting”.
401
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
If the hedging relationship is terminated, for reasons other than the sale of the hedged items, cumulative gain or loss in items “60. Changes in fair
value of portfolio hedged items (+/-)” or liability item “50. Value adjustment of hedged financial liabilities (+/-)” is recognised through profit or loss in
items “10. Interest income and similar revenues” or “20. Interest expenses and similar charges”, along the residual life of the hedged financial
assets or liabilities.
If the latter are sold or repaid, unamortised fair value is at once recognised through profit and loss in item “100. Gains (Losses) on disposal and
repurchase”.
5 - Equity investments
The principles governing the recognition and measurement of equity investments under IFRS10 Consolidated financial statements, IAS27 Company
financial statements, IAS28 Investments in associates and joint ventures and IFRS11 Joint Arrangements are provided in detail in the paragraph
“Section 3 - Consolidation scope and methods” of the Notes to the consolidated accounts, Part A - Accounting policies, A.1 - General, where
disclosure on the evaluation processes and key assumptions used to assess the existence of control, joint control or significant influence in
accordance with IFRS12 (paragraphs 7-9) is provided.
The remaining interests other than subsidiaries, associates and joint ventures, and interests recognised in items “120. Non-current assets and
disposal groups classified as held for sale” and “70. Liabilities associated with assets classified as held for sale” are classified as financial assets at
fair value through other comprehensive income or other financial assets mandatorily at fair value and accordingly accounted.
6 - Property, plant and equipment (Tangible assets)
The item includes:
• lands;
• buildings;
• furniture and fixtures;
• plant and machinery;
• other machinery and equipment;
and is divided between:
• assets used in the business;
• assets held as investments;
• inventories in the scope of IAS2 standard.
This item also includes tangible assets arising from collection of collaterals.
Assets used in the business and Assets held as investments
Assets used in the business are held for use in the production or supply of goods or services or for administrative purposes and are expected to be
used for more than one period. This category also conventionally includes assets to be let or under construction and to be leased under a finance
lease, only for those finance leases which provide for retention of risk by the lessor until the acceptance of the asset by the lessee and the start of
rentals under the finance lease.
The item “Property, plant and equipment” includes assets used by the Group as lessee under a lease contract (right of use) or let/hired out by the
Group as lessor under an operating lease.
Property, plant and equipment also include leasehold improvements relating to assets which can be separately identified. They are classified
according to the specific sub-items relating to the asset type (e.g., plants).
Leasehold improvements are usually borne in order to make leased premises fit for the expected use.
Improvements and additional expenses relating to property, plant and equipment identifiable but not separable are recognised in item “130. Other
assets” (item “120. Other assets” in the Company financial statements).
Assets held for investment purposes are properties covered by IAS40, i.e., properties held (owned or under a lease contract) in order to derive
rentals and/or a capital gain.
Property, plant and equipment are initially recognised at cost including all costs directly attributable to bringing the asset into use (transaction costs,
professional fees, direct transport costs incurred in bringing the asset to the desired location, installation costs and dismantling costs).
402
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Subsequent costs are added to the carrying amount or recognised as a separate asset only when it is probable that there will be future economic
benefits in excess of those initially foreseen and the cost can be reliably measured. Other expenses borne at a later time (e.g., normal maintenance
costs) are recognised in the year they are incurred in profit and loss items:
• “190. Administrative expenses: b) other administrative expenses” (item “160. Administrative expenses: b) other administrative expenses of the
Company financial statements), if they refer to assets used in the business; or:
• “230. Other operating expenses/income” (item “200. Other operating expenses/income” of the Company financial statements) if they refer to
property held for investment.
After being recognised as an asset:
• buildings and lands used in the business are measured according to revaluation model;
• tangible assets used in the business, different from lands and buildings, are measured according to cost model;
• buildings and lands held as investments are measured according to fair value model.
Revaluation model requires tangible assets to be exposed in Balance sheet at a value not significantly different from fair value. In this respect,
UniCredit group requests such assets to be revalued on a half year basis through “desktop” or “on site” appraisals, based on the asset relevance,
performed by external appraisers.
Positive changes in fair value are booked in Other comprehensive Income statement, item “50. Property, plant and equipment” and, cumulated, in
item “120. Valuation reserves” (item “110. Valuation reserves” in the Company financial statements), unless they offset previous negative changes
accounted for in Income statement in item “260. Net gains (losses) on property, plant and equipment and intangible assets measured at fair value”
(item “230. Net gains (losses) on property, plant and equipment and intangible assets measured at fair value” in the Company financial statements).
Negative changes in fair value are booked in Income statement in item “260. Net gains (losses) on property, plant and equipment and intangible
assets measured at fair value” (item “230. Net gains (losses) on property, plant and equipment and intangible assets measured at fair value” in the
Company financial statements), unless they offset previous positive changes accounted for in Other comprehensive Income statement, item “50.
Property, plant and equipment” and, cumulated, in item “120. Valuation reserves” (item “110. Valuation reserves” in the Company financial
statements).
When the tangible asset is revalued at its fair value it is required to adjust both gross carrying amount and cumulated depreciation on the basis of
the net carrying amount revaluation.
Cost model requires the gross carrying amount to be depreciated across its useful life.
Both tangible assets measured according to revaluation model and cost model are subject to straight-line depreciation over their useful life to the
extent they have a finite useful life.
Residual useful life is usually assessed, for the Group and UniCredit S.p.A. as follows68:
TYPOLOGY
GROUP
UniCredit S.p.A.
Furniture and fixtures
up to 25 years
up to 7 years
Electronic equipment
up to 15 years
up to 12 years
Other
up to 10 years
up to 7 years
Leasehold improvements
up to 25 years
up to 15 years
Depreciations are accounted for, period by period, in item “210. Net value adjustments/write-backs on property, plant and equipment” (item “180. Net
value adjustments/write-backs on property, plant and equipment” in the Company financial statements).
An item with an indefinite useful life is not depreciated.
Lands and buildings are recognised separately, even if acquired together. Land is not depreciated since it usually has an indefinite useful life.
Buildings have instead a finite useful life and are therefore subject to depreciation.
The estimate of the useful life of an asset is reviewed at least at each financial year-end on the basis inter alia of the conditions of use of the asset,
of maintenance conditions and expected obsolescence and, if expectations differ from previous estimates, the depreciation amount for the current
and subsequent periods is adjusted accordingly. With specific reference to buildings, the useful life is defined on the basis of an external opinion.
68 It is worth to note that the useful life of buildings is defined at least at year end on the basis of an external opinions.
403
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
If there is clear evidence that an asset measured according to cost model has been impaired the carrying amount of the asset is compared with its
recoverable value, equal to the greater of its fair value less selling cost and its value in use, i.e., the present value of future cash flow expected to
originate from the asset. Any value adjustment is recognised in profit and loss item “210. Net value adjustments/write-backs on property, plant and
equipment” (item “180. Net value adjustments/write-backs on property, plant and equipment” in the Company financial statements).
If the value of a previously impaired asset is restored, its increased carrying amount cannot exceed the net carrying amount it would have had if
there had been no losses recognised on the prior-year impairment.
Buildings and land held as investments, including right of use on land and buildings classified as held for investment, are measured according to fair
value model which requires to account for in Income statement in item “260. Net gains (losses) on property, plant and equipment and intangible
assets measured at fair value” (item “230. Net gains (losses) on property, plant and equipment and intangible assets measured at fair value” in the
Company financial statements), changes in fair value. Such assets are not subject to depreciation and impairment test.
An item of property, plant and equipment is derecognised (i) on disposal or (ii) when no future economic benefits are expected from its use or sale in
the future and any difference between sale proceeds or recoverable value and carrying value is recognised in profit and loss item “280. Gains
(losses) on disposals on investments”, “260. Net gains (losses) on property, plant and equipment and intangible assets measured at fair value” or
“210. Net value adjustments/write-backs on property, plant and equipment” (item “250. Gains (Losses) on disposals on investments”, “230. Net gains
(losses) on property, plant and equipment and intangible assets measured at fair value”, or “180. Net value adjustments/write-backs on property,
plant and equipment” in the Company financial statements). For tangible assets measured according to revalued amount, any gain from disposal,
including amounts cumulated in item “120. Valuation reserves”, (item “110. Valuation reserves” in the Company financial statements) is reclassified
to item “150. Reserves” (item “140. Reserves” in the Company financial statements) with no impact in Income statement.
Inventories in the scope of IAS2 standard
Inventories are assets held for sale in the ordinary course of business. They are accounted for at the lower of their carrying amounts and net
realizable value.
Any value adjustment arising from the application of the aforementioned criterion is recognised under item “210. Net value adjustments/write-backs
on property, plant and equipment” (item “180. Net value adjustments/write-backs on property, plant and equipment” in the Company financial
statements).
7 - Intangible assets
An intangible asset is an identifiable non-monetary asset without physical substance which is expected to be used for more than one period,
controlled by the Group and from which future economic benefits are probable.
Intangible assets are principally software.
Intangible assets other than goodwill are recognised at purchase cost, i.e., including cost incurred to bring the asset into use, less accumulated
amortisation and impairment losses.
Costs sustained after purchase are:
• added to initial cost, provided they increase future economic benefits arising from the underlying asset (i.e., if they increase its value or productive
capacity);
• in other cases (i.e., when they do not increase the asset’s original value, but are intended merely to preserve its original functionality) are taken to
profit or loss in a single amount in the year in which they have been borne.
In case of internally generated software the expenses incurred to develop the project are recognised under intangible assets only if the following
elements are demonstrated: (i) the technical feasibility of the project, (ii) the intention to complete the intangible asset, (iii) its future usefulness, (iv)
the availability of adequate technical, financial and other resources to complete the development and (v) the ability to measure reliably the
expenditure attributable to the intangible asset during its development.
An intangible asset with a finite life is subject to straight-line amortisation over its estimated useful life. If expectations differ from previous estimates,
the depreciation amount for the current and subsequent periods is adjusted accordingly.
Residual useful life is usually assessed as follows:
• software
up to 7 years;
• other intangible assets
up to 20 years.
Intangible assets with an indefinite life are not amortised.
If there is clear evidence that an asset has been impaired, the carrying amount of the asset is compared with its recoverable value, equal to the
greater of its fair value less selling costs and its value in use, i.e. the present value of future cash flows expected to originate from the asset.
Any impairment loss is recognised in profit and loss item “220. Net value adjustments/write-backs on intangible assets”.
404
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
For an intangible asset with indefinite life even if there are no indications of impairment, the carrying amount is compared annually with its
recoverable value. If the carrying amount is greater than the recoverable value, the difference is recognised in profit and loss item “220. Net value
adjustments/write-backs on intangible assets”.
If the value of a previously impaired intangible asset, other than goodwill is restored, its increased carrying amount cannot exceed the net carrying
amount it would have had if there were no losses recognised on the prior-years impairment.
An intangible asset is derecognised (i) on disposal or (ii) when no further future economic benefits are expected from its use or sale in the future and
any difference between sale proceeds or recoverable value and carrying value is recognised in the profit and loss item “280. Gains (Losses) on
disposals on investments” or “220. Net value adjustments/write-backs on intangible assets”, respectively.
Goodwill
In accordance with IFRS3 goodwill is the excess of the cost of a business combination over the interest acquired in the net fair value of the assets
and liabilities acquired at the business combination’s date.
Goodwill arising from the acquisitions of subsidiaries is recognised as an intangible asset, whereas goodwill arising from the acquisition of
associates is included in the carrying amount of the investments in associates.
At a subsequent financial reporting date, goodwill is recognised net of any cumulative impairment losses and is not amortised.
Goodwill is tested for impairment annually, as for other intangible assets with an indefinite useful life. To this end it is allocated to the Group’s
business areas identified as the Cash Generating Units (CGUs). Goodwill is monitored by the CGUs at the lowest level in the Group in line with its
business model.
Impairment losses on goodwill are recognised in profit and loss item “270. Goodwill impairment”. In respect of goodwill, no write-backs are allowed.
8 - Non-current assets and disposal groups classified as held for sale
These categories include individual assets held for disposal (tangible, intangible and financial assets) or groups of assets held for sale, with the
related liabilities, as required by IFRS5.
Individual assets (or groups of assets held for sale) are recognised in item “120. Non-current assets and disposal groups classified as held for sale”
and item “70. Liabilities associated with assets classified as held for sale” (item “110. Non-current assets and disposal groups classified as held for
sale” and “70. Liabilities associated with assets classified as held for sale” in the Company financial statements) respectively, at the lower of their
carrying amounts and fair values less costs to sell.
The revaluation reserves relating to non-current assets classified as held for sale, which are recorded as a contra item to changes in value relevant
for this purpose, are reported separately in the Statement of other comprehensive income (refer to “Part D - Consolidated other comprehensive
income” of the of the Notes to the consolidated accounts).
The net balance of profits (dividends, interest income, etc.) and losses (interest expense, etc.) attributable to discontinued operations are recognised
in the Income statement under item “320. Profit (Loss) after tax from discontinued operations” (item “290. Profit (Loss) after tax from discontinued
operations” in the Company financial statements). Profits and losses attributable to individual assets or disposal groups, that do not constitute
discontinued operations, held for disposal are recognised in the Income statement under the appropriate item.
405
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
9 - Current and deferred tax
Tax assets and tax liabilities are recognised in the Consolidated balance sheet respectively in item “110. Tax assets” and item “60. Tax liabilities”
(item “100. Tax assets” and” 60. Tax liabilities” in the Company financial statements).
In compliance with the “Balance sheet method”, current and deferred tax items are:
• current tax assets, i.e., amount of tax paid in excess of income tax due in accordance with local tax regulations;
• current tax liabilities, i.e., amount of corporate tax due in accordance with local tax regulations;
• deferred tax assets, i.e., amounts of income tax recoverable in future fiscal years and attributable to:
- deductible temporary differences;
- the carryforward of unused tax losses; and
- the carryforward of unused tax credits;
• deferred tax liabilities, i.e., the amounts of income tax due in future fiscal years in respect of taxable temporary differences.
Current and deferred tax assets and tax liabilities are calculated in accordance with local tax regulations and are recognised in profit or loss on an
accrual basis.
In general, deferred tax assets and liabilities arise when there is a difference between the accounting treatment and the tax treatment of the carrying
amount of an asset or liability.
Deferred tax assets and liabilities are recognised applying tax rates that at the Balance sheet date are expected to apply in the period when the
carrying amount of the asset will be recovered or the liability will be settled on the basis of tax regulations in force and are periodically reviewed in
order to reflect any changes in regulations.
In addition, under the tax consolidation system adopted, deferred tax assets are recognised only to the extent that it is probable that sufficient
taxable profit will be generated by the entity. In accordance with the provisions of IAS12, the probability that sufficient future taxable profit against
which the deferred tax assets can be utilised will be available is reviewed periodically. The carrying amount of deferred tax assets should be reduced
to the extent that it is not probable that sufficient taxable profit will be available.
Current and deferred taxes are recognised in profit and loss item “300. Tax expense (income) for the period from continuing operations” (item “270.
Tax expenses (income) for the year from continuing operations” in the Company financial statements), except for tax referred to items that in the
same or in another fiscal year are credited or charged directly to equity, such as those relating to gains or losses on financial assets at fair value
through other comprehensive income and those relating to changes in the fair value of cash flow hedging instruments, whose changes in value are
recognised, net of tax, directly in the Statement of other comprehensive income among Revaluation reserves.
Current tax assets and liabilities are presented on the Balance sheet net of the related current tax liabilities if the following requirements are met:
• existence of a legally enforceable right to offset the amounts recognised; and
• the intention to extinguish for the remaining net or realise the asset and at the same time extinguish the liability.
Deferred tax assets are presented on the Balance sheet net of the related deferred tax liabilities if the following requirements are met:
• existence of an enforceable right to offset current tax assets with current tax liabilities; and
• the deferred tax assets and liabilities must relate to income taxes applied to the same tax authority on the same taxable entity or on different
taxable entities that intend to settle the current tax liabilities and assets on a net basis (normally in presence of a tax consolidation contract).
406
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
10 - Provisions for risks and charges
Commitments and guarantees given
Provisions for risks and charges for commitments and guarantees given are recognised against all revocable and irrevocable commitments and
guarantees whether they are in scope of IFRS9 or IAS37.
The item hosts the estimates of expected loss calculated on these instruments resulting from valuation process as described in Section 16 - Other
Information - Impairment.
The provision of the period is accounted under item “200. Net provisions for risks and charges: a) commitments and financial guarantees given”
(item “170. Net provisions for risks and charges a) commitments and financial guarantees given” in the Company financial statements).
Note that all contracts, credit derivative contracts included, if any, that require the issuer to make specified payments to reimburse the holder for a
loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument are considered financial
guarantees.
Retirement payments and similar obligations
Retirement provisions, i.e., provisions for employee benefits payable after the completion of employment, are defined as contribution plans or
defined-benefit plans according to the nature of the plan.
In detail:
• defined-benefit plans provide a series of benefits depending on factors such as age, years of service and compensation policies. Under this type
of plan actuarial and investment risks are borne by the company;
• defined-contribution plans are plans under which the company makes fixed contributions. Benefits are the result of the amount of contributions
paid and return on contributions invested. The employer bears no actuarial and/or investment risks connected with this type of plans as it has no
legal or implicit obligation to make further contributions, should the plan not be sufficient to provide benefits to all employees.
Defined-benefit plans are present-valued by an external actuary using the “Unit Credit Projection method”.
This method distributes the cost of benefits uniformly over the employee’s working life. Obligations are the present value of average future benefits
pro rata to the ratio of years of service to theoretical seniority at the time of benefit payment.
More specifically, the amount recognised according to IAS19 Revised as a net liability/asset in item “100. Provisions for risks and charges: b) post-
retirement benefit obligations” is the present value of the obligation at the Balance sheet date, less any pension charges relating to benefits already
provided but not yet recognised, less the fair value at the Balance sheet date of plan assets other than those due to directly settle the obligations
adjusted for any effect of limiting a net defined benefit asset to the asset ceiling. Actuarial gains or losses are recorded in the Statement of other
comprehensive income and disclosed in item “120. Valuation reserves” (item “110. Valuation reserves” in the Company financial statements).
The discount rate used to discount obligations (whether financed or not) relating to benefits to be provided after retirement varies according to the
currency of denomination and country where the liabilities are allocated and is determined on the basis of market yield at the Balance sheet date of
prime issuers’ bonds (High Quality Corporate Bonds - HQCB) with an average life in keeping with that of the relevant liability.
Other provisions
Provisions for risks and charges are recognised when:
• the entity has a present obligation (legal or constructive) as a result of a past event;
• it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation;
• a reliable estimate can be made of the amount of the obligation.
The amounts recognised as provisions are the best estimate of the expenditure required to settle the present obligation. The risks and uncertainties
that inevitably surround the relevant events and circumstances are taken into account in reaching the best estimate of a provision.
In particular, where the effect of the time value of money is significant, the amount of the provision should be the present value of the best estimate
of the cost required to settle the obligation. The discount rate used reflects the current market assessments.
407
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Provisions are reviewed periodically and adjusted if necessary to reflect the current best estimate. If it becomes clear that it is no longer probable
that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.
Provisions are used only for expenses for which they were originally recognised. Allocations made in the year are recognised in profit and loss item
“200. Net provisions for risks and charges: b) other net provisions” (item “170. Net provisions for risks and charges: b) other net provisions” in the
Company financial statements) and include increases due to the passage of time; they are also net of any reversals.
“Other provisions” also include obligations relating to benefits due to agents, specifically supplementary customer portfolio payments, merit
payments, contractual payments and payments under non-competition agreements, which are measured as per defined benefit plans; accordingly
these obligations are calculated using the “Unit Credit Projection method” (refer to previous paragraph “Retirement payments and similar
obligations”).
11 - Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost comprise financial instruments (other than liabilities held for trading or those designated at fair value)
representing the various forms of third-party funding.
These financial liabilities are recognised at settlement date initially at fair value, which is normally the consideration received less transaction costs
directly attributable to the financial liability. Subsequently these instruments are measured at amortised cost using the effective interest method.
Such interest is recognised in item “20. Interest expenses and similar charges” if negative or in item “10. Interest income and similar revenues” if
positive.
Instruments indexed to equity instruments, foreign exchange, credit instruments or indexes, are treated as structured instruments. The embedded
derivative is separated from the host contract and recognised as a derivative at fair value, provided that separation requirements are met. The
embedded derivative is recognised at its fair value, classified as financial assets or liabilities held for trading and subsequently measured at fair
value through profit or loss with changes in fair value recognised in Income statement in item “80. Net gains (losses) on trading”. The difference
between the total amount received and the initial fair value of the embedded derivative is attributed to the host contract.
Instruments convertible into treasury shares imply recognition, at the issuance date, of a financial liability and of the equity part to be recognised in
item “140. Equity instruments” (item “130. Equity instruments” in the Company financial statements), if a physical delivery settles the contract.
The equity part is initially measured at the residual value, i.e., the overall value of the instrument less the separately determined value of a financial
liability with no conversion clause and the same cash flows.
The resulting financial liability is recognised at amortised cost using the effective interest method.
Financial liabilities are derecognised in case of redemption, prepayment, significant amendments to contractual conditions that determine a change
in their present value which exceeds the threshold defined by the accounting standard o in case of re-purchase. When derecognition arises from
significant amendments or re-purchase, the difference between the carrying amount of the liability and the amount arising from the amendments or
paid for the repurchase is recognised in profit or loss in item “100. Gains (Losses) on disposal and repurchase of: c) financial liabilities”. Subsequent
disposal by the issuer is considered as a new issue which doesn’t produce gains or losses.
408
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
12 - Financial liabilities held for trading
Financial liabilities held for trading include:
• derivatives that are not designated as hedging instruments;
• obligations to deliver financial assets borrowed by a short seller (i.e., an entity that sells financial assets it does not yet own);
• financial liabilities issued with an intention to repurchase them in the short term;
• financial liabilities that are part of a portfolio of financial instruments considered as a unit and for which there is evidence of a recent pattern of
trading.
Financial liabilities held for trading, including derivatives, are measured at fair value on initial recognition and during the life of the transaction.
A gain or loss arising from change in the fair value of a HfT financial liability is recognised in profit or loss in item “80. Net gains (losses) on trading”.
Financial liabilities are derecognised in case of redemption, prepayment, significant amendments to contractual conditions that determine a change
in their present value which exceeds the threshold defined by the accounting standard o in case of re-purchase. When derecognition arises from
significant amendments or re-purchase, the difference between the carrying amount of the liability and the amount arising from the amendments or
paid for the repurchase is recognised in profit or loss in item “80. Net gains (losses) on trading”, the subsequent disposal by the issuer is considered
as a new issue which doesn’t produce gains or losses.
13 - Financial liabilities designated at fair value
Financial liabilities, like financial assets may also be designated, according to IFRS9, on initial recognition as measured at fair value, provided that:
• this designation eliminates or considerably reduces an accounting or measurement inconsistency that would arise from the application of different
methods of measurement to assets and liabilities and related gains or losses; or
• a group of financial assets, financial liabilities or both are managed and measured at fair value under risk management or investment strategy
which is internally documented with the entity’s key management personnel.
This category may also include financial liabilities represented by hybrid (combined) instruments containing embedded derivatives that otherwise
should have been separated from the host contract.
Financial liabilities presented in this category are measured at fair value at initial recognition and for the life of the transaction.
The changes in fair value are recognised in the Income statement in item “110. Gains (Losses) on financial assets/liabilities at fair value through
profit or loss a) financial assets/liabilities designated at fair value” except for any changes in fair value arising from changes in their creditworthiness,
which are shown under item “120. Valuation reserves” of shareholders’ equity (item “110. Valuation reserves” in the Company Financial Statements)
unless such accounting results in an inconsistency that arises from the application of different methods of measuring assets and liabilities and
related gains or losses, in which case also the changes in fair value deriving from changes in creditworthiness are recorded in the Income statement.
Financial liabilities are derecognised in case of redemption, prepayment, significant amendments to contractual conditions that determine a change
in their present value which exceeds the threshold defined by the accounting standard o in case of re-purchase. When derecognition arises from
significant amendments or re-purchase, the difference between the carrying amount of the liability and the amount arising from the amendments or
paid for the repurchase is recognised in profit or loss in item “110. Gains (Losses) on financial assets/liabilities at fair value through profit or loss a)
financial assets/liabilities designated at fair value” while the balance of cumulated changes in fair value due to own credit risk booked in item “120.
Valuation reserves” is reclassified in item “150. Reserves” (item “110. Valuation reserves” and item “140. Reserves” in the Company financial
statements), the subsequent disposal by the issuer is considered as a new issue which doesn’t produce gains or losses.
409
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
14 - Foreign currency transactions
A foreign currency transaction is recognised at the spot exchange rate of the transaction date.
Foreign currency monetary assets and liabilities are translated at the closing rate of the period.
Exchange differences arising from settlement of monetary items at rates different from those of the transaction date and unrealised exchange rate
differences on foreign currency assets and liabilities not yet settled, other than assets and liabilities designated as measured at fair value and
hedging instruments, are recognised in profit and loss item “80. Net gains (losses) on trading”.
Exchange rate differences arising on a monetary item that is part of an entity’s net investment in a foreign operation whose activities are based or
conducted in a country or currency other than those of the reporting entity are initially recognised in the entity’s equity and recognised in profit or loss
on disposal of the net investment.
Non-monetary assets and liabilities recognised at historical cost in a foreign currency are translated using the exchange rate at the date of the
transaction. Non-monetary items that are measured at fair value in a foreign currency are translated at the closing rate. In this case the exchange
differences are recognised:
• in profit and loss if the financial asset is classified in a portfolio measured at fair value through profit or loss; or
• in the Statement of other comprehensive income, and disclosed in the Revaluation reserves, if the financial asset is classified in “Financial assets
at fair value through other comprehensive income”.
Hedges of a net investment in a foreign operation are recognised similarly to cash flow hedges.
For the purposes of the Consolidated financial statements only, the assets and liabilities of fully consolidated foreign entities are translated at the
closing exchange rate of each period. Gains and losses are translated at the average exchange rate for the period. Differences arising from the use
of closing exchange rates and from the average exchange rates and from the remeasurement of the initial net amount of the assets of a foreign
company at the closing rate are classified directly in item “120. Valuation reserves”.
Any goodwill arising on the acquisition of a foreign operation realised after IAS First Time Adoption (i.e., after 1 January 2004) whose assets are
located or managed in a currency other than the euro, and any fair value adjustments of the carrying amounts of assets and liabilities are treated as
assets and liabilities of the foreign operation, expressed in the functional currency of the foreign operation and translated at the closing rate.
On the disposal of a foreign operation, the cumulative amount of the exchange rate differences, classified in an equity reserve, is reclassified in profit
or loss.
All exchange differences recorded under revaluation reserves in Shareholders’ equity are also reported in the Statement of other comprehensive
income.
15 - Insurance assets and liabilities
Note that the Group does not conduct such business.
16 - Other information
Impairment
Loans and debt securities classified as financial assets at amortised cost, financial assets at fair value through other comprehensive income and
relevant off-Balance sheet exposures are tested for impairment as required by IFRS9.
In this regard, these instruments are classified in Stage 1, Stage 2 or Stage 3 according to their absolute or relative credit quality with respect to
initial disbursement. Specifically:
• Stage 1: includes (i) newly issued or acquired credit exposures, (ii) exposures for which credit risk has not significantly deteriorated since initial
recognition, (iii) exposures having low credit risk (low credit risk exemption);
• Stage 2: includes credit exposures that, although performing, have seen their credit risk significantly deteriorating since initial recognition;
• Stage 3: includes impaired credit exposures.
410
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
For exposures in Stage 1, impairment is equal to the expected loss calculated over a time horizon of up to one year.
For exposures in Stages 2 or 3, impairment is equal to the expected loss calculated over a time horizon corresponding to the entire life of the
exposure.
The allocation of credit exposures in one of the abovementioned stages is done at initial recognition, when the exposures is classified at Stage 1 and
it is periodically reviewed based on “stage allocation” rules as specified in the paragraph “2.1 Credit risk” of the Notes to the consolidated accounts,
Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter with reference to the
Consolidated financial statements and the paragraph “Section 1 - Credit risk” of the Notes to the accounts Part E - Information on risks and related
hedging policies with reference to the Company’s financial statements.
In order to calculate the expected loss and the related loan loss provision, the Group uses Probability of Default (PD), Loss Given Default (LGD) and
Exposure at Default (EAD) parameters, used for regulatory purposes and adjusted in order to ensure that impairment measurement represents
values which are “point in time”, “forward looking” and inclusive of multiple scenarios. For additional information refer to the paragraph“2.1 Credit
risk” of the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts Part E - Information on risks and related
hedging policies, Section 2 - Risks of the prudential consolidated perimeter with reference to the Consolidated financial Statements and the
paragraph “Section 1 - Credit risk” of the Company financial statements of UniCredit S.p.A., Notes to the accounts Part E - Information on risks and
related hedging policies with reference to the Company’s financial statements.
With reference to Stage 3, it should be noted that it includes impaired exposures corresponding to the aggregate Non-Performing Exposures as ITS
EBA (EBA/ITS/2013/03/rev1 7/24/2014), in accordance with Banca d’Italia rules, defined in Circular 272 of 30 July 2008 and subsequent updates69.
In particular EBA has defined as “Non-Performing” the exposures that meet one or both of the following criteria:
• material exposures with more than 90 days past due;
• exposures for which the Group values that is unlikely that the debtor would pay in full his credit obligations without recurring to enforcement and
realisation of collaterals, regardless of past due exposures and the number of days the exposure is past due.
In addition, the abovementioned Circular 272 establishes that the aggregate of impaired assets is divided into the following categories:
• Bad loans: cash and off-balance exposures to borrowers in a state of insolvency (even when not recognised in a court of law) or in an essentially
similar situation. The assessment is generally carried out on an analytical basis (also through the comparison with coverage levels statistically
defined for credit portfolios below a predefined threshold) or, in case of non-significant individually amounts, on a flat-rate basis for homogeneous
types of exposures;
• Unlikely to pay: cash and off-balance exposures for which conditions for evaluating the debt as bad loan are not met and for which it is unlikely
that without recurring to enforcement of collaterals the debtor is able to pay in full (capital and/or interests) his credit obligations. Such assessment
is made independently of any past due and unpaid amount/instalments. The classification among unlikely to pay is not necessarily linked to
anomalies (non-repayment), rather it is linked to factors that indicate a situation of risk of default of the debtor. Unlikely to pay are generally
accounted analytically (also through the comparison with coverage levels statistically defined for credit portfolios below a predefined threshold) or
on a flat-rate basis for homogeneous types of exposures. The exposures classified among unlikely to pay and qualified as so-called forborne can
be reclassified among non-impaired receivables only after at least one year has elapsed from the time of granting and the conditions indicated in
paragraph 157 of EBA Implementing Technical Standards.
With reference to their evaluation:
- they are generally analytically evaluated and may include the discounted charge deriving from the possible renegotiation of the rate at conditions
below the original contractual rate;
- the renegotiations of loans that require their derecognition in exchange of shares through “debt-to-equity swap” transactions requires the
assessment, before executing the swap, of the credit exposures in accordance with stipulated agreements at the date of preparation of the
financial statements. Any differences between the value of receivables and the value at initial recognition of equity instruments is accounted in
Income statement in the impairment losses;
• Past due exposures: cash exposures different from those classified as bad loans and unlikely to pay that at the reporting date are past due. Past
due exposures can be determined referring alternatively to individual debtor or individual transaction. In particular they represent an entire
exposure to counterparties different from those classified as unlikely to pay and bad loans that at the reporting date show past due receivables
from more than 90 days as well as requirements established by local prudential regulation for the inclusion of these credits into “past due”
(standardised banks) or “default exposures” (IRB banks).
69 The regulatory framework for the new definition of default has been integrated with the entry into force, starting from 01 January 2021 of the "Guidelines on the application of the definition of default under article 178 of
(EU) Regulation 575/2013" (EBA/GL/2016/07).
411
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Past due exposures are evaluated on a flat-rate basis on historical/statistical basis, applying, if available, the riskiness identified by the risk factor
used for the purposes of EU Regulation 575/2013 (CRR) relating to prudential requirements for credit institutions and investment firms (LGD - Loss
Given Default).
Allowances for impairment of loans and receivables are based on the present value of expected cash flows of principal and interest. In determining
the present value of future cash flows, the basic requirement is the identification of estimated collections, the timing of payments and the discount
rate used.
In particular, the amount of the loss on impaired exposures classified as bad loans and unlikely to pay, according to the categories specified above,
is the difference between the carrying amount and the present value of estimated cash flows discounted at the original interest rate of the financial
asset.
For all fixed rate positions, the interest rate thus determined is kept constant in subsequent financial years, while for floating rate positions the
interest rate is updated according to contractual terms.
If the original interest rate cannot be found, or if finding it would be excessively burdensome, the rate that best approximates is applied, also
recurring to “practical expedients” that do not alter the substance and ensure consistency with the international accounting standards.
Recovery times are estimated on the basis of business plans or forecasts based on historical recovery experience observed for similar classes of
loans, taking into account the customer segment, the type of loan, the type of security and any other factors considered relevant.
Also the impairment on impaired exposures was calculated as required by the accounting standard to include (i) the adjustments necessary to reach
the calculation of a point-in-time and forward-looking loss and (ii) multiple scenarios applicable to this type of exposure including any sale scenarios
in case the Group’s NPL strategy foresees the recovery through sale on the market according to what is specified in the paragraph “2.1 Credit risk”
of the Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated
perimeter with reference to the Consolidated financial statements and the paragraph “Section 1 - Credit risk” of the Company financial statements of
UniCredit S.p.A., Notes to the accounts, Part E - Information on risks and related hedging policies with reference to the Company’s financial
statements.
If there are no reasonable expectations to recover a financial asset in its entirety or a portion thereof, the gross exposure is subject to write-off.
Write-off, that may involve either a full or a part of a financial asset, might be accounted for before that the legal actions, activated to recover the
credit exposure, are closed and doesn’t imply the forfeiture of the legal right to recover. In this context the Group has developed a specific guideline
that assess the need to recognise a write-off. For further information refer to the paragraph “2.1 Credit risk” of the Notes to the consolidated
accounts Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter with reference to the
Consolidated financial Statements and the paragraph “Section 1 - Credit risk” of the Company financial statements of UniCredit S.p.A., Notes to the
accounts Part E - Information on risks and related hedging policies with reference to the Company’s financial statements.
Renegotiations
Renegotiations of financial instruments which cause a change in contractual conditions are accounted for depending on the significance of the
contractual change itself.
In particular, when renegotiations are not considered significant the gross exposure is re-determined through the calculation of the present value of
cash flows following the renegotiation at the original effective interest rate.
The difference between the gross exposure before and after renegotiation, adjusted to consider changes in the related loan loss provision, is
recognised in Income statement as modification gain or loss.
In this regard, renegotiations achieved both by amending the original contract or by closing a new one, are considered significant when they
determine the expiry of the right to receive cash flows accordingly to the original contract.
In particular, the rights to receive cash flows are considered as expired in case of renegotiations that introduce contractual clauses which determine
a change in the financial instrument classification, which determine a change in the currency or which are carried out at market conditions therefore
without causing credit concession.
412
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Business combinations
A business combination is a transaction through which an entity obtains control of a company or of a business segment, thus bringing together
different businesses into one reporting entity.
A business combination may result in a Parent-subsidiary relationship in which the acquirer is the Parent and the acquiree is a subsidiary of the
acquirer. A business combination may involve the purchase of the net assets of another entity, in which case goodwill can arise, or the purchase of
the equity of the other entity (mergers).
IFRS3 requires that all business combinations shall be accounted for by applying the purchase method, that involves the following steps:
• identifying an acquirer;
• measuring the cost of the business combination, and
• allocating, at the acquisition date, the cost of the business combination to the assets acquired and liabilities and contingent liabilities assumed.
The cost of a business combination is the aggregate of the fair value, at the date of exchange, of assets given, liabilities incurred or assumed and
equity instruments issued by the acquirer, in exchange for control of the acquiree.
The acquisition date is the date on which the acquirer effectively obtains control of the acquiree. When this is achieved through a single exchange
transaction, the date of exchange coincides with the acquisition date.
A business combination may involve more than one exchange transaction; nevertheless, the cost of the business combination remains equal to the
fair value of the total shareholding acquired, at the date of acquisition of control.
This involves the revaluation at fair value, with the recognition of the effects in the Income statement, of the equity investments previously held in the
acquired entity.
The cost of a business combination is allocated by recognising the assets, the liabilities and the identifiable contingent liabilities of the acquired
company at their acquisition-date fair value.
Exceptions to this principle are deferred income tax assets and liabilities, employee benefits, indemnification assets, reacquired rights, non-current
assets held for sale, and share-based payment transactions that are subject to review in accordance with the principle applicable to them.
Positive difference between the cost of the business combination and the acquirer’s interest in the net fair value of the identifiable assets, liabilities
and contingent liabilities so recognised is accounted for as goodwill.
After initial recognition, goodwill is tested for impairment at least annually.
In the event of a negative difference, a new valuation shall be carried out. This negative difference, if confirmed, is recognised immediately as
income in profit or loss.
In the Consolidated financial statement, if the acquisition concerns a percentage less than 100% of the assets of the acquired company, minorities
are recognised.
At the acquisition date, minorities are valued:
• at fair value, or
• as a proportion of minority interests in the assets, liabilities and identifiable contingent liabilities of the acquired company.
Derecognition of financial assets
Derecognition is the removal of a previously recognised financial asset from an entity’s Balance sheet.
Before evaluating whether, and to what extent, derecognition is appropriate, under IFRS9 an entity should determine whether the relevant conditions
apply to a financial asset in its entirety or to a part of a financial asset. The standard is applied to a part of financial assets being transferred if, and
only if, the part being considered for derecognition meets one of the following conditions:
• the part comprises only specifically identified cash flows from a financial asset, or a group of assets, (e.g., interest cash flows from an asset);
• the part comprises a clearly identified percentage of the cash flows from a financial asset, (e.g., a 90% share of all cash flows from an asset);
• the part comprises only a fully proportionate (pro rata) share of specifically identified cash flow, (e.g., 90% share of interest cash flows from an
asset).
413
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
In all other cases, the standard is applied to the financial asset in its entirety (or to the Group of similar financial assets in their entirety).
An entity shall derecognise a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the
contractual rights to receive the cash flows of the financial asset to a non-Group counterparty.
Rights to cash flow are considered to be transferred even if contractual rights to receive the asset’s cash flow are retained but there is an obligation
to pay this cash flow to one or more entities and all the following conditions are fulfilled (pass-through agreement):
• there is no obligation on the Group to pay amounts not received from the original asset;
• sale or pledge of the original asset is not allowed, unless it secures the obligation to pay cash flow;
• the Group is obliged to transfer forthwith all cash flows received and may not invest them, except for liquidity invested for the short period between
the date of receipt and that of payment, provided that the interest accrued in that period is paid on.
Derecognition is also subject to verification of effective transfer of all the risks and rewards of ownership of the financial asset. If the entity transfers
substantially all the risks and rewards of ownership of the financial asset, the entity shall derecognise the asset (or group of assets) and recognise
separately as assets or liabilities any rights and obligations created or retained in the transfer.
Conversely, if the entity substantially retains all the risks and rewards of ownership of the asset (or group of assets), the entity shall continue to
recognise the transferred asset(s). In this case it is necessary to recognise a liability corresponding to the amount received under the transfer and
subsequently recognise all income accruing on the asset and expense accruing on the liability.
The main transactions that do not allow, under the above rules, total derecognition of a financial asset are securitisations, repurchase (sell and buy-
backs) and securities lending transactions.
In the case of securitisations the Group does not derecognise the financial asset on purchase of the equity tranche or provision of other types of
support of the structure which result in the Group retaining the credit risk of the securitised portfolio.
In the case of repurchase transactions and stock lending, the assets transacted are not derecognised since the terms of the transaction entail the
retention of all their risks and rewards.
Finally, it should be noted that securities lending transactions collateralised by other securities or not collateralised were recorded as off-Balance
sheet items.
Repo transactions and securities lending
Securities received in a transaction that entails a contractual obligation to sell them at a later date or delivered under a contractual obligation to
repurchase are neither recognised nor derecognised. In respect of securities purchased under an agreement to resell, the consideration is
recognised as a loan to customers or banks among financial assets at amortised cost, or as an asset held for trading. In respect of securities held in
a repurchase agreement, the liability is recognised as due to banks or customers among financial liabilities at amortised cost, or as an held for
trading financial liability. Revenue from these loans, being the coupons accrued on the securities and the difference between the sale/purchase and
resale/repurchase prices, is recognised in profit or loss through interest income and expenses on an accrual basis.
These transactions can only be offset if, and only if, they are carried out with the same counterparty and provided that such offset is provided for in
the underlying contracts.
The same rules apply to securities lending transactions collateralised by cash fully available to the lender.
The Income statement items connected with these transactions are booked respectively:
• in item Interest, with respect to the positive item (borrower) and the negative item (lender) relating to the return on cash paid to the lender;
• in item Fees and commissions, with respect to the negative item (borrower) and the positive item (lender) relating to the service provided by the
lender by making the security available.
With reference to securities lending transactions collateralised by other securities, or not collateralised, the security lent or the security put up as
collateral are still recognised as assets in the Balance sheet, depending on the role, lender or borrower, respectively, played in the transaction.
Counterparty risk relating to the latter securities lending or borrowing transactions is shown under the off-Balance sheet exposures in the tables
reported in the paragraph “A. Credit quality”, of the Notes to the consolidated accounts, Part E - Information on risks and related hedging policies,
Section 2 - Risk of the prudential consolidated perimeter, 2.1 Credit risk, Quantitative information.
414
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Equity instruments
Equity instruments are instruments that represent a residual interest in Group’s assets net of its liabilities.
Classification of an issued instrument as equity is possible only if there are no contractual obligation to make payments in form of capital
redemptions, interest or other kinds of returns.
In particular, instruments having the following features are classified as equity instruments:
• the instrument is perpetual or has a maturity equal to duration of the entity;
• full discretion of the issuer in coupon payments and redemptions, also advanced, of the principal outstanding.
Additional Tier 1 instruments are included in this category, in line with the provisions of Regulation (EU) 575/2013 (CRR) on prudential requirements
for credit institutions and investment firms, if, additionally to the characteristics described above:
• maintain within the full discretion of the issuer the possibility to perform a write-up of the nominal value after the occurrence of a capital event that
has determined a write-down;
• do not incorporate outlook that force the issuer to provide for payments (must-pay clauses) following genuine events under the direct control of the
parties.
Equity instruments, different from common or saving shares, are presented in item “140. Equity instruments” (item “130. Equity instruments” in the
Company financial statements) for the consideration received including transaction costs directly attributable to the instruments.
Any coupon paid, net of related taxes, reduces item “150. Reserves” (item “140. Reserves” in the Company financial statements).
Any difference between the amounts paid for the redemption or repurchase of these instruments and their carrying value is recognised in item “150.
Reserves” (item “140. Reserves” in the Company financial statements).
Treasury shares
Changes in treasury shares are reported as a direct contra item to shareholders' equity, i.e., as a reduction to the latter in the amount of any
purchases, and as an increase in the amount of any sales proceeds. This entails that, if treasury shares are subsequently sold, the difference
between the sale price and the related post-tax repurchase cost is recognised entirely as a contra item to Shareholders' equity.
Leases
Lease contracts shall be classified by the lessor in finance leases or operating leases.
Finance leases effectively transfer all the risks and benefits of ownership of an asset to the lessee.
The lessee acquires the economic benefit of the use of the leased asset for most of its useful life, in exchange for a commitment to pay to the lessor
an amount approximately equivalent to the fair value of the asset and related finance costs. Recognition in the lessor’s accounts is as follows:
• in assets, the value of the loan, less the principal of lease payments due and paid by the lessee;
• in profit or loss, interest received.
Operating leases do not transfer all the risks and benefits of ownership of an asset to the lessee which are therefore retained by the lessor.
In case of operating leases, the lessor recognises in the Income statement the leases payments on an accrual basis.
The lessee recognises an asset representing the right of use of the underlying asset and, at the same time, a liability for the future payments
requested by the lease contract.
It should be noted that as allowed by the standard, the Group has decided not to recognise any right of use nor lease liability with reference to the
following lease contracts:
• leases of intangible assets;
• short term leases, lower than 12 months; and
• low value assets leases. For this purpose, an asset is considered as “low value” when its fair value as new is equal to or lower than €5 thousand.
This category mainly comprises office equipment (PC, monitors, tablets, etc.) and fixed and mobile phones.
Therefore, lease payments concerning these kind of lease assets are recognised in item “190. Administrative expenses” on an accrual basis (item
“160. Administrative expenses” in the Company financial statements).
415
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
With reference to contracts different from those mentioned above, the lease liability, recognised in Item “10. Financial liabilities at amortised cost”, is
determined by discounting the future lease payments to be due over the lease term at the proper discount rate.
Future lease payments subject to discounting are determined based on contractual provisions and net of VAT, when applicable, as the obligation to
pay this tax starts when the invoice is issued by the lessor and not at the starting date of the lease contract.
In addition, if the lease payments foreseen by the contracts include additional services beside the mere rental of the asset, the right of use and the
associated lease liability are calculated considering also these components.
To perform the mentioned calculation, lease payments have to be discounted at the interest rate implicit in the contract or, if it is not available, at the
incremental borrowing rate. The key assumption followed to calculate this rate is that the lessee incurs a loan, senior secured, having the same
maturity of the lease contract in order to acquire the assets underlying the contract itself. The resulting rate, where necessary, is adjusted in order to
consider the specific features of the lease contract.
In order to determine the lease term, it is necessary to consider the non-cancellable period, established in the contract, in which the lessee is entitled
to use the underlying asset taking also into account potential renewal options if the lessee is reasonably certain to renew.
In particular, with reference to those contracts that allow the lessee to tacitly renew the lease contract after a first set of years, the lease term is
determined taking into account factors such as the length of the first period, the existence of dismissal plans for the asset leased and any other
circumstance indicating the reasonably certainty of the renewal.
The right of use is initially recognised in item “90. Property, plant and equipment” (item “80. Property, plant and equipment” in the Company financial
statements) on the basis of the initial recognition amount of the associated lease liability, adjusted to consider, if applicable, lease payments made at
or before the commencement of the lease, initial direct costs and estimates of costs required to restore the assets to the conditions requested by the
terms of the lease contract.
Subsequent to the initial recognition, interests accrue on the lease liability at the interest rate implicit in the contract and are recognised in item “20.
Interest expenses and similar charges”.
The amount of the lease liability is reassessed in case of changes in the lease term, also arising from a change in the assessment of an option to
purchase the leased asset, or in the lease payments, either coming from a change in an index or rate used to determine these payments or as a
result of the amount expected to be payable under a residual value guarantees.
In these cases, the carrying value of the lease liability is calculated by discounting lease payments over the lease term using the original or a revised
discount rate as applicable.
Changes in the amount of the lease liability resulting from the reassessment are recognised as an adjustment of the right of use.
In case of modification of a lease contract, the lessee recognises an additional separate lease if the modification increases the scope of the lease
adding to the right of use one or more assets and the consideration to be paid for such increase is commensurate with the stand-alone price of the
increase.
For other types of modifications, the lease liability is recalculated by discounting the lease payments for the revised lease term using a revised
discount rate.
Changes in the Lease liabilities also adjust the carrying value of the corresponding right of use with the exception of gains/losses relating to the
partial or full termination of the lease that are recognised in the Income statement.
After the initial recognition the right of use is depreciated over the lease term and subject to impairment if applicable. Depreciation and impairment,
determined using the same criteria used for tangible assets and also considering the actual usage of the leased assets, are recognised in item “210.
Net value adjustments/write-backs on property, plant and equipment” (item “180. Net value adjustments/write-backs on property, plant and
equipment” in the Company financial statements). The useful life used for calculating the depreciation of leasehold improvements shall not exceed
the useful life attributed to the right of use.
Factoring
Loans acquired in factoring transactions with recourse are recognised to the extent of the advances granted to customers on their consideration.
Loans acquired without recourse are recognised as such once it has been established that there are no contractual clauses that would invalidate the
transfer of all risks and benefits to the factor.
416
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Italian staff severance pay (Trattamento di fine rapporto - “TFR”)
The “TFR” provision for employee benefits is to be construed as a “post-retirement defined benefit”. It is therefore recognised on the basis of an
actuarial estimate of the amount of benefit accrued by employees discounted to present value. This benefit is calculated by an actuary outside the
Group using the “Unit Credit Projection Method” (refer to previous paragraph “10 - Provision for risks and charges - Retirement payments and similar
obligations” of this section). This method distributes the cost of the benefit evenly over the employee’s working life.
The liability is determined as the present value of average future payments adjusted according to the ratio of years of service to total years of service
at the time of payment of the benefit.
Following pension reform by Law Decree 252/2005, TFR installments accrued to 31 December 2006, to the date between 1 January 2007 and 30
June 2007 on which the employee opted to devolve their TFR to a supplementary pension fund stay in the employer and are considered a post-
employment defined benefit plan therefore incurring actuarial valuation, though with simplified actuarial assumptions, i.e., forecast future pay rises
are not considered.
TFR installments accrued since 1 January 2007, date of Law Decree 252’s coming into effect (or since the date between 1 January 2007 and 30
June 2007) that have been, at the employee’s discretion, either (i) paid into a pension fund or (ii) left in the company and (where the company has in
excess of 50 employees) are paid into an INPS Treasury fund by the employer, are assimilated to a defined-contribution plan.
Costs relating to TFR are recognised in the Income statement in item “190. Administrative expenses: a) staff costs” (item “160. Administrative
expenses: a) staff costs” in the Company financial statements) and include, for the part of obligations already exiting at the date of the reform
(assimilated to a defined benefit plan), interest cost accrued in the year; for the part of plan considered defined contribution plan, the accrued
installments for the year paid into the complementary pension scheme or to the Treasury fund of INPS.
Actuarial gains (losses), i.e., the difference between the liabilities’ carrying value and the present value of the obligation at the end of the period are
recorded in the Shareholders' equity and disclosed in the item “120. Valuation reserves” (item “110. Valuation reserves” in the Company financial
statements) according to IAS19 Revised.
Share-based payments
Equity-settled payments made to employees or other staff in consideration of goods received or services rendered, using equity instruments
comprise:
• stock options;
• performance shares (i.e., awarded on attainment of certain objectives);
• restricted shares (i.e., subject to a lock-up period).
Considering the difficulty of reliably measuring the fair value of the services rendered against equity-settled payments, reference is made to the fair
value of the instruments themselves, measured at the date of the allocation.
This fair value is recognised as cost in profit and loss item “190. Administrative expenses: a) staff costs” offsetting the Shareholders’ equity item
“150. Reserves” (item “160. Administrative expenses: a) staff costs” and “140 Reserves” in the Company financial statements), on an accrual basis
over the period in which the services are rendered.
The fair value of a cash-settled share-based payment, the services acquired and the liability incurred are measured at the fair value of the liability,
recognised in item “80. Other liabilities”. The fair value of the liability, as long as it remains unsettled, is remeasured at each Balance sheet date and
all changes in fair value are recognised in profit and loss item “190. Administrative expenses: a) staff costs” (item “160. Administrative expenses: a)
staff costs” in the Company financial statements).
Other long-term employee benefits
Long-term employee benefits (e.g., long-service bonuses, paid on reaching a predefined number of years’ service) are recognised in item “80. Other
liabilities” on the basis of the measurement of the liability at the Balance sheet date, also in this case determined by an external actuary using the
unit credit projection method (refer to the previous paragraph 10 - Provisions for risks and charges). Actuarial gains (losses) on this type of benefit
are recognised immediately in the Income statement.
417
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Guarantees and credit derivatives in the same class
Guarantees and credit derivatives in the same class measured under IFRS9 (i.e., contracts under which the issuer make specified payments to
reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified
terms of a debt instrument) are recognised in item “100. Provisions for risks and charges: a) commitments and guarantees given”.
On initial recognition guarantees given are recognised at fair value, which usually corresponds to the amount received when the guarantee is issued.
After the initial recognition, guarantees given are recognised at the higher of the initially recognised value, net of any amortised portion, and the
estimated amount required to meet the obligation.
The effects of valuation, relating to any impairment of the underlying, are recognised in the same balance-sheet item contra item “200. Net
provisions for risks and charges: a) commitments and financial guarantees given” in the Income statement (item “170. Net provisions for risks and
charges: a) commitments and financial guarantees given” in the Company financial statements).
Offsetting financial assets and liabilities
The accounting offsetting of assets and liabilities items has been performed according to IAS32, assessing the fulfillment of the following
requirements:
• current legally enforceable right to set off the recognised amounts;
• intention either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
In accordance with IFRS7, further information has been included in the tables of Notes to the consolidated accounts, Part B - Consolidated balance
sheet - Liabilities, Other information.
In these tables, in particular the following information have to be reported:
• balance-sheet values, before and after the accounting offsetting effects, relating to the assets and liabilities which meet the criteria for applying
those effects;
• values of the exposures which do not meet the above-mentioned criteria, but are included in Master Netting Agreements, or similar agreements,
which create the right to set-off only following specified circumstances (e.g. default events);
• amounts of related collaterals.
Amortised cost
The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at the initial
recognition minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between that
initial amount and the maturity amount, and minus any reduction for impairment or uncollectability.
The effective interest method is a method of allocating the interest income or interest expense over the life of a financial asset or liability. The
effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial
instrument to the net carrying amount of the financial asset or financial liability. The calculation includes all fees and basis points paid or received
between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts.
Commissions forming an integral part of the effective interest rate include loan drawdown fees or underwriting fees relating to a financial asset not
designated at fair value, e.g., fees received as compensation for the assessment of the issuer’s or borrower’s financial situation, for valuation and
registration of security, and generally for the completion of the transaction.
Transaction costs include fees and commissions paid to agents (including employees acting as selling agents), advisers, brokers and dealers, levies
by regulatory agencies and securities exchanges, and transfer taxes and duties. Transaction costs do not include financing costs or internal
administrative or holding costs.
ESG instruments
Certain debt instruments (e.g. loans and bonds) may contain ESG (Environmental, Social, Governance) linked features according to which the
spread paid by the customer may:
• increase in case certain ESG KPIs defined by the contract are not met; and/or;
• decrease in case certain ESG KPIs defined by the contract are met.
These instruments have started to be originated after the entry into force of IFRS9 whose guidance, developed between 2008-2017, doesn’t take
into account the specific features of these instruments.
Therefore, a specific accounting policy is applied in order to establish when these instruments may be considered SPPI compliant in light of the
general principles dictated by IFRS9.
418
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
It is worth noting that the Group policy applies to debt instruments having the following features:
• contractual provisions clearly establish that the spread charged to the borrower may change in response to meeting ESG KPI;
• ESG KPI to be met shall be clearly identified by the contract; such ESG KPI shall be non financial variables specific to the borrower and typically
aimed at (i) reducing the environmental impact of the borrower; (ii) increasing the social value of the borrower vis a vis its community; (iii) foster
diversity in the governance of the borrower.
These debt instruments are SPPI compliant provided that one of the following conditions are met:
• it can be documented by the Business that the compliance with the ESG features reduces the credit risk of the customer so to justify the change in
spread;
• decrease (or increase) in spread arising from compliance (or not compliance) with the ESG features are de minimis.
With reference to the first condition (credit risk) it shall be demonstrated that the credit risk parameters used for Expected Credit Loss calculation
(Probability of Default, Loss Given Default) are higher in case the borrower will not comply with the ESG features and are lower in case of
compliance. In addition to the above, it shall also be demonstrated that the increase/decrease in spread arising from non compliance/compliance
with ESG linked features is also commensurate with the increase/decrease in credit risk.
With reference to the second condition (de minimis), an increase (decrease) in spread arising from non compliance (compliance) with a ESG linked
feature is considered “de minimis”, thus allowing the credit exposure to pass the SPPI test, provided that the change in such a spread is immaterial
according to some internally defined thresholds.
Recognition of income and expenses
Interest income and expenses
Interest income and expenses and similar income and expense items relate to monetary items, i.e., liquidity and debt financial instruments (i) held
for trading, (ii) designated at fair value (iii) mandatorily at fair value (iv) at fair value through other comprehensive income (v) at amortised cost and
financial liabilities at amortised cost.
Interest income and expense are recognised through profit or loss with respect to all instruments measured at amortised cost, using the effective
interest method.
Interest also includes the net credit or debit balance of differentials and margins on financial derivatives:
• hedging interest-bearing assets and liabilities;
• HfT but linked for business purposes to assets and liabilities designated as measured at fair value (fair value option);
• linked for business purposes to HfT assets and liabilities paying differentials or margins on different maturities.
Fees and commissions income and other operating income
Fees and commissions income and other operating income are accounted for in Income statement as the entity satisfies the performance obligation
embedded in the contract, according to “IFRS15 Revenue from Contracts with Customers” rules.
In particular:
• if the performance obligation is satisfied at a specific moment (“point in time”), the related revenue is recognised in Income statement when the
service is provided;
• if the performance obligation is satisfied over-time, the related revenue is recognised in Income statement in order to reflect the progress of
satisfaction of such obligation.
Due to the above mentioned rules, transaction fees coming from trading in securities are typically booked in the moment when the service is
provided while fees related to portfolios management, consulting or fund management are normally recognised during the term of the contract (input
method).
For this second type of fees, in fact, it is deemed that the input which are necessary to provide the service incorporated in the performance
obligation are evenly distributed during the term of the contract.
If the timing of cash-in is not aligned to the way the performance obligation is satisfied, the Group accounts for a contract asset or a contract liability
for the portion of revenue accrued in the period or to defer in the following periods.
The amount of revenues linked to fees and commissions income and other operating income is measured based on contractual provisions.
If the amount contractually foreseen is subject, totally or partially, to variability, a revenue has to be booked based on the most probable amount that
the Group expects to receive.
419
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Such amount is determined on the basis of all facts and circumstances considered relevant for the evaluation, that depend on the type of service
provided and, in particular, on the presumption that it is not highly probable that the revenue recognised will not be significantly reversed.
Note, nevertheless, that for the services provided by the Group such a variability is not usually foreseen.
Finally, if a contract regards different goods/services whose performance obligations are not satisfied at the same time, the revenue is allocated
among the different obligation proportionally to the stand-alone price of the single item delivered. These amounts will therefore be accounted for in
Income statement on the basis of the timing of satisfaction of each obligation.
This circumstance, which is not significant, might happen in case of customer loyalty programs that require to provide goods or services for free, or
by cashing-in a price not at market condition, if the client reaches a specific volume of fees, or in case of programs to acquire new customers that
assign a bonus to the target (in the form of a product or a service) when it becomes a new client.
Dividends
Dividends are recognised as revenue in profit and loss in the financial year in which their distribution has been approved.
A.3 - Information on transfers between portfolios of financial assets
There were no transfers between portfolios of financial assets in 2024.
A.4 - Information on fair value
Qualitative information
This section presents a disclosure on fair value as required by IFRS13.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an ordinary transaction between market participants in
the principal market at the measurement date (exit price).
The fair value of a financial liability with a demand feature (e.g., a demand deposit) cannot be lower than the amount payable on demand,
discounted from the first date that the amount could be required to be paid.
For financial instruments listed in active markets, fair value is determined on the basis of official prices in the principal market to which the Group has
access (Mark to Market).
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from a pricing service, dealer,
broker, agency that determines prices or regulatory agency and those prices represent actual and regularly occurring market transactions on an
arm’s length basis. If a published price quotation in an active market does not exist for a financial instrument in its entirety, but active markets exist
for its component parts, fair value can be determined on the basis of the relevant market prices for the component parts.
The Group may use valuation techniques, such as:
• a market approach (e.g., using quoted prices for similar assets, liabilities or equity instruments held by other parties as assets);
• cost approach (e.g., it reflects the amount that would be required currently to replace the service capacity of an asset, that is the current
replacement cost);
• an income approach (e.g., a present value technique that takes into account the future cash flows that a market participant would expect to
receive from holding the liability or equity instrument as an asset).
The Group uses valuation models (Mark to Model) in line with the methods generally accepted and used by the market. Valuation models include
techniques based on the discounting of future cash flows and on volatility estimates, and they are subject to revision both during their development
and periodically in order to ensure their consistency with the objectives of the valuation.
420
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
These methods use inputs based on prices set in recent transactions for the instrument being valued and/or prices/quotations for instruments having
similar characteristics in terms of risk profile. Indeed, these prices/quotations are relevant for determining significant parameters in terms of credit,
liquidity and price risk of the instrument being valued.
Reference to these market parameters allows to limit the discretionary nature of the valuation and ensures that the resulting fair value can be
verified. If, for one or more risk factors it is not possible to refer to market data, the valuation models employed use estimates based on historical
data as inputs.
As a further guarantee of the objectivity of valuations derived from valuation models, the Group employs:
• independent price verifications (IPVs);
• fair value adjustments (FVAs).
Independent price verification requires that the prices are verified at least monthly by Risk Management units that are independent from the units
that assume the risk exposure.
This verification calls for comparing and adjusting the price in line with valuations obtained from independent market participants.
For instruments not quoted in active markets, the above verification process uses prices contributed by info providers as a reference and assigns a
greater weighting to those prices that are considered representative of the instrument being valued.
This valuation can include the feasibility of the transaction at the price observed, the number of contributors, the degree of similarity of the financial
instruments, the consistency of prices from different sources, and the process followed by the info provider to obtain the information.
A.4.1 Fair value Levels 2 and 3: valuation techniques and inputs used
Hereby we provide IFRS13 disclosure requirements about accounting portfolios measured at fair value on a recurring basis, not measured at fair
value, or measured at fair value on a non-recurring basis.
Assets and Liabilities measured at fair value on a recurring basis
Debt securities
Debt securities are priced in a two-tier process depending on the liquidity in the respective market. Liquid instruments in active markets are marked
to market and consequently they are allocated in the fair value hierarchy under Level 170.
Instruments not traded in active markets are marked to model through discounted cash flows model whose inputs include implied credit spread
curves. With this respect, depending on the proximity of the credit spread curve applied, the bonds are disclosed as Level 2 or Level 3 respectively.
Under fair value accounting, fair value adjustments for liquidity and model deficiencies compensate for the lack of market observables for the Level 2
and Level 3 positions.
In the global bond IPV process market prices of Level 1 bonds and pricing models for illiquid bonds are regularly verified for accuracy.
Structured financial products
The Group determines the fair value of structured financial products not quoted on active markets using the appropriate derivative valuation
methodology given the nature of the embedded structure (when this is not to be separated). Such instruments are classified as Level 2 or Level 3
depending on the observability of significant inputs to the model.
Asset Backed Securities
UniCredit valuation process assigns prices considering quotes available in the market.
As a second step, prices are assessed by benchmarking each security to a pool of similar securities with available market quotes. An alternative
approach consists in evaluating the instrument through the use of quantitative pricing models, which are applicable every time that information
regarding market participants assumptions on model parameters is reasonably made available without excessive costs or efforts.
ABS are assigned to Level 2 or Level 3 depending on the observability of either prices or model inputs.
Derivatives
Fair value of derivatives not traded in an active market is determined using a mark-to-model valuation technique.
Where active markets exist for its component parts, then fair value is determined on the basis of the relevant market prices for the component parts.
Valuation techniques that are based on significant inputs that are observable are referred to as Level 2 valuations, while those based on techniques
that use significant unobservable inputs are referred to as Level 3 valuations.
70 As far as Italian government bonds are concerned, it is worth stressing they are typically exchanged on the MTS market which is largely acknowledged as the main liquid platform for this kind of asset.
421
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Equity instruments
Equity instruments are assigned to Level 1 when a quoted price is available on a liquid market and to Level 3 when no quotations are available, or
quotations have been suspended indefinitely. These instruments are classified as Level 2 only when trading volume on the market is not sufficient to
qualify the market as active.
Investment funds
The Group holds investments in certain investment funds that publish net asset value (NAV) per share, including mutual funds, private equity funds,
hedge funds (including funds of funds) and real estate funds. The Group’s investments include co-investments in funds that are managed by the
Group and investments in funds that are managed by third parties and in particular:
• Real estate funds: these funds are mapped to Level 1 when quoted prices are available on an active market; when this condition does not hold,
real estate funds are disclosed as Level 3 and they are evaluated through an adequate credit adjustment of the NAV based on the specific
features of each fund.
• Other funds: the Group holds investments also in mutual funds, hedge funds and private equity funds. Funds are usually assigned to Level 1 when
a quoted price is available on an active market. Funds are disclosed as Level 2 or Level 3 depending on NAV availability, portfolio transparency
and possible issues relating to position write-off; these funds are measured on the basis of internal analysis that consider further information,
included those provided by management companies.
Loans
Fair Value of loans measured at fair value is determined using either quoted prices or discounted cash flows analysis. They are classified under
Level 2 if implied credit spread curves, as well as any other parameters used for determining fair value, are observable on the market. In the case
the spreads curves are not observable they are derived using an internal spread model that is based both on observable and unobservable inputs, in
the case the impact of unobservable inputs is significant they are classified as Level 3. These include loans to corporates and household for which
no indication of applicable credit spread is available and for which, therefore, fair value has been determined through internal credit risk parameters.
Tangible assets measured at fair value
Reference is made to the paragraph “A.4.4 Other information” of the Notes to the consolidated accounts, Part A - Accounting policies, A.4 -
Information on fair value, Qualitative information.
Fair Value Adjustments (FVA)
Fair value adjustment is defined as the amount to be added either to the market observed mid-price or to the theoretical price generated by a
valuation model with the aim of obtaining a fair value of the position. Therefore, FVA are aimed at insuring that the fair value reflects the actual exit
price of a certain position.
Below a list of adjustments:
• Credit/Debit Valuation Adjustment (CVA/DVA);
• Funding Cost and Benefit Value Adjustment (FCA/FBA);
• model risk;
• close - out costs;
• other adjustments.
Credit/Debit Valuation Adjustment (CVA/DVA)
Credit valuation adjustments (CVAs) and debit valuation adjustments (DVAs) are incorporated into derivative valuations to reflect the impact on fair
value of counterparty credit risk and UniCredit group own credit quality respectively.
UniCredit CVA/DVA methodology is based on the following inputs:
• EAD derived by simulation techniques. Simulated exposures also take into account Specific Wrong-Way Risk that arises from transactions where
there is a correlation between counterparty credit risk and the underlying derivative risk factors;
• PD implied by current market default rates, obtained from Credit Default Swaps;
• LGD based on the estimated level of expected recovery should a counterparty default and implied by current market default rates, obtained from
credit default swaps.
As at 31 December 2024, net CVA/DVA cumulative adjustment, relating to performing counterparts, amounts to €101.5 million negative; in addition,
the adjustment related to own credit spread evolution on own financial liabilities measured at fair value, which is filtered out from regulatory capital
(accordingly to CRDIV), amounts to €93.6 million negative.
Funding Cost and Benefit Adjustment (FCA/FBA)
Funding Valuation Adjustment (“FundVA”) is the sum of a Funding Cost Adjustment (FCA) and of a Funding Benefit Adjustment (FBA) that indeed
account for the expected future funding costs/benefits for derivatives that are not fully collateralised. Most material contributors are in-the-money
trades with uncollateralised counterparties.
422
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
UniCredit FundVA methodology is based on the following inputs:
• positive and Negative exposure profiles derived leveraging on a risk-neutral spin-off of the counterparty credit risk internal model;
• PD term structure implied by current market default rates obtained from credit default swaps;
• a funding spread curve that is representative of the average funding spread of peer financial groups.
As at 31 December 2024 the Fair Value Adjustment component (FundVA) reflected into P&L amounts to €57.4 million negative.
Model risk
Financial models are used for the valuation of the financial instruments if the direct market quotes are not deemed reliable. In general, the model risk
is represented by the possibility that a financial instrument’s evaluation is actually sensitive to the choice of model. It is possible to value the same
financial instrument by using alternative models which could provide different results in term of pricing. The model risk adjustment refers to the risk
that the actual fair value of the instrument differs from the value produced by the model.
Close-out cost
It measures the implicit cost of closing a trading position. The position can be closed by the sell of a long position (or purchase, in the case of a short
position), or by entering into a new transaction (or several transactions) that offsets (hedges) the open position. The close-out costs are typically
derived from the bid/ask spreads observed on the market. It accounts for the fact that a position is valued at mid but can only be closed at bid or ask.
This adjustment is not needed when the position is marked at bid or ask and already represents an exit price. In addition, a close-out adjustment of
the NAV is applied when there are some penalties relating to position write-off in an investment fund.
Other adjustments
Other fair value adjustments, which are not included in the previous categories, could be taken into consideration to align the evaluation to the
current exit price, also according to the level of liquidity of the market and valuation parameters, e.g., adjustment of equity prices whose quotation on
the market are not representative of the effective exit price.
Assets and liabilities not measured at fair value or measured at fair value on a non-recurring basis
Financial instrument not carried at fair value, for example retail loans and deposit and credit facilities extended to corporate clients, are not managed
on a fair value basis.
For these instruments fair value is calculated for disclosure purposes only and does not impact the Balance sheet or the profit or loss. Additionally,
since these instruments generally do not trade, there is significant management judgment required to determine their fair values as defined by
IFRS13.
Cash and cash balances
Cash and cash balances are not carried at amounts that approximate fair value, due to their short-term nature and generally negligible credit risk.
Financial assets at amortised cost
For securities, fair value is determined according to what reported in section “Assets and liabilities measured at fair value on a recurring basis - Debt
securities”.
On the other hands, fair value for performing loans to banks and customers is determined using the discounted cash flow model adjusted for credit
risk. Some portfolios are valued according to simplified approaches, which however take into account the financial features of the financial
instruments.
Property, plant and equipment
The fair value of under construction properties, obtained through the enforcement of guarantees received and the right of use of leased assets is
determined on the basis of a valuation by an independent appraiser who holds a recognised and relevant professional qualification which perform its
valuation by directly visiting the property and in consideration of market analysis (i.e. full appraisal) or, always considering the market analysis, on
the basis of an indirect knowledge of the assets through the information made available by the owner and relating to the localisation, consistency,
destination (i.e. desktop appraisal).
The attribution of fair value levels is based on the level of observability of the significant market parameters used by the valuation technique. In
particular, given the current portfolio composition, most of the positions are at Level 3.
Financial liabilities at amortised cost
Fair value for issued debt securities is determined using the discounted cash flow model adjusted for UniCredit credit risk. The Credit Spread takes
seniority into account.
Likewise, fair value for other financial liabilities is determined using the discounted cash flow model adjusted for UniCredit credit risk.
423
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Description of the valuation techniques
Specific valuation techniques are used to value positions for which a market price is not directly observable from market sources. The Group uses
well known valuation techniques for determining fair values of financial and non-financial instruments that are not actively traded and quoted. The
valuation techniques used for Level 2 and 3 assets and liabilities are described below.
Option Pricing Model
Option Pricing model is generally used for instruments in which the holder has a contingent right or obligation based on the occurrence of a future
event, such as the price of a referenced asset going above or below a predetermined strike price. Option Pricing models estimate the likelihood of
the specified event occurring by incorporating assumptions such as volatility estimates, price of the underlying instrument and expected rate of
return.
Discounted cash flow
Discounted cash flow valuation techniques generally consist of developing an estimate of future cash flows that are expected to occur over the life of
an instrument. The model requires the estimation of the cash flow and the adoption of market’s parameters for the discounting: discount rate or
discount margin reflects the credit and/or funding spreads required by the market for instruments with similar risk and liquidity profiles to produce a
“discounted value”. The fair value of the contract is given by the sum of the present values of future cash flows.
Hazard Rate Model
The valuation of CDS instruments (Credit Default Swap) requires the knowledge of the entity’s survival probability at future dates. The estimate of
this probability curve uses the standard model for survival probabilities and requires as parameters the credit default swap market quotes on
standard future dates in addition to the risk-free curve and the expected recovery rate. The Hazard Rate is part of the described process, and it
indicates the instantaneous probability of default at different future instants.
Market Approach
A valuation technique where the value is determined based on the prices generated by market or previous transactions involving identical or
comparable (i.e., similar) assets, liabilities or a group of assets and liabilities.
Gordon Growth Model
A model used to determine the intrinsic value of a stock, based on a strip of future cash flows growing at a constant rate. Given a single cash flow
and a hypothesis on constant growth through time, the model estimates the present value of future cash flows.
Dividend Discount Model
A model used to determine the value of a stock based on expectations on its future dividend flow.
Given a series of forecasts on dividends payable in future exercises and a hypothesis on the subsequent annual growth of dividends at a constant
rate, the model estimates the fair value of a stock as the sum of the current value of all future dividends.
Adjusted NAV (Net Asset Value)
NAV is the total value of a fund’s assets less liabilities. An increase in NAV would result in an increase in a fair value measure. Usually for funds
classified as Level 3, depending on the methodology adopted by the Fund to calculate the NAV, the fair value is adjusted to consider the issuer’s
default risk and liquidity risk.
Sum of the parts
This approach determines the economic value of a company or a business unit as the sum of the economic capital values attributable to the various
business lines within the same corporate structure.
Equity method
In the case of unlisted investments for which a limited availability of information does not allow for other methods to be adopted, the portion of
shareholders' equity resulting from the latest financial statements or interim report (quarterly or half-yearly) approved by the company can be used
as the best proxy of the fair value. For the purposes of determining shareholders' equity, valuation reserves must also be considered.
Simple equity method
With this method, the value of the company is determined as the difference between the assets and liabilities of the company restated at current
values; this method consists, therefore, in defining the individual asset and liability values at current values, highlighting any gains or losses with
respect to the carrying amounts.
Complex equity method
In addition to the measurement of the company using the Simple equity method, this method measures some "intangible" assets not present in the
financial statements, such as goodwill, trademarks, patents, intellectual property, concessions.
424
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Mixed equity/income method
Determines the value of the company taking into account objective and verifiable aspects of the equity method, without however neglecting the
expected income flows, which are conceptually an essential component of the value of the economic capital and represented in the income method.
Description of the inputs used to measure the fair value of items categorised in Level 2 and 3
Hereby a description of the main significant inputs used to measure the fair value of items categorised in Level 2 and 3 of the fair value hierarchy.
Volatility
Volatility is the measure of the variation of price of a financial instrument over time. In particular, volatility measures the speed and severity of market
price changes for an instrument, parameter or market index given the particular instrument, parameter or index changes in value over time,
expressed as a percentage of relative change in price. The higher the volatility of the underlying, the riskier the instrument. In general, long option
positions benefit from increases in volatility, whereas short option positions will suffer losses.
There are different macro-types of volatility:
• volatility of interest rate;
• inflation volatility;
• volatility of foreign exchange;
• volatility of equity stocks, equity or other indexes/prices.
Correlation
Correlation is a measure of the relationship between the movements of two variables. When parameters are positively correlated, an increase in
correlation results in a higher fair value measure. On the contrary, given a short correlation position, an increase in correlation, in isolation, would
generally result in a decrease in a fair value measure. Therefore, changes in correlation levels can have a major impact, favourable or unfavourable,
on the fair value of an instrument, depending on the type of correlation.
Correlation is a pricing input for a derivative product where the payoff is driven by multiple underlying risks. The level of correlation used in the
valuation of derivatives with multiple underlying risks depends on a number of factors including the nature of those risks.
Dividends
The derivation of a forward price for an individual stock or index is important both for measuring fair value for forward or swap contracts and for
measuring fair value using option pricing models. The relationship between the current stock price and the forward price is based on a combination
of expected future dividend levels and payment timings and, to a lesser extent, the relevant funding rates applicable to the stock in question.
The dividend yield and timing represent the most significant parameter in determining fair value for instruments that are sensitive to an equity
forward price.
Interest rate curve
The calculation of the interest rate curve is based on standard bootstrapping techniques relying on the set of quotes of appropriate financial
instruments, for each currency, which turns interest rates in zero-coupon.
Less liquid currencies interest rate curves refer to the rates in currencies for which a market liquidity doesn’t exist in terms of tightness, depth and
resiliency.
Inflation swap rate
The determination of forward levels for inflation indexes is based on swap quote over inflation indexes. Swap over inflation may present a low
liquidity level whether there is no liquid market in terms of rigidity, deepness, and resistance.
Credit spreads
Credit spreads reflects the credit quality of the associated credit name.
The credit spread of a particular security is reported in relation to the yield on a benchmark security or reference rate and is generally expressed in
terms of basis points. In the loan evaluation model, the credit spread is used to estimate the market risk premium applied to discounting the cash-
flows.
Loss Given Default (LGD)/Recovery Rate
LGD, also known as loss severity (the inverse concept is the recovery rate), represents the percentage of contractual cash flows lost in the event of
a default, expressed as the net amount of loss relating to the outstanding balance. An increase in the loss severity, in isolation, would result in a
decrease in a fair value measure. Loss given default is facility-specific because such losses are generally understood to be influenced by key
transaction characteristics such as the presence of collateral and the degree of subordination.
425
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Price
Where market prices are not observable, comparison via proxy is used to measure a fair value of the instrument.
Prepayment Rate (PR)
The PR is the estimated rate at which forecasted prepayments of principal of the related debt instrument are expected to occur. Voluntary
unscheduled payments (prepayments) change the future cash flows for the investor and thereby change the fair value of the security.
In general, as prepayment speeds change, the weighted average life of the security changes, which impacts the valuation either positively or
negatively, depending on the nature of the security and the direction of the change in the weighted average life.
Probability of Default (PD)
The probability of default is an estimate of the likelihood of not collecting contractual amounts. It provides an estimate of the likelihood that a client of
a financial institution will be unable to meet its debt obligations over a particular time horizon. The PD of an obligor does not only depend on the risk
characteristics of that particular obligor but also the economic environment and the degree to which it affects the obligor.
Early conversion
The early conversion is the estimate of the probability that the liability would be converted into equity earlier than the terms stated.
EBITDA
EBITDA is an indicator of the current operating profitability of the business, that is the income generated by the use of the company’s assets and the
commercialisation of the products manufactured.
Ke
The Ke (cost of capital) represents the minimum rate that the company has to offer to its shareholders as remuneration for the funds received.
Growth rate
It is the constant growth rate used for the future dividends estimate.
426
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Quantitative information on significant unobservable inputs used in the fair value measurement: accounting portfolios
measured at fair value categorised as Level 3
The following table shows the relevant unobservable parameters for the valuation of financial instruments classified at fair value level 3 according to
the IFRS13 definition.
(€ million)
PRODUCT CATEGORIES
FAIR VALUE
ASSETS
FAIR VALUE
LIABILITIES
VALUATION
TECHNIQUES
UNOBSERVABLE
PARAMETERS
UNCERTAINTY
RANGES
Derivatives
Financial
Equity &
Commodities
752
449 Option Pricing Model
Volatility
1%
18%
Correlation
2%
25%
Option Pricing Model/
Discounted Cash Flows
Dividends Yield
1%
26%
Foreign Exchange
73
70 Option Pricing Model
Volatility
0%
45%
Discounted Cash Flows
Interest rate (bps)
0
587
Interest Rate
544
751 Discounted Cash Flows
Swap Rate (bps)
0
587
Inflation Swap Rate
(bps)
3
12
Option Pricing Model
Inflation Volatility
1%
3%
Interest Rate Volatility
0%
29%
Correlation
0%
22%
Credit
65
2 Hazard Rate Model
Credit Spread (bps)
1
67
Recovery rate
0%
5%
Debt Securities and
Loans
Corporate/
Government/Other
778
772 Market Approach
Credit Spread (bps)
1
809
Mortgage & Asset
Backed Securities
1,694
- Discounted Cash Flows
Credit Spread (bps)
62
992
Recovery rate
0%
70%
Default Rate
0%
3%
Prepayment Rate
0%
30%
Equity Securities
Unlisted Equity &
Holdings
1,077
- Market Approach
Price
(% of used value)
0%
3%
Gordon Growth Model
Ke
9%
22%
Growth Rate
1%
4%
Units in Investment
Funds
Real Estate &
Other Funds
2,283
- Adjusted Nav
PD
1%
30%
LGD
35%
60%
427
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
A.4.2 Valuations processes and sensitivities
The Group verifies that the value attributed to each position reflects the current fair value in an appropriate way. Assets and liabilities subject to fair
value measurements are determined using different techniques, among which (but not only) models such as discounted cash flow and internal
models. On the basis of the observability of the input used, all the measurements are classified as Level 1, Level 2 or Level 3 of the fair value
hierarchy.
When a financial instrument, measured at fair value, is valued through the use of one or more significant inputs not directly observable on the
market, a further procedure for the price verification is implemented. These procedures include the revision of relevant historical data, the analysis of
profits and losses, the individual valuation of each component for structural products and benchmarking. This approach uses subjective opinions and
judgments based on experience and, therefore, it could require valuation adjustments which take into account the bid/ask spread, liquidity and
counterparty risk, in addition to the valuation model type adopted.
According to Group Market Risk Governance guidelines, in order to ensure the right separateness of the functions in charge of the model
development and those in charge of the validation processes, all the valuation models developed by Group companies’ front offices are
independently tested centrally and validated by Risk Managements functions. The aim of this independent control structure is evaluating the model
risk from a theoretical solidity, calibration techniques eventually applied and appropriateness of the model for a specific product in a defined market
point of views.
In addition to the daily mark-to-market or mark-to-model valuation, the Independent Price Verification (IPV) is applied by from Market Risk function
with the aim of guaranteeing a fair value provided by an independent structure for all instruments, illiquid included.
Fair value sensitivity to variations in unobservable input used in the fair value computation for instruments categorised as
Level 3
The sensitivities to change in the unobservable parameter for the different financial instrument categories of level 3 valued at fair value are
presented in the table below as change of corresponding relevant parameters:
• for derivatives on equities and commodities: 1% absolute of volatility, 10% relative of dividend, 1% absolute of correlation and 10% relative of
volatility skew;
• for foreign exchanges: 1% absolute of underlying volatility;
• for interest rate derivatives: 1 basis point absolute of rates curves and volatilities or 1% absolute of swaption volatilities;
• for credit derivatives: 1 basis point absolute of credit spread or, if Level 3 attribution for a derivative is due to counterparty classification as not
performing, the CVA impact of a 5% absolute shift of the recovery rate;
• for debt securities and loans: 1 basis point absolute of credit spread;
• for equities: 1% of the underlying;
• for Units in Investment Funds quotes: 5 basis points absolute shift in PD and LGD, if evaluated leveraging on models considering counterparty
credit risk as main risk factor, otherwise 1% of fair value.
(€ million)
PRODUCT CATEGORIES
FAIR VALUE MOVEMENTS
Derivatives
Financial
Equities &
Commodities
+/-
77.63
Foreign Exchange
+/-
3.66
Interest Rate
+/-
4.08
Credit
+/-
1.77
Debt Securities and Loans
Corporate/Government/
Other
+/-
0.37
Mortgage & Asset
Backed Securities
+/-
0.15
Equity Securities
Unlisted Equity &
Holdings
+/-
10.78
Units in Investment Funds
Real Estate & Other
Funds
+/-
0.57
The unlisted Level 3 Units in Investment Funds, measured using a model, include the shares in Atlante and Italian Recovery Fund, former Atlante II,
(€225 million at 31 December 2024) are classified. For further information refer to Notes to the consolidated accounts, Part B - Consolidated balance
sheet - Assets, Section 2 - Financial assets at fair value through profit or loss: c) other financial assets mandatorily at fair value.
428
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Amongst the financial instruments subject of valuation methods and sensitivity analysis, there are also included ABS issued by securitisation
vehicles as per Italian law 130/99 where the Bank is both originator and underwriter of some issues and quotes of open investment funds acquired
through credit disposal.
A.4.3 Fair value hierarchy
IFRS13 establishes a fair value hierarchy according to the observability of the input used in the valuation techniques adopted for valuations.
The fair value hierarchy level associated to assets and liabilities is set as the minimum level among all the significant valuation inputs used.
A valuation input is not considered significant for the fair value of an instrument if the remaining inputs are able to explain a major part of the fair
value variance itself.
In particular, three levels are considered:
• Level 1: the fair value for instruments classified within this level is determined according to the quoted prices on active markets;
• Level 2: the fair value for instruments classified within this level is determined according to the valuation models for which significant inputs are
observable on active markets;
• Level 3: the fair value for instruments classified within this level is determined according to the valuation models for which significant inputs are
unobservable on active markets.
Financial instruments are classified to a certain fair value level according to the observability of the input used for the valuation.
Level 1 (quoted prices in active markets): at measurement date, quoted prices in active markets are available for identical assets or liabilities. An
active market is a market in which orderly transactions for the asset or liability take place with sufficient frequency and volume for pricing information
to be provided on an on-going basis (e.g. MTS market about prices for most of the government bonds therein traded).
Level 2 (observable inputs): inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly. Inputs are observable if they are developed on the basis of publicly available information about actual events or transactions and reflect
the assumptions that market participants would use when pricing the asset or liability.
Level 3 (unobservable inputs): inputs other than the ones included in Level 1 and Level 2, not directly observable on the market for the evaluation
of asset and liability or used for the definition of significant adjustments to fair value. Unobservable inputs shall reflect the assumptions that market
participants would use when pricing the asset or liability, including assumptions about risk.
Deciding among various valuation techniques to be used, the Group employs the one which maximises the use of observable inputs.
Transfers between hierarchy levels
The main drivers to transfers in and out the fair values levels (both between Level 1 and Level 2 and in/out Level 3) include changes in market
conditions (among which liquidity parameter) and enhancements to valuation techniques and weights for unobservable inputs used for the valuation
itself.
Quantitative and qualitative details about transfers between fair value levels occurred in the period are presented in the following paragraph “A.4.5
Fair value hierarchy”, Quantitative information.
A.4.4 Other information
The Group uses the IFRS13 exception for fair value measurements on a net basis with reference to financial assets and liabilities with offsetting
positions of market risk or counterparty credit risk.
429
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Starting from 31 December 2019, UniCredit Real Estate Assets classified as “held for investment” (hereinafter referred also as “Investment
properties”) as well as Real Estate Assets used in business have to be measured at fair value, by applying the “Fair Value method” determined in
accordance with IFRS13.
In this context, UniCredit issued a dedicated Global Policy for Real Estate Assets Evaluation, which has the purpose to define common principles,
guidelines and models to be followed by the Group Legal Entities in the evaluation of their Real Estate Properties; the policy applies to all Real
Estate Assets reflected in the Group Consolidated Financial Statements.
The attribution of fair value levels is based on the level of observability of the significant market parameters used by the valuation technique. In
particular, given the current portfolio composition, most of the positions are at Level 3.
With specific reference to investment properties, Fair value is determined under a “market perspective”; i.e., it is the price that a third party would
pay to buy the asset in an orderly transaction at the measurement date under a “Highest and Best Use” assumption. The “Highest and Best Use”
assumption needs to be supported by reasonable evidence that the use is physically possible, and legally and financially allowed. As a rule, it is
assumed that the use of a given asset, foreseen by UniCredit managerial intentions, is already the “Highest and Best Use”, unless there is a clear
demonstration of the opposite.
In order to derive the Fair value of an asset, either a Market Comparable Approach (i.e., taking into consideration the current market conditions and
prices of observable transactions) or an Income Approach (i.e., discounting market level rental fees) is used.
The choice of the valuation methodology and the assumptions used shall include all the available information and reflect the strategy on the Asset;
all the inputs used in the evaluation are supported by internal (e.g., technical documents, managerial planning and reporting, existing contracts, etc.)
and external evidence (e.g., market reports, researches, etc.).
Fair value is determined, for both Investment properties and Assets used in business, by an external, independent, certified expert either through
“full form” or through “desktop appraisals”, subject to remeasurement every six months.
With specific reference to investment properties, the entire portfolio is subject to “full/on-site appraisals” over 3 years; hence, in each year, part of the
portfolio is subject to “full/on-site appraisal”, while “Desktop appraisals” are performed on a semi-annual basis for the remaining ones.
In case the difference between the fair value resulting from the desktop appraisals and the fair value resulting from the last “full/on-site” valuation
exceeds 10%, the real estate shall be subject to full/on-site appraisal even if 3 years did not pass yet, if the quality and functionality of the RE Asset
has been affected by physical trigger events (e.g., catastrophic events) or extraordinary renovation activities. If the desktop evaluation is solely
driven by market trigger events or vacancy, it’s required a summary deepening the underlying market factors that influenced the appraisal outcome
and the onsite appraisal is optional.
In case Market Comparable Approach is applied, fair value is determined by external appraisers, according to the features of the transactions
occurred in the market for properties in the same area and with the same characteristics as the one being valued. In case the property has no
comparable transactions, appraisers are asked to apply the most similar transactions available with a reasonable discount that reflects the inherent
illiquidity of the property. Such approach is applied when there is no long-term rental agreement in place, as well as for land plots without planned or
ongoing developments and relies on two key parameters: (i) the area of the real estate property; (ii) the value per unit of area (through the
adjustment of values in comparable transactions).
The real estate property valuation is determined as the surface area multiplied by the value per unit of area.
In case the Income approach is applied, external appraisers determine the fair value by converting future cash flows to a single current capital value.
The income stream may be derived under contracts, or it can be non-contractual, thus leveraging on the most updated version of the International
Valuation Standards.
In detail, cash flows generated by the property shall be calculated considering rent free periods, rental growth, incentive periods, total contractual
length, as well as any additional proceeds/expenses directly related to the rental contract.
The discounted rate to be used is the Weighted Average Cost of Capital (measured at the valuation date) of an ideal entity operating in the specific
real estate market of reference for the specific asset, financed through the average debt/equity structure of comparable entities operating in the
same market.
The income approach is to be preferred when there is a long-term rental agreement in place and the agreement is consistent with market conditions,
or when there is a decline in markets activity. Such approach could be used also for land plots with planned or ongoing developments. In this case,
the value may be determined based on the analysis of the expected future cash flows, assumed that a reasonable expectation of demand for the
development can be demonstrated.
Fair value coming from appraisals are subject to plausibility checks; in this regard, the following shall be noted: when an income approach is used by
external appraisers, the main input underlying the valuation (Cash flows, Capitalization rate, etc.) are internally assessed in term of plausibility; the
plausibility of fair values arising from external appraisals is assessed internally through a control approach that acquires information from different
external info providers, thus determining a range of possible fair values within which the valuation shall fall; for the most significant real estate
assets, the analysis is further supported by a discounted cash flow analysis that compares the fair value determined by the external appraisal with
the outcome of an internal Discounted Cash flow model.
430
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
Quantitative information
A.4.5 Fair value hierarchy
A.4.5 Fair Value Hierarchy
The following tables show the portfolios breakdown in terms of (i) financial assets and liabilities valued at fair value as well as (ii) assets and
liabilities not measured at fair value or measured at fair value on a non-recurring basis, according to the above-mentioned levels.
A.4.5.1 Assets and liabilities measured at fair value on a recurring basis: breakdown by fair value levels
(€ million)
FINANCIAL ASSETS/LIABILITIES MEASURED AT FAIR VALUE
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Financial assets at fair value through profit or loss
22,083
34,544
5,050
26,726
33,529
4,759
a) Financial assets held for trading
20,336
33,280
1,467
24,233
31,993
1,048
b) Financial assets designated at fair value
247
-
-
220
-
-
c) Other financial assets mandatorily at fair value
1,500
1,264
3,583
2,273
1,536
3,711
2. Financial assets at fair value through other
comprehensive income
71,032
4,789
2,198
52,974
7,753
2,370
3. Hedging derivatives
-
1,333
18
81
1,836
8
4. Property, plant and equipment
-
-
5,906
-
-
5,446
5. Intangible assets
-
-
-
-
-
-
Total
93,115
40,666
13,172
79,781
43,118
12,583
1. Financial liabilities held for trading
5,926
24,062
1,361
11,468
25,301
1,253
2. Financial liabilities designated at fair value
-
13,149
597
-
11,252
795
3. Hedging derivatives
-
1,026
86
124
2,208
27
Total
5,926
38,237
2,044
11,592
38,761
2,075
The sub-item “1. c) Financial assets mandatorily at fair value” at Level 3 as at 31 December 2024 includes the investments in Atlante and Italian
Recovery Fund (IRF - former Atlante II) carrying value €225 million.
As at 31 December 2024 the fair value for Atlante and Italian Recovery Fund (former Atlante II) has been determined adopting an internal model in
which credit risk changes of single ABS in which Atlante fund is invested are considered.
For further information refer to paragraph “2.5 Other financial assets mandatorily at fair value: breakdown by product” of the Notes to the
consolidated accounts, Part B - Consolidated balance sheet - Assets, Section 2 - Financial assets at fair value through profit or loss - Item 20.
Transfers between level of fair value occurring during the year mainly reflect the evolution of reference market and the enhancement of processes
for fair value level attribution in some Group entities.
Besides the transfers related to financial assets and liabilities carried at Level 3 detailed in the sections below during the year the following transfers
occurred:
• from Level 1 to Level 2 owing to a worsening of the liquidity and price reliability indicators (based on the bid-ask spread, relative size and
applicability of the published prices) collected by third parties as calculated and recorded in the context of the Global Bond IPV process:
- of financial assets measured at fair value through profit or loss (financial assets held for trading, designed at fair value and mandatorily at fair
value) for €284 million;
- of financial assets measured at fair value through reserves (financial assets at fair value through other comprehensive income) for €6 million.
• from Level 2 to Level 1 owing to an improvement of the liquidity and price reliability indicators (based on the bid-ask spread, relative size and
applicability of the published prices) collected by third parties as calculated and recorded in the context of the Global Bond IPV process:
- of financial assets measured at fair value through profit or loss (financial assets held for trading, designed at fair value and mandatorily at fair
value) for €242 million;
- of financial assets measured at fair value through reserves (financial assets at fair value through other comprehensive income) for €703 million.
431
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
A.4.5.2 Annual changes in assets measured at fair value on a recurring basis (Level 3)
(€ million)
CHANGES IN 2024
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
FINANCIAL
ASSETS AT FAIR
VALUE THROUGH
OTHER
COMPREHENSIVE
INCOME
HEDGING
DERIVATIVES
PROPERTY,
PLANT AND
EQUIPMENT
INTANGIBLE
ASSETS
TOTAL
OF WHICH: A)
FINANCIAL
ASSETS HELD
FOR TRADING
OF WHICH: B)
FINANCIAL
ASSETS
DESIGNATED AT
FAIR VALUE
OF WHICH: C)
OTHER
FINANCIAL
ASSETS
MANDATORILY
AT FAIR VALUE
1. Opening balances
4,759
1,048
-
3,711
2,370
8
5,446
-
2. Increases
3,447
2,114
-
1,333
471
252
961
-
2.1 Purchases
2,134
1,028
-
1,106
42
114
718
-
2.2 Profits recognised in
1,129
992
-
137
83
113
160
-
2.2.1 Income statement
1,129
992
-
137
4
111
67
-
- of which unrealised gains
582
508
-
74
-
14
67
-
2.2.2 Equity
X
X
X
X
79
2
93
-
2.3 Transfers from other levels
107
83
-
24
-
20
-
-
2.4 Other increases
77
11
-
66
346
5
83
-
3. Decreases
3,156
1,695
-
1,461
643
242
501
-
3.1 Sales
1,486
1,060
-
426
81
98
15
-
3.2 Redemptions
664
-
-
664
309
-
-
-
3.3 Losses recognised in
769
534
-
235
184
138
280
-
3.3.1 Income statement
769
534
-
235
16
138
160
-
- of which unrealised losses
274
104
-
170
-
20
89
-
3.3.2 Equity
X
X
X
X
168
-
120
-
3.4 Transfers to other levels
204
93
-
111
36
-
76
-
3.5 Other decreases
33
8
-
25
33
6
130
-
of which: business combinations
-
-
-
-
-
-
-
-
4. Closing balances
5,050
1,467
-
3,583
2,198
18
5,906
-
The sub-items “2.2.1 Profits recognised in Income statement” and “3.3.1 Losses recognised in Income statement” in financial assets are included in
the profit and loss in the following items:
• Item 80: Net gains (losses) on trading;
• Item 90: Net gains (losses) on hedge accounting;
• Item 110: Net gains (losses) on other financial assets/liabilities at fair value through profit or loss.
The sub-item “2.2.2 Profits recognised in Equity” and the sub-item “3.3.2 Losses recognised in Equity” reports the profits and the losses arising from
fair value changes on financial assets at fair value through other comprehensive income and tangible assets used in business, with reference to land
and buildings, according to the rules explained below.
With reference to financial assets at fair value through other comprehensive income these profits and losses are accounted in item “120. Valuation
reserves” of shareholder’s equity until the financial assets is not sold, instant in which cumulative gains and losses are reported: i) if referred to debt
securities in Income statement under item “100. Gains (Losses) on disposal and repurchase of: b) financial assets at fair value through other
comprehensive income” and ii) if referred to equity instruments in the shareholder’s equity under item “150. Reserves”; the exception regards the
case of impairment and gains and losses on exchange rates on monetary assets (debt securities) which are reported respectively under item “130.
Net losses/recoveries on credit impairment relating to: b) financial assets at fair value through other comprehensive income” and item “80. Net gains
(losses) on trading”.
With reference to tangible assets used in business, the profits arising from the valuation are recognised in item “120. Valuation reserves” of
shareholder’s equity for the portion exceeding the cumulated losses recognised in item “260. Net gains (losses) on property, plant and equipment
and intangible assets measured at fair value”. Losses arising from the valuation are recognised in item “120. Valuation reserves” up to the
cumulated profits recognised in the same item. Further losses are recognised in item “260. Net gains (losses) on property, plant and equipment and
intangible assets measured at fair value”. On disposal the cumulated profits reported in item “120. Valuation reserves” are recycled to item “150.
Reserves”.
Transfers between levels of fair value occurring during the year mainly reflect the evolution of reference market and the enhancement of
processes for fair value level attribution in some Group entities and mostly refer to exposures held by UniCredit S.p.A. and its subsidiary UniCredit
Bank GmbH.
432
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
A.4.5.3 Annual changes in liabilities measured at fair value on a recurring basis (Level 3)
(€ million)
CHANGES IN 2024
FINANCIAL LIABILITIES
HELD FOR TRADING
FINANCIAL LIABILITIES
DESIGNATED AT FAIR
VALUE
HEDGING DERIVATIVES
1. Opening balances
1,253
795
27
2. Increases
1,342
475
822
2.1 Issuance
432
377
665
2.2 Losses recognised in
841
66
151
2.2.1 Income statement
841
61
124
- of which unrealised losses
638
35
58
2.2.2 Equity
X
5
27
2.3 Transfers from other levels
53
18
-
2.4 Other increases
16
14
6
3. Decreases
1,234
673
763
3.1 Redemptions
416
6
65
3.2 Purchases
68
317
-
3.3 Profits recognised in
308
13
668
3.3.1 Income statement
308
10
668
- of which unrealised gains
103
10
-
3.3.2 Equity
X
3
-
3.4 Transfers to other levels
417
323
23
3.5 Other decreases
25
14
7
of which: business combinations
-
-
-
4. Closing balances
1,361
597
86
The sub-items “2.2.1 Losses recognised in Income statement” and “3.3.1 Profits recognised in Income statement” in financial liabilities are included
in the profit and loss in the following items:
• Item 80: Net gains (losses) on trading;
• Item 90: Net gains (losses) on hedge accounting;
• Item 110: Net gains (losses) on other financial assets/liabilities at fair value through profit or loss.
Transfers between levels of fair value occurring during the year mostly refer to exposures held by UniCredit S.p.A. and its subsidiary UniCredit Bank
GmbH.
A.4.5.4 Assets and liabilities not measured at fair value or measured at fair value on a non-recurring basis: breakdown by fair value
levels
(€ million)
ASSETS/LIABILITIES NOT MEASURED AT
FAIR VALUE OR MEASURED AT FAIR VALUE
ON A NON-RECURRING BASIS
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
BOOK VALUE
FAIR VALUE
BOOK VALUE
FAIR VALUE
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Financial assets at amortised cost
563,166
65,713
198,297
288,293
556,978
62,852
189,523
294,353
2. Property, plant and equipment held for
investment
-
-
-
-
-
-
-
-
3. Non-current assets and disposal groups
classified as held for sale
394
-
84
105
370
-
82
-
Total
563,560
65,713
198,381
288,398
557,348
62,852
189,605
294,353
1. Financial liabilities at amortised cost
659,598
57,459
246,733
352,959
658,308
53,211
248,641
352,198
2. Liabilities associated with assets
classified as held for sale
-
-
-
-
-
-
-
-
Total
659,598
57,459
246,733
352,959
658,308
53,211
248,641
352,198
433
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part A - Accounting policies
The changes occurred between 31 December 2023 and 31 December 2024 in the ratio between fair value and book value for financial assets at
amortised cost reflect the enhancement of the methodology and the parameters adopted for the fair value calculation for disclosure and the
evolution in the benchmark interest rate, in the risk premium and in the probability of default depending on or deriving from markets trend.
These events together with the evolution of the approach to identify the significance of non-observable inputs have been reflected in fair value
hierarchy level distribution.
The book value of item “3. Non-current assets and disposal groups classified as held for sale” (Assets) includes amounts referred to assets
measured on Balance sheet on the basis of their cost for €205 million. For further details on this item refer to table “12.1 Non-current assets and
disposal groups classified as held for sale: breakdown by asset type”, Notes to the consolidated accounts, Part B - Consolidated balance sheet -
Assets, Section 12 - Non-current assets and disposal groups classified as held for sale and Liabilities associated with assets classified as held for
sale - Item 120 (Assets) and Item 70 (Liabilities).
A.5 - Information on “day one profit/loss"
The value at which financial instruments are recognised is equal to their fair value on the same date.
The fair value of financial instruments, other than those designated at fair value through profit or loss, at their recognition date is usually assumed to
be equal to the amount collected or paid.
For financial instruments held for trading (refer to Sections 1.a) and 12 of Part A.2 above) and instruments designated at fair value (refer to Sections
1.b) and 13 of Part A.2 above), any difference from the amount collected or paid is posted under the appropriate items of the Income statement.
The use of conservative valuation models, the processes described above for revising the models used and related parameters and value
adjustments to reflect model risk ensure that the amount recognised in the Income statement is not derived from the use of valuation parameters
that cannot be observed.
More specifically, the calculation of fair value adjustments to reflect model risk ensures that the fair value portion of these instruments relating to the
use of subjective parameters is not recognised in the profit and loss accounts but changes the Balance sheet value of these instruments.
The presence of further “day one profit” leads to the recognition of a distinct asset component that is the object of linear amortization.
Recognition of these portions in the profit and loss account is then made only when objective parameters are applied and therefore the adjustments
are derecognised.
The overall fair value adjustments to reflect these adjustments (amount not recognised in the Income statement) amounts to +€61 million as at 31
December 2024 (+€58 million as at 31 December 2023).
434
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
Part B - Consolidated balance sheet
Assets
Section 1 - Cash and cash balances - Item 10
1.1 Cash and cash balances: breakdown
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
a) Cash
3,853
3,477
b) Current accounts and demand deposits with Central Banks
30,798
50,605
c) Current accounts and demand deposits with Banks
6,791
6,918
Total
41,442
61,000
The reduction in the item “b) Current accounts and demand deposits with Central Banks” is mainly due to the UniCredit S.p.A. and its subsidiary
UniCredit Bank GmbH, as a result of the reimbursement of the TLTRO III liabilities occurred during the 2024.
The item “b) Current accounts and demand deposits with Central Banks” mainly includes the investment of liquidity in overnight deposits and other
sight deposits held with Central Banks, in addition to the part that is maintained in the Compulsory Reserves, classified in the item Loans and
advances from Banks as a result of the management of a net surplus of funds recognised both (i) in the context of commercial activity with
customers and (ii) as part of the interbank business.
435
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
Section 2 - Financial assets at fair value through profit or loss - Item 20
2.1 Financial assets held for trading: breakdown by product
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
ITEMS/VALUES
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
A. Financial assets (non-derivatives)
1. Debt securities
5,061
377
46
10,979
1,018
106
1.1 Structured securities
9
133
-
5
290
2
1.2 Other debt securities
5,052
244
46
10,974
728
104
2. Equity instruments
8,982
7
1
7,257
6
1
3. Units in investment funds
1,044
1,092
5
1,169
410
7
4. Loans
3,097
5,852
-
2,082
4,930
-
4.1 Reverse Repos
-
262
-
-
923
-
4.2 Other
3,097
5,590
-
2,082
4,007
-
Total (A)
18,184
7,328
52
21,487
6,364
114
B. Derivative instruments
1. Financial derivatives
2,143
25,858
1,350
2,659
25,546
934
1.1 Trading
2,143
24,822
929
2,659
25,522
934
1.2 Linked to fair value option
-
28
-
-
18
-
1.3 Other
-
1,008
421
-
6
-
2. Credit derivatives
9
94
65
87
83
-
2.1 Trading
9
94
65
87
83
-
2.2 Linked to fair value option
-
-
-
-
-
-
2.3 Other
-
-
-
-
-
-
Total (B)
2,152
25,952
1,415
2,746
25,629
934
Total (A+B)
20,336
33,280
1,467
24,233
31,993
1,048
Total Level 1, Level 2 and Level 3
55,083
57,274
Valuations at fair value were classified according to a hierarchy of levels reflecting the observability of the valuations input. For further information
see paragraph “A.4 - Information on fair value”, Notes to the consolidated accounts Part A - Accounting policies.
The financial assets and liabilities relating to OTC Derivatives and Reverse repos managed through Central Counterparty Clearing Houses (CCPs)
are offset when (i) the clearing systems of CCPs guarantee the elimination or reduce to immaterial the credit and liquidity risks of these contracts
and (ii) the entity intends to settle these contracts on a net basis, in accordance with IAS32 - Offsetting, in order to improve the presentation of the
liquidity profile and counterparty risk connected with them.
The reduction of the item is mainly due to the decrease of the item “1.2 other debt securities” mainly at UniCredit S.p.A.
The sub-item “4.2 Loans - Other” includes CO2 certificates for an amount equal to €2,073 million as at 31 December 2024 (€1,314 as at 31
December 2023) held by the subsidiary UniCredit Bank GmbH.
The offset effect as at 31 December 2024, already included in the net presentation of these transactions, totaled €115,444 million decreased in
comparison to €180,918 million as at 31 December 2023 due to the evolution of the reference market conditions, mainly relating to the activities of
UniCredit S.p.A.
436
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
In item “1. Debt securities” there are no securities related to securitisation transactions.
2.2 Financial assets held for trading: breakdown by borrowers/issuers/counterparties
(€ million)
AMOUNTS AS AT
ITEMS/VALUES
31.12.2024
31.12.2023
A. Financial assets (non-derivatives)
1. Debt securities
5,484
12,103
a) Central Banks
-
-
b) Governments and other Public Sector Entities
3,256
10,492
c) Banks
1,287
378
d) Other financial companies
333
484
of which: insurance companies
10
7
e) Non-financial companies
608
749
2. Equity instruments
8,990
7,264
a) Banks
558
483
b) Other financial companies
507
542
of which: insurance companies
285
260
c) Non-financial companies
7,925
6,239
d) Other issuers
-
-
3. Units in investment funds
2,141
1,586
4. Loans
8,949
7,012
a) Central Banks
-
161
b) Governments and other Public Sector Entities
2,073
1,315
c) Banks
1,581
474
d) Other financial companies
186
294
of which: insurance companies
-
-
e) Non-financial companies
5,109
4,768
f) Households
-
-
Total A
25,564
27,965
B. Derivative instruments
a) Central counterparties
2,143
4,041
d) Other
27,376
25,268
Total B
29,519
29,309
Total (A+B)
55,083
57,274
437
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
2.3 Financial assets designated at fair value: breakdown by product
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
ITEMS/VALUES
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Debt securities
247
-
-
220
-
-
1.1 Structured securities
-
-
-
-
-
-
1.2 Other debt securities
247
-
-
220
-
-
2. Loans
-
-
-
-
-
-
2.1 Structured
-
-
-
-
-
-
2.2 Other
-
-
-
-
-
-
Total
247
-
-
220
-
-
Total Level 1, Level 2 and Level 3
247
220
Valuations at fair value are classified according to a hierarchy of levels reflecting the observability of the valuations input.
For further information refer to paragraph “A.4 - Information on fair value” of the Notes to the consolidated accounts, Part A - Accounting policies.
2.4 Financial assets designated at fair value: breakdown by borrowers/issuers
(€ million)
AMOUNTS AS AT
ITEMS/VALUES
31.12.2024
31.12.2023
1. Debt securities
247
220
a) Central Banks
-
-
b) Governments and other Public Sector Entities
237
210
c) Banks
10
10
d) Other financial companies
-
-
of which: insurance companies
-
-
e) Non-financial companies
-
-
2. Loans
-
-
a) Central Banks
-
-
b) Governments and other Public Sector Entities
-
-
c) Banks
-
-
d) Other financial companies
-
-
of which: insurance companies
-
-
e) Non-financial companies
-
-
f) Households
-
-
Total
247
220
438
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
2.5 Other financial assets mandatorily at fair value: breakdown by product
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
ITEMS/VALUES
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Debt securities
667
417
173
1,311
658
214
1.1 Structured securities
-
72
3
-
-
2
1.2 Other debt securities
667
345
170
1,311
658
212
2. Equity instruments
811
7
326
942
4
344
3. Units in investment funds
22
12
2,278
20
11
2,269
4. Loans
-
828
806
-
863
884
4.1 Reverse Repos
-
-
-
-
-
-
4.2 Other
-
828
806
-
863
884
Total
1,500
1,264
3,583
2,273
1,536
3,711
Total Level 1, Level 2 and Level 3
6,347
7,520
A financial asset is classified as financial asset mandatorily at fair value if it does not meet the conditions, in terms of business model or cash flow
characteristics, for being measured at amortised cost or at fair value through other comprehensive income.
The item “1. Debt securities” includes investments (i) in FINO Project’s Mezzanine and Junior Notes with a value of €12 million, (ii) Mezzanine and
Junior bonds of Olympia securitisations for €1 million, (iii) Mezzanine and Junior bonds of Relais securitisation for €1 million, (iv) Mezzanine and
Junior bonds of Itaca securitisation for €1 million and (v) Junior bonds of Altea securitisation for €6 million, all presented among Level 3 instruments.
The item “3. Units in investment funds” includes the investments in Atlante and Italian Recovery Fund, former Atlante II, presented among Level 3
instruments, with a value of €225 million as at 31 December 2024.
Valuations at fair value were classified according to a hierarchy of levels reflecting the observability of the valuations input.
For further information refer to paragraph “A.4 - Information on fair value” of the Notes to the consolidated accounts, Part A - Accounting policies.
Exposures to securities related to Securitisation transactions
(€ million)
TRANCHING
AMOUNTS AS AT 31.12.2024
Senior
6
Mezzanine
36
Junior
21
Total
63
439
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
Information about the units of Atlante Fund and Italian Recovery Fund
Reference is made to the paragraph “Information about the units of Atlante Fund and Italian Recovery Fund (former Atlante II)” of the Company
financial statements of UniCredit S.p.A., Notes to the accounts Part B - Balance sheets - Assets, Section 2 - Financial assets at fair value through
profit or loss - Item 20, which is herewith quoted entirely.
Information about the investments in the “Schema Volontario” (Voluntary Scheme)
Reference is made to the paragraph “Information about the investments in the Schema Volontario” of the Company financial statements of UniCredit
S.p.A., Notes to the accounts Part B - Balance sheets - Assets, Section 2 - Financial assets at fair value through profit or loss - Item 20, which is
herewith quoted entirely.
2.6 Other Financial assets mandatorily at fair value:breakdown by borrowers/issuers
(€ million)
AMOUNTS AS AT
ITEMS/VALUES
31.12.2024
31.12.2023
1. Equity instruments
1,144
1,290
of which: banks
341
476
of which: other financial companies
692
613
of which: non-financial companies
111
201
2. Debt securities
1,257
2,183
a) Central banks
-
-
b) Governments and other Public Sector Entities
651
1,039
c) Banks
415
912
d) Other financial companies
190
214
of which: insurance companies
55
56
e) Non-financial companies
1
18
3. Units in investment funds
2,312
2,300
4. Loans and advances
1,634
1,747
a) Central banks
-
-
b) Governments and other Public Sector Entities
523
558
c) Banks
41
50
d) Other financial companies
52
139
of which: insurance companies
-
-
e) Non-financial companies
561
530
f) Households
457
470
Total
6,347
7,520
440
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
Section 3 - Financial assets at fair value through other comprehensive income - Item 30
3.1 Financial assets at fair value through other comprehensive income: breakdown by product
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
ITEMS/VALUES
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Debt securities
68,360
4,331
1,447
52,624
7,301
1,576
1.1 Structured securities
-
-
-
-
-
-
1.2 Other
68,360
4,331
1,447
52,624
7,301
1,576
2. Equity instruments
2,672
458
751
350
452
794
3. Loans
-
-
-
-
-
-
Total
71,032
4,789
2,198
52,974
7,753
2,370
Total Level 1, Level 2 and Level 3
78,019
63,097
Valuations at fair value were classified according to a hierarchy of levels reflecting the observability of the valuations input.
For further information see the paragraph “A.4 - Information on fair value” of the Notes to the consolidated accounts, Part A - Accounting Policies.
The increase in the item “1. Debt Securities” is attributable to a new purchase, mainly government and banking bonds, occurred during the period
and mostly related to UniCredit S.p.A. and its subsidiary UniCredit Bank GmbH. This Item includes investments (i) in FINO Project’s investments in
Senior and in part in Mezzanine notes with a value of €32 million, (ii) in Senior bonds of Prisma securitisation for €430 million, (iii) in Senior bonds of
Relais securitisation for €223 million, (iv) in Senior bonds of Olympia securitisation for €111 million, and (v) in Senior bonds of Itaca securitisation for
€30 million, all investments presented among Level 3 instruments.
The increase in the Item “2. Equity instruments” is mainly due to a new investment in Commerzbank Ag stake made during the period for an amount
of 1,749 as of 31 December 2024. This item includes also investments (i) in Banca d’Italia stake (presented among Level 2 instruments), with a
value of €375 million, (ii) in ABH Holding SA share (presented among Level 3 instruments) acquired in contemplation of the sale of PJSC
Ukrsotbank to Alfa Group, with a value of €263 million, and (iii) in Alpha Services and Holdings S.A. share (presented among Level 1 instruments),
with a value of €358 million.
Exposures to securities related to Securitisation transactions
(€ million)
TRANCHING
AMOUNTS AS AT 31.12.2024
Senior
818
Mezzanine
9
Junior
-
Total
827
Information about the shareholding in Banca d'Italia
Reference is made to the paragraph “Information about the shareholding in Banca d’Italia” of the Company financial statements of UniCredit S.p.A.,
Notes to the accounts, Part B - Balance sheet - Assets, Section 3 - Financial assets at fair value through other comprehensive income - Item 30, 3.1
Financial assets at fair value through other comprehensive income: breakdown by product, which is herewith quoted entirely.
441
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
3.2 Financial assets at fair value through other comprehensive income: breakdown by borrowers/issuers
(€ million)
AMOUNTS AS AT
ITEMS/VALUES
31.12.2024
31.12.2023
1. Debt securities
74,138
61,501
a) Central Banks
231
600
b) Governments and other Public Sector Entities
56,428
47,291
c) Banks
13,496
10,095
d) Other financial companies
2,754
2,387
of which: insurance companies
-
-
e) Non-financial companies
1,229
1,128
2. Equity instruments
3,881
1,596
a) Banks
2,288
531
b) Other issuers
1,593
1,065
- Other financial companies
1,418
870
of which: insurance companies
564
-
- Non-financial companies
170
190
- Other
5
5
3. Loans and advances
-
-
a) Central Banks
-
-
b) Governments and other Public Sector Entities
-
-
c) Banks
-
-
d) Other financial companies
-
-
of which: insurance companies
-
-
e) Non-financial companies
-
-
f) Households
-
-
Total
78,019
63,097
The item “2.Equity instruments a) Banks” includes Banca d’Italia stake.
3.3 Financial assets at fair value through other comprehensive income: gross value and total accumulated impairments
(€ million)
GROSS VALUE
TOTAL ACCUMULATED IMPAIRMENTS
PARTIAL
ACCUMULATED
WRITE-OFFS(*)
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
OF WHICH:
INSTRUMENTS
WITH LOW
CREDIT RISK
EXEMPTION
Debt securities
73,104
70,060
1,011
114
-
7
2
82
-
-
Loans and advances
-
-
-
-
-
-
-
-
-
-
Total
31.12.2024
73,104
70,060
1,011
114
-
7
2
82
-
-
Total
31.12.2023
60,818
56,753
761
2
-
73
5
2
-
-
Note:
(*) Value shown for information purposes.
442
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
Section 4 - Financial assets at amortised cost - Item 40
4.1 Financial assets at amortised cost: breakdown by product of loans and advances to banks
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
BOOK VALUE
FAIR VALUE
BOOK VALUE
FAIR VALUE
TYPE OF TRANSACTIONS/VALUES
STAGE 1 AND
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
LEVEL 1
LEVEL 2
LEVEL 3
STAGE 1 AND
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
LEVEL 1
LEVEL 2
LEVEL 3
A. Loans and advances to Central
Banks
20,848
-
-
-
8,159
12,640
15,918
-
-
-
6,326
9,559
1. Time deposits
3,995
-
-
X
X
X
2,772
-
-
X
X
X
2. Compulsory reserves
8,288
-
-
X
X
X
7,809
-
-
X
X
X
3. Reverse repos
8,548
-
-
X
X
X
5,316
-
-
X
X
X
4. Other
17
-
-
X
X
X
21
-
-
X
X
X
B. Loans and advances to banks
45,652
40
-
11,387
28,045
5,954
37,413
58
-
9,896
23,582
3,629
1. Loans
29,749
40
-
-
23,869
5,944
23,409
58
-
-
20,002
3,544
1.1 Current accounts
-
-
-
X
X
X
-
-
-
X
X
X
1.2 Time deposits
4,479
-
-
X
X
X
2,496
-
-
X
X
X
1.3 Other loans
25,270
40
-
X
X
X
20,913
58
-
X
X
X
- Reverse repos
21,627
-
-
X
X
X
17,737
-
-
X
X
X
- Lease Loans
1
-
-
X
X
X
2
-
-
X
X
X
- Other
3,642
40
-
X
X
X
3,174
58
-
X
X
X
2. Debt securities
15,903
-
-
11,387
4,176
10
14,004
-
-
9,896
3,580
85
2.1 Structured
-
-
-
-
-
-
-
-
-
-
-
-
2.2 Other
15,903
-
-
11,387
4,176
10
14,004
-
-
9,896
3,580
85
Total
66,500
40
-
11,387
36,204
18,594
53,331
58
-
9,896
29,908
13,188
Total Level 1, Level 2 and Level 3
66,185
52,992
The increase in the item “B. Loans and advance to banks” is mostly due to the increase in the reverse repo transactions, mainly attributable to
UniCredit S.p.A. and its subsidiary UniCredit Bank Austria AG.
Loans and advances to banks are not carried at fair value, which is presented solely for the purpose of fulfilling financial disclosure requirements.
Fair value measurements are classified according to a three levels hierarchy that reflects the observability of the inputs used in the measurements.
For further information see the paragraph “A.4 - Information on fair value”, Notes to the consolidated accounts Part A - Accounting Policies.
Security lending transactions collateralised by securities or not collateralized were classified under "off-Balance sheet" exposures of table in the
paragraph “A.1.4 Regulatory consolidation - On - and off-Balance sheet credit exposure with banks: gross and net values” of the Notes to the
consolidated accounts, Part E - Information on risks and related hedging polices, Section 2 - Risks of the prudential consolidated perimeter,
Quantitative information, A. Credit quality. Refer also the paragraph “Other information” of the Notes to the consolidated accounts, Part B -
Consolidated balance sheet - Liabilities.
443
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
4.2 Financial assets at amortised cost: breakdown by product of loans and advances to customers
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
BOOK VALUE
FAIR VALUE
BOOK VALUE
FAIR VALUE
TYPE OF TRANSACTIONS/VALUES
STAGE 1
AND STAGE
2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
LEVEL 1
LEVEL 2
LEVEL 3
STAGE 1
AND STAGE
2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
LEVEL 1
LEVEL 2
LEVEL 3
1. Loans
410,867
5,914
115
-
140,843
266,314
421,686
6,134
23
-
140,778
278,300
1.1 Current accounts
23,419
711
5
X
X
X
24,446
609
1
X
X
X
1.2 Reverse repos
14,060
-
-
X
X
X
19,975
-
-
X
X
X
1.3 Mortgages
175,550
1,875
40
X
X
X
179,074
1,744
9
X
X
X
1.4 Credit cards and personal loans,
including wage assignment
20,202
301
6
X
X
X
18,718
242
1
X
X
X
1.5 Lease loans
11,259
232
-
X
X
X
12,257
278
-
X
X
X
1.6 Factoring
12,113
42
-
X
X
X
13,379
94
-
X
X
X
1.7 Other loans
154,264
2,753
64
X
X
X
153,837
3,167
12
X
X
X
2. Debt securities
79,728
2
-
54,326
21,250
3,385
75,745
1
-
52,956
18,837
2,865
2.1 Structured securities
263
-
-
165
-
93
71
1
-
-
-
75
2.2 Other debt securities
79,465
2
-
54,161
21,250
3,292
75,674
-
-
52,956
18,837
2,790
Total
490,595
5,916
115
54,326
162,093
269,699
497,431
6,135
23
52,956
159,615
281,165
Total Level 1, Level 2 and Level 3
486,118
493,736
The column “purchased or originated credit-impaired financial assets” includes loans, belonging to stage 2 and stage 3, that at the time of the
purchase, also as part of transactions of business combinations, were already impaired.
The sub-items “1.2. Reverse repos" and “1.7 Other loans” do not include security lending transactions collateralised by securities or not
collateralised. These transactions were classified under "off-Balance sheet" exposures of table A.1.5 of Part E - Information on risks and related
hedging policies, Section 2 - Risks of the prudential consolidated perimeter, Quantitative information, A. Credit Quality. Refer also the section "Other
Information" of Part B - Consolidated balance sheet - Liabilities.
The increase in the item “purchased or originated credit-impaired financial assets” includes non performing exposures held by Alpha Bank Romania
at the date of the control acquisition by Unicredit S.p.A. equal to €34 million.
The sub-item “1.7 Other loans” includes:
• €29,230 million for loans with amortised plan;
• €25,821 million for pooled transactions;
• €22,217 million other Loans not settled through current account;
• €14,038 million other advances to customers for import/export services;
• €4,285 million for trade receivables.
Loans to customers are not carried at fair value, which is presented solely for the purpose of fulfilling financial disclosure requirements. Fair value
measurements are classified according to a three levels hierarchy that reflects the observability of the inputs used in the measurements. For further
information see paragraph “A.4 Information on fair value” of the Notes to the consolidated accounts, Part A - Accounting Policies.
The fair value of demand items was estimated to be equal to their net book value by exercising the option provided for by IFRS7.29. According to
this assumption, demand items were classified as Level 3 in the fair value hierarchy.
The fair value of impaired loans was estimated by considering that the realizable value expressed by the net book value is the best estimate of the
future expected cash flows discounted at the valuation date, further adjusted to incorporate, when available, a premium derived from significant
market’s transaction for similar instruments. According to this assumption, impaired loans were classified as Level 3 in the fair value hierarchy.
444
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
The item “2.2 Other debt securities" include securities related to securitisation transactions shown in the following table.
Exposures to securities related to Securitisation transactions
(€ million)
TRANCHING
AMOUNTS AS AT 31.12.2024
Senior
13,879
Mezzanine
12
Junior
-
Total
13,891
4.3 Financial assets at amortised cost: breakdown by borrowers/issuers of loans and advances to customers
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
TYPE OF TRANSACTIONS/VALUES
STAGE 1 OR STAGE
2
STAGE 3
PURCHASED OR
ORIGINATED
CREDIT-IMPAIRED
FINANCIAL ASSETS
STAGE 1 OR STAGE
2
STAGE 3
PURCHASED OR
ORIGINATED
CREDIT-IMPAIRED
FINANCIAL ASSETS
1. Debt securities
79,728
2
-
75,745
1
-
a) Governments and other Public Sector Entities
56,869
-
-
55,540
-
-
b) Other financial companies
20,409
-
-
17,386
-
-
of which: insurance companies
-
-
-
-
-
-
c) Non-financial companies
2,450
2
-
2,819
1
-
2. Loans
410,867
5,914
115
421,686
6,134
23
a) Governments and other Public Sector Entities
23,553
365
-
22,514
465
-
b) Other financial companies
53,588
150
-
57,961
249
-
of which: insurance companies
553
-
-
663
1
-
c) Non-financial companies
198,417
3,899
80
214,278
4,084
12
d) Households
135,309
1,500
35
126,933
1,336
11
Total
490,595
5,916
115
497,431
6,135
23
4.4 Financial assets at amortised cost: gross value and total accumulated impairments
(€ million)
GROSS VALUE
TOTAL ACCUMULATED IMPAIRMENTS
STAGE 1
OF WHICH:
INSTRUMENTS
WITH LOW
CREDIT RISK
EXEMPTION
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
PARTIAL
ACCUMULATED
WRITE-OFFS(*)
1. Debt securities
94,529
47,801
1,193
5
-
14
77
3
-
-
2. Loans
414,104
137,822
51,435
11,054
118
1,017
3,058
5,100
3
692
Total
31.12.2024
508,633
185,623
52,628
11,059
118
1,031
3,135
5,103
3
692
Total
31.12.2023
475,507
184,474
80,104
11,695
27
888
3,961
5,502
4
627
Note:
(*) Value shown for information purposes.
445
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
4.4a Financial assets at amortised cost subject to Covid-19 measures: gross value and total accumulated impairments
(€ million)
GROSS VALUE
TOTAL ACCUMULATED IMPAIRMENTS
STAGE 1
OF WHICH:
INSTRUMENTS
WITH LOW
CREDIT RISK
EXEMPTION
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT
IMPAIRED
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT
IMPAIRED
PARTIAL
ACCUMULATED
WRITE-OFFS(*)
Loans guaranteed by public
guarantee Covid 19
8,813
-
1,223
456
5
15
16
91
-
-
Total 31.12.2024
8,813
-
1,223
456
5
15
16
91
-
-
Total 31.12.2023
13,918
-
3,696
507
5
25
52
125
-
-
Note:
(*) Value shown for information purposes.
Loans benefitting from Covid-19 measures guaranteed by public guarantee are held, in term of gross exposures, mainly by UniCredit S.p.A. for an
amount of €8,536 million, of which €332 million of non-performing.
Section 5 - Hedging derivatives - Item 50
5.1 Hedging derivatives: breakdown by hedged risk and fair value hierarchy
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
FAIR VALUE
NOTIONAL
AMOUNT
FAIR VALUE
NOTIONAL
AMOUNT
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
A. Financial derivatives
-
1,333
18
335,594
81
1,836
8
458,009
1) Fair value
-
374
8
303,477
81
1,109
5
427,015
2) Cash flows
-
952
8
30,547
-
725
3
29,222
3) Net investment in foreign subsidiaries
-
7
2
1,570
-
2
-
1,772
B. Credit derivatives
-
-
-
-
-
-
-
-
1) Fair value
-
-
-
-
-
-
-
-
2) Cash flows
-
-
-
-
-
-
-
-
Total
-
1,333
18
335,594
81
1,836
8
458,009
Total Level 1, Level 2 and Level 3
1,351
1,925
Valuations at fair value were classified according to a hierarchy of levels reflecting the observability of the inputs used in the measurement.
For further information refer to the paragraph “A.4 - Information on fair value” of the Notes to the consolidated accounts, Part A - Accounting policies.
446
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
5.2 Hedging derivatives: composition for covered portfolios and by type of hedging
(€ million)
TRANSACTIONS/TYPE OF HEDGES
AMOUNTS AS AT 31.12.2024
FAIR VALUE
CASH FLOW
FOREIGN
INVESTMENTS
MICRO-HEDGE
MACRO-
HEDGE
MICRO-
HEDGE
MACRO-
HEDGE
DEBT
SECURITIES
AND
INTEREST
RATES RISK
EQUITY
INSTRUMENTS
AND EQUITY
INDICES RISK
CURRENCY
AND GOLD CREDIT RISK COMMODITIES
OTHERS
1. Financial assets at fair value
through other comprehensive
income
122
-
-
-
X
X
X
-
X
X
2. Financial assets at amortised
cost
-
X
-
-
X
X
X
-
X
X
3. Portfolio
X
X
X
X
X
X
143
X
827
X
4. Other transactions
19
-
-
-
-
-
X
-
X
9
Total assets
141
-
-
-
-
-
143
-
827
9
1. Financial liabilities
31
X
-
-
-
-
X
-
X
X
2. Portfolio
X
X
X
X
X
X
29
X
128
X
Total liabilities
31
-
-
-
-
-
29
-
128
-
1. Expected transactions
X
X
X
X
X
X
X
1
X
X
2. Financial assets and liabilities
portfolio
X
X
X
X
X
X
38
X
4
-
Section 6 - Changes in fair value of portfolio hedged items - Item 60
6.1 Changes to macro-hedged financial assets: breakdown by hedged portfolio
(€ million)
AMOUNTS AS AT
CHANGES TO HEDGED ASSETS/GROUP COMPONENTS
31.12.2024
31.12.2023
1. Positive changes
2,165
2,151
1.1 Of specific portfolios
927
1,022
a) Financial assets at amortised cost
917
1,005
b) Financial assets at fair value through other comprehensive income
10
17
1.2 Overall
1,238
1,129
2. Negative changes
3,867
5,415
2.1 Of specific portfolios
1,783
2,448
a) Financial assets at amortised cost
1,783
2,448
b) Financial assets at fair value through other comprehensive income
-
-
2.2 Overall
2,084
2,967
Total
(1,702)
(3,264)
The decrease in the item is mainly attributable to the evolution in the markets interest rate curves observed in 2024.
447
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
Section 7 - Equity investments - Item 70
During 2024, impairment for -€11 million were recognised, mainly attributable to write-downs on CNP Unicredit Vita S.p.A. (-€9 million).
Furthermore, write-backs of previous impairments were recognised for +€79 million entirely attributable to Bank Fuer Tirol Und Vorarlberg
Aktiengesellschaft (BTV).
The calculation of the value in use for impairment testing purposes was carried out by using a Dividend Discount Model (DDM) which discounts
future cash flow projections (free cash flows to equity) at an appropriate discount rate. The free cash flows to equity were determined by subtracting
from Net Profit the annual capital requirement, which considers the changes in Risk Weighted Exposure Amounts (RWEA) needed to achieve an
adequate level of capitalization. The applied discount rate is a cost of equity assessed with the Capital Asset Pricing Model (CAPM), which
calculates the cost of equity as the sum of the risk-free rate and equity risk premium.
The write-back recognised on BTV was driven by the observation of a fair value (determined on the basis of market quotation as of 31 December
2024) above its carrying value for a prolonged period of time.
7.1 Equity investments: information on shareholders’ equity
OWNERSHIP RELATIONSHIP
COMPANY NAME
MAIN OFFICE
ADMINISTRATIVE
OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
NATURE OF
RELATIONSHIP
(6)
BUSINESS
SECTOR (5)
HELD BY
HOLDING %
VOTING RIGHTS
% (2)
VALUED AT EQUITY METHOD
A.2 INVESTMENTS IN JOINT VENTURES
1
FIDES LEASING GMBH
VIENNA
VIENNA
AUSTRIA
7
2
36
CALG ANLAGEN LEASING GMBH
50.00
Issued Capital EUR 36,000
2
PALATIN
GRUNDSTUECKVERWALTUNGS
GESELLSCHAFT M.B.H. IN LIQU.
ST.POELTEN
ST.POELTEN
AUSTRIA
7
2
36
UNICREDIT LEASING (AUSTRIA)
GMBH
50.00
Issued Capital EUR 36,336
A.3 COMPANIES UNDER SIGNIFICANT INFLUENCE
3
ALLIANZ ZB D.O.O. DRUSTVO ZA
UPRAVLJANJE OBVEZNIM I
DOBROVOLJNIM MIROVINSKIM
FONDOVIMA
ZAGREB
ZAGREB
CROATIA
8
2
36
ZAGREBACKA BANKA D.D.
49.00
Issued Capital EUR 13,935,895
4
ASSET BANCARI II
MILAN
MILAN
ITALY
8
2
35
UNICREDIT SPA
21.55
Issued Capital EUR 22,770,803
5
BANK FUER TIROL UND
VORARLBERG
AKTIENGESELLSCHAFT
INNSBRUCK
INNSBRUCK
AUSTRIA
8
1
34
CABO
BETEILIGUNGSGESELLSCHAFT
M.B.H.
37.53
Issued Capital EUR 74,250,000
UNICREDIT BANK AUSTRIA AG
9.85
6
BKS BANK AG
KLAGENFURT KLAGENFURT
AUSTRIA
8
1
34
CABO
BETEILIGUNGSGESELLSCHAFT
M.B.H.
23.15
Issued Capital EUR 91,612,000
UNICREDIT BANK AUSTRIA AG
6.63
7
CAMFIN S.P.A.
MILAN
MILAN
ITALY
8
5
37
UNICREDIT SPA
8.53
15.82
Issued Capital EUR 110,000,000
8
CASH SERVICE COMPANY AD
SOFIA
SOFIA
BULGARIA
8
2
38
UNICREDIT BULBANK AD
25.00
Issued Capital BGN 12,500,000
9
CBD INTERNATIONAL SP.ZO.O.
WARSAW
WARSAW
POLAND
8
2
38
ISB UNIVERSALE BAU GMBH IN
LIQUIDATION
49.75
Issued Capital PLN 100,500
10
CNP UNICREDIT VITA S.P.A.
MILAN
MILAN
ITALY
8
4
31
UNICREDIT SPA
49.00
Issued Capital EUR 381,698,529
11
COMPAGNIA AEREA ITALIANA S.P.A.
ROME
ROME
ITALY
8
2
37
UNICREDIT SPA
36.59
Issued Capital EUR 352,940
12
COMTRADE GROUP GMBH
ZUG
ZUG
SWITZERLAND
8
5
38
UNICREDIT BANK GMBH
21.05
Issued Capital EUR 4,522,000
13
DA VINCI S.R.L.
ROME
ROME
ITALY
8
5
37
IDEA FIMIT SGR FONDO SIGMA
IMMOBILIARE
37.50
Issued Capital EUR 100,000
14
NOTARTREUHANDBANK AG
VIENNA
VIENNA
AUSTRIA
8
2
36
UNICREDIT BANK AUSTRIA AG
25.00
Issued Capital EUR 8,030,000
15
OBERBANK AG
LINZ
LINZ
AUSTRIA
8
1
34
UNICREDIT BANK AUSTRIA AG
3.41
Issued Capital EUR 105,863,000
CABO
BETEILIGUNGSGESELLSCHAFT
M.B.H.
23.76
16
OESTERREICHISCHE
KONTROLLBANK
AKTIENGESELLSCHAFT
VIENNA
VIENNA
AUSTRIA
8
1
34
SCHOELLERBANK
AKTIENGESELLSCHAFT
8.26
Issued Capital EUR 130,000,000
UNICREDIT BANK AUSTRIA AG
16.14
CABET-HOLDING GMBH
24.75
17
OESTERREICHISCHE
WERTPAPIERDATEN SERVICE GMBH
VIENNA
VIENNA
AUSTRIA
8
5
38
UNICREDIT BANK AUSTRIA AG
29.30
Issued Capital EUR 100,000
18
PSA PAYMENT SERVICES AUSTRIA
GMBH
VIENNA
VIENNA
AUSTRIA
8
2
36
UNICREDIT BANK AUSTRIA AG
24.00
Issued Capital EUR 285,000
19
RCI FINANCIAL SERVICES S.R.O.
PRAGUE
PRAGUE
CZECH
REPUBLIC
8
2
36
UNICREDIT LEASING CZ, A.S.
50.00
49.86
Issued Capital CZK 70,000,000
448
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
OWNERSHIP RELATIONSHIP
COMPANY NAME
MAIN OFFICE
ADMINISTRATIVE
OFFICE
COUNTRY
TYPE OF
RELATIONSHIP
(1)
NATURE OF
RELATIONSHIP
(6)
BUSINESS
SECTOR (5)
HELD BY
HOLDING %
VOTING RIGHTS
% (2)
20
RISANAMENTO SPA *
MILAN
MILAN
ITALY
8
5
37
UNICREDIT SPA
9.94
Issued Capital EUR 107,689,512
21
UNI GEBAEUDEMANAGEMENT GMBH LINZ
LINZ
AUSTRIA
8
2
38
BA
GEBAEUDEVERMIETUNGSGMBH
50.00
Issued Capital EUR 18,168
22
UNICREDIT ALLIANZ ASSICURAZIONI
S.P.A.
MILAN
MILAN
ITALY
8
4
31
UNICREDIT SPA
50.00
Issued Capital EUR 52,000,000
23
UNICREDIT ALLIANZ VITA S.P.A.
MILAN
MILAN
ITALY
8
4
31
UNICREDIT SPA
50.00
Issued Capital EUR 112,200,000
24
WKBG WIENER
KREDITBUERGSCHAFTS- UND
BETEILIGUNGSBANK AG
VIENNA
VIENNA
AUSTRIA
8
2
36
UNICREDIT BANK AUSTRIA AG
21.54
Issued Capital EUR 9,205,109
Notes:
* Company classified in the Financial Statements as "non-current assets and disposal groups classified as held for sale" according to IFRS5 and therefore valued at minor between fair value net of cost to sell and booking
value. The latter is determined by interrupting the valuation at Equity starting from the date of IFRS5 classification.
(1) Type of relationship:
7 = joint control;
8 = associates.
(2) Voting rights available at the general meeting. Voting rights are disclosed only if different from the percentage of ownership.
(3) Nature of relationship:
1= Banks;
2= Financial entities;
3= Ancillary banking entities services;
4= Insurance enterprises;
5= Non-financial enterprises;
6= Other equity investments.
(4) Business sector:
1= Banking Group: resident banks and ancillary companies
2= Banking Group: non resident banks and ancillary companies
3= Banking Group: resident financial companies
4= Banking Group: non resident financial companies
31= Other companies included in the consolidation scope: resident insurance companies
32= Other companies included in the consolidation scope: non resident insurance companies
33= Other companies included in the consolidation scope: resident banks
34= Other companies included in the consolidation scope: non resident banks
35= Other companies included in the consolidation scope: resident financial companies
36= Other companies included in the consolidation scope: non resident financial companies
37= Other companies included in the consolidation scope: resident non financial companies
38= Other companies included in the consolidation scope: non resident non financial companies
449
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
Refer to Section 3 - Part A - Accounting policies for the description of procedures and scope of consolidation.
Joint ventures or companies under significant influence, consolidated at equity or classified as non-current assets and assets disposal groups,
decreased from 27 as at 31 December 2023 to 24 as at 31 December 2024 due to 2 decreases for liquidation and 1 merger.
The following table shows changes in equity investments in Joint Ventures and in companies under significant influence (consolidated at Net Equity).
Equity investments in joint ventures and in companies under significant influence (consolidated at net equity): annual changes
NUMBER OF COMPANIES
A. Opening balance (from previous year)
27
B. Increased by
-
B.1 Newly established companies
-
B.2 Change of the consolidation method
-
B.3 Entities consolidated for the first time in the year
-
C. Reduced by
3
C.1 Disposal/Liquidation
2
C.2 Change of the consolidation method
-
C.3 Mergers in other Group entities
1
C.4 Other changes
-
D. Closing balance
24
Increases
During the period there were no changes in newly established companies, change of the consolidation method and entities consolidated for the first
time in the year.
Reductions
Disposal/Liquidation
COMPANY NAME
MAIN OFFICE
HETA BA LEASING SUED GMBH IN LIQU.
KLAGENFURT
BARN B.V.
AMSTERDAM
Mergers in other Group entities
COMPANY NAME OF THE MERGED ENTITY
MAIN OFFICE
COMPANY NAME OF THE TAKING IN ENTITY
MAIN OFFICE
INCONTRA ASSICURAZIONI S.P.A.
MILAN
UNICREDIT ALLIANZ ASSICURAZIONI S.P.A.
MILAN
Joint ventures and the companies under significant influence that changed their names during the year
COMPANY NAME
MAIN OFFICE
COMTRADE GROUP GMBH (ex COMTRADE GROUP
B.V.)
ZUG
The following table shows the breakdown of item “70. Equity investments”, reporting the adopted accounting method, held either directly or through
consolidated subsidiaries.
(milion)
NUMBER OF ENTITY(*)
CARRYING VALUE(*)
Joint ventures accounted for under equity method
2
-
Associates accounted for under equity method
21
4.289
Entities controlled either directly or through consolidated subsidiaries held at cost
134
100
Joint Venture held either directly or through consolidated subsidiaries at cost
-
-
Associates held either directly or through consolidated subsidiaries at cost
6
4
Total
163
4.393
Note:
(*) Columns “Number of entity” and “Carrying values” do not include Companies classified in the Financial Statements as "Non-current assets and disposal groups classified as held for sale”.
450
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
7.2 Significant Shareholdings: book value, fair value and dividends received
(€ million)
COMPANY NAME
BALANCE SHEET VALUE
FAIR
VALUE
DIVIDENDS
RECEIVED
A. Companies under joint control
B. Companies subject to significant influence
OBERBANK AG
1,114
1,339
19
BANK FUER TIROL UND VORARLBERG AKTIENGESELLSCHAFT
985
985
7
BKS BANK AG
548
217
5
CNP UNICREDIT VITA S.P.A.
499
-
74
UNICREDIT ALLIANZ VITA S.P.A.
467
-
-
OESTERREICHISCHE KONTROLLBANK AKTIENGESELLSCHAFT
448
-
24
Total
4,061
2,541
129
Fair value (Level 1) is shown for investments in listed associates.
It should be noted that Dividends received shown in the table refer to dividends received by the investor company.
In the present table and in the following ones relating to significant shareholdings the values are referred to the last financial statements in line with
IAS28 requirements.
It should be noted that on the basis of the International Accounting Standards, equity investments in associates for which there is evidence of
occurrence of events that may reduce their value71 are tested for impairment by calculating recoverable value, stated as the higher of fair value, that
for associates listed on regulated market is equal to the market quotation, net of costs to sell and value in use, and the recognition of (i) an
impairment loss when the recoverable value is lower than the book value or (ii) a reversal, up to the amount of impairment previously recognized,
when the recoverable value is higher than the book value.
As at 31 December 2024 for Bank Fuer Tirol un Vorarlberg Aktiengesellschaft the recoverable value was higher than the book value, therefore a
write-back of previous impairment was recognized while for CNP UniCredit Vita S.P.A. the recoverable value was lower than the book value
therefore a write-down was recognised.
For more details see paragraph 7.1 of this section and to the section “Section 17 - Gain (Losses) of equity investments - Item 250 Part C of Notes to
the consolidated accounts.
Financial information of the investee companies used for the purposes of measurement with the net equity method is presented below. These
figures include any adjustments made in line with paragraph B14 of IFRS12 requirements.
71 It should be noted that for equity investments listed in regulated markets a fair value (quotation) lower than the consolidated book value is an indication of reduction of their value
451
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
7.3 Significant Shareholdings: accounting information
(€ million)
COMPANY NAME
CASH AND
CASH
BALANCES
FINANCIAL
ASSETS
NON-
FINANCIAL
ASSETS
FINANCIAL
LIABILITIES
NON-
FINANCIAL
LIABILITIES
TOTAL
REVENUES
INTEREST
MARGIN
A. Companies under joint control
B. Companies subject to significant influence
OBERBANK AG
X
25,059
361
23,317
652
891
X
BANK FUER TIROL UND VORARLBERG
AKTIENGESELLSCHAFT
X
11,869
521
11,919
386
322
X
BKS BANK AG
X
9,896
263
8,755
258
315
X
CNP UNICREDIT VITA S.P.A.
X
15,632
638
-
15,487
769
X
UNICREDIT ALLIANZ VITA S.P.A.
X
29,562
1,051
92
29,760
1,897
X
OESTERREICHISCHE KONTROLLBANK
AKTIENGESELLSCHAFT
X
34,766
118
32,540
1,809
182
X
continued: 7.3 Significant Shareholdings: accounting information
(€ million)
COMPANY NAME
WRITE-BACK
AND WRITE-
DOWNS ON
TANGIBLE AND
INTAGIBLE
ASSETS
PROFIT (LOSS)
FROM
CONTINUING
OPERATIONS
BEFORE TAXES
PROFIT (LOSS)
FROM
CONTINUING
OPERATIONS
NET OF TAX
PROFIT (LOSS)
FROM
DISCONTINUED
OPERATIONS
NET OF TAX
NET PROFIT
(LOSS)
(1)
OTHER
COMPREHENSIVE
INCOME,
NET OF TAX
(2)
COMPREHENSIVE
INCOME
(3)=(1)+(2)
A. Companies under joint control
B. Companies subject to significant influence
OBERBANK AG
X
379
296
-
296
(27)
269
BANK FUER TIROL UND VORARLBERG
AKTIENGESELLSCHAFT
X
246
211
-
211
18
229
BKS BANK AG
X
201
172
-
172
15
187
CNP UNICREDIT VITA S.P.A.
X
93
67
-
67
44
111
UNICREDIT ALLIANZ VITA S.P.A.
X
219
156
-
156
12
168
OESTERREICHISCHE KONTROLLBANK
AKTIENGESELLSCHAFT
X
81
63
-
63
(4)
59
For each significant equity investment, the reconciliation between the book value of the equity investment and financial information of the companies
is reported below.
(€ million)
COMPANY NAME
BALANCE SHEET
VALUE
EQUITY
PROQUOTA
GOODWILL ON
CONSOLIDATION
OTHER CHANGES
A. Companies under joint control
B. Companies subject to significant influence
OBERBANK AG
1,114
1,071
43
-
BANK FUER TIROL UND VORARLBERG
AKTIENGESELLSCHAFT
985
1,138
-
(153)
BKS BANK AG
548
543
5
-
CNP UNICREDIT VITA S.P.A.
499
499
-
-
UNICREDIT ALLIANZ VITA S.P.A.
467
467
-
-
OESTERREICHISCHE KONTROLLBANK
AKTIENGESELLSCHAFT
448
448
-
-
With reference to the nature of the relationships see paragraph 7.1 of this Section.
With reference to the investment in Bank Fuer Tirol und Vorarlberg Aktiengesellschaft, the carrying amount is affected by cumulated write downs for
€153 million.
452
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
Below are reported the aggregated financial information which are disclosed for the related stake in the equity held.
7.4 Equity investments are not significant: accounting information
(€ million)
NAME
BALANCE SHEET
VALUE OF
SHAREHOLDING
TOTAL
ASSET
TOTAL
LIABILITIES
TOTAL
REVENUES
PROFIT (LOSS)
FROM
CONTINUING
OPERATIONS
NET OF TAX
PROFIT (LOSS)
FROM
DISCONTINUED
OPERATIONS NET
OF TAX
NET
PROFIT
(LOSS)
(1)
OTHER
COMPREHENSIVE
INCOME, NET OF
TAX
(2)
OTHER
COMPREHENSIVE
INCOME
(3)=(1)+(2)
Companies under joint
control
14
14
1
Companies subject to
significant influence
228
1,455
1,234
277
40
40
14
55
7.5 Equity investments: annual changes
(€ million)
CHANGES IN
2024
2023
A. Opening balance
4,025
3,543
B. Increases
557
900
of which: business combinations
-
-
B.1 Purchases
2
107
B.2 Write-backs
79
116
B.3 Revaluation
415
423
B.4 Other changes
61
254
C. Decreases
189
418
of which: business combinations
-
-
C.1 Sales
2
82
C.2 Write-downs
11
71
C.3 Impairment
2
3
C.4 Other changes
174
262
D. Closing balance
4,393
4,025
E. Total revaluation
3,810
3,396
F. Total write-downs
352
423
It should be noted that items B.3 Revaluation and C.3 Impairment include, respectively, the changes in the carrying value of the equity investments
stemming from profit and losses of the companies measured through the equity method. Changes in carrying value of the investments stemming
from changes in equity reserves are reported in items B.4 Other changes and C.4 Other changes.
453
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
7.6 Valuation and significant assumptions to establish the existence of joint control or significant influence
The Group has classified among associates the entities governed through voting rights with reference to which it can participate in defining the
operating or financial policies through possession of at least 20%72 of the voting rights or the possibility of appointing members of the governing
body.
In particular, as shown in Table “7.1 Equity investments: information on shareholding relationships”, it should be noted that the investees CAMFIN
S.p.A. and Risanamento S.p.A.73 are classified among associates, although the Group does not have more than 20% of the voting rights, in virtue of
the possibility of appointing members of the governing body.
The Group has classified its investees among jointly controlled equity investments in the presence of agreements that state that decisions on
significant activities are taken with the unanimous consent of all parties that share control.
These agreements, in particular, attribute to the Group rights related only to the net assets and not rights to the assets and obligations on the
liabilities of the investee.
As at 31 December 2024, 6 equity investments (all held either directly or through consolidated subsidiaries) in associates were carried at cost.
Based on available information, it should be considered that their consolidation at equity would not have significantly impacted the Group
Shareholders’ equity.
7.7 Commitments related to equity investments in jointly-controlled companies
There are no commitments related to jointly controlled companies.
7.8 Commitments related to equity investments in companies subject to significant influence
As at 31 December 2024, the Group started the process to internalize its life bancassurance business in Italy through the termination of (i) the
shareholders' agreement with CNP Assurances S.A. and the consequent commitment to acquire the entire stake (51%) in CNP UniCredit Vita S.p.A.
held by CNP Assurances S.A., and (ii) the shareholders' agreement with Allianz S.p.A. and consequent commitment to acquire the entire stake
(50%) held by Allianz S.p.A. in UniCredit Allianz Vita S.p.A.
The closing of each transactions is expected in 2025, following the standard authorizations by the competent authorities; upon the closing, the
Group will hold 100% in CNP UniCredit Vita S.p.A. and UniCredit Allianz Vita S.p.A.
7.9 Significant restrictions
As at 31 December 2024, it should be noted, with reference to Value Transformation Services S.p.A., the existence of a shareholders' agreement
which limits the Group's possibility to participate in the profits, in the form of dividend distribution, and in the losses to a maximum amount of
€300,000.
Finally, the ability to receive dividends or capital distributions from associates is subordinated to the majority, also qualified, or unanimous decision
of the relevant corporate body as provided by the law or by specific shareholder agreements.
7.10 Other information
With reference to significant equity investments in associates and jointly controlled companies, the net equity method was applied starting from the
2024 draft financial statements approved by the competent corporate bodies or from the reports approved in the three previous months.
With reference to non-significant equity investments in associates and jointly controlled companies, in limited cases financial statements or reports
with a date prior to 3 months from 31 December 2024 were used, if no more up-to-date reports were available.
However, if financial statements or reports with a date other than 31 December 2024 were used, adjustments could be made in order to reflect
significant transactions or events occurred until year-end 2024.
Finally, it should be noted that as at 31 December 2024 UniCredit group has in place alliance agreements, as well as shareholders’ agreements
stipulated with other parties under the scope of co-investment agreements (e.g. agreements for the establishment of joint ventures), with special
reference to the insurance sector. Under the scope of these agreements, as per market practice, there are investment protective clauses which,
depending on the case, allow the parties to negotiate their respective positions on the underlying investment in the case of their “exit”, through
mechanisms that require purchase and/or sale. These provisions are usually applied after a certain period of time and/or when specific events occur,
also connected to the underlying distribution agreements.
Section 8 - Insurance assets - Item 80
No data to be disclosed.
72 10% for listed companies.
73 It should be noted that Risanamento S.p.A. is a company classified in the Financial Statements under item "120. Non-current assets and disposal groups classified as held for sale" according to IFRS5.
454
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
Section 9 - Property, plant and equipment - Item 90
Valuation of the Group real estate portfolio
The Group adopts the fair value model for the measurement of properties held for investment and the revaluation model for the measurement of
properties used in business.
Such approach is deemed to result in reliable and more relevant information for financial statements’ users taking into account:
• the expected disposal of real estate assets held for investment (IAS40), as fair value model presents a higher capability to approximate the
expected disposal price, accounting for the related effects timely in advance;
• the possibility to better represent the equity of the Group, with regard to real estate assets used in business (IAS16), as revaluation model
represents the net equity updated in light of current market conditions.
As at 31 December 2024, according to the Group regulation, the fair value of the Group Real Estate properties (both held for investment and used in
business) was determined through external appraisals for the whole perimeter (through full or desktop appraisals, also depending on the
significance of properties, the real estate assets type, if held for investment or used in business, and/or the elapsed time since the last full external
appraisal).
With reference to the Group, the update of appraisals has led to an overall negative Balance sheet effect of -€46 million, whose breakdown is here
outlined:
• -€27 million for assets used in business, of which -€25 million through Net Equity (decrease in the valuation reserve) and -€2 million in the Income
statement;
• -€19 million in the Income statement for assets held for investment.
With reference to UniCredit S.p.A., the update of appraisals led to an overall negative effect for -€25 million (of which -€24 million for assets held for
investment).
It is worth to note that the valuation of properties at current values implies a possible risk of volatility, as well as an increase of the so-called real
estate risk (for the description of which refer to Part E - Information on risks and related hedging policies of the Notes to the consolidated accounts,
Other risk included in the Economic Capital).
By reference to the real estate units held as at 31 December 2024 and their corresponding market value overall equal to €5,906 million, a sensitivity
to the increase/decrease in real estate values of +/-1%, equal to approximately €59 million, was estimated corresponding to approximately +/-1.5
basis point of CET1 ratio.
The useful life of buildings used in business is reviewed, on a yearly basis, through periodical external appraisals, since it better reflects the real
assets useful life and the related depreciation, especially considering continuous enhancement/maintenance executed on instrumental properties.
The measurement of inventories of property, plant and equipment to the lower between cost and net realizable value has determined the recognition
of a net write-down for -€35 million. In particular, such an impact is mainly attributable to inventories belonging to Unicredit Leased Asset
Management S.p.A., as a result of (i) the execution of some projects which foresee an accelerated disposal of certain assets which led to the
assessment of a net realizable value lower than the carrying value and (ii) the ordinary evaluation for the remaining part of the portfolio.
455
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
9.1 Property, plant and equipment used in the business: breakdown of assets carried at cost
(€ million)
AMOUNTS AS AT
ASSETS/VALUES
31.12.2024
31.12.2023
1. Owned assets
1,314
1,276
a) Land
-
-
b) Buildings
-
-
c) Office furniture and fitting
127
136
d) Electronic systems
438
429
e) Other
749
711
2. Right of use of Leased Assets
1,131
1,366
a) Land
9
9
b) Buildings
1,055
1,293
c) Office furniture and fitting
-
-
d) Electronic systems
-
-
e) Other
67
64
Total
2,445
2,642
of which: obtained by the enforcement of collateral
-
-
9.2 Property, plant and equipment held for investment: breakdown of assets carried at cost
No data to be disclosed.
456
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
9.3 Property, plant and equipment used in the business: breakdown of revalued assets
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
ASSETS/VALUES
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Owned assets
-
-
4,543
-
-
4,582
a) Land
-
-
1,983
-
-
2,015
b) Buildings
-
-
2,560
-
-
2,567
c) Office furniture and fitting
-
-
-
-
-
-
d) Electronic systems
-
-
-
-
-
-
e) Other
-
-
-
-
-
-
2. Right of use of Leased Assets
-
-
-
-
-
-
a) Land
-
-
-
-
-
-
b) Buildings
-
-
-
-
-
-
c) Office furniture and fitting
-
-
-
-
-
-
d) Electronic systems
-
-
-
-
-
-
e) Other
-
-
-
-
-
-
Total
-
-
4,543
-
-
4,582
of which: obtained by the enforcement of collateral
-
-
1
-
-
1
Total Level 1, Level 2 and Level 3
4,543
4,582
9.4 Property, plant and equipment held for investment: breakdown of assets designated at fair value
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
ASSETS/VALUES
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Owned assets
-
-
1,319
-
-
812
a) Land
-
-
816
-
-
363
b) Buildings
-
-
503
-
-
449
2. Right of use of Leased Assets
-
-
44
-
-
52
a) Land
-
-
42
-
-
47
b) Buildings
-
-
2
-
-
5
Total
-
-
1,363
-
-
864
of which: obtained by the enforcement of collateral
-
-
65
-
-
46
Total Level 1, Level 2 and Level 3
1,363
864
9.5 Inventories of property, plant and equipment regulated by IAS2: breakdown
(€ million)
AMOUNTS AS AT
ASSETS/VALUES
31.12.2024
31.12.2023
1. Inventories of property, plant and equipment obtained through the enforcement of guarantees
received
286
374
a) Land
26
24
b) Buildings
252
348
c) Office furniture and fitting
-
-
d) Electronic systems
-
-
e) Other
8
2
2. Other inventories of property, plant and equipment
157
166
Total
443
540
of which: measured at fair value less costs to sell
1
1
457
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
9.6 Property, plant and equipment used in the business: annual changes
(€ million)
CHANGES IN 2024
LANDS
BUILDINGS
OFFICE
FURNITURE AND
FITTINGS
ELECTRONIC
SYSTEMS
OTHER
TOTAL
A. Gross opening balance
2,024
7,831
1,067
2,746
1,707
15,375
A.1 Total net reduction in value
-
(3,971)
(931)
(2,317)
(932)
(8,151)
A.2 Net opening balance
2,024
3,860
136
429
775
7,224
B. Increases
76
415
17
149
340
997
B.1 Purchases
50
192
16
146
335
739
of which: business combinations
1
29
4
5
12
51
B.2 Capitalised expenditure on improvements
-
40
-
-
-
40
B.3 Write-backs
-
17
-
-
-
17
B.4 Increases in fair value
24
97
-
-
-
121
a) In equity
18
76
-
-
-
94
b) Through profit or loss
6
21
-
-
-
27
B.5 Positive exchange differences
-
-
-
-
-
-
B.6 Transfer from properties held for investment
1
3
X
X
X
4
B.7 Other changes
1
66
1
3
5
76
C. Reductions
108
660
26
140
299
1,233
C.1 Disposals
1
56
1
-
115
173
of which: business combinations
-
-
-
-
-
-
C.2 Depreciation
2
331
22
123
152
630
C.3 Impairment losses
-
30
1
7
4
42
a) In equity
-
-
-
-
-
-
b) Through profit or loss
-
30
1
7
4
42
C.4 Reduction of fair value
73
75
-
-
-
148
a) In equity
66
53
-
-
-
119
b) Through profit or loss
7
22
-
-
-
29
C.5 Negative exchange differences
1
21
-
4
2
28
C.6 Transfer to
31
27
-
-
-
58
a) Property, plant and equipment held for investment
3
8
X
X
X
11
b) Non-current assets and disposal groups classified
as held for sale
28
19
-
-
-
47
C.7 Other changes
-
120
2
6
26
154
D. Net final balance
1,992
3,615
127
438
816
6,988
D.1 Total net reduction in value
-
(3,945)
(927)
(2,263)
(934)
(8,069)
D.2 Gross closing balance
1,992
7,560
1,054
2,701
1,750
15,057
E. Carried at cost
853
1,613
-
-
-
2,466
458
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
9.7 Property, plant and equipment held for investment: annual changes
(€ million)
CHANGES IN 2024
LANDS
BUILDINGS
TOTAL
A. Opening balances
410
454
864
B. Increases
527
189
716
B.1 Purchases
489
135
624
of which: business combinations
2
5
7
B.2 Capitalised expenditure on improvements
22
7
29
B.3 Increases in fair value
13
28
41
B.4 Write-backs
-
-
-
B.5 Positive exchange differences
-
1
1
B.6 Transfer from properties used in the business
3
8
11
B.7 Other changes
-
10
10
C. Reductions
79
138
217
C.1 Disposals
1
13
14
of which: business combinations
-
-
-
C.2 Depreciation
-
-
-
C.3 Reductions in fair value
22
39
61
C.4 Impairment losses
-
-
-
C.5 Negative exchange differences
-
2
2
C.6 Transfer to
55
84
139
a) Properties used in the business
1
3
4
b) Non-current assets and disposal groups classified as held for sale
54
81
135
C.7 Other changes
1
-
1
D. Closing balances
858
505
1,363
E. Measured at fair value
-
-
-
9.8 Inventories of property, plant and equipment regulated by IAS2: annual changes
(€ million)
CHANGES IN 2024
INVENTORIES OF PROPERTY,
PLANT AND EQUIPMENT
OBTAINED BY ENFORCEMENT
OF COLLATERAL
OTHER
INVENTORIES
OF PROPERTY,
PLANT AND
EQUIPMENT
TOTAL
LANDS
BUILDINGS
OFFICE
FURNITURE
AND FITTINGS
ELECTRONIC
SYSTEMS
OTHER
A. Opening balances
24
348
-
-
2
166
540
B. Increases
2
5
-
-
20
21
48
B.1 Purchases
2
2
-
-
11
1
16
of which: business combinations
2
-
-
-
-
-
2
B.2 Write-backs
-
-
-
-
-
2
2
B.3 Positive exchange differences
-
-
-
-
-
-
-
B.4 Other changes
-
3
-
-
9
18
30
C. Reductions
-
101
-
-
14
30
145
C.1 Disposals
-
75
-
-
13
19
107
of which: business combinations
-
-
-
-
-
-
-
C.2 Impairment losses
-
25
-
-
1
11
37
C.3 Negative exchange differences
-
-
-
-
-
-
-
C.4 Other changes
-
1
-
-
-
-
1
D. Closing balances
26
252
-
-
8
157
443
459
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
9.9 Commitments to purchase property, plant and equipment
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
A. Contractual commitments
1
-
Section 10 - Intangible assets - Item 100
An intangible asset is an identifiable non-monetary asset without physical substance, to be used for several years.
Intangible assets may include goodwill and, among “other intangible assets”, brands, customer relationships and software.
Goodwill is defined as the excess of the cost of a business combination over the percentage acquired of the net fair value of the assets and liabilities
of companies or businesses at the acquisition date.
As at 31 December 2024 intangible assets amounted to €2,229 million and mostly referred to software slightly decreased in comparison to €2,272
million as at 31 December 2023.
It should be noted that the goodwill equal to €38 million refers to the acquisition of 90.1% of Alpha Bank Romania S.A. by UniCredit S.p.A.
For more details refer to Section 1 - Business combinations completed in the year - 1.1. Business combinations, Part G - Business combinations.
10.1 Intangible assets: breakdown by asset type
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
ASSETS/VALUES
FINITE LIFE
INDEFINITE LIFE
FINITE LIFE
INDEFINITE LIFE
A.1 Goodwill
X
38
X
-
A.1.1 Attributable to the Group
X
38
X
-
A.1.2 Attributable to minorities
X
-
X
-
A.2 Other intangible assets
2,191
-
2,272
-
of which: software
2,179
-
2,269
-
A.2.1 Assets carried at cost
2,191
-
2,272
-
a) Intangible assets generated internally
1,801
-
1,863
-
b) Other assets
390
-
409
-
A.2.2 Assets measured at fair value
-
-
-
-
a) Intangible assets generated internally
-
-
-
-
b) Other assets
-
-
-
-
Total
2,191
38
2,272
-
Total finite and indefinite life
2,229
2,272
The Group does not use the revaluation model (fair value) to measure intangible assets.
460
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
10.2 Intangible assets: annual changes
(€ million)
CHANGES IN 2024
OTHER INTANGIBLE ASSETS
GENERATED INTERNALLY
OTHER
GOODWILL
FINITE LIFE
INDEFINITE
LIFE
FINITE LIFE
INDEFINITE
LIFE
TOTAL
A. Gross opening balance
-
6,147
-
2,913
-
9,060
A.1 Total net reduction in value
-
(4,284)
-
(2,504)
-
(6,788)
A.2 Net opening balance
-
1,863
-
409
-
2,272
B. Increases
38
404
-
129
-
571
B.1 Purchases
38
13
-
119
-
170
B.2 Increases in intangible assets generated internally
X
382
-
-
-
382
B.3 Write-backs
X
-
-
-
-
-
B.4 Increases in fair value
-
-
-
-
-
-
- In equity
X
-
-
-
-
-
- Through profit or loss
X
-
-
-
-
-
B.5 Positive exchange differences
-
1
-
-
-
1
B.6 Other changes
-
8
-
10
-
18
of which: business combinations
38
-
-
22
-
60
C. Reduction
-
466
-
148
-
614
C.1 Disposals
-
-
-
2
-
2
C.2 Write-downs
-
460
-
129
-
589
- Amortisation
X
429
-
114
-
543
- Write-downs
-
31
-
15
-
46
+ In equity
X
-
-
-
-
-
+ Through profit or loss
-
31
-
15
-
46
C.3 Reduction in fair value
-
-
-
-
-
-
- In equity
X
-
-
-
-
-
- Through profit or loss
X
-
-
-
-
-
C.4 Transfer to non-current assets held for sale
-
-
-
-
-
-
C.5 Negative exchange differences
-
5
-
11
-
16
C.6 Other changes
-
1
-
6
-
7
of which: business combinations
-
-
-
-
-
-
D. Net closing balance
38
1,801
-
390
-
2,229
D.1 Total net write-down
-
(4,728)
-
(2,530)
-
(7,258)
E. Gross closing balance
38
6,529
-
2,920
-
9,487
F. Carried at cost
-
-
-
-
-
-
10.3 Intangible assets: other information
On the 4 November 2024, UniCredit S.p.A. has finalized the purchase of 90.1% of Alpha Bank from Alpha International Holdings S.M.S.A., which is
part of the group held by Alpha Services and Holdings S.A., acquiring the control.
The acquisition was booked according to the accounting standard IFRS3 which stated the need to account the transaction applying the purchase
method and has determined the recognition of Goodwill for €38 million and Customer relationship for €8 million. For the further details about such
transaction refer to Notes to the consolidated accounts, Part G - Business combinations.
With specific reference to goodwill, in accordance with the prescriptions of IAS36, the impairment test for indefinite life intangible assets must be
performed at least annually and whenever there is any indication that their value may be impaired. The referenced accounting standard requires the
impairment test to be carried out by comparing the book value of each Cash Generating Unit (CGU) with its recoverable value. Should the
recoverable value of a CGU prove to be lower than its book value, a write - down must be recorded in the financial statement. The recoverable
amount of the CGU is the greater of its fair value (net of costs of disposal) and the related value in use.
With specific reference to the Goodwill, as well as the customer relationship, recognised following the purchase of Alpha Bank there were no
indication that the asset might be impaired as proved by the circumstance that the shareholding was tested for impairment for the purpose of the
financial statements of UniCredit S.p.A. and the recoverable amount confirmed its carrying value.
461
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
Section 11 - Tax assets and tax liabilities - Item 110 (Assets) and Item 60 (Liabilities)
11.1 Deferred tax assets: breakdown
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
Deferred tax assets arising from Italian law 214/2011
2,995
4,380
Deferred tax assets arising from tax losses(*)
4,068
3,842
Deferred tax assets arising from temporary differences
4,329
4,278
Financial assets and liabilities (different from loans and deposits)
304
278
Loans and deposits to/from banks and customers
508
667
Hedging and hedged item revaluation
633
618
Property, plant and equipment and intangible assets different from goodwill
316
338
Goodwill and equity investments
68
3
Current assets and liabilities held for sale
-
-
Other assets and Other liabilities
841
745
Provisions, pension funds and similar
1,659
1,629
Other
-
-
Accounting offsetting
(1,804)
(1,751)
Total
9,588
10,749
Note:
(*) The item “Deferred tax assets arising from tax losses” includes tax credit IRAP deriving from the conversion of the ACE benefit.
11.2 Deferred tax liabilities: breakdown
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
Deferred tax liabilities arising from temporary differences
2,056
2,043
Financial assets and liabilities (different from loans and deposits)
368
262
Loans and deposits to/from banks and customers
201
306
Hedging and hedged item revaluation
503
466
Property, plant and equipment and intangible assets different from goodwill
698
734
Goodwill and equity investments
-
-
Assets and liabilities held for sale
1
-
Other assets and Other liabilities
202
228
Other
83
47
Accounting offsetting
(1,804)
(1,751)
Total
252
292
462
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
Deferred Tax Assets (DTAs) totally amount to €9,588 million (compared with €10,749 million as at 31 December 2023), of which:
• €2,995 million (compared with €4,380 million as at 31 December 2023) can be converted into tax credits pursuant to Law 214/2011 (i.e., DTA
convertible into tax credits);
• €2,525 million (compared with €2,527 million as at 31 December 2023), net of the accounting offsetting, are related to temporary effects (i.e., costs
and write-offs tax deductible in future years compared to the year of accounting relevance) which are not-convertible into tax credits;
• €4,068 million (compared with €3,842 million as at 31 December 2023) are tax losses carried forward (TLCF).
The €4,068 million DTA on TLCF are mainly related to:
• UniCredit S.p.A. DTA on TLCF for €3,661 million (of which €319 million booked at the end of 2024 following the sustainability test);
• UniCredit Bank Austria AG for €18 million;
• UniCredit Leasing S.p.A. for €263 million;
• UniCredit Leased Asset Management S.p.A. for €1 million;
• moreover, the amount related UniCredit S.p.A. includes also €115 million of tax credit IRAP deriving from the conversion of so-called Aiuto alla
Crescita Economica (ACE) to be used in the further years.
The above-mentioned amounts are the ones resulting from the sustainability test provided for IAS12, which, considering the economic projections
foreseeable for future years and the peculiarities of the fiscal legislations of each country, checks whether there are future taxable incomes against
which TLCF can be offset. For further info concerning sustainability test refer to “Section 10 Tax assets and liabilities - Item 100 (Assets) and Item
60 (Liabilities)” of the Company financial statements of UniCredit S.p.A., Notes to the accounts, Part B - Balance sheet - Assets.
At Group level:
• total not recognised DTAs on TLCF are equal to €357 million mainly relate to: €35 million to UniCredit Leasing S.p.A., €222 million to the UniCredit
Bank GmbH and its subsidiaries and €76 million to the UniCredit Bank Austria AG and its subsidiaries;
• the DTs net amount on temporary differences out of balance is equal to -€285 million mainly related to: -€465 million to UniCredit Bank Austria AG
and its subsidiaries, €88 million to AO UniCredit Bank and €79 million to UniCredit Bank Czech Republic and Slovakia A.S..
In respect of foreign permanent establishments of UniCredit S.p.A. relevant tax losses not utilised are equal to €7,553 million, due to start - up
expenses or other operating costs. These tax losses can only be used against the taxable income at the level of each single permanent
establishment for taxes due in the relevant country of establishment.
For deferred tax assets and liabilities of UniCredit S.p.A., reference is made to “Section 10 Tax assets and liabilities - Item 100 (Assets) and Item 60
(Liabilities)” of Company financial statements of UniCredit S.p.A., Notes to the accounts, Part B - Balance sheet - Assets, which is herewith quoted
entirely.
463
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
11.3 Deferred tax assets: annual changes (balancing P&L)
(€ million)
CHANGES IN
2024
2023
1. Opening balance
9,139
9,931
2. Increases
2,697
3,440
2.1 Deferred tax assets arisen during the year
1,301
1,940
a) Relating to previous years
69
254
b) Due to change in accounting criteria
-
-
c) Write-backs
638
981
d) Other
594
705
2.2 New taxes or increases in tax rates
27
5
2.3 Other increases
1,369
1,495
3. Decreases
4,136
4,232
3.1 Deferred tax assets derecognised during the year
2,640
2,657
a) Reversals
2,553
2,469
b) Write-downs of non-recoverable items
2
20
c) Change in accounting criteria
-
-
d) Other
85
168
3.2 Reduction in tax rates
-
1
3.3 Other decreases
1,496
1,574
a) Conversion into tax credit under Italian Law 214/2011
27
159
b) Other
1,469
1,415
4. Closing balance
7,700
9,139
For the portion of deferred tax assets arising from tax losses carried forward to subsequent years, refer to the table 11.1 of this section of the Notes
to the consolidated accounts.
The sub-item “2.1 c) Write-backs” mainly reports the effects coming from the results of the sustainability test of DTA TLCF for Italian Tax Perimeter.
The sub-items “2.3 Other increases” and “3.3 Other decreases” b) Other” include the effect of netting DTA/DTL of previous and current year.
The sub-item “3.1 a) Reversals of temporary differences” includes reversal of both convertible and non-convertible DTAs.
11.4 Deferred tax assets (Italian Law 214/2011): annual changes
(€ million)
CHANGES IN
2024
2023
1. Opening balance
4,380
5,793
2. Increases
-
4
3. Decreases
1,385
1,417
3.1 Reversals of temporary differences
1,358
1,257
3.2 Conversion into tax credits
27
159
a) Due to loss positions arisen from P&L
-
-
b) Due to tax losses
27
159
3.3 Other decreases
-
1
4. Closing balance
2,995
4,380
In accordance with the Circular 262 of 22 December 2005 of Banca d’Italia (and subsequent amendments), starting from 31 December 2018, the
table shows the deferred tax asset annual changes of which L.214/2011 both equity balancing and Income statement balancing.
464
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
11.5 Deferred tax liabilities: annual changes (balancing P&L)
(€ million)
CHANGES IN
2024
2023
1. Opening balance
273
257
2. Increases
1,331
1,533
2.1 Deferred tax liabilities arisen during the year
294
291
a) Relating to previous years
4
3
b) Due to change in accounting criteria
-
-
c) Other
290
288
2.2 New taxes or increases in tax rates
1
11
2.3 Other increases
1,036
1,231
3. Decreases
1,368
1,517
3.1 Deferred tax liabilities derecognised during the year
260
280
a) Reversals of temporary differences
129
194
b) Due to change in accounting criteria
-
-
c) Other
131
86
3.2 Reduction in tax rates
-
-
3.3 Other decreases
1,108
1,237
4. Closing balance
236
273
The items “2.3 Other increases” and “3.3 Other decreases” include the effect of netting DTA/DTL of previous and current year.
11.6 Deferred tax assets: annual changes (balancing Net Equity)
(€ million)
CHANGES IN
2024
2023
1. Opening balance
1,610
1,918
2. Increases
756
313
2.1 Deferred tax assets arisen during the year
266
78
a) Relating to previous years
-
-
b) Due to change in accounting criteria
-
-
c) Other
266
78
2.2 New taxes or increase in tax rates
-
-
2.3 Other increases
490
235
3. Decreases
478
621
3.1 Deferred tax assets derecognised during the year
18
113
a) Reversals of temporary differences
11
81
b) Write-downs of non-recoverable items
-
-
c) Due to change in accounting criteria
-
-
d) Other
7
32
3.2 Reduction in tax rates
-
-
3.3 Other decreases
460
508
4. Closing balance
1,888
1,610
465
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
11.7 Deferred tax liabilities: annual changes (balancing Net Equity)
(€ million)
CHANGES IN
2024
2023
1. Opening balance
19
306
2. Increases
811
633
2.1 Deferred tax liabilities arisen during the year
90
17
a) Relating to previous years
-
-
b) Due to change in accounting criteria
-
-
c) Other
90
17
2.2 New taxes or increase in tax rates
-
-
2.3 Other increases
721
616
3. Decreases
814
920
3.1 Deferred tax liabilities derecognised during the year
56
182
a) Reversal of temporary differences
34
135
b) Due to change in accounting criteria
-
-
c) Other
22
47
3.2 Reduction in tax rates
-
13
3.3 Other decreases
758
725
4. Closing balance
16
19
The sub-items “2.3 Other increases” and “3.3 Other decreases” include the effect of netting DTA/DTL of previous and current year.
466
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
11.8 Other information
Pillar Two - Global Minimum Tax
As of fiscal year 2024, the UniCredit group falls within the scope of the newly designed Global Minimum Tax (so-called Pillar Two).
The Pillar Two regulation provides for an international framework of rules aimed at ensuring that the worldwide profits of multinational groups are
subject to tax at a rate not lower than 15% in every jurisdiction in which the groups operate.
The rules have been firstly designed by the Inclusive Framework of the OECD and then implemented in the European Union through the EU Council
Directive 2022/2523 of 14 December 2022. For EU countries where the Group operates, the Directive entered into force starting from 2024 (in Italy,
the provisions of the Directive have been transposed into Italian law with the Legislative Decree 209/2023), except for Poland (in force from 2025)
and Latvia (postponement to 2030 granted by the Directive to certain Member States). Certain non-EU Member States in which the UniCredit group
operates have implemented the Pillar Two rules starting from 2024 (e.g. United Kingdom), or are committed to implement such rules from 2025,
while other jurisdictions have not yet communicated if and when they will implement such set of rules.
In a nutshell, the Pillar Two rules provide that, if in certain jurisdictions where the UniCredit group operates the effective tax rate (given by the ratio
between corporate income taxes accrued in that jurisdiction and accounting result, adjusted based on specific rules) falls below 15%, then the
UniCredit group will be required to pay an additional tax (so-called top-up tax) to reach the 15% tax rate threshold.
The relevant set of rules also provides for a transition period in which the in-scope multinational groups may avoid undergoing the complex effective
tax rate calculation required by the new piece of legislation. In particular, the Pillar Two legislation provides for a Transitional Safe Harbours (TSH)
that applies for the first three fiscal years following the entry into force of the relevant regulation; the TSH relies on simplified calculations (mainly
based on data extracted from the Country-by-Country Reporting under BEPS Action 13, implemented in Italy with Law n. 208/2015) and three kinds
of alternative tests. Where at least one of the TSH tests is met for a jurisdiction in which the UniCredit group operates, the top-up tax due for such
jurisdiction will be deemed to be zero. A test is met for a jurisdiction when:
• revenue and profit before tax are below, respectively, €10 million and €1 million (de minimis test);
• the Effective Tax Rate (ETR) equals or exceeds an agreed rate (ETR test, 15% for FY 2024); or
• the profit before tax does not exceed the amount resulting from the application of specific percentages on tangible assets and payroll expense
(routine profits test).
The UniCredit group has performed an assessment of its potential exposure for top-up tax based on the most recent information available regarding
the financial performance (Country-by-Country Reporting related to fiscal year 2023 for TSH regime and, provisionally, 2024 financial statements
data).
Based on the assessment performed, most of the jurisdictions benefit from the TSH. Only five jurisdictions may not benefit from the TSH, namely
Bermuda, Bosnia-Herzegovina, Bulgaria, Italy and Serbia.
As those five jurisdictions do not enter the simplified regime, the UniCredit group has applied the ordinary regime. Based on such calculation, the
ETR of Italy and Serbia results above the minimum rate of 15%, while Bulgaria, Bermuda and Bosnia- Herzegovina do not meet such minimum rate,
with a top-up tax potentially due equal to:
• €24.6 million for Bulgaria, accounted in UniCredit Bulbank AD financial statement;
• €5 million for Bermuda and Bosnia-Herzegovina, accounted in UniCredit S.p.A. financial statement, in the absence of the local implementation of
the minimum tax in these jurisdictions.
The above analysis on the requirements to access the transitional simplified regime has to be considered as an estimation, given that, as already
highlighted, it was based on the 2023 Country-by-Country Reporting; furthermore, the estimated calculation is based on complex regulations that
have only recently been enacted, limited guidelines and partial availability of the data required to perform the full calculation.
Starting from 2024, each legal entity of the UniCredit group has applied the exception to the recognition and disclosure of deferred tax assets and
liabilities relating to Pillar Two income taxes referred to in paragraph 4 A IAS12.
467
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
Section 12 - Non-current assets and disposal groups classified as held for sale and
Liabilities associated with assets classified as held for sale - Item 120 (Assets) and Item
70 (Liabilities)
Non-current assets or groups of assets and directly connected liabilities, which constitute a set of cash flow generating assets, the sale of which is
highly likely, are recognised under these items.
In the balance sheet as at 31 December 2024, compared with 31 December 2023, the main variations are referred to: (i) the sales, partially offset by
new classifications, of mainly non-performing loans related to portfolio’s sale initiatives; (ii) the inclusion of the controlled companies Weicker
S.A.R.L. and Monnet 8-10 S.A R.L.; (iii) the exit of associated company Barn B.V.
Fair value measurements are classified, for disclosure purposes only, into a fair value hierarchy that reflects the significance of inputs used in the
valuations. For further information refer to paragraph “A.4 Information on fair value”, Notes to the consolidated accounts, Part A - Accounting
policies.
468
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
12.1 Non-current assets and disposal groups classified as held for sale: breakdown by asset type
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
A. Assets held for sale
A.1 Financial assets
201
278
A.2 Equity investments
6
41
A.3 Property, plant and equipment
186
51
of which: obtained by the enforcement of collateral
-
-
A.4 Intangible assets
-
-
A.5 Other non-current assets
1
-
Total (A)
394
370
of which: carried at cost
205
288
of which: designated at fair value - level 1
-
-
of which: designated at fair value - level 2
84
82
of which: designated at fair value - level 3
105
-
B. Discontinued operations
B.1 Financial assets at fair value through profit or loss
-
-
- Financial assets held for trading
-
-
- Financial assets designated at fair value
-
-
- Other financial assets mandatorily at fair value
-
-
B.2 Financial assets at fair value through other comprehensive income
-
-
B.3 Financial assets at amortised cost
-
-
B.4 Equity investments
-
-
B.5 Property, plant and equipment
-
-
of which: obtained by the enforcement of collateral
-
-
B.6 Intangible assets
-
-
B.7 Other assets
-
-
Total (B)
-
-
of which: carried at cost
-
-
of which: designated at fair value - level 1
-
-
of which: designated at fair value - level 2
-
-
of which: designated at fair value - level 3
-
-
C. Liabilities associated with assets classified as held for sale
C.1 Deposits
-
-
C.2 Securities
-
-
C.3 Other liabilities
-
-
Total (C)
-
-
of which: carried at cost
-
-
of which: designated at fair value - level 1
-
-
of which: designated at fair value - level 2
-
-
of which: designated at fair value - level 3
-
-
D. Liabilities associated with discontinued operations
D.1 Financial liabilities at amortised cost
-
-
D.2 Financial liabilities held for trading
-
-
D.3 Financial liabilities designated at fair value
-
-
D.4 Provisions
-
-
D.5 Other liabilities
-
-
Total (D)
-
-
of which: carried at cost
-
-
of which: designated at fair value - level 1
-
-
of which: designated at fair value - level 2
-
-
of which: designated at fair value - level 3
-
-
469
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
As at 31 December 2024 the financial assets classified as non-current assets and disposal groups classified as held for sale included in stage 3 are
equal to €171 million (€278 million as at December 2023).
12.2 Other information
There is no significant information to be reported.
Section 13 - Other assets - Item 130
13.1 Other assets: breakdown
(€ million)
AMOUNTS AS AT
ITEMS/VALUES
31.12.2024
31.12.2023
Margin with derivatives clearers (non-interest bearing)
-
1
Gold, silver and precious metals
141
116
Accrued income and prepaid expenses other than capitalised income
762
604
Positive value of management agreements (so-called servicing assets)
-
-
Cash and other valuables held by cashier
112
111
- Current account cheques being settled, drawn on third parties
112
111
- Current account cheques payable by group banks, cleared and in the process of being debited
-
-
- Money orders, bank drafts and equivalent securities
-
-
- Coupons, securities due on demand, revenue stamps and miscellaneous valuables
-
-
Interest and changes to be debited to
262
244
- Customers
257
237
- Banks
5
7
Items in transit between branches not yet allocated to destination accounts
2
-
Items in processing
461
467
Items deemed definitive but not-attributable to other items
3,003
3,144
- Securities and coupons to be settled
30
183
- Other transactions
2,973
2,961
Adjustments for unpaid bills and notes
30
448
Tax items other than those included in item 110
8,046
6,744
Commercial credits pursuant to IFRS15
179
108
Other items
970
1,124
Total
13,968
13,111
Item “Accrued income and prepaid expenses other than capitalised income” includes the contract assets recognised in accordance with IFRS15.
In this context accrued income represents the portion of the performance obligation already satisfied through the services provided by the Group and
that will be settled in the future periods in accordance with contractual provisions.
In this regard, it is worth to note that the aggregate amount of revenues from services to customers related to the portion of performance obligations
not yet satisfied, and therefore not represented in the table above, is equal to €5.8 million. The majority of this amount relates to performance
obligations expected to be satisfied by the following year end reporting date.
It should be noted that during the period the change in the item “accrued income and prepaid expenses not included in the carrying amount of the
relevant financial assets” is mainly due to the entry into force of a new contract with a payment services company.
The item “Tax items other than those included in item 110” mainly includes Tax credits connected with the "Cura Italia" and "Rilancio" Law Decrees
for €6.7 billion (o/w UniCredit S.p.A. €3.5 billion).
470
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Assets
Periodic change of accrued income/expenses and prepaid expenses/income
(€ million)
AMOUNTS AS AT 31.12.2024
ACCRUED INCOME AND
PREPAID EXPENSES
ACCRUED EXPENSES AND
DEFERRED INCOME
Opening balance
604
519
Increases
287
125
a) Changes due to business combinations
6
11
b) Cumulative catch-up adjustments to revenue that affect the corresponding contract asset or contract
liability, including adjustments arising from a change in the measure of progress, a change in an estimate of
the transaction price (including any changes in the assessment of whether an estimate of variable
consideration is constrained) or a contract modification (IFRS15 Par. 118.b)
24
36
c) Reversal of impairment of a contract asset (IFRS15 Par. 118.c)
-
X
d) Change in the time frame for a right to consideration to become unconditional (ie for a contract asset to
be reclassified to a receivable) (IFRS15 Par. 118.d)
-
1
e) Change in the time frame for a performance obligation to be satisfied (ie for the recognition of revenue
arising from a contract liability (IFRS15 Par. 118.e)
-
-
f) Other
257
77
Decreases
129
184
a) Changes due to business combinations
-
-
b) Cumulative catch-up adjustments to revenue that affect the corresponding contract asset or contract
liability, including adjustments arising from a change in the measure of progress, a change in an estimate of
the transaction price (including any changes in the assessment of whether an estimate of variable
consideration is constrained) or a contract modification (IFRS15 Par. 118.b)
20
35
c) Impairment of a contract asset (IFRS15 Par. 118.c)
-
X
d) Change in the time frame for a right to consideration to become unconditional (ie for a contract asset to
be reclassified to a receivable) (IFRS15 Par. 118.d)
3
1
e) Change in the time frame for a performance obligation to be satisfied (ie for the recognition of revenue
arising from a contract liability (IFRS15 Par. 118.e)
-
-
f) Other
106
148
Closing balance
762
460
Note that the item “f) other” includes (i) the deferral of income and expenses related to performance obligation that have already been paid but not
yet satisfied, as well as the recognition in P&L of the amount previously deferred in accordance with the progressive satisfaction of the performance
obligation and (ii) the accrual in P&L of the amounts due as a result of the satisfaction of a performance obligation for which the payment is
contractually postponed as well as their subsequent derecognition after the settlement.
471
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
Liabilities
Section 1 - Financial liabilities at amortised cost - Item 10
1.1 Financial liabilities at amortised cost: breakdown by product of deposits from banks
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
TYPE OF TRANSACTIONS/VALUES
BOOK
VALUE
FAIR VALUE
BOOK
VALUE
FAIR VALUE
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Deposits from central banks
3,234
X
X
X
15,694
X
X
X
2. Deposits from banks
64,685
X
X
X
55,375
X
X
X
2.1 Current accounts and demand
deposits
10,570
X
X
X
11,637
X
X
X
2.2 Time deposits
10,043
X
X
X
9,027
X
X
X
2.3 Loans
43,592
X
X
X
33,594
X
X
X
2.3.1 Repos
28,895
X
X
X
17,153
X
X
X
2.3.2 Other
14,697
X
X
X
16,441
X
X
X
2.4 Liabilities relating to commitments to
repurchase treasury shares
-
X
X
X
-
X
X
X
2.5 Lease deposits
16
X
X
X
27
X
X
X
2.6 Other deposits
464
X
X
X
1,090
X
X
X
Total
67,919
-
47,626
19,611
71,069
-
47,005
22,858
Total Level 1, Level 2 and Level 3
67,237
69,863
The decrease in the item “1. Deposits from central banks” mainly derives from the reduction due to a reimbursement of the TLTRO III exposures
liabilities, mainly at UniCredit S.p.A. and its subsidiary UniCredit Bank GmbH, occurred during the 2024.
The sub-item “2.3 Loans” includes also liabilities related to repos transactions executed using proprietary securities issued by Group companies,
which were eliminated from assets at consolidated level.
The same sub-item does not include the type of bond lending transactions collateralised by securities or not collateralised.
For further information refer to the paragraph “Other information”, Notes to the consolidated accounts, Part B - Consolidated balance sheet.
The increase in this sub-item is mainly due to the transactions closed by UniCredit S.p.A. and its subsidiaries UniCredit Bank GmbH and UniCredit
Bank Austria Ag.
Deposits from banks are not carried at fair value, which is presented solely for the purpose of fulfilling financial disclosure requirements. Valuations
at fair value are classified according to a hierarchy of levels reflecting the observability of the inputs used in the measurements.
For further information refer to the paragraph “A.4 - Information on fair value of the Notes to the consolidated accounts, Part A - Accounting Policies.
472
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
1.2 Financial liabilities at amortised cost: breakdown by product of deposits from customers
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
TYPE OF TRANSACTION/VALUES
BOOK
VALUE
FAIR VALUE
BOOK
VALUE
FAIR VALUE
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Current accounts and demand deposits
367,982
X
X
X
369,675
X
X
X
2. Time deposits
98,882
X
X
X
95,801
X
X
X
3. Loans
26,355
X
X
X
24,617
X
X
X
3.1 Repos
23,605
X
X
X
21,333
X
X
X
3.2 Other
2,750
X
X
X
3,284
X
X
X
4. Liabilities relating to commitments to
repurchase treasury shares
-
X
X
X
21
X
X
X
5. Lease deposits
1,466
X
X
X
1,677
X
X
X
6. Other deposits
6,285
X
X
X
5,603
X
X
X
Total
500,970
-
181,636
319,273
497,394
-
182,821
314,383
Total Level 1, Level 2 and Level 3
500,909
497,204
The item “3. Loans” also includes liabilities relating to repos executed using proprietary securities issued by Group companies, which were
eliminated from assets at consolidated level; the same sub-item does not include the type of bond lending transactions collateralised by securities or
not collateralised. For further information refer to the paragraph “Other information”, Notes to the consolidated accounts, Part B - Consolidated
balance sheet - Liabilities.
Deposits from customers are not carried at fair value, which is presented solely for the purpose of fulfilling financial disclosure requirements. Fair
value measurements are classified according to a three levels hierarchy that reflects the observability of the inputs used in the measurements.
The fair value of demand items was estimated to be equal to their net book value by exercising the option provided for by IFRS7.29.
According to this assumption, demand items were classified as Level 3 in the fair value hierarchy.
For further information see the paragraph “A.4 - Information on fair value”, Notes to the consolidated accounts Part A - Accounting Policies.
1.3 Financial liabilities at amortised cost: breakdown by product of debt securities in issue
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
BOOK
VALUE
FAIR VALUE
BOOK
VALUE
FAIR VALUE
TYPE OF SECURITIES/VALUES
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
A. Debt securities
1. Bonds
85,503
57,459
17,409
8,994
84,171
53,211
18,760
9,355
1.1 Structured
1,460
-
1,417
13
965
26
922
-
1.2 Other
84,043
57,459
15,992
8,981
83,206
53,185
17,838
9,355
2. Other securities
5,206
-
62
5,081
5,674
-
55
5,602
2.1 Structured
47
-
47
-
45
-
45
-
2.2 Other
5,159
-
15
5,081
5,629
-
10
5,602
Total
90,709
57,459
17,471
14,075
89,845
53,211
18,815
14,957
Total Level 1, Level 2 and Level 3
89,005
86,983
Fair value measurements, solely for the purpose of fulfilling financial disclosure requirements, are classified according to a hierarchy of levels
reflecting the observability of the valuations input used in the measurements. For further information see the paragraph “A.4 - Information on fair
value”, Notes to the consolidated accounts, Part A - Accounting policies.
Sub-items “1.1 Bonds - Structured” and “2.1 Other securities -structured” has an overall amount equal to €1,507 million and accounted for 1.66% of
total debt securities. They mainly refer to interest-rate linked instruments with related derivatives components, identified according to the
classification rules of Mifid.
The fair value of derivatives embedded in structured securities and separated, is presented in item 20 of Assets and item 20 of Liabilities and
included in Trading derivatives - Others, amounted to a net balance of €13 million negative.
473
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
1.4 Breakdown of subordinated debts/securities
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
Deposits from banks
-
-
Deposits from customers
33
33
Debt securities
6,616
7,655
Total
6,649
7,688
1.5 Breakdown of structured debts
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
Deposits from banks
-
-
Deposits from customers
-
1
Total
-
1
1.6 Amounts payable under finance leases
(€ million)
TIME BUCKET
31.12.2024
31.12.2023
CASH OUTFLOWS
CASH OUTFLOWS
FINANCE LEASES
OPERATING LEASES
FINANCE LEASES
OPERATING LEASES
Up to 1 year
43
283
50
310
1 year to 2 years
40
354
41
278
2 year to 3 years
42
205
40
342
3 year to 4 years
39
144
39
192
4 year to 5 years
38
113
38
124
Over 5 years
151
193
155
268
Total Lease Payments to be made
353
1,292
363
1,514
RECONCILIATION WITH DEPOSITS
Unearned finance expenses (-) (Discounting effect)
59
104
51
122
Lease deposits
294
1,188
312
1,392
It should be noted that table 1.6 Amounts payable under finance leases reports the maturity analysis based on time bucket of the lease liability as
requested by IFRS16 and the Circular 262 of 22 December 2005 of Banca d’Italia (and subsequent amendments).
474
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
Section 2 - Financial liabilities held for trading - Item 20
2.1 Financial liabilities held for trading: breakdown by product
(€ million)
TYPE OF TRANSACTIONS/VALUES
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
NOMINAL
VALUE
FAIR VALUE
FAIR VALUE*
NOMINAL
VALUE
FAIR VALUE
FAIR VALUE*
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3 FAIR VALUE*
A. Cash liabilities
1. Deposits from banks
1
1,794
-
-
1,795
-
747
-
2
749
2. Deposits from customers
5
815
30
1
847
9
5,884
19
1
5,904
3. Debt securities
3,555
-
3,368
174
3,534
3,779
-
3,306
373
3,678
3.1 Bonds
1,760
-
1,660
99
1,754
1,789
-
1,586
187
1,773
3.1.1 Structured
1,760
-
1,660
99
X
1,709
-
1,504
187
X
3.1.2 Other
-
-
-
-
X
80
-
82
-
X
3.2 Other securities
1,795
-
1,708
75
1,780
1,990
-
1,720
186
1,905
3.2.1 Structured
1,795
-
1,708
75
X
1,990
-
1,720
186
X
3.2.2 Other
-
-
-
-
X
-
-
-
-
X
Total (A)
3,561
2,609
3,398
175
6,176
3,788
6,631
3,325
376
10,331
B. Derivatives instruments
1. Financial derivatives
X
3,287
20,644
1,184
X
X
4,730
21,901
855
X
1.1 Trading derivatives
X
3,287
19,694
647
X
X
4,730
21,791
843
X
1.2 Linked to fair value option
X
-
38
-
X
X
-
57
-
X
1.3 Other
X
-
912
537
X
X
-
53
12
X
2. Credit derivatives
X
30
20
2
X
X
107
75
22
X
2.1 Trading derivatives
X
30
20
2
X
X
107
75
22
X
2.2 Linked to fair value option
X
-
-
-
X
X
-
-
-
X
2.3 Other
X
-
-
-
X
X
-
-
-
X
Total (B)
X
3,317
20,664
1,186
X
X
4,837
21,976
877
X
Total (A+B)
X
5,926
24,062
1,361
X
X
11,468
25,301
1,253
X
Total Level 1, Level 2 and Level 3
31,349
38,022
Note:
Fair value* = Fair value calculated excluding the value changes due to the change of credit worthiness of the issuer compared to the issue date.
Valuations at fair value were classified according to a hierarchy of levels reflecting the observability of the valuations input.
For further information refer to the paragraph “A.4 - Information on fair value” of the Notes to the consolidated accounts, Part A - Accounting
Policies.
The reduction of the item is mainly attributable to the decrease of the stock of short selling, mostly related to the subsidiary UniCredit Bank GmbH.
The financial assets and liabilities relating to OTC Derivatives and repos managed through Central Counterparty Clearing Houses (CCPs) are offset
when (i) the clearing systems of CCPs guarantee the elimination or reduce to immaterial the credit and liquidity risks of these contracts and (ii) the
entity intends to settle these contracts on a net basis, in accordance with IAS32 - Offsetting, in order to better present the liquidity profile and
counterparty risk connected with them.
The offset effect as at 31 December 2024, already included in the net presentation of these transactions, totaled €120,075 million decreased in
comparison to €181,115 million as at 31 December 2023 due to the evolution of reference market conditions, mainly relating to the activities of
UniCredit S.p.A.
The sub-items “Deposits from banks” and “Deposits from customers” include short selling totaling €2,636 million as at 31 December 2024 (€6,643
million as at 31 December 2023), in respect of which no nominal amount was attributed.
2.2 Breakdown of “Financial liabilities held for trading”: subordinated liabilities
No data to be disclosed.
475
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
2.3 Breakdown of "Financial liabilities held for trading": structured debts
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
Deposits from banks
-
22
Deposits from customers
-
-
Debt securities
3,556
3,699
Total
3,556
3,721
Section 3 - Financial liabilities designated at fair value - Item 30
3.1 Financial liabilities designated at fair value: breakdown by product
(€ million)
TYPE OF TRANSACTIONS/VALUES
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
NOMINAL
VALUE
FAIR VALUE
FAIR VALUE*
NOMINAL
VALUE
FAIR VALUE
FAIR VALUE*
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Deposits from banks
1
-
-
1
1
3
-
2
1
3
1.1 Structured
-
-
-
-
X
-
-
-
-
X
1.2 Other
1
-
-
1
X
3
-
2
1
X
of which:
- loan commitments given
-
X
X
X
X
-
X
X
X
X
- financial guarantees given
-
X
X
X
X
-
X
X
X
X
2. Deposits from customers
722
-
662
30
687
696
-
791
38
663
2.1 Structured
-
-
-
-
X
-
-
-
-
X
2.2 Other
722
-
662
30
X
696
-
791
38
X
of which:
- loan commitments given
-
X
X
X
X
-
X
X
X
X
- financial guarantees given
-
X
X
X
X
-
X
X
X
X
3. Debt securities
13,215
-
12,487
566
12,926
11,577
-
10,459
756
11,063
3.1 Structured
12,884
-
12,156
563
X
11,070
-
9,946
756
X
3.2 Other
331
-
331
3
X
507
-
513
-
X
Total
13,938
-
13,149
597
13,614
12,276
-
11,252
795
11,729
Total Level 1, Level 2 and Level 3
13,746
12,047
Note:
Fair value* = Fair value calculated excluding the value changes due to the change of credit worthiness of the issuer compared to the issue date.
The classification of Liabilities in this item aims to reduce the accounting mismatch related to the use of financial instruments measured with
changes in fair value in the Income statement in order to manage the risk profile.
Valuations at fair value are classified according to a hierarchy of levels reflecting the observability of the valuations input.
For further information refer to the paragraph “A.4 - Information on fair value” of the Notes to the consolidated accounts, Part A - Accounting policies.
The sub-item “3.1 Debt securities - Structured” includes “Certificates”, structured debt securities, issued by UniCredit S.p.A. and by other Group’s
legal entities. These instruments are designated at fair value as the embedded derivatives cannot be bifurcated.
3.2 Breakdown of "Financial liabilities designated at fair value": subordinated liabilities
No data to be disclosed.
476
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
Section 4 - Hedging derivatives - Item 40
4.1 Hedging derivatives: breakdown by type of hedging and by levels
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
FAIR VALUE
NOTIONAL
AMOUNT
FAIR VALUE
NOTIONAL
AMOUNT
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
A. Financial derivatives
-
1,026
86
270,662
124
2,208
27
497,981
1) Fair value
-
330
16
241,684
124
1,300
22
460,661
2) Cash flows
-
691
68
27,436
-
906
5
36,161
3) Net investment in foreign subsidiaries
-
5
2
1,542
-
2
-
1,159
B. Credit derivatives
-
-
-
-
-
-
-
-
1) Fair value
-
-
-
-
-
-
-
-
2) Cash flows
-
-
-
-
-
-
-
-
Total
-
1,026
86
270,662
124
2,208
27
497,981
Total Level 1, Level 2 and Level 3
1,112
2,359
Valuations at fair value were classified according to a hierarchy of levels reflecting the observability of the valuations input.
For further information refer to paragraph “A.4 - Information on fair value” of the Notes to the consolidated accounts, Part A - Accounting policies.
4.2 Hedging derivatives: breakdown by hedged portfolios and type of hedging
(€ million)
AMOUNTS AS AT 31.12.2024
FAIR VALUE
CASH FLOW
MICRO-HEDGE
TRANSACTIONS/HEDGE TYPES
DEBT
SECURITIES
AND
INTEREST
RATES RISK
EQUITY
INSTRUMENTS
AND EQUITY
INDICES RISK
CURRENCY
AND GOLD CREDIT RISK COMMODITIES
OTHER
MACRO-
HEDGE
MICRO-
HEDGE
MACRO-
HEDGE
FOREIGN
INVESTMENTS
1. Financial assets at fair value
through other comprehensive
income
42
-
-
-
X
X
X
-
X
X
2. Financial assets at amortised
cost
-
X
-
-
X
X
X
-
X
X
3. Portfolio
X
X
X
X
X
X
149
X
664
X
4. Other transactions
-
-
-
-
-
-
X
-
X
7
Total assets
42
-
-
-
-
-
149
-
664
7
1. Financial liabilities
13
X
-
-
-
-
X
-
X
X
2. Portfolio
X
X
X
X
X
X
39
X
59
X
Total liabilities
13
-
-
-
-
-
39
-
59
-
1. Expected transactions
X
X
X
X
X
X
X
-
X
X
2. Financial assets and liabilities
portfolio
X
X
X
X
X
X
103
X
36
-
477
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
Section 5 - Value adjustment of hedged financial liabilities - Item 50
5.1 Changes to hedged financial liabilities
(€ million)
AMOUNTS AS AT
CHANGES TO HEDGED LIABILITIES/GROUP COMPONENTS
31.12.2024
31.12.2023
1. Positive changes to financial liabilities
7,159
7,994
2. Negative changes to financial liabilities
(16,406)
(20,926)
Total
(9,247)
(12,932)
The decrease in the item is mainly attributable to the evolution in the markets interest rate curves observed in 2024.
Section 6 - Tax liabilities - Item 60
Refer to the paragraph “Section 11 - Tax assets and tax liabilities - Item 110 (Assets) and Item 60 (Liabilities)” of the Consolidated financial
statements of UniCredit group, Notes to the consolidated accounts Part B - Consolidated balance sheet - Assets.
Section 7 - Liabilities associated with assets classified as held for sale - Item 70
See the paragraph “Section 12 - Non-current assets and disposal group classified as held for sale and Liabilities associated with assets classified as
held for sale - Item 120 (Assets) and Item 70 (Liabilities)” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts Part B - Consolidated balance sheet - Assets.
478
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
Section 8 - Other liabilities - Item 80
8.1 Other liabilities: breakdown
(€ million)
AMOUNTS AS AT
ITEMS/VALUES
31.12.2024
31.12.2023
Liabilities in respect of financial guarantees issued
3
3
Accrued expenses and deferred income other than those to be capitalised for the financial liabilities
concerned
460
519
Negative value of management agreements (so-called servicing assets)
-
-
Payment agreements based on the value of own capital instruments classified as liabilities pursuant to
IFRS2
8
6
Other liabilities due to employees
2,165
2,433
Other liabilities due to other staff
11
13
Other liabilities due to Directors and Statutory Auditors
1
1
Interest and amounts to be credited to
231
228
- Customers
220
219
- Banks
11
9
Items in transit between branches and not yet allocated to destination accounts
12
9
Available amounts to be paid to others
453
220
Items in processing
1,390
1,454
Entries relating to securities transactions
454
103
Definitive items but not attributable to other lines
3,316
4,175
- Accounts payable - suppliers
915
990
- Provisions for tax withholding on accrued interest, bond coupon payments or dividends
9
6
- Other entries
2,392
3,179
Liabilities for miscellaneous entries related to tax collection service
3
-
Adjustments for unpaid portfolio entries
1,379
4
Tax items different from those included in item 60
1,698
1,313
Other entries
3,103
3,085
Total
14,687
13,566
Item “Accrued expenses and deferred income other than those to be capitalised for the financial liabilities” includes the contract liabilities recognised
in accordance with IFRS15.
In this context, deferred income represents the portion of performance obligations not yet satisfied through the services provided by the Group, but
already settled during the period or in previous periods.
In this regard, it is worth to specify that the majority of this amount relates to performance obligations expected to be satisfied by the end of the
following year.
Refer to the paragraph “Section 13 - Other assets - Item 130” of the Notes to the consolidated accounts Part B - Consolidated balance sheet -
Assets for information about the changes in deferred income and accrued expenses occurred in the period.
479
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
Section 9 - Provision for employee severance pay - Item 90
The “TFR” provision for Italy-based employee benefits is to be construed as a “post-retirement defined benefit”, therefore its recognition in financial
statements has required the estimate, through actuarial techniques, of the amount of benefit accrued by employees and its discount to present
value. This benefit is calculated by an external actuary using the “projected unit credit” method (refer to the paragraph “Part A.2 - Main items of the
accounts” of the Notes to the consolidated accounts Part A - Accounting policies).
9.1 Provisions for employee severance pay: annual changes
(€ million)
CHANGES IN
2024
2023
A. Opening balance
335
368
B. Increases
15
33
B.1 Provisions for the year
12
14
B.2 Other increases
3
19
of which: business combinations
-
-
C. Reductions
56
66
C.1 Severance payments
55
66
C.2 Other decreases
1
-
of which: business combinations
-
-
D. Closing Balance
294
335
9.2 Other information
(€ million)
CHANGES IN
2024
2023
Cost Recognised in P&L:
12
14
- Current Service Cost
-
-
- Interest Cost on the DBO
12
14
- Settlement (gains)/losses
-
-
- Past Service Cost
-
-
Remeasurement Effects (Gains) Losses Recognised in OCI
1
20
Annual weighted average assumptions
- Discount rate
3.30%
3.50%
- Price inflation
1.45%
1.75%
Financial duration of defined benefit obligation equals to 9 years; Valuation Reserve negative balance, net of tax, move from -€123 million as at 31
December 2023 to -€125 million as at 31 December 2024.
A change of -25 basis points of discount rate would result in an increase of the liability of €6 million (+2.07%); a correspondent increase of discount
rate, on the other hand, would result in a reduction in the liability of €6 million (-2.03%). A change of -25 basis points of price inflation rate would
result in a reduction of the liability of €4 million (-1.28%); a correspondent increase of price inflation rate, on the other hand, would result in an
increase of the liability of €4 million (+1.30%).
480
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
Section 10 - Provisions for risks and charges - Item 100
10.1 Provisions for risks and charges: breakdown
(€ million)
AMOUNTS AS AT
ITEMS/COMPONENTS
31.12.2024
31.12.2023
1. Provisions for credit risk on commitments and financial guarantees given
982
1,195
2. Provisions for other commitments and other guarantees given
61
89
3. Pensions and other post-retirement benefit obligations
3,193
3,083
4. Other provisions for risks and charges
3,680
3,176
4.1 Legal and tax disputes
1,050
637
4.2 Staff expenses
1,863
1,587
4.3 Other
767
952
Total
7,916
7,543
The item "4. Other provisions for risks and charges" consists of provisions for:
• legal disputes: cases in which the Group is a defendant, and post-insolvency clawback petitions (more information on litigation is set out in the
paragraph “B. Legal risks” of the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts Part E - Information on
risks and related hedging policies, 2.5 Operational risks, Qualitative information). In particular it is worth to note that such sub-item includes
provisions posted by Zagrebacka Banka related to CHF loans and provisions for a lawsuit by a Russian energy company and related to a
guarantee claim;
• staff expenses including the restructuring costs associated with the update of the Strategic Plan for the portion that has not been either settled or
reclassified to "Other liabilities" as a result of the incurrence of a specific debt toward the employees;
• other: provisions for risks and charges not attributable to the above items, whose details are illustrated in the following table 10.6.
10.2 Provisions for risks and charges: annual changes
(€ million)
CHANGES IN 2024
PROVISIONS FOR
OTHER OFF-BALANCE
SHEET COMMITMENTS
AND OTHER
GUARANTEES GIVEN
PENSION AND POST-
RETIREMENT BENEFIT
OBLIGATIONS
OTHER PROVISIONS
FOR RISKS AND
CHARGES
TOTAL
A. Opening balance
89
3,083
3,176
6,348
B. Increases
(26)
414
1,727
2,115
B.1 Provisions for the year
(27)
52
1,411
1,436
B.2 Changes due to the passing time
-
102
45
147
B.3 Differences due to discount-rate changes
-
-
12
12
B.4 Other changes
1
260
259
520
of which: business combinations
-
-
-
-
C. Decreases
2
304
1,223
1,529
C.1 Use during the year
-
240
706
946
C.2 Differences due to discount-rate changes
-
-
9
9
C.3 Other changes
2
64
508
574
of which: business combinations
-
-
-
-
D. Closing balance
61
3,193
3,680
6,934
The sub-item “B.1 Provisions for the year” referred to “provision for other off-Balance sheet commitments and other guarantees given” includes
amounts reversed during the year.
481
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
10.3 Provisions for credit risk on commitments and financial guarantees given
(€ million)
AMOUNTS AS AT 31.12.2024
PROVISIONS FOR CREDIT RISK ON COMMITMENTS AND FINANCIAL GUARANTEES GIVEN
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED CREDIT-
IMPAIRED FINANCIAL
ASSETS
TOTAL
Loan commitments given
107
148
188
-
443
Financial guarantees given
51
102
386
-
539
Total
158
250
574
-
982
10.4 Provisions on other commitments and other issued guarantees
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
1. Other issued guarantees
61
89
2. Other commitments
-
-
Total
61
89
10.5 Pensions and other post-retirement defined-benefit obligations
1. Pensions and other post-retirement benefit obligations
There are several defined-benefit plans within the Group, i.e. plans whose benefit is linked to salary and employee length of service both in Italy and
abroad. The Austrian, German and Italian plans account for over 90% of the Group’s pension obligations.
Approx. 60% of the total obligations for defined benefit plans are financed with segregated assets. These plans are established in (i) Germany,
among others “Direct Pension Plan” (i.e. an external fund managed by independent trustees), the "HVB Trust Pensionfonds AG" and the
“Pensionkasse der Hypovereinsbank WaG”, all created by UniCredit Bank GmbH, and (ii) in the United Kingdom, Italy and Luxembourg created by
UniCredit Bank GmbH and UniCredit S.p.A.
The Group’s defined-benefit plans are mainly closed to new recruits where most new recruits join defined-contribution plans instead and the related
contributions are charged to the Income statement.
According to IAS19, obligations arising from defined-benefit plans are determined using the “projected unit credit” method, while segregated assets
are measured at fair value at Balance sheet reporting date. The Balance sheet obligation is the result of the deficit or surplus (i.e., the difference
between obligations and assets) net of any impacts of the asset ceiling; actuarial gains and losses are recognised in shareholders’ equity and shown
in a specific item of revaluation reserves in the financial year in which they are recorded.
The actuarial assumptions used to determine obligations vary from country to country and from plan to plan; the discount rate is determined,
depending on the currency of denomination of the commitments and the maturity of the liability, by reference to market yields on a basket of “high
quality corporate bonds”.
In light of evolving common interpretation about “high quality corporate bonds” identification, UCG refined its Discount Rate setting methodology by
referencing AA rated corporate bonds basket. In addition, it is worth to mention that, instead of econometric models, a Nelson Siegel Svensson
methodology has been applied since years in modelling the yield-curve expressed by the basket of securities (by adjusting the long-term segment of
the curve above the last liquid point, defined as the average maturity of the last 5 available bonds, relying on the slope of a Treasury curve build with
AA Govies).
The remeasurement of commitments, performed on the basis of the methodology described above, as at 31 December 2024 leads to an increase in
the negative balance of the valuation reserve relating to actuarial gains/losses on defined benefit plans of €158 million, net of deferred taxes, for a
negative balance which move from -€2,471 million as at 31 December 2023 to -€2,629 million as at 31 December 2024.
482
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
2. Changes of net defined benefit liability/asset and any reimbursement rights
2.1 Breakdown of defined benefit net obligation
(€ million)
31.12.2024
31.12.2023
Current value of the defined benefit obligation
7,637
7,588
Current value of the plan assets
(4,465)
(4,528)
Deficit/(Surplus)
3,172
3,060
Irrecoverable surplus (effect of asset ceiling)
-
-
Net defined benefit liability/(asset) as of the period end date
3,172
3,060
2.2 Changes in defined benefit obligations
(€ million)
31.12.2024
31.12.2023
Initial defined benefit obligation
7,588
7,431
Current service cost
54
53
Settlement (gain)/loss
(4)
-
Past service cost
-
-
Interest expense on the defined benefit obligation
266
277
Write-downs for actuarial (gains)/losses on defined benefit plans
153
259
Employees' contributions for defined benefit plans
9
9
Disbursements from plan assets
(191)
(185)
Disbursements directly paid by the fund
(232)
(249)
Settlements
(12)
-
Other increases (decreases)
6
(7)
Net defined benefit liability/(asset) as of the period end date
7,637
7,588
2.3 Changes to plan assets
(€ million)
31.12.2024
31.12.2023
Initial fair value of plan assets
4,528
4,496
Interest income on plan assets
164
174
Administrative expenses paid from plan assets
-
-
Write-downs on the fair value of plan assets for actuarial gains (losses) on the discount rate
(66)
(2)
Employer contributions
21
6
Disbursements from plan assets
(191)
(185)
Settlements
-
-
Other increases (decreases)
9
39
Final fair value of plan assets
4,465
4,528
3. Information on plan assets' fair value
(€ million)
31.12.2024
31.12.2023
1. Shares
249
264
2. Bonds
311
290
3. Units in investment funds
3,809
3,900
4. Real estate properties
23
24
5. Derivative instruments
-
-
6. Other assets
73
50
Total
4,465
4,528
483
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
4. Description of major actuarial assumptions
31.12.2024
31.12.2023
%
%
Discount rate
3.48
3.60
Expected return on plan assets
3.48
3.60
Expected compensation increase rate
2.52
2.60
Future increases relating to pension treatments
2.16
2.45
Expected inflation rate
2.11
2.25
5. Information of amounts, timing and uncertainties of disbursement cash flows
(€ million)
31.12.2024
- Impact of changes in financial/demographic assumptions on DBOs
A. Discount rate
A1. -25 basis points
243
3.18%
A2. +25 basis points
(231)
-3.02%
B. Future increase rate relating to pension treatments
B1. -25 basis points
(179)
-2.34%
B2. +25 basis points
186
2.44%
C. Mortality
C.1 Life expectancy + 1 year
231
3.03%
- Financial duration (years)
12.9
10.6 Provisions for risks and charges - other provisions
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
4.3 Other provisions for risks and charges - other
Real estate risks/charges
65
86
Restructuring costs
57
71
Allowances payable to agents
81
81
Disputes regarding financial instruments and derivatives
8
9
Costs for liabilities arising from equity investment disposals
14
27
Other
542
678
Total
767
952
The item “Other” includes provisions:
• posted in order to cope with the probable risks of loss relating to the purchases of diamonds, that could be carried out under the “customer care”
initiative promoted by UniCredit S.p.A. For the sake of completeness refer to the related paragraph “Diamond offer” of the Company financial
statements of UniCredit S.p.A., Notes to the accounts Part E - Information on risks and related hedging policies, Section 5 - Operational risks,
Qualitative information, E. Other claims by customers;
• aimed to cover the risks related to certain standard contractual terms contained in the documentary frameworks (i.e. reps & warranties), including
securitisation transactions with derecognition of non-performing loans, signed with the SPVs, of which UniCredit S.p.A. is Originator, pending the
analysis and assessments to be completed within the deadlines established.
484
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
Section 11 - Insurance liabilities - Item 110
No data to be disclosed.
Section 12 - Redeemable Shares - Item 130
No data to be disclosed.
Section 13 - Group shareholders’ equity - Items 120, 130, 140, 150, 160, 170 and 180
As at 31 December 2024 the Group shareholders’ equity, including the result for the year of +€9,719 million, amounted to €62,441 million, against
€64,079 million at the end of the previous year.
The table below shows the breakdown of Group equity and the changes over the previous year.
Group shareholders' equity: breakdown
(€ million)
AMOUNTS AS AT
CHANGES
31.12.2024
31.12.2023
AMOUNT
%
Share capital
21,368
21,278
90
0.4%
Share premium reserve
23
23
-
-
Reserves
33,235
35,063
-1,828
-5.2%
Treasury shares
-
(1,727)
1,727
-100.0%
a. Parent Company
-
(1,727)
1,727
-100.0%
b. Subsidiaries
-
-
-
n.m.
Valuation reserve
(5,422)
(4,928)
-494
10.0%
Equity instruments
4,958
4,863
95
2.0%
Advanced dividends
(1,440)
-
-1,440
n.m.
Net profit (loss)
9,719
9,507
212
2.2%
Total
62,441
64,079
-1,638
-2.6%
13.1 "Share capital" and "treasury shares": breakdown
(€ million)
AMOUNT AS AT 31.12.2024
AMOUNT AS AT 31.12.2023
ISSUED SHARES
UNDERWRITTEN AND
NOT YET FULLY PAID
SHARES
ISSUED SHARES
UNDERWRITTEN AND
NOT YET FULLY PAID
SHARES
A. Share Capital
A.1 Ordinary shares
21,368
-
21,278
-
A.2 Savings shares
-
-
-
-
Total A
21,368
-
21,278
-
B. Treasury Shares
-
-
(1,727)
-
Reference is made to the paragraph “12.1 “Share capital” and “treasury shares”: breakdown” of the Company financial statements of UniCredit
S.p.A., Notes to the accounts, Part B - Balance sheet - Liabilities, Section 12 - Shareholders’ equity - Item 110, 130, 140, 150, 160, 170 and 180
which is herewith quoted entirely.
485
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
13.2 Share capital - number of shares owned by the Parent Company: annual changes
CHANGES IN 2024
ITEMS/TYPES
ORDINARY
SAVINGS
A. Issued shares as at the beginning of the year
1,784,663,080
-
- Fully paid
1,784,663,080
-
- Not fully paid
-
-
A.1 Treasury shares (-)
(72,239,501)
-
A.2 Shares outstanding: opening balance
1,712,423,579
-
B. Increases
7,227,514
-
B.1 New issues
7,227,514
-
- Against payment
-
-
- Business combinations
-
-
- Bonds converted
-
-
- Warrants exercised
-
-
- Other
-
-
- Free
7,227,514
-
- To employees
7,227,514
-
- To directors
-
-
- Other
-
-
B.2 Sales of treasury shares
-
-
B.3 Other changes
-
-
C. Decreases
168,231,243
-
C.1 Cancellation
-
-
C.2 Purchase of treasury shares
168,231,243
-
C.3 Business tranferred
-
-
C.4 Other changes
-
-
of which: business combinations
-
-
D. Shares outstanding: closing balance
1,551,419,850
-
D.1 Treasury shares (+)
-
-
D.2 Shares outstanding as at the end of the year
1,551,419,850
-
- Fully paid
1,551,419,850
-
- Not fully paid
-
-
Reference is made to the paragraph “12.2 Share capital - Number of shares: annual changes” of the Company financial statements of UniCredit
S.p.A., Notes to the accounts, Part B - Balance sheet - Liabilities, Section 12 - Shareholders’ equity - Item 110, 130, 140, 150, 160, 170 and 180
which is herewith quoted entirely.
13.3 Share capital: other information
Reference is made to the paragraph “12.3 Capital: other information” of the Company financial statements of UniCredit S.p.A., Notes to the
accounts, Part B - Balance sheet - Liabilities, Section 12 - Shareholders’ equity - Item 110, 130, 140, 150, 160, 170 and 180 which is herewith
quoted entirely.
13.4 Reserves from profits: other information
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
Legal reserve
1,618
1,618
Statutory reserve
16,053
13,917
Other reserves
9,125
9,929
Total
26,796
25,464
For further information on Legal reserve, reference is made to the paragraph “12.4 Reserves from profit: other information” of the Company financial
statements of UniCredit S.p.A., Notes to the accounts, Part B - Balance sheet - Liabilities, Section 12 - Shareholders’ equity - Item 110, 130, 140,
150, 160, 170 and 180 which is herewith quoted entirely.
486
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
13.5 Equity instruments: breakdown and annual changes
Reference is made to the paragraph “12.5 Equity instruments; composition and annual changes” of the Company financial statements of UniCredit
S.p.A., Notes to the accounts, Part B - Balance sheet - Liabilities, Section 12 - Shareholders’ equity - Item 110, 130, 140, 150, 160, 170 and 180
which is herewith quoted entirely.
13.6 Other Information
Valuation reserves: breakdown
(€ million)
AMOUNTS AS AT
ITEM/TYPES
31.12.2024
31.12.2023
1. Equity instruments designated at fair value through other comprehensive income
151
(103)
2. Financial assets (other than equity instruments) at fair value through other comprehensive income
(461)
(322)
3. Hedging of equity instruments at fair value through other comprehensive income
-
-
4. Financial liabilities at fair value through profit or loss (changes in own credit risk)
(96)
(114)
5. Hedging instruments (non-designated elements)
-
-
6. Property, plant and equipment
1,556
1,631
7. Intangible assets
-
-
8. Hedges of foreign investments
(189)
(193)
9. Cash-flow hedges
(256)
(356)
10. Exchange differences
(3,724)
(3,154)
11. Non-current assets classified as held for sale
32
3
12. Actuarial gains (losses) on defined-benefit plans
(2,752)
(2,591)
13. Part of valuation reserves of investments valued at net equity
40
(6)
14. Special revaluation laws
277
277
Total
(5,422)
(4,928)
The FX currency reserves as at 31 December 2024 mainly refer to the Russian Ruble for -€3,250 million included in the item “Exchange
differences”.
The main variations in comparison to 31 December 2023 refer to the following reserves:
• “Equity instruments designated at fair value through other comprehensive income” for +€254 million mainly due to change in fair value of specific
equity investments.
• “Financial assets (other than equity instruments) at fair value through other comprehensive income” for -€139 million mainly due to Government
securities;
• “Cash-flow hedges” for +€100 million due to the change in interest rates and volumes;
• “Exchange differences” for -€570 million mainly referred to Russian Ruble for -€458 million, Hungarian Forint for -€87 million and Czech Crown for
-€63 million;
• “Actuarial gains (losses) on defined-benefit plans” for -€161 million mainly referred to the decrease in DBO discount rate induced by the increase
in prices of High Quality Corporate Bonds rates, partially offset by plan assets performance.
487
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
Section 14 - Minority shareholders‘ equity - Item 190
14.1 Breakdown of item 190 "Shareholders' equity: minorities"
(€ million)
COMPANY NAME
2024
2023
Equity investments in consolidated companies with significant minority interests
316
109
UniCredit Bank S.A.
188
21
Zagrebacka Banka D.D.
89
88
Alpha Bank Romania S.A.
39
-
Other equity investments
84
55
Total
400
164
The shareholders' equity attributable to minority interests as at 31 December 2024 amounts to +€400 million.
The main variations are attributable to the minority shareholders of UniCredit Bank S.A. increased during the year due to the purchase of 90.1%
shares of Alpha Bank Romania S.A. by UniCredit S.p.A., through the payment to the counterpart, as part of the price of 9.90% shares in UniCredit
Bank S.A.
14.2 Capital instruments:breakdown and annual changes
There are no equity instruments.
488
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
Other information
1. Commitments and financial guarantees given (different from those designated at fair value)
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT
NOTIONAL AMOUNTS OF COMMITMENTS AND FINANCIAL GUARANTEES GIVEN
31.12.2023
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED
CREDIT-IMPAIRED
FINANCIAL ASSETS
TOTAL
TOTAL
1. Loan commitments given
181,214
15,941
978
-
198,133
192,077
a) Central Banks
12
-
-
-
12
13
b) Governments and other Public
Sector Entities
9,873
308
29
-
10,210
10,073
c) Banks
3,631
78
-
-
3,709
1,908
d) Other financial companies
29,628
1,707
18
-
31,353
28,845
e) Non-financial companies
128,316
12,715
900
-
141,931
141,486
f) Households
9,754
1,133
31
-
10,918
9,752
2. Financial guarantees given
47,011
6,234
1,147
-
54,392
52,767
a) Central Banks
1
-
-
-
1
1
b) Governments and other Public
Sector Entities
105
5
-
-
110
140
c) Banks
7,622
773
-
-
8,395
7,203
d) Other financial companies
4,235
95
2
-
4,332
4,457
e) Non-financial companies
34,819
5,328
1,141
-
41,288
40,668
f) Households
229
33
4
-
266
298
2. Others commitments and others guarantees given
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
NOTIONAL AMOUNTS
NOTIONAL AMOUNTS
1. Others guarantees given
26,263
25,561
of which: non-performing loans
192
197
a) Central Banks
-
-
b) Governments and other Public Sector Entities
17
4
c) Banks
2,710
2,670
d) Other financial companies
3,839
2,978
e) Non-financial companies
19,594
19,868
f) Households
103
41
2. Others commitments
87,193
90,686
of which: non-performing loans
706
412
a) Central Banks
388
430
b) Governments and other Public Sector Entities
1,065
1,540
c) Banks
7,319
10,173
d) Other financial companies
12,735
14,599
e) Non-financial companies
61,687
59,688
f) Households
3,999
4,256
Table “1. Commitments and financial guarantees given (different from those designated at fair value)” shows commitments and guarantees
evaluated according to the IFRS9 requirements.
Table “2. Others commitments and others guarantees given” shows commitments and guarantees that are not evaluated according to the IFRS9
requirements. According to the Circular 262 of 22 December 2005 of Banca d’Italia (and subsequent amendments), the tables also include the
revocable commitments and the item financial guarantees also includes the commercial ones.
489
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
3. Assets used to guarantee own liabilities and commitments
(€ million)
AMOUNTS AS AT
PORTFOLIOS
31.12.2024
31.12.2023
1. Financial assets at fair value through profit or loss
6,994
6,692
2. Financial assets at fair value through other comprehensive income
22,333
14,186
3. Financial assets at amortised cost
83,429
85,992
4. Property, plant and equipment
-
-
of which: inventories of property, plant and equipment
-
-
4. Breakdown of investments relating to unit-linked and index-linked policies
There were no transactions concerning unit-linked and index-linked policies.
5. Asset management and trading on behalf of third parties
(€ million)
AMOUNTS AS AT
TYPE OF SERVICES
31.12.2024
31.12.2023
1. Execution of orders on behalf of customers
a) Purchases
81,810
71,938
1. Settled
81,795
71,904
2. Unsettled
15
34
b) Sales
89,130
74,857
1. Settled
89,122
74,811
2. Unsettled
8
46
2. Portfolio management
a) Individual
22,618
20,539
b) Collective
24,617
17,342
3. Custody and administration of securities
a) Third party securities on deposits: relating to depositary bank activities (excluding portfolio
management)
2,609
2,981
1. Securities issued by companies included in consolidation
-
-
2. Other securities
2,609
2,981
b) Third party securities held in deposits (excluding portfolio management): other
283,425
265,335
1. Securities issued by companies included in consolidation
12,929
11,077
2. Other securities
270,496
254,258
c) Third party securities deposited with third parties
227,078
213,683
d) Property securities deposited with third parties
105,864
107,819
4. Other transactions
7,313
7,072
490
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part B - Consolidated balance sheet - Liabilities
6. Financial assets subject to accounting offsetting or under master netting agreements and similar agreements
(€ million)
GROSS AMOUNTS
OF FINANCIAL
ASSETS
FINANCIAL
LIABILITIES
OFFSET IN
BALANCE SHEET
NET BALANCE
SHEET VALUES
OF FINANCIAL
ASSETS
RELATED AMOUNTS NOT SUBJECT
TO ACCOUNTING OFFSETTING
NET AMOUNT
NET AMOUNT
INSTRUMENT TYPE
FINANCIAL
INSTRUMENTS
CASH
COLLATERAL
RECEIVED
31.12.2024
31.12.2023
(A)
(B)
(C=A-B)
(D)
(E)
(F=C-D-E)
1. Derivatives
151,066
128,083
22,983
14,636
5,311
3,036
2,548
2. Reverse repos
44,500
1,796
42,704
38,581
105
4,018
749
3. Securities lending
-
-
-
-
-
-
-
4. Others
130,113
5,342
124,771
428
-
124,343
121,133
Total
31.12.2024
325,679
135,221
190,458
53,645
5,416
131,397
X
Total
31.12.2023
379,555
190,724
188,831
57,416
6,985
X
124,430
The amount of financial derivative assets offset in Balance sheet by financial liabilities (column “B” item 1. Derivatives) mainly refers to derivative
contracts settled with Central Clearing Counterparties (CCPs).
7. Financial liabilities subject to accounting offsetting or under master netting agreements and similar agreements
(€ million)
GROSS AMOUNTS
OF FINANCIAL
LIABILITIES
FINANCIAL
ASSETS OFFSET
IN BALANCE
SHEET
NET BALANCE
SHEET VALUES
OF FINANCIAL
LIABILITIES
RELATED AMOUNTS NOT SUBJECT
TO ACCOUNTING OFFSETTING
NET AMOUNT
NET AMOUNT
INSTRUMENT TYPE
FINANCIAL
INSTRUMENTS
CASH
COLLATERAL
PLEDGED
31.12.2024
31.12.2023
(A)
(B)
(C=A-B)
(D)
(E)
(F=C-D-E)
1. Derivatives
155,383
132,843
22,540
14,504
4,262
3,774
3,608
2. Reverse repos
54,724
1,796
52,928
46,853
85
5,990
2,153
3. Securities lending
-
-
-
-
-
-
-
4. Others
161,030
619
160,411
742
-
159,669
175,994
Total
31.12.2024
371,137
135,258
235,879
62,099
4,347
169,433
X
Total
31.12.2023
429,498
190,724
238,774
50,984
6,035
X
181,755
The amount of financial derivative liabilities offset in Balance sheet by financial assets (column “B” item 1. Derivatives) mainly refers to derivative
contracts settled with Central Clearing Counterparties (CCPs).
8. Security borrowing transactions
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS OF THE SECURITIES BORROWED/TRANSACTION PURPOSES
TYPE OF LENDER
GIVEN AS COLLATERAL
IN OWN FUNDING
TRANSACTIONS
SOLD
SOLD IN REPO
TRANSACTIONS
OTHER PURPOSES
A. Banks
339
153
1,359
2,701
B. Financial companies
1
6
730
3,113
C. Insurance companies
-
-
-
-
D. Non-financial companies
-
6
98
1,229
E. Others
-
-
423
2,098
Total
340
165
2,610
9,141
491
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Part C - Consolidated income statement
Section 1 - Interests - Items 10 and 20
1.1 Interest income and similar revenues: breakdown
(€ million)
YEAR 2024
YEAR
DEBT SECURITIES
LOANS
OTHER
TRANSACTIONS
2023
ITEMS/TYPES
TOTAL
TOTAL
1. Financial assets at fair value through profit or
loss
356
156
1,244
1,756
2,049
1.1 Financial assets held for trading
283
59
1,244
1,586
1,865
1.2 Financial assets designated at fair value
3
-
-
3
3
1.3 Other financial assets mandatorily at fair value
70
97
-
167
181
2. Financial assets at fair value through other
comprehensive income
2,050
-
X
2,050
1,489
3. Financial assets at amortised cost
2,224
23,913
X
26,137
25,732
3.1 Loans and advances to banks
300
4,394
X
4,694
5,759
3.2 Loans and advances to customers
1,924
19,519
X
21,443
19,973
4. Hedging derivatives
X
X
4,394
4,394
4,270
5. Other assets
X
X
481
481
352
6. Financial liabilities
X
X
X
20
27
Total
4,630
24,069
6,119
34,838
33,919
of which: interest income on impaired financial assets
3
423
-
426
424
of which: interest income on financial lease
X
685
X
685
691
1.2 Interest income and similar revenues: other information
1.2.1 Interest income from financial assets denominated in currency
(€ million)
ITEMS
YEAR 2024
YEAR 2023
a) Assets denominated in currency
6,523
7,745
492
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
1.3 Interest expenses and similar charges: breakdown
(€ million)
YEAR 2024
YEAR
DEBTS
SECURITIES
OTHER
TRANSACTIONS
2023
ITEMS/TYPES
TOTAL
TOTAL
1. Financial liabilities at amortised cost
(9,904)
(2,620)
X
(12,524)
(11,963)
1.1 Deposits from central banks
(265)
X
X
(265)
(1,453)
1.2 Deposits from banks
(2,444)
X
X
(2,444)
(1,942)
1.3 Deposits from customers
(7,195)
X
X
(7,195)
(5,936)
1.4 Debt securities in issue
X
(2,620)
X
(2,620)
(2,632)
2. Financial liabilities held for trading
(28)
(228)
(1,769)
(2,025)
(2,141)
3. Financial liabilities designated at fair value
(6)
(112)
-
(118)
(82)
4. Other liabilities and funds
X
X
(45)
(45)
(26)
5. Hedging derivatives
X
X
(5,435)
(5,435)
(5,344)
6. Financial assets
X
X
X
(20)
(15)
Total
(9,938)
(2,960)
(7,249)
(20,167)
(19,571)
of which: interest expenses on lease deposits
(35)
X
X
(35)
(35)
1.4 Interest expenses and similar charges: other information
1.4.1 Interest expenses on liabilities denominated in currency
(€ million)
ITEMS
YEAR 2024
YEAR 2023
a) Liabilities denominated in currency
(3,888)
(4,965)
1.5 Differentials relating to hedging operations
(€ million)
ITEMS
YEAR 2024
YEAR 2023
A. Positive differentials relating to hedging operations
12,221
11,914
B. Negative differentials relating to hedging operations
(13,262)
(12,988)
C. Net differential (A-B)
(1,041)
(1,074)
493
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 2 - Fees and commissions - Items 40 and 50
2.1 Fees and commissions income: breakdown
(€ million)
TYPE OF SERVICES/VALUES
YEAR 2024
YEAR 2023
a) Financial Instruments
1,426
1,218
1. Placement of securities
1,098
882
1.1 Underwriting and/or on the basis of an irrevocable commitment
10
45
1.2 Without irrevocable commitment
1,088
837
2. Reception and transmission of orders
187
206
2.1 Reception and transmission of orders of financial instruments
176
205
2.2 Execution of orders on behalf of customers
11
1
3. Other fees related to activities linked to financial instruments
141
130
of which: proprietary Trading
2
1
of which: individual portfolio management
139
129
b) Corporate Finance
70
65
1. M&A advisory
17
13
2. Treasury services
-
-
3. Other fee and commission income in relation to corporate finance activities
53
52
c) Fee based advice
109
105
d) Clearing and settlement
-
-
e) Collective portfolio management
309
219
f) Custody and administration of securities
281
278
1. Custodian Bank
23
24
2. Other fee and commission income in relation to corporate finance activities
258
254
g) Central administrative services for collective investment
1
1
h) Fiduciary transactions
-
-
i) Payment services
2,276
1,701
1. Current accounts
168
57
2. Credit cards
340
124
3. Debits cards and other card payments
586
482
4. Transfers and other payment orders
531
488
5. Other fees in relation to payment services
651
550
j) Distribution of third party services
1,556
1,484
1.Collective portfolio management
627
603
2. Insurance products
909
864
3. Other products
20
17
of which: individual portfolio management
2
1
k) Structured finance
-
1
l) Loan securitisation servicing activities
18
13
m) Loan commitment given
103
104
n) Financial guarantees
367
361
of which: credit derivatives
-
-
o) Lending transaction
613
543
of which: factoring services
77
77
p) Currency trading
214
218
q) Commodities
-
-
r) Other fee income
1,462
1,936
of which: management of sharing multilateral trading facilities
-
-
of which: management of organized trading systems
-
-
Total
8,805
8,247
494
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Item “r) other fee income” mainly comprise:
• fees for ancillary services linked to current accounts (e.g., token, debt card): €706 million in 2024, €724 million in 2023 (-2.5%);
• fees for immediate funds availability: €328 million in 2024, €327 million in 2023 (+0.3%);
• fees for commercial guarantees: €178 million in 2024, €164 million in 2023 (+8.5%).
2.2 Fees and commissions expenses: breakdown
(€ million)
SERVICES/VALUES
YEAR 2024
YEAR 2023
a) Financial instruments
(92)
(86)
of which: trading in financial instruments
(87)
(71)
of which: placement of financial instruments
(2)
(12)
of which: individual Portfolio management
(3)
(3)
- own portfolio
(1)
-
- third party portfolio
(2)
(3)
b) Clearing and settlement
(4)
(3)
c) Portfolio management: collective
(27)
(28)
1. Own portfolio
(13)
(14)
2. Third party portfolio
(14)
(14)
d) Custody and Admnistration
(238)
(182)
e) Collection and payments services
(941)
(865)
of which: debit credit card service and other payment cards
(825)
(754)
f) Loan securitisation servicing activities
(16)
(1)
g) Loan commitment given
(17)
(24)
h) Financial guarantees received
(195)
(214)
of which: credit derivatives
(12)
-
i) Off - site distribution of financial instruments, products and services
(49)
(48)
j) Currency trading
(10)
(9)
k) Other commission expenses
(174)
(183)
Total
(1,763)
(1,643)
495
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 3 - Dividend income and similar revenue - Item 70
3.1 Dividend income and similar revenues: breakdown
(€ million)
YEAR 2024
YEAR 2023
ITEMS/REVENUES
DIVIDENDS
SIMILAR REVENUES
DIVIDENDS
SIMILAR REVENUES
A. Financial assets held for trading
345
-
221
-
B. Other financial assets mandatorily at fair value
50
16
31
14
C. Financial assets at fair value through other comprehensive
income
47
-
32
-
D. Equity investments
10
-
7
-
Total
452
16
291
14
Total dividends and similar revenues
468
305
Dividends are recognised in the Income statement when distribution is approved.
In 2024 dividend income and similar revenues totaled €468 million, compared with €305 million for the previous period.
The item “A. Financial assets held for trading” includes the dividends that UniCredit Bank GmbH received in relation to equity securities recognised
as Financial assets held for trading.
The item “B. Other financial assets mandatorily at fair value” includes dividends received mainly by the subsidiary UniCredit Bank GmbH and by
UniCredit S.p.A.
The item “C. Financial assets at fair value through other comprehensive income” includes the dividends received relating to the investment in Banca
d’Italia for €17 million (€17 million in 2023).
496
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 4 - Gains (Losses) on financial assets and liabilities held for trading - Item 80
4.1 Net gains (losses) on trading: breakdown
(€ million)
YEAR 2024
TRANSACTIONS/INCOME ITEMS
CAPITAL GAINS
(A)
REALISED PROFITS
(B)
CAPITAL LOSSES
(C)
REALISED LOSSES
(D)
NET PROFIT
[(A+B)-(C+D)]
1. Financial assets held for trading
2,181
2,166
(1,311)
(1,118)
1,918
1.1 Debt securities
115
274
(135)
(254)
-
1.2 Equity instruments
488
630
(825)
(525)
(232)
1.3 Units in investment funds
76
126
(34)
(49)
119
1.4 Loans
1,120
1,065
(57)
(11)
2,117
1.5 Other
382
71
(260)
(279)
(86)
2. Financial liabilities held for trading
1,370
904
(447)
(1,851)
(24)
2.1 Debt securities
209
493
(313)
(349)
40
2.2 Deposits
-
-
-
(6)
(6)
2.3 Other
1,161
411
(134)
(1,496)
(58)
3. Financial assets and liabilities: exchange
differences
X
X
X
X
(363)
4. Derivatives
276,166
512,942
(283,580)
(506,013)
1,357
4.1 Financial derivatives
275,760
512,337
(283,309)
(505,337)
1,293
- On debt securities and interest rates
263,404
499,654
(269,870)
(492,834)
354
- On equity securities and share indices
6,624
5,943
(5,900)
(5,928)
739
- On currencies and gold
X
X
X
X
1,842
- Other
5,732
6,740
(7,539)
(6,575)
(1,642)
4.2 Credit derivatives
406
605
(271)
(676)
64
of which: economic hedges linked to the fair
value option
X
X
X
X
-
Total
279,717
516,012
(285,338)
(508,982)
2,888
The sub-item “1.4 Loans” includes the economic effects generated by CO2 certificates for a net positive amount of €2,113 million held by the
subsidiary UniCredit Bank GmbH.
Section 5 - Fair value adjustments in hedge accounting - Item 90
5.1 Net gains (losses) on hedge accounting: breakdown
(€ million)
INCOME COMPONENT/VALUES
YEAR 2024
YEAR 2023
A. Gains on
A.1 Fair value hedging instruments
44,704
22,567
A.2 Hedged financial assets (in fair value hedge relationship)
2,799
6,377
A.3 Hedged financial liabilities (in fair value hedge relationship)
3,537
572
A.4 Cash-flow hedging derivatives
7,784
29
A.5 Assets and liabilities denominated in currency
-
-
Total gains on hedging activities (A)
58,824
29,545
B. Losses on
B.1 Fair value hedging instruments
(44,253)
(20,534)
B.2 Hedged financial assets (in fair value hedge relationship)
(315)
(1,364)
B.3 Hedged financial liabilities (in fair value hedge relationship)
(6,982)
(7,810)
B.4 Cash-flow hedging derivatives
(7,804)
(38)
B.5 Assets and liabilities denominated in currency
-
-
Total losses on hedging activities (B)
(59,354)
(29,746)
C. Net hedging result (A-B)
(530)
(201)
of which: net gains (losses) of hedge accounting on net positions
-
-
497
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Changes in the items gain and losses on the hedging activities is mainly attributable to the evolution in the markets interest rate curves observed in
2024.
Section 6 - Gains (Losses) on disposals/repurchases - Item 100
Net profit from gains/losses on disposals/repurchases of financial assets/liabilities as at 31 December 2024 is equal to +€17 million (+€410 million in
2023), of which +€12 million on financial assets and +€5 million on financial liabilities.
Net result recognised under sub-item “1. Financial assets at amortised cost” equal to -€62 million is mainly due to loan and advances to customers
basically attributable to sale of loans and bonds by UniCredit S.p.A.
The sub-item “2. Financial assets at fair value through other comprehensive income - 2.1 Debt securities” is equal to +€74 million and includes
mainly gains and losses on disposal of UniCredit S.p.A., for the most part due to Italian Government bonds.
6.1 Gains (Losses) on disposal/repurchase: breakdown
(€ million)
YEAR 2024
YEAR 2023
ITEMS/INCOME ITEMS
GAINS
LOSSES
NET PROFIT
GAINS
LOSSES
NET PROFIT
A. Financial assets
1. Financial assets at amortised cost
191
(253)
(62)
446
(247)
199
1.1 Loans and advances to banks
1
(10)
(9)
9
(19)
(10)
1.2 Loans and advances to customers
190
(243)
(53)
437
(228)
209
2. Financial assets at fair value through other
comprehensive income
527
(453)
74
924
(779)
145
2.1 Debt securities
527
(453)
74
924
(779)
145
2.2 Loans
-
-
-
-
-
-
Total assets (A)
718
(706)
12
1,370
(1,026)
344
B. Financial liabilities at amortised cost
1. Deposits from banks
-
-
-
-
-
-
2. Deposits from customers
10
(9)
1
12
(6)
6
3. Debt securities in issue
27
(23)
4
66
(6)
60
Total liabilities (B)
37
(32)
5
78
(12)
66
Total financial assets/liabilities
17
410
498
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 7 - Net gains (losses) on other financial assets/liabilities at fair value through
profit or loss - Item 110
7.1 Net gains (losses) on other financial assets/liabilities at fair value through profit or loss: breakdown of financial assets and liabilities
designated at fair value
(€ million)
YEAR 2024
TRANSACTIONS/INCOME ITEMS
CAPITAL GAINS
(A)
REALISED PROFITS
(B)
CAPITAL LOSSES
(C)
REALISED LOSSES
(D)
NET PROFIT
[(A+B)-(C+D)]
1. Financial assets
2
-
(4)
(1)
(3)
1.1 Debt securities
2
-
(4)
(1)
(3)
1.2 Loans
-
-
-
-
-
2. Financial liabilities
214
175
(505)
(337)
(453)
2.1 Debt securities
214
174
(490)
(334)
(436)
2.2 Deposits from banks
-
-
-
-
-
2.3 Deposits from customers
-
1
(15)
(3)
(17)
3. Financial assets and liabilities in foreign
currency: exchange differences
X
X
X
X
-
Total
216
175
(509)
(338)
(456)
Some financial derivatives entered into for economic hedge purposes are linked to financial liabilities represented by debt securities and their
economic results are included into table “4.1 Net gains (losses) on trading: breakdown” of the Notes to the consolidated account, Part C -
Consolidated income statement, Section 4 - Gain (Losses) on financial assets and liabilities held for trading - Item 80.
7.2 Net change in other financial assets/liabilities at fair value through profit or loss: breakdown of other financial assets mandatorily at
fair value
(€ million)
YEAR 2024
TRANSACTIONS/INCOME ITEMS
CAPITAL GAINS
(A)
REALISED PROFITS
(B)
CAPITAL LOSSES
(C)
REALISED LOSSES
(D)
NET PROFIT
[(A+B)-(C+D)]
1. Financial assets
371
69
(229)
(41)
170
1.1 Debt securities
63
4
(99)
(27)
(59)
1.2 Equity securities
234
62
(43)
(3)
250
1.3 Units in investment funds
43
2
(66)
(2)
(23)
1.4 Loans
31
1
(21)
(9)
2
2. Financial assets: exchange differences
X
X
X
X
-
Total
371
69
(229)
(41)
170
OICR quotes include economic effects from Atlante fund and Italian Recovery Fund (IRF - former Atlante II), for which refer to specific comment in
table “2.5 Financial assets mandatory at fair value: breakdown by product” of the Notes to the consolidated accounts, Part B - Consolidated balance
sheet - Assets, Section 2 - Financial asset at fair value through profit or loss - Item 20.
499
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 8 - Net losses/recoveries on credit impairment - Item 130
As at 31 December 2024, Net losses on credit impairment include:
• Write-backs of €8 million arising from the update of the macroeconomic scenarios for IFRS9 purposes, which was carried out in the second and
fourth quarters as part of the ordinary process of adjusting provisions for credit losses to the most recent macroeconomic projections;
• Write-backs of €126 million arising from the new Transfer Logic approach implemented in the first half of the year;
• Write-backs of €20 million arising from the update of selling scenario to adjust disposal probabilities on a specific portfolio;
• Write-downs of €106 million arising from the inclusion of climate risk in the calculation of loan loss provisions.
For additional details on Loan loss provisions refer to the Section 2 - Risks of the prudential consolidated perimeter, Notes to the consolidated
accounts, Part E - Information on risks and related hedging policies, while for additional details on Implications of geopolitical tensions between
Russia and Ukraine, refer to the Section 5 - Other matters, Implications of geopolitical tensions between Russia and Ukraine, Notes to the
consolidated accounts, Part A - Accounting policies.
8.1 Net impairment losses for credit risk relating to financial assets at amortised cost: breakdown
(€ million)
YEAR 2024
YEAR
WRITE-DOWNS
WRITE-BACKS
TOTAL
2023
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED CREDIT-
IMPAIRED FINANCIAL
ASSETS
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
TRANSACTIONS/INCOME ITEMS
WRITE-OFF
OTHER WRITE-OFF
OTHER
TOTAL
A. Loans and advances to banks
(4)
(9)
-
(3)
-
-
6
3
3
-
(4)
(201)
- Loans
(3)
(8)
-
(3)
-
-
6
3
3
-
(2)
(202)
- Debt securities
(1)
(1)
-
-
-
-
-
-
-
-
(2)
1
B. Loans and advances to
customers
(589)
(1,631)
(168)
(2,844)
(1)
(4)
1,213
1,577
1,692
9
(746)
(460)
- Loans
(584)
(1,624)
(168)
(2,842)
(1)
(4)
1,207
1,519
1,692
9
(796)
(460)
- Debt securities
(5)
(7)
-
(2)
-
-
6
58
-
-
50
-
Total
(593)
(1,640)
(168)
(2,847)
(1)
(4)
1,219
1,580
1,695
9
(750)
(661)
8.2 Net change for credit risk relating to financial assets at fair value through other comprehensive income: breakdown
(€ million)
YEAR 2024
YEAR
WRITE-DOWNS
WRITE-BACKS
TOTAL
2023
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED CREDIT-
IMPAIRED FINANCIAL
ASSETS
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
TRANSACTIONS/INCOME ITEMS
WRITE-OFF
OTHER WRITE-OFF
OTHER
TOTAL
A. Debt securities
(5)
(1)
-
(14)
-
-
2
3
2
-
(13)
(2)
B. Loans
-
-
-
-
-
-
-
-
-
-
-
-
- Loans and advances to
customers
-
-
-
-
-
-
-
-
-
-
-
-
- Loans and advances to banks
-
-
-
-
-
-
-
-
-
-
-
-
Total
(5)
(1)
-
(14)
-
-
2
3
2
-
(13)
(2)
For additional information on this section refer to paragraph A. Credit quality, Notes to the consolidated accounts, Part E - Information on risks and
related hedging policies.
500
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 9 - Gains/Losses from contractual changes with no cancellations - Item 140
9.1 Gains (Losses) from contractual changes: breakdown
(€ million)
YEAR 2024
YEAR
GAINS
LOSSES
TOTAL
2023
TOTAL
A. Financial assets at amortised costs
A.1 Debt securities
-
-
-
-
A.2 Loans to banks
-
-
-
-
A.3 Loans to customers
23
(17)
6
(13)
Total (A)
23
(17)
6
(13)
B. Financial assets at fair value through other
comprehensive income
B.1 Debt securities
-
-
-
-
B.2 Loans to banks
-
-
-
-
B.3 Loans to customers
-
-
-
-
Total (B)
-
-
-
-
Total (A+B)
23
(17)
6
(13)
Section 10 - Insurance service result - Item 160
There are no amounts to be shown.
Section 11 - Insurance finance net revenues/costs - Item 170
There are no amounts to be shown.
501
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 12 - Administrative expenses - Item 190
12.1 Staff expenses: breakdown
(€ million)
TYPE OF EXPENSES/VALUES
YEAR 2024
YEAR 2023
1) Employees
(6,641)
(6,813)
a) Wages and salaries
(4,266)
(4,232)
b) Social charges
(970)
(975)
c) Severance pay
(19)
(20)
d) Social security costs
-
-
e) Allocation to employee severance pay provision
(12)
(21)
f) Provision for retirements and similar provisions
(154)
(158)
- Defined contribution
(2)
(2)
- Defined benefit
(152)
(156)
g) Payments to external pension funds
(222)
(217)
- Defined contribution
(221)
(216)
- Defined benefit
(1)
(1)
h) Costs arising from share-based payments
(73)
(76)
i) Other employee benefits
(925)
(1,114)
2) Other non-retired staff
(29)
(29)
3) Directors and Statutory Auditors
(8)
(7)
4) Early retirement costs
-
-
5) Recoveries of payments for seconded employees to other companies
15
17
6) Refund of expenses for secunded employees to the company
(21)
(45)
Total
(6,684)
(6,877)
12.2 Average number of employees by category
YEAR 2024
YEAR 2023
HEAD COUNT
HEAD COUNT
Employees
75,923
78,964
a) Senior managers
786
839
b) Managers
23,608
24,148
c) Remaining employees staff
51,530
53,977
Other non-retired staff
1,352
1,608
Total
77,275
80,572
Employees by category at year end
YEAR 2024
YEAR 2023
HEAD COUNT
HEAD COUNT
Employees
75,265
76,580
a) Senior managers
767
804
b) Managers
23,440
23,775
c) Remaining employees staff
51,058
52,001
Other non-retired staff
1,135
1,569
Total
76,400
78,149
502
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
12.3 Defined benefit company retirement funds: costs and revenues
(€ million)
YEAR 2024
YEAR 2023
Current service cost
(54)
(53)
Settlement gains (losses)
4
-
Past service cost
-
-
Interest cost on the DBO
(266)
(276)
Interest income on plan assets
164
173
Other costs/revenues
-
-
Administrative expenses paid through plan assets
-
-
Total recognised in profit or loss
(152)
(156)
12.4 Other employee benefits
(€ million)
YEAR 2024
YEAR 2023
- Seniority premiums
(2)
(4)
- Leaving incentives
(710)
(903)
- Other
(213)
(207)
Total
(925)
(1,114)
The net balance in the sub-item Leaving incentives for 2024 is mainly determined by the update of Strategic Plan that envisages a reduction of the
workforce over the plan horizon and the recognition of restructuring costs as at 31 December 2024 in force of specific communications to Workers
Council.
The main impacted countries are Italy, Austria and Germany. In detail:
• in Italy the exits for restructuring will be realised on a voluntary basis following the update of early-retirement plan, in this regard, the agreement
with the Trade Unions has been signed in October 2024;
• in Austria the exits will be realised through industrial efficiencies; the Board of Directors approval and the agreement with Working Council
occurred in fourth quarter 2024;
• in Germany the exits will be realised through industrial efficiencies; in this regard, the communication to Working Council occurred in December
2024.
It should be noted that these expenses are initially recognised as provisions for risks and charges and will be reclassified to “Other liabilities” when a
specific debt toward the employees will arise.
503
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
12.5 Other administrative expenses: breakdown
(€ million)
TYPE OF EXPENSES/SECTORS
YEAR 2024
YEAR 2023
1) Indirect taxes and duties
(774)
(666)
1a. Settled
(745)
(665)
1b. Unsettled
(29)
(1)
2) Contributions to Resolution Funds, Deposit Guarantee Schemes (DGS) and Life Insurance
Guarantee Fund
(282)
(728)
3) Guarantee fee for DTA conversion
(82)
(101)
4) Miscellaneous costs and expenses
(2,586)
(2,530)
a) Advertising marketing and communication
(148)
(124)
b) Expenses relating to credit risk
(108)
(75)
c) Indirect expenses relating to personnel
(79)
(83)
d) Information & Communication Technology expenses
(1,226)
(1,190)
Lease of ICT equipment and software
(73)
(79)
Software expenses: lease and maintenance
(412)
(354)
ICT communication systems
(58)
(57)
Services ICT in outsourcing
(561)
(580)
Financial information providers
(122)
(120)
e) Consulting and professionals services
(149)
(120)
Consulting
(99)
(83)
Legal expenses
(50)
(37)
f) Real estate expenses
(373)
(446)
Premises rentals
(34)
(36)
Utilities
(152)
(213)
Other real estate expenses
(187)
(197)
g) Operating costs
(503)
(492)
Surveillance and security services
(48)
(40)
Money counting services and transport
(59)
(50)
Printing and stationery
(24)
(27)
Postage and transport of documents
(61)
(57)
Administrative and logistic services
(143)
(157)
Insurance
(56)
(58)
Association dues and fees and contributions to the administrative expenses deposit guarantee funds
(74)
(72)
Other administrative expenses - other
(38)
(31)
Total (1+2+3+4)
(3,724)
(4,025)
With reference to the item “Indirect taxes and duties”, it should be mentioned that it includes the effects of taxation that falls in the scope of IFRIC21
as it is not levied on net profits.
504
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Contributions to Resolution and Guarantee funds
Item “Other administrative expenses” includes the Group contributions to resolution funds (Single Resolution Fund - SRF) and guarantee funds
(Deposit Guarantee Schemes - DGS), harmonised and non-harmonised, due pursuant to the Directives 49 and 59 of 2014.
In more details:
• With the introduction of the European Directive 2014/59/EU, the Regulation on the Single Resolution Mechanism (“BRRD Directive” Regulation
(EU) 806/2014 of the European Parliament and of the Council dated 15 July 2014) established a framework for the recovery and resolution of
crises in credit institutions, by setting up a single resolution committee and a single resolution fund for banks, SRF. The Directive provides for the
launch of a compulsory contribution mechanism that entails the collection of the target level of resources by 31 December 2023, equal at least to
1% of the amount of the covered deposits of all the authorised institutions in the States of the European Union. The accumulation period may be
extended for further four years if the funding mechanisms have made cumulative disbursements for a percentage higher than 0.5% of the covered
deposits. If the available financial resources fall below the target level after the accumulation period, the collection of contributions shall resume
until that level has been recovered. Additionally, after having reached the target level for the first time and, in the event that the available financial
resources fall to less than two thirds of the target level, these contributions are set at that level which allows to reach the target level within a period
of six years. The contribution mechanism provides for ordinary annual contributions, with the aim of distributing the costs evenly over time for the
contributing banks, and extraordinary additional contributions, of up to three times the expected annual contributions, when the available financial
resources are not sufficient to cover losses and costs of interventions. Ordinary contributions might also be provided by participant institutions, for
an amount not exceeding 30% of the total resource target, in the form of irrevocable payment commitments fully backed by collateral of low-risk
assets unencumbered by any third-party rights, at the free disposal and earmarked for the exclusive use by the resolution authorities. A transitional
phase of contributions to the national compartments of the SRF and a progressive mutualisation of these are expected;
• The Directive 2014/49/EU of 16 April 2014, in relation to the DGS, aims to enhance the protection of depositors through the harmonisation of the
related national legislation. The Directive provides for the launch of a mandatory national contribution mechanism that will allow a target level of at
least 0.8% of the amount of its members' covered deposits to be collected by 2024. The contribution resumes when the financing capacity is below
the target level, at least until the target level is reached. If the available financial resources have been reduced to below two thirds of the target
level after it has been reached for the first time, the regular contribution shall be set at that level which allows to reach the target level within six
years. The national contribution mechanism provides for ordinary annual contribution instalments, with the aim of distributing the costs evenly over
time for the contributing banks, and also extraordinary contributions, if the available financial resources are insufficient to repay depositors; the
extraordinary contributions cannot exceed 0.5% of covered deposits per calendar year, but in exceptional cases and with the consent of the
competent authority, the DGS may demand even higher contributions. Contributions might also be provided by participant institutions, for an
amount not exceeding 30% of the total resource target, in the form of payment commitments fully backed by collateral of low-risk assets
unencumbered by any third-party rights, at the free disposal of the DGS.
Contributions to these schemes are accounted for in accordance with IFRIC21 “Levies”. Therefore, contributions are recognised in Income
statement when the obligating event identified by the legislation (i.e., having covered deposits at a certain date), that triggers the payment of the
obligation, occurs. Being economically compelled to continue to have covered deposits or assumption of going concern does not represent a present
obligation under IFRIC21 to pay such contributions for future periods. Future contributions will be recognised when they accrue upon occurrence of
the obligating event. In this regard, the Group approach envisages the recognition as expense in Income statement of the full amount of
contributions due for the year, disregarding whether they are settled in cash or through irrevocable payment commitments. As a result, from a
regulatory perspective, the whole amount of the contributions for the year reduces the CET1 capital74.
With reference to 2024, contributions for €277 million were recognized in P&L (€728 million in 2023), whose breakdown is here reported:
• regarding Directive 59 (contributions to Resolution funds), the Group contributions recognised through the Income statement totaled -€23 million
(no contributions recognised by UniCredit S.p.A.). These contributions are entirely referred to ordinary contributions paid by certain Legal Entities
to local Resolution funds; no contributions were recognised for SRF being the relevant target level reached. The Group did not make recourse to
Irrevocable Payment Commitments;
• regarding Directive 49 (DGS contribution), the Group contributions recognised through the Income statement totaled -€254 million of which -€187
million ordinary contributions (-€104 million referred to UniCredit S.p.A.) and -€67 million additional and supplementary contributions (entirely
referred to UniCredit S.p.A.). Such contribution also includes the amounts recognised by UniCredit Bank GmbH and referred to the contribution to
the statutory and voluntary Compensation Schemes of German banks75. The Group did not make recourse to Irrevocable payment commitments.
74 In previous periods, from 2015 to 2020, the Group also made recourse to irrevocable payment commitments; the related amounts (overall equal to €165 million for SRF and DGS) were recognized as expenses in P&L.
75 Entschädigungseinrichtung Deutscher Banken and Einlagensicherungsfonds des Bundesverbandes deutscher Banken e.V.
505
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Here follows a table with the recap of the above-mentioned contributions.
Contributions to Resolution and Guarantee Funds (included the ones paid through irrevocable payment commitments)
(€ million)
GROUP
o/w UniCredit S.p.A.
2024
277
171
Directive 59 (SRF contributions), o/w:
Ordinary contributions
23
-
Extraordinary contributions
-
-
Directive 49 (DGS contributions), o/w:
Ordinary contributions
187
104
Extraordinary contributions
67
67
2023
728
359
Directive 59 (SRF contributions), o/w:
Ordinary contributions
456
185
Extraordinary contributions
-
-
Directive 49 (DGS contributions), o/w:
Ordinary contributions
204
106
Extraordinary contributions
68
68
Note:
The amount of "Extraordinary contributions" of the Directive .49 (DGS contributions) includes additional contribution that the Scheme may request until 2024 to replenish to overall funds following its interventions.
Guarantee fees for DTA conversion
In order to preserve for the future the regime of conversion of DTAs into tax credits, and in order to overcome the issues raised by the European
Commission in connection to the application of State Aid rules, Art.11 of DL 59 dated 3 May 2016 (so-called "Banks Decree", converted into Law 30
June 2016 No.119), introduced the possibility, starting from 2016 since 2030, to elect for the payment of an annual fee equal to 1.5% levied on an
aggregate amount deriving from the difference between:
• the increase in convertible DTAs recognised at the end of the fiscal year and the convertible DTA existing as at 31 December 2007, for IRES tax,
and as at 31 December 2012 for IRAP tax, taking into account the amounts already converted into tax credits;
• taxes:
- IRES paid by Tax Group starting from 1 January 2008;
- IRAP paid starting from 1 January 2013 by legal entities included in Tax Group with convertible DTAs;
- substitute taxes that generated convertible DTAs.
The fee due for the financial year 2024 has been paid on 26 June 2024 for an overall amount of €82.1 million relating to the whole Italian Tax Group,
of which €78.6 million for UniCredit S.p.A., €3.4 million for UniCredit Leasing S.p.A., €0,1 million for UniCredit Factoring S.p.A. and €0,01 million for
UniCredit Bank GmbH - Milan Branch.
Fees paid to the auditing firm
Pursuant to article 2427, first paragraph of the Italian Civil Code, the fees paid to the auditing firm KPMG S.p.A. (and firms in its network) by
UniCredit S.p.A. and the Italian entities of the UniCredit group relating to financial year 2024 were as follows:
• legal audit of annual accounts (including the audit of the first half financial report): €4.5 million;
• other checks: €3.4 million;
• other non-audit services: €0.1 million.
The above amounts are net of VAT and expenses.
506
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 13 - Net provisions for risks and charges - Item 200
13.1 Net provisions for credit risk from loans commitments and financial guarantees given: breakdown
(€ million)
YEAR 2024
PROVISIONS
SURPLUS
REALLOCATIONS
TOTAL
Loan committments
(263)
390
127
Financial guarantees given
(254)
367
113
13.2 Net provisions for other commitments and guarantees given: breakdown
(€ million)
YEAR 2024
PROVISIONS
SURPLUS
REALLOCATIONS
TOTAL
Other committments
(4)
4
-
of which: commitment related to contribution for Resolution funds and Guarantee
schemes
-
-
-
Other guarantees given
(38)
65
27
13.3 Net provisions for risks and charges: breakdown
(€ million)
YEAR 2024
YEAR
ASSETS/INCOME ITEMS
PROVISIONS
SURPLUS
REALLOCATIONS
TOTAL
2023
TOTAL
1. Other provisions
1.1 Legal disputes
(734)
119
(615)
(70)
1.2 Staff costs
(2)
1
(1)
(4)
1.3 Other
(102)
173
71
(17)
Total
(838)
293
(545)
(91)
Net provisions for risks and charges are referred to revocatory action, claims for compensation, legal and other disputes, and are updated on the
basis of the evolution of cases in progress and to the assessment of their foreseen outcomes.
The item “1.1 Legal disputes” is mainly contributed by provisions made by the parent company UniCredit S.p.A. and its subsidiary Zagrebacka
Banka (for further information refer to Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 -
Risks of the prudential consolidated perimeter - 2.5 Operational risks, Qualitative information - B. Legal risks).
The item “1.3 Other” is mainly contributed by provisions made by the parent company UniCredit S.p.A. and its subsidiary UniCredit Bank GmbH for
various types of risks (refer to paragraph B. Legal risks, Notes to the consolidated accounts, Part E - Information on risks and related hedging
policies, Section 2 - Risks of the prudential consolidated perimeter, 2.5 Operational risks).
507
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 14 - Net value adjustments/write-backs on property, plant and equipment - Item
210
14.1 Net value adjustments/write-backs on property, plant and equipment: breakdown
(€ million)
YEAR 2024
ASSETS/INCOME ITEMS
DEPRECIATION
(A)
IMPAIRMENT LOSSES
(B)
WRITE-BACKS
(C)
NET PROFIT
(A+B-C)
A. Property, plant and equipment
A.1 Used in the business
(630)
(42)
17
(655)
- Owned
(356)
(12)
-
(368)
- Right of use of Leased Assets
(274)
(30)
17
(287)
A.2 Held for investment
-
-
-
-
- Owned
-
-
-
-
- Right of use of Leased Assets
-
-
-
-
A.3 Inventories
-
(37)
2
(35)
Total A
(630)
(79)
19
(690)
B. Non-current assets and groups of assets held for sale
X
(5)
-
(5)
- Used in the business
X
(5)
-
(5)
- Held for investments
X
-
-
-
- Inventories
X
-
-
-
Total (A+B)
(630)
(84)
19
(695)
Section 15 - Net value adjustments/write-backs on intangible assets - Item 220
In 2024 net value adjustments/write-backs on intangible assets were -€589 million.
The amortisation and the impairment losses are mainly referred to intangible assets held by UniCredit S.p.A.
For further details refer to Section 10 - Intangible assets - Item 100, Notes to the consolidated account, Part B - Consolidated balance sheet -
Assets.
15.1 Net value adjustments/write-backs on intangible assets: breakdown
(€ million)
YEAR 2024
ASSETS/INCOME ITEMS
AMORTISATION
(A)
IMPAIRMENT LOSSES
(B)
WRITE-BACKS
(C)
NET PROFIT
(A+B-C)
A. Intangible assets
of which: software
(537)
(36)
-
(573)
A.1 Owned
(543)
(46)
-
(589)
- Generated internally by the company
(429)
(31)
-
(460)
- Other
(114)
(15)
-
(129)
A.2 Right of use of Leased Assets
-
-
-
-
Total
(543)
(46)
-
(589)
508
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 16 - Other operating expenses/income - Item 230
Other net operating income: breakdown
(€ million)
INCOME ITEMS/VALUE
YEAR 2024
YEAR 2023
Total of other operating expenses
(1,412)
(1,163)
Total of other operating income
2,265
2,135
Other operating expenses/income
853
972
16.1 Other operating expenses: breakdown
(€ million)
TYPE OF EXPENSE/VALUES
YEAR 2024
YEAR 2023
Costs for operating leases
-
(2)
Non-deductible tax and other fiscal charges
(4)
(2)
Write-downs on leasehold improvements
(49)
(52)
Costs relating to the specific service of financial leasing
(26)
(31)
Other
(1,333)
(1,076)
Total other operating expenses
(1,412)
(1,163)
The item “Other” includes:
• trading of gold, precious metals, commodities and diamonds for -€913 million;
• various settlements and indemnities for -€176 million;
• additional costs for the leasing business for -€19 million;
• non banking business costs for -€18 million;
• additional costs relating to customer accounts for -€13 million.
16.2 Other operating income: breakdown
(€ million)
TYPE OF REVENUE/VALUES
YEAR 2024
YEAR 2023
A) Recovery of costs
755
541
B) Other revenues
1,510
1,594
Revenues from administrative services
34
32
Revenues from operating leases
207
198
Recovery of miscellaneous costs paid in previous years
22
12
Revenues on financial leases activities
43
49
Other
1,204
1,303
Total other operating income (A+B)
2,265
2,135
The sub-item “Others” includes:
• trading of gold, precious metals and commodities for €917 million;
• income received from non-banking business for €51 million;
• payments of indemnities and compensation of €41 million;
• additional income received from leasing business for €20 million.
509
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 17 - Gains (Losses) of equity investments - Item 250
In 2024 profit (loss) of equity investments amounts to +€483 million (+€460 million in 2023), exclusively attributable to companies subject to
significant influence.
This result consists of “A. Income” of +€496 million and “B. Expenses” of -€13 million. In more detail:
• sub-item “A. Income” mainly includes:
- +€415 million of revaluations related to gain on companies valued at Equity method, mainly: Bank Fuer Tirol Und Vorarlberg Aktiengesellschaft
(+€100 million), Oberbank AG (+€80 million), UniCredit Allianz Vita S.p.A. (+€78 million), Bks Bank AG (+€51 million), Cnp UniCredit Vita S.p.A.
(+€33 million), Oesterreichische Kontrollbank Aktiengesellschaft (+€31 million), UniCredit Allianz Assicurazioni S.p.A. (+€19 million);
- +€79 million of write-backs related to Bank Fuer Tirol Und Vorarlberg Aktiengesellschaft and arising from the adjustment of the carrying value to
the recoverable amount, given, in this case, by the fair value resulting from market quotations.
• sub-item “B. Expenses” mainly includes:
- -€11 million of impairment losses, mainly attributable to Cnp UniCredit Vita S.p.A. (-€9 million).
During 2024 no transactions were carried out that would have entailed recognition of significant gains and losses attributable to measurement at fair
value of any equity interests retained at the date of losing significant influence.
17.1 Gains (Losses) of equity investments: breakdown
(€ million)
INCOME ITEMS/SECTORS
YEAR 2024
YEAR 2023
1) Jointly owned companies - Equity
A. Income
-
-
1. Revaluations
-
-
2. Gains on disposal
-
-
3. Write-backs
-
-
4. Other gains
-
-
B. Expenses
-
-
1. Write-downs
-
-
2. Impairment losses
-
-
3. Losses on disposal
-
-
4. Other expenses
-
-
Net profit
-
-
2) Companies under significant influence
A. Income
496
564
1. Revaluations
415
423
2. Gains on disposal
2
25
3. Write-backs
79
116
4. Other gains
-
-
B. Expenses
(13)
(104)
1. Write-downs
(2)
(3)
2. Impairment losses
(11)
(64)
3. Losses on disposal
-
(37)
4. Other expenses
-
-
Net profit
483
460
Total
483
460
In 2023 profit (loss) of equity investments amounted to +€460 million, exclusively attributable to companies subject to significant influence.
510
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
This result consisted of “A. Income” of +€564 million and “B. Expenses” of -€104 million. In more detail:
• sub-item “A. Income” included:
- +€423 million of revaluations related to gain on companies valued at Equity method, mainly: Oberbank AG (+€134 million), Bank Fuer Tirol Und
Vorarlberg Aktiengesellschaft (+€74 million), UniCredit Allianz Vita S.p.A. (+€62 million), Bks Bank AG (+€43 million), Oesterreichische
Kontrollbank Aktiengesellschaft (+€35 million), Cnp UniCredit Vita S.p.A. (+€26 million);
- +€25 million of gain on disposal, mainly attributable to two concurrent transactions: (i) acquisition from UnipolSai Assicurazioni S.p.A. of 51% of
the issued share capital of Incontra Assicurazioni S.p.A. and (ii) disposal to Allianz S.p.A. of 50% of the issued share capital of Incontra
Assicurazioni S.p.A. As a result, UniCredit S.p.A. participation in Incontra Assicurazioni S.p.A. had grown from 49% to 50% of the issued share
capital;
- +€116 million of write-backs mainly related to Bks Bank AG (+€77 million) and Bank Fuer Tirol Und Vorarlberg Aktiengesellschaft (+€20 million).
• sub-item “B. Expenses” mainly included:
- -€64 million of impairment losses, mainly attributable to Cnp UniCredit Vita S.p.A. (-€61 million);
- -€37 million of loss on disposal due to the effects of the sale by the associate company Barn BV of its subsidiary RN Bank.
During 2023 no transactions were carried out that would have entailed recognition of significant gains and losses attributable to measurement at fair
value of any equity interests retained at the date of losing significant influence.
Section 18 - Net gains (losses) on property, plant and equipment and intangible assets
measured at fair value - Item 260
18.1 Net gains (losses) on property, plant and equipment and intangible assets measured at fair value: breakdown
(€ million)
YEAR 2024
EXCHANGE DIFFERENCES
NET PROFIT
(A-B+C-D)
ASSETS/INCOME ITEMS
REVALUATIONS
(A)
WRITEDOWNS
(B)
POSITIVE
(C)
NEGATIVE
(D)
A. Property, plant and equipment
72
(95)
1
-
(22)
A.1 Used in the business
27
(29)
-
-
(2)
- Owned
27
(29)
-
-
(2)
- Right of use of Leased Assets
-
-
-
-
-
A.2 Held for investment
45
(66)
1
-
(20)
- Owned
45
(58)
1
-
(12)
- Right of use of Leased Assets
-
(8)
-
-
(8)
A.3 Inventories
-
-
-
-
-
B. Intangible assets
-
-
-
-
-
B.1 Owned
-
-
-
-
-
- Generated internally by the company
-
-
-
-
-
- Other
-
-
-
-
-
B.2 Right of use of Leased Assets
-
-
-
-
-
Total (A+B)
72
(95)
1
-
(22)
For additional information on the evaluation of Group real estate portfolio refer to Section 9 - Property, plant and equipment - Item 90, Notes to the
consolidated accounts, Part B - Consolidated balance sheet - Assets.
Section 19 - Goodwill impairment - Item 270
19.1 Impairment of goodwill: breakdown
No data to be disclosed.
511
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 20 - Gains (Losses) on disposals on investments - Item 280
20.1 Gains and losses on disposal of investments: breakdown
(€ million)
INCOME ITEMS/SECTORS
YEAR 2024
YEAR 2023
A. Property
- Gains on disposal
11
16
- Losses on disposal
(9)
(5)
B. Other assets
- Gains on disposal
5
10
- Losses on disposal
(4)
(10)
Net profit
3
11
As at 31 December 2024 gains (losses) on disposals of investments are +€3 million (+€11 million in 2023) and refer to:
A. Property
Net gains of +€2 million (+€11 million in 2023) include the results of property sales carried out by some Group companies.
B. Other assets
Net gains of +€1 million (immaterial in 2023) mainly include the result of sales of assets underlying leasing contracts with customers being
terminated (+€3 million) and losses from deconsolidation of some equity investments (-€2 million).
During 2024 (as in 2023) no transactions were carried out that would have entailed recognition of significant gains and losses attributable to
measurement at fair value of any equity interests retained at the date of losing control.
512
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 21 - Tax expenses (income) for the period from continuing operations - Item 300
Each country has an autonomous tax system where the determination of the tax base, the level of tax rates, nature, type, and timing of tax
obligations might differ, even significantly. Such differences also exist amongst EU Member States.
Italy, Germany, Austria, Romania, Hungary, United Kingdom and United States, the main countries where the UniCredit group operates, all have
domestic income tax consolidation regimes.
Tax consolidation rules differ among countries, sometimes markedly. The main and common benefit of a domestic tax consolidation regime is the
faculty of offsetting profits and losses of companies and entities belonging to the same tax consolidation perimeter. The requirements to be included
in a domestic tax consolidation regime can be very different from those set for the purpose of accounting consolidation for a banking group
according to the international IAS/IFRS or local accounting standards.
The nominal corporate income tax rates in the key countries for the Group are: 31.8% in Germany (also taking into account the “solidarity surcharge”
and the municipal trade tax), 23% in Austria, 10% in Bulgaria, 18% in Croatia, 22% in Slovenia, 15% in Serbia and 10% in Bosnia and Herzegovina,
16% in Romania, 21% in the Czech Republic, 21% in Slovak Republic, 20% in Russia, 9% in Hungary. Corporate income tax rates in non-key
countries are: 25% in the United Kingdom (increased by the 3% surcharge for to Banking institutions, if applicable), 12.5% in Ireland, 24.94% in
Luxembourg (also taking into account the “surcharge” and the municipal business tax) and 21% of federal tax in the United States.
In Italy the standard corporate income tax rate (IRES) is equal to 24%, to be increased by a 3.5% surcharge applicable to banking and other
financial entities. Therefore, for UniCredit S.p.A. and for the other banks and financial entities belonging to the Group, the applicable tax rate is equal
to 27.5%.
The Italian Regional Tax on Productive Activities (IRAP) is levied at a rate of 4.65% to be increased by a surcharge applied separately by each
Region reaching a maximum nominal rate of 5.57%. To the resulting amount, an additional surcharge of 0.15% decided autonomously by each
Region with an healthcare deficit status, can be applied. For UniCredit S.p.A. the nominal IRAP tax rate is 5.48%. IRAP has a slightly different
taxable base than IRES and does not allow the offsetting of its taxable base with tax losses carried forward.
For Tax expenses (income) for the period of the Parent Company reference is made to paragraph “Section 19 - Tax expenses (income) for the
period from continuing operations - Item 270” of the Company financial statements of UniCredit S.p.A., Notes to the accounts Part C - Income
statement which is herewith quoted entirely.
21.1 Tax expense (income) relating to profit or loss from continuing operations: breakdown
(€ million)
INCOME ITEMS/SECTORS
YEAR 2024
YEAR 2023
1.
Current taxes (-)
(2,101)
(1,578)
2.
Change of current taxes of previous years (+/-)
332
355
3.
Reduction of current taxes for the year (+)
30
41
3.bis Reduction of current taxes for the year due tax credit under Law 214/2011 (+)
27
159
4.
Change of deferred tax assets (+/-)
(1,339)
(872)
5.
Change of deferred tax liabilities (+/-)
(35)
(22)
6.
Tax expenses for the year (-) (-1+/-2+3+3bis+/-4+/-5)
(3,086)
(1,917)
Item tax expense (income) relating to profit or loss from continuing operations includes:
• the tax effects related to AT1 coupon originated by subsidiary UCB GmbH;
• the tax effects arising from the decision by the government of certain jurisdictions to impose taxes on extra-profits which fall in the scope of IAS12;
• the effects related to the Deferred Tax Assets sustainability test, for which refer to the paragraph “Section 11 - Tax assets and tax liabilities - Item
110 (Assets) and Item 60 (Liabilities)”, Notes to the consolidated accounts Part B - Consolidated balance sheet - Assets.
513
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
21.2 Reconciliation of theoretical tax charge to actual tax charge
(€ million)
YEAR 2024
YEAR 2023
Profit (Loss) before tax from continuing operations (income statement item)
12,860
11,451
Theoretical tax rate
27.5%
27.5%
Theoretical computed taxes on income
(3,537)
(3,149)
1. Different tax rates
395
343
2. Non-taxable income - permanent differences
64
95
3. Non-deductible expenses - permanent differences
(52)
(33)
4. Different fiscal laws/IRAP
(515)
(249)
a) IRAP (italian companies)
(396)
(229)
b) Other taxes (foreign companies)
(119)
(20)
5. Previous years and changes in tax rates
368
556
a) Effects on current taxes
117
367
- Tax loss carryforward/unused Tax credit
30
41
- Other effects of previous periods
87
326
b) Effects on deferred taxes
251
189
- Changes in tax rates
24
(7)
- New taxes incurred (+) previous taxes revocation (-)
-
-
- True-ups/adjustments of the calculated deferred taxes
227
196
6. Valuation adjustments and non-recognition of deferred taxes
382
589
a) Deferred tax assets write-down
(17)
(69)
b) Deferred tax assets recognition
424
714
c) Deferred tax assets non-recognition
(18)
(51)
d) Deferred tax assets non-recognition according to IAS12.39 and 12.44
-
(2)
e) Other
(7)
(3)
7. Amortisation of goodwill
-
-
8. Non-taxable foreign income
(82)
(68)
9. Other differences
(109)
(1)
Recognised taxes on income
(3,086)
(1,917)
514
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 22 - Profit (Loss) after tax from discontinued operations - Item 320
22.1 Profit (Loss) after tax from discontinued operations: breakdown
There are no amounts to be shown.
22.2 Breakdown of tax on discontinued operations
There are no amounts to be shown.
Section 23 - Minority profit (loss) of the year - Item 340
The profit for 2024 attributable to minority interests is equal to +€55 million.
The main contributions are attributable to the minority shareholders of UniCredit Bank S.A. and Zagrebacka Banka D.D.
The change in UniCredit Bank S.A. is mainly due to the increase of minority stake for 9.90% as part of the price for the acquisition of Alpha Bank
Romania S.A by UniCredit S.p.A.
23.1 Breakdown of item 340 "Minority gains (losses)"
(€ million)
COMPANY NAME
2024
2023
Consolidated equity investments with significant minority interests
50
20
UniCredit Bank S.A.
33
4
Zagrebacka Banka D.D.
17
16
Other equity investments
5
7
Total
55
27
515
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 24 - Other information
Disclosure regarding the transparency of public funding required by article 1, paragraph 125 of the Law 124/2017
Pursuant to Art.1, paragraph 125 of Law 124/2017, during 2024 the UniCredit group collected the following public contributions granted by Italian
entities:
Contributions for the recruitment/stabilisation of personnel deriving from the application of the CCNL of the Credit in force from time to
time
(€ million)
LENDING ENTITY
LEGAL ENTITY
BENEFICIARY
PUBLIC CONTRIBUTION
AMOUNT
Fondo Nazionale per il sostegno dell'occupazione nel settore del credito
UNICREDIT S.P.A.
3.97
Fondo Nazionale per il sostegno dell'occupazione nel settore del credito
UNICREDIT FACTORING
S.P.A.
0.01
Fondo Nazionale per il sostegno dell'occupazione nel settore del credito
UNICREDIT LEASING
S.P.A.
0.00
Fondo Nazionale per il sostegno dell'occupazione nel settore del credito
UC LEASED ASSET
MGMT S.P.A.
0.00
Fondo Nazionale per il sostegno dell'occupazione nel settore del credito
CORDUSIO SOCIETA'
FIDUCIARIA PER AZIONI
0.00
Fondo Nazionale per il sostegno dell'occupazione nel settore del credito
UNICREDIT BANK GMBH
(Milan Branch)
0.03
Total
4.01
Contributions for new recruits/stabilisations, introduced by the stability law 2018 (Law 205/2017)
(€ million)
LENDING ENTITY
LEGAL ENTITY
BENEFICIARY
PUBLIC CONTRIBUTION
AMOUNT
Istituto Nazionale della Previdenza Sociale
UNICREDIT S.P.A.
0.68
Istituto Nazionale della Previdenza Sociale
UNICREDIT FACTORING
S.P.A.
0.01
Istituto Nazionale della Previdenza Sociale
UNICREDIT LEASING
S.P.A.
0.00
Istituto Nazionale della Previdenza Sociale
UC LEASED ASSET
MGMT S.P.A.
0.00
Istituto Nazionale della Previdenza Sociale
CORDUSIO SOCIETA'
FIDUCIARIA PER AZIONI
0.00
Istituto Nazionale della Previdenza Sociale
UNICREDIT BANK GMBH
(Milan Branch)
0.07
Total
0.76
516
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Article 8 of Legislative Decree 30 September 2005, 203 converted, with modifications, from the Law 2 December 2005, 248.
Compensatory measures for companies that assign the TFR to supplementary pension schemes and/or to the Fund for the payment of
the TFR
(€ million)
LENDING ENTITY
LEGAL ENTITY
BENEFICIARY
PUBLIC CONTRIBUTION
AMOUNT
Istituto Nazionale della Previdenza Sociale
UNICREDIT S.P.A.
9.38
Istituto Nazionale della Previdenza Sociale
UNICREDIT FACTORING
S.P.A.
0.06
Istituto Nazionale della Previdenza Sociale
UNICREDIT LEASING
S.P.A.
0.08
Istituto Nazionale della Previdenza Sociale
UC LEASED ASSET
MGMT S.P.A.
0.01
Istituto Nazionale della Previdenza Sociale
CORDUSIO SOCIETA'
FIDUCIARIA PER AZIONI
0.01
Istituto Nazionale della Previdenza Sociale
UNICREDIT BANK GMBH
(Milan Branch)
0.23
Total
9.77
Result awards decontribution for year 2022 – Legislative Decree 50 of 24 April 2017 - article 55; converted into Law 96 of 21 June 2017
(€ million)
LENDING ENTITY
LEGAL ENTITY
BENEFICIARY
PUBLIC CONTRIBUTION
AMOUNT
Istituto Nazionale della Previdenza Sociale
UNICREDIT S.P.A.
3.37
Istituto Nazionale della Previdenza Sociale
UNICREDIT FACTORING
S.P.A.
0.03
Istituto Nazionale della Previdenza Sociale
UNICREDIT LEASING
S.P.A.
0.03
Istituto Nazionale della Previdenza Sociale
UC LEASED ASSET
MGMT S.P.A.
0.00
Istituto Nazionale della Previdenza Sociale
CORDUSIO SOCIETA'
FIDUCIARIA PER AZIONI
0.01
Istituto Nazionale della Previdenza Sociale
UNICREDIT BANK GMBH
(Milan Branch)
0.02
Total
3.46
For further information, refer to the National State Aid Register "Transparency”.
517
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part C - Consolidated income statement
Section 25 - Earnings per share
25.1 and 25.2 Average number of diluted shares and other information
YEAR 2024
YEAR 2023
Net profit (Loss) attributable to the Group (€ million)
9,472
9,332
Average number of outstanding shares
1,621,646,008
1,827,892,681
Average number of potential dilutive shares
16,835,472
21,879,901
Average number of diluted shares
1,638,481,480
1,849,772,582
Earnings per share (€)
5.841
5.105
Diluted earnings per share (€)
5.781
5.045
€247 million has been deducted from the 2024 net profit attributable to the Group of €9,719 million due to the disbursements (charged to net equity
and referring to the results of the year 2023) in connection with the usufruct contract signed with Mediobanca S.p.A. on UniCredit shares supporting
the issuance of convertible securities denominated “Cashes” (€175 million was deducted from 2023 net profit attributable to the Group).
The average number of outstanding shares is net of the average number of treasury shares, considering the shares buyback made during the 2024
and totally cancelled, and of further average No.9,675,640 shares held under a contract of usufruct.
518
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part D - Consolidated other comprehensive income
Part D - Consolidated comprehensive income
Consolidated analytical statement of total comprehensive income
(€ million)
AS AT
ITEMS
31.12.2024
31.12.2023
10. Profit (Loss) for the year
9,774
9,534
Other comprehensive income not reclassified to profit or loss
66
(321)
20. Equity instruments designated at fair value through other comprehensive income:
311
46
a) fair value changes
245
14
b) tranfers to other shareholders' equity items
66
32
30. Financial liabilities designated at fair value through profit or loss (own creditworthiness changes):
25
(47)
a) fair value changes
4
(53)
b) tranfers to other shareholders' equity items
21
6
40. Hedge accounting of equity instruments measured at fair value through other comprehensive income:
-
-
a) fair value change (hedged instrument)
-
-
b) fair value change (hedging instrument)
-
-
50. Property, plant and equipment
(58)
(233)
60. Intangible assets
-
-
70. Defined benefit plans
(223)
(282)
80. Non-current assets and disposal groups classified as held for sale
(3)
(2)
90. Part of valuation reserves from investments valued at equity method
-
16
100. Insurance finance revenues or costs arising from insurance contracts issued
-
-
110. Tax expenses (income) relating to items not reclassified to profit or loss
14
181
Other comprehensive income reclassified to profit or loss
(581)
(129)
120. Foreign investments hedging:
4
(45)
a) fair value changes
4
(45)
b) reclassification to profit or loss
-
-
c) other changes
-
-
130. Foreign exchange differences:
(592)
(712)
a) value changes
(592)
(713)
b) reclassification to profit or loss
-
1
c) other changes
-
-
140. Cash flow hedging:
126
303
a) fair value changes
68
271
b) reclassification to profit or loss
38
6
c) other changes
20
26
of which: net position
-
-
150. Hedging instruments (non-designated items):
-
-
a) value changes
-
-
b) reclassification to profit or loss
-
-
c) other changes
-
-
160. Financial assets (different from equity instruments) at fair value through other comprehensive income:
(236)
315
a) fair value changes
(216)
387
b) reclassification to profit or loss:
(17)
(111)
- impairment losses
12
(13)
- gains/losses on disposals
(29)
(98)
c) other changes
(3)
39
170. Non-current assets and disposal groups classified as held for sale:
-
34
a) fair value changes
-
(3)
b) reclassification to profit or loss
-
37
c) other changes
-
-
180. Part of valuation reserves from investments valued at equity method:
65
35
a) fair value changes
2
30
b) reclassification to profit or loss:
61
26
- impairment losses
12
(1)
- gains/losses on disposals
49
27
c) other changes
2
(21)
519
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part D - Consolidated other comprehensive income
continued: Consolidated analytical statement of total comprehensive income
(€ million)
AS AT
ITEMS
31.12.2024
31.12.2023
190. Insurance finance revenues or costs arising from insurance contracts issued
-
-
a) fair value changes
-
-
b) reclassification to profit or loss
-
-
c) other changes
-
-
200. Insurance finance revenues or costs arising from reinsurance contracts held
-
-
a) fair value changes
-
-
b) reclassification to profit or loss
-
-
c) other changes
-
-
210. Tax expenses (income) relating to items reclassified to profit or loss
52
(59)
220. Total other comprehensive income
(515)
(450)
230. Other comprehensive income (Item 10+220)
9,259
9,084
240. Minority consolidated other comprehensive income
(57)
(28)
250. Parent Company's consolidated other comprehensive income
9,202
9,056
520
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Part E - Information on risks and related hedging policies
Introduction
UniCredit group monitors and manages its risks through tight methodologies and procedures proving to be effective through all phases of the
economic cycle.
The steering, coordination and control role of the Group’s risks is performed by the Parent Company’s Risk Management function.
The structure’s “Risk Management” mission, under the responsibility of the Group Risk Officer (Group CRO) is to:
• optimise the quality of the Group's assets, minimising the risk cost in accordance with the risk/profitability goals set for the business areas;
• ensure the strategic steering and definition of the Group's risk management policies;
• define and provide the Heads of the Business Functions and Group Companies with the criteria for assessing, managing, measuring, monitoring
and communicating risk. It also ensures that the procedures and systems designed to control risk at Group and individual Group Company level
are coherent;
• help to build a risk culture across the Group by training and developing, together with the competent Group People & Culture;
• help to find ways to rectify asset imbalances, where needed in conjunction with the Group Financial Officer;
• help the Business Functions to achieve their goals, including by assisting in the development of products and businesses (e.g. innovation of credit
products, competitive opportunities linked to Basel accords, etc.);
• support the Chief Executive Officer in defining the Group Risk Appetite proposal, to be shared in the managerial committee Group Executive
Committee and submitted for approval to the Board of Directors, as preliminary and preparatory step for the yearly and multi-yearly budget plan
pertaining to the Group Financial Officer. The Group Risk Appetite shall include a series of parameters defined by the Group Risk Officer, with the
contribution of the Group Financial Officer and other relevant Group functions; each parameter can be complemented by limits and thresholds
proposed by the Group Risk Officer and targets proposed by the Group Financial Officer and/or by the relevant Group functions, each respecting
their mission and internal regulations. The Group Risk Officer is responsible for ensuring the overall coherence of the proposed parameters and
values. Furthermore, the Group Risk Officer is responsible for ensuring the Chief Executive Officer and the Board of Directors the coherence of the
Group Risk Appetite with the Group strategic guidelines, as well as the coherence of the budget goals with the Group Risk Appetite setting and the
periodical monitoring of the RAF. The Group Financial Officer remains responsible for monitoring the performances of the Group and of the
business functions, in order to identify possible underperforming areas and the related corrective measures.
Such mission is accomplished by coordinating the Group's risk management as a whole. More specifically, it involves carrying out the following
macro-functions:
• governing and checking credit, cross-border, market, balance sheet, liquidity, ICT, operational and reputational, climate and environmental risks at
Group level as well as any other risks relating to Basel II Pillar II (e.g. strategic, real estate, financial investment, business risks), by defining risk
strategies and limits, developing risk measurement methodologies performing stress tests and portfolio analysis;
• supervising, on a Group level and for UniCredit S.p.A., Basel accord related activities;
• coordinating the internal capital measurement process within the Internal Capital Adequacy Assessment Process (ICAAP) and coordinating
activities for drawing up the “ICAAP Regulatory Report”;
• performing internal validation activities, at Group level, on systems for measuring, credit, operating and market risks, or Basel II Pillar II risks on
related processes and data quality and IT components, as well as on models for pricing financial instruments, in order to check that they conform
to regulatory requirements and in-house standards, overseeing consequently the non-compliance risk regarding to such regulatory requirements;
• ensuring that the competent Bodies/Functions get adequate reports;
• developing the strategy and oversee the management, process, targets and disposals of Non-Performing Exposures/NPE, repossessed assets
and any other distressed assets for the entire Group. The Group Risk Officer defines the criteria/rules for identifying the exposures and assets for
sale and portfolio targets;
• drafting and managing risk policies, both at Group level (Group Rules) and at Parent Company level, on the performance of risk-related activities
for which UniCredit S.p.A. is competent as well as ensuring the monitoring;
• defining framework and performing second-level controls on risks, within the Group and the Parent Company;
• assigning ratings for banks and for the Group’s major exposures, carrying out the relevant mapping, at Group level, and managing the ‘rating
override’ process regarding Group-wide rating systems as well as those for measuring the credit risk of Unicredit S.p.A.’s counterparts.
• defining the minimum standards and guidelines for validating IT infrastructures and data quality, credit risks, operating risks and Pillar II risks, for
feeding Group and Parent Company reports on credit risk and for feeding credit risk measurement models.
521
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
The structure Group Internal Validation, directly reporting to Group Risk Management, has the mission to validate, at Group level, and to steer the
local validation assessments of the risk measurement methodologies, the related processes, the IT components and the data quality for Pillar I and
Pillar II risks, the main managerial models, as well as Group Risk Reporting, providing adequate reporting for Company Bodies and the Supervisory
Authority as well as for assessing, monitoring and reporting, at Group level, the model risk for the models in scope of the Model Risk Management
(MRM) framework, providing adequate reporting for competent committees and the Board of Directors.
In order to strengthen the capacity of independent steering, coordination, and control of Group risks, to improve the efficiency and the flexibility on
the risk decision process and to address the interaction among the relevant risk stakeholders, specific Committees are in place:
• the Group Executive Committee (GEC), the Group Financial and Credit Risk Committee (GFRC) and Group Non-Financial Risks and Controls
Committee (GNFRC) support the CEO in the role of steering, coordinating and monitoring the strategic and all categories of risks (included
compliance risk), at Group level, as well as defining the Group Recovery Plan;
• the GEC - “Risk” session, which has approval as well as consulting and proposal functions, aims at supporting the CEO in its role of steering,
coordinating and monitoring all categories of risks (included compliance risk), managing and overseeing the Internal Control System (ICS) also at
a Group level, as well as discussing and approving strategic risk topics such as Group Risk Appetite Framework, ICAAP, ILAAP, SREP, NPE
strategy coherently with the overall risk profile defined by RAF and the steering of Environmental, Social and Governance (ESG) including Climate
& Environmental Risks ( i.e. transition and physical risk);
• the GEC - “Group Recovery Plan” session support the CEO to deal with the Group Recovery Plan, defining the proposal to be submitted to the
Board of Directors’ final decision and to solve issues emerged during the production and the maintenance of the Plan;
• the “Group Financial and Credit Risks Committee” (GFRC) supports the CEO in the steering, coordination and control of the credit and financial
risks( including Climate &Environmental risks) at Group level also managing and overseen the related Internal Control System ( ICS) and consists
of the following sessions: (i) Credit Risk session, responsible for defining policies, operational limits and methodologies for the measurement,
management and control of the Credit Risks as well as for the definition of the methodologies for the measurement and control of internal capital,
(ii) Rating approval session, responsible for approving rating overrides (iii) Market Risk session, responsible for approving strategies, policies and
methodologies for Market Risks and for the monitoring of related risks, (iv) ALCO session, responsible for approving strategies, policies and
methodologies for Financial Risks and for the monitoring of risks related to Fund Transfer Pricing;
• The Group Non-Financial Risks and Controls Committee (GNFRC) supports the CEO in the role of steering and monitoring the Non-Financial
Risks (NFRs including Climate &Environmental risks) at Group level and overseeing the related Internal Control System (ICS). The Committee
consists of the following sessions: (i) General Non-Financial Risks and Controls Session, responsible for defining and approving policies,
operational limits and methodologies for the measurement, management and control of Non-Financial Risks, including the methodologies for the
measurement, management, and control of Non-Financial Risks (Operational and Reputational Risk) impacting internal capital; (ii) ICT, Security,
Cyber and Third party Risk Session responsible for evaluating and providing guidelines for the management of risks related to ICT, Security,
Cyber, a third party contracts and business continuity plan; (iii) Reputational Risk Session responsible for evaluating and providing guidelines for
the management of reputational risk also on single customer transactions. The GNFRC enables the coordination the three lines of defence with
the aim to identify and share Group priorities concerning Non-Financial Risks (e.g. events, regulations or emerging risks), assessing and
monitoring the effectiveness of initiatives put in place in order to address them.
Internal Capital Adequacy Assessment Process (ICAAP) and Risk Appetite
UniCredit group assesses its capital adequacy on a going concern approach, ensuring that an adequate level of capital is maintained to continue
business activities as usual even in case of severe loss events, like those caused by an economic downturn.
The Group’s approach to ICAAP consists of the following phases:
1. Risk identification and mapping;
2. Risk measurement and stress testing;
3. Risk appetite setting and capital allocation;
4. Monitoring and reporting.
522
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
1. Risk identification and mapping
The first step is the identification and mapping of all the risks embedded in the Group and in the relevant legal entities, with particular focus on the
risks not explicitly covered by the Pillar I framework. The output of this activity is the Group Risk Map which encompasses all risk types, including
those quantifiable by Economic Capital.
2. Risk measurement and stress testing
The second phase is the identification of the internal methodologies for measurement and quantification of the different risk profiles, resulting into
the calculation of Group Economic Capital. The Economic Capital measures are supported by aggregated-stress tests, which are a fundamental part
of a sound risk management process. The aim of stress testing is to assess the bank's viability with respect to exceptional but plausible events. The
impact of adverse economic scenarios is assessed on the capital position and/or the liquidity position of the Group.
3. Risk Appetite setting and capital allocation
Risk Appetite is a key managerial instrument used with the purpose of setting the adequate levels of risk the Bank is willing to have and consistently
steering its business evolution (refer to the RAF section below for details). The Group capital plays a crucial role in the main corporate governance
processes that drive strategic decisions, as target and risk tolerance thresholds, in terms of regulatory and economic capital. It is also a key element
of the Risk Appetite Framework of the Group.
4. Monitoring and Reporting
Capital adequacy evaluation is a dynamic process that requires a regular monitoring to support the decision-making processes.
The Bank monitors its main risk profile with a frequency consistent with the nature of each single risk. On top of this, a quarterly reporting of
integrated risks and Risk Appetite evolution is reported to the relevant Risk Committees and Governing Bodies, in order to set and implement and
efficient and effective ICAAP framework.
Capital adequacy is assessed considering the balance between the assumed risks and the available capital both in a regulatory and in an economic
perspective. With respect to economic perspective and to Going Concern approach, capital adequacy is assessed by comparing the amount of
financial resources available to absorb losses and to ensure the business continuity of the Group, the so-called Available Financial Resources
(AFR), with the economic capital internally estimated (Economic Capital - EC). The AFR are computed according to the Group principles and
consistent with prudential regulation, in fact the regulatory capital (Own Funds) is the basis for the AFR quantification. The Group capital instruments
that are included in the AFR satisfy the following three criteria:
• loss absorbency in business continuity approach;
• permanence;
• flexibility of payments.
The ratio between AFR and EC is the Risk Taking Capacity (RTC). This ratio must be above 100% (AFR>EC) in order to avoid that risk exposures
are higher than the Available Financial Resources. RTC is one of the key indicators included in the Group RAF dashboard on which the Bank
leverages to guide the selection of the desired risk-return profile in alignment with its business strategies.
A milestone of the ICAAP is the Risk Appetite, which in UniCredit group is defined as the level of risk that the Group is willing to take and the risk-
return profile it fixes to achieve in pursuing its strategic objectives and business plan, taking into account the interest of its stakeholders (e.g.,
customers, policymakers, regulators, shareholders) as well as capital and other regulatory and law requirements. The Group Risk Appetite is
approved on an annual basis by the Board of Directors and is regularly monitored and reported, at least quarterly, to the relevant committees, with
the aim of ensuring the consistency with the risk return profile set by the Board of Directors. At local level, the risk appetite is set for the main Legal
Entities and approved by the local competent functions.
The main goals of UniCredit group’s Risk Appetite are:
• assessing explicitly the risks and their interconnections UniCredit group is willing to accept or should avoid in a forward-looking view;
• specifying the types of risk UniCredit group intends to assume by setting the targets, triggers and limits, under both normal and stressed operating
conditions;
• ensuring an “ex ante” risk-return profile consistent with long term sustainability, in coherence with multi-year strategic plan/budget;
• ensuring that the business develops within the risk tolerance set by the Parent Company Board of Directors, also in respect of national and
international regulations.
• supporting the evaluation of future strategic options with reference to risk profile.
• addressing internal and external stakeholders’ view on risk profile consistent with the strategic positioning.
• provide qualitative statements concerning identified risks in order to strategically guide the relevant processes, the internal control system and
ensure prevention/early intervention on emerging risks.
523
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
The Group Risk Appetite is defined consistently with UniCredit group business model. For this purpose, Group Risk Appetite is integrated in the
budget process, in order to guide the selection of the desired risk-return profile in alignment with the Strategic Plan guidelines and at inception of the
budget process.
UniCredit Remuneration Policy is consistent with the Group Risk Appetite to allow the effective implementation of risk reward remuneration for
bonus definition and payments.
The structure of the Risk Appetite in UniCredit group includes the Group Risk Appetite Statement and the Group Risk Appetite KPIs Dashboard.
The Risk Appetite Statement defines the positioning of the bank in terms of strategic targets and related risk profiles to address internal and external
stakeholders’ expectations and includes:
• a guidance on the overall key boundaries for the Group in terms of focus of activity;
• a definition of the desired risk-return profile, in line with the Group’s overall strategy;
• the risks the bank is willing to accept or should avoid both in normal and stressed conditions;
• an indication on strategies to manage key risks within the perimeter of the Group;
• qualitative statements for not quantifiable risks in order to ensure prevention/early intervention on emerging risks.
The quantitative elements of the Risk Appetite Framework are instead represented by a Dashboard, composed by a set of KPIs, based on the
analysis of the expectations of UniCredit group internal and external stakeholders, including material risks to which the Group is exposed and
addressing the following categories:
• Regulatory KPIs: to guarantee at any time the fulfilment of the KPIs requested by Regulators (e.g., Common Equity Tier 1 Ratio, Liquidity
Coverage Ratio);
• Managerial KPIs: KPIs considered to be key from strategic and Risk Appetite standpoint and defined to ensure steering of all key financial risks
(e.g., Credit Risk, Liquidity and Interest Rate Risks, Market and Sovereign Risks), Profitability, non-financial risks (e.g., Operational risk, ICT and
Cyber risk, Compliance risk) and Climate & Environmental risk.
For each of the above dimensions, one or more KPIs are identified, in order to quantitatively measure the position of the Group in different ways:
absolute values, ratios, sensitivities to defined parameters.
Various levels of thresholds are defined to act as early warning indicators anticipating potential risk situations that will be promptly escalated at
relevant organisational level. If specific Risk Appetite thresholds are met, the necessary management measures have to be adopted for effectively
adjusting the risk profile. The thresholds are identified as follows (on certain KPIs, not all the thresholds may be meaningful):
• Targets represent the amount of risk the Group is willing to take on in normal conditions in line with the Group ambition. They are the reference
thresholds for the development and steering of the business;
• Triggers represent, from a managerial standpoint, the maximum acceptable level of deviation from the defined target thresholds, or more generally
a Warning Level, and are set consistently to assure that the Group can operate, even under stress conditions;
• Limits are hard points that represent, from a statutory standpoint, the maximum acceptable level of risk for the Group.
Thresholds setting is evaluated by the relevant competent functions, also through managerial decision by the Board of Directors, respecting
regulatory and supervisory requirements and also taking into account stakeholders’ expectations and positioning versus peers. In addition, Unicredit
group has a series of transversal operational limits and metrics that cover the main risk profiles in order to supplement the Risk Appetite Framework.
According to the EBA guidelines, each year ICAAP information is collected for SREP purposes and sent to the Regulator. The Board of Directors,
which authorises the sending of this information to the Authorities, also acknowledges that the risk governance of the Group is deemed adequate,
guaranteeing that the risk management system in place is in line with the risk profile and strategy of the Group. In addition, the Board of Directors
approved and signed the Capital Adequacy Statement during the last Board of Directors held on 20 March 2024.
In the Capital Adequacy Statement, the Board of Directors states that the Group demonstrated to have a strong capital position, allowing to maintain
under baseline scenario an adequate managerial buffer on top of Combined Buffer Requirement (CBR) and, in case of more severe conditions, to
ensure adequate buffer in addition to the total SREP capital ratio (TSCR). In light of the current geopolitical environment, the Management and the
Board of Directors are taking a prudent and sustainable approach, assessing any possible impact on the capital adequacy and related mitigation
actions, and in parallel proceeding with the implementation of the strategic plan.
UniCredit group is consistently engaged in identifying areas of improvement of the ICAAP process in compliance with Supervisory expectations.
524
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Risk culture in UniCredit group
The Risk Culture is increasingly crucial for a sound governance, even more after the recent crisis in the banking sector. In compliance with the
guidelines set by the Financial Stability Board, the Basel Committee and the EBA, the UniCredit group is committed to develop and propagate
across the Group an integrated risk culture, aimed at ensuring risk awareness and risk- taking behaviors at all levels of the Institution.
The risk culture refers not only to rules but also to behaviors related to awareness, management and control of risks and it shapes the decision-
making process for what concerns risk- taking approach by the corporate bodies and by all employees in the day-to-day activities.
A sound risk culture is based on four foundations:
• Tone from the top: the Board of Directors and the senior management are the starting point for setting the Institution’s core values and risk culture
and their behaviors shall reflect these values;
• Accountability: for an effective risk management all employees have to understand the corporate values and its approach to risk appetite and risk-
taking and they have to act accordingly in day-by-day activities, knowing they are held accountable in relation to the risk- taking approach;
• Effective communication and challenge: a sound risk culture promotes an environment of open communication and effective challenge in which
decision-making processes encourage different views, testing of current practices and stimulate an open and constructive critical attitude among
employees and an environment of inclusive and constructive engagement;
• Incentives: the incentive system shall ensure that behaviors and performances are aligned to the institution’s risk profile and its long- term interest
sustainability.
The Group Risk Management, in line with its mission as defined by the Board of Directors of UniCredit, adopted a structured and integrated
approach to strengthen UniCredit's risk culture, by enhancing constantly the four foundations. For example, the Senior Management is involved in
communication initiatives “Tone from the Top”, in particular on the emerging risks and on risks that may be amplified by the market trends, for
instance prevention of the greenwashing, that can severely affect the reputational and financial risks if not properly managed within a sound and
widespread risk culture at all levels of the Institution.
The learning offer is regularly updated, within a homogeneous Group framework (“Risk University”), with a special focus on the training addressing
specific roles, in particular, for instance, with regards to cyber & ICT risk and climate risk related topics. A special attention is devoted to managerial
roles’ training, in particular for developing an inclusive approach that promotes diversity, also through speak up and accountability initiatives.
An effective and timely communication is key for promoting the corporate values - Integrity, Ownership, Caring - along with the ESG ones.
Furthermore, a monthly newsletter is issued, covering areas like Risk Management, ESG, Compliance, Digital, in order to support the risk
awareness with up-to-date contents. A series of events are organised to enhance the risk culture across the Competence Line and the whole Group.
The assessment of the performances takes into consideration the compliance to the rules, to the code of conduct and to expected behaviours.
Moreover, the access to the incentive system depends upon the completion of the mandatory trainings, in particular the ones relating to the proper
management of the relationship with the clients, and, for impacted roles, the customer due diligence periodic revision (Know Your Customer) and
fulfilment of MiFID requirements.
525
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Reconciliation between accounting and prudential consolidated perimeter
Note that Section 1 - Risks of the accounting consolidated perimeter provides information on companies included in the accounting perimeter of
consolidation. Section 2 - Risks of the prudential consolidated perimeter provides information referred to the prudential perimeter of consolidation.
In this regard the accounting perimeter is composed by companies fully consolidated in accordance with IFRS10, for additional information refer to
Notes to the consolidated accounts; Part A - Accounting policies, Section 3 - Consolidation scope and methods.
The prudential perimeter is composed by companies subject to full consolidation in accordance with Regulation (EU) 575/2013 of the European
Parliament and of the Council of 26 June 2013 on “prudential requirements for credit institutions and investment firms” (CRR).
Prudential perimeter differs, as a result, from the accounting perimeter due to the accounting through the equity method of those subsidiaries that
are not engaged in banking activity, financial activity of instrumental activity, which are subject to full consolidation in the accounting perimeter.
The interests held in these companies is included in item 70. Equity investments.
(€ million)
AMOUNTS AS AT 31.12.2024
ASSETS
ACCOUNTING
PERIMETER
PRUDENTIAL
PERIMETER
DELTA
10. Cash and cash balances
41,442
41,440
(2)
20. Financial assets at fair value through profit or loss:
61,677
61,651
(26)
a) financial assets held for trading
55,083
55,083
-
b) financial assets designated at fair value
247
247
-
c) other financial assets mandatorily at fair value
6,347
6,321
(26)
30. Financial assets at fair value through other comprehensive income
78,019
78,019
-
40. Financial assets at amortised cost:
563,166
563,586
420
a) loans and advances to banks
66,540
66,540
-
b) loans and advances to customers
496,626
497,046
420
50. Hedging derivatives
1,351
1,351
-
60. Changes in fair value of portfolio hedged items (+/-)
(1,702)
(1,702)
-
70. Equity investments
4,393
4,482
89
80. Insurance assets
-
-
-
a) insurance contracts issued that are assets
-
-
-
b) reinsurance contracts held that are assets
-
-
-
90. Property, plant and equipment
8,794
8,192
(602)
100. Intangible assets
2,229
2,228
(1)
of which: goodwill
38
38
-
110. Tax assets:
10,273
10,266
(7)
a) current
685
682
(3)
b) deferred
9,588
9,584
(4)
120. Non-current assets and disposal groups classified as held for sale
394
362
(32)
130. Other assets
13,968
14,096
128
Total assets
784,004
783,971
(33)
526
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
continued:
AMOUNTS AS AT 31.12.2024
LIABILITIES AND SHAREHOLDERS' EQUITY
ACCOUNTING
PERIMETER
PRUDENTIAL
PERIMETER
DELTA
10. Financial liabilities at amortised cost:
659,598
659,618
20
a) deposit from banks
67,919
67,884
(35)
b) deposit from customers
500,970
501,025
55
c) debt securities in issue
90,709
90,709
-
20. Financial liabilities held for trading
31,349
31,349
-
30. Financial liabilities designated at fair value
13,746
13,746
-
40. Hedging derivatives
1,112
1,112
-
50. Value adjustment of hedged financial liabilities (+/-)
(9,247)
(9,247)
-
60. Tax liabilities:
1,708
1,668
(40)
a) current
1,456
1,454
(2)
b) deferred
252
214
(38)
70. Liabilities associated with non-current assets held for sale
-
-
-
80. Other liabilities
14,687
14,682
(5)
90. Provision for employee severance pay
294
294
-
100. Provision for risks and charges:
7,916
7,899
(17)
a) commitments and guarantees given
1,043
1,043
-
b) post-retirement benefit obligations
3,193
3,193
-
c) other provisions for risks and charges
3,680
3,663
(17)
110. Insurance liabilities
-
-
-
a) insurance contracts issued that are liabilities
-
-
-
b) reinsurance contracts held that are liabilities
-
-
-
120. Valuation reserves
(5,422)
(5,422)
-
130. Redeemable shares
-
-
-
140. Equity instruments
4,958
4,958
-
150. Reserves
33,235
33,235
-
155. Advanced dividends (-)
(1,440)
(1,440)
-
160. Share premium
23
23
-
170. Share capital
21,368
21,368
-
180. Treasury shares (-)
-
-
-
190. Minority shareholders' equity (+/-)
400
409
9
200. Profit (Loss) for the period (+/-)
9,719
9,719
-
Total liabilities and shareholders' equity
784,004
783,971
(33)
527
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Section 1 - Risks of the accounting consolidated perimeter
Quantitative information
In the following tables, the volume of impaired assets according to the IFRS definition is equivalent to the one of non-performing exposures referred
to in the EBA standards.
A. Credit quality
For the purposes of the disclosure of quantitative information about credit quality, the term “credit exposures” does not include equity instruments
and units in investment funds.
A.1 Impaired and non-performing credit exposures: stocks, value adjustments, dynamics and economic
A.1.1 Breakdown of financial assets by portfolio and credit quality (carrying value)
(€ million)
PORTFOLIOS/QUALITY
BAD
EXPOSURES
UNLIKELY TO
PAY
NON-
PERFORMING
PAST-DUE
EXPOSURES
PERFORMING
PAST-DUE
EXPOSURES
OTHER
PERFORMING
EXPOSURES
TOTAL
1. Financial assets at amortised cost
943
4,576
543
7,854
549,250
563,166
2. Financial assets at fair value through other
comprehensive income
-
32
-
-
74,106
74,138
3. Financial assets designated at fair value
-
-
-
-
247
247
4. Other financial assets mandatorily at fair value
1
35
1
3
2,851
2,891
5. Financial instruments classified as held for sale
24
147
-
-
30
201
Total
31.12.2024
968
4,790
544
7,857
626,484
640,643
Total
31.12.2023
776
5,069
687
8,427
607,948
622,907
A.1.2 Breakdown of financial assets by portfolio and credit quality (gross and net values)
(€ million)
NON-PERFORMING ASSETS
PERFORMING ASSETS
PORTFOLIOS/QUALITY
GROSS
EXPOSURE
OVERALL
WRITEDOWNS NET EXPOSURE
OVERALL
PARTIAL WRITE-
OFFS(*)
GROSS
EXPOSURE
OVERALL
WRITEDOWNS NET EXPOSURE
TOTAL (NET
EXPOSURE)
1. Financial assets at amortised cost
11,167
5,105
6,062
692
561,271
4,167
557,104
563,166
2. Financial assets at fair value through other
comprehensive income
114
82
32
-
74,115
9
74,106
74,138
3. Financial assets designated at fair value
-
-
-
-
X
X
247
247
4. Other financial assets mandatorily at fair value
118
81
37
-
X
X
2,854
2,891
5. Financial instruments classified as held for sale
252
81
171
-
40
10
30
201
Total
31.12.2024
11,651
5,349
6,302
692
635,426
4,186
634,341
640,643
Total
31.12.2023
12,434
5,902
6,532
627
617,199
4,927
616,375
622,907
Note:
(*) Value shown for information purposes.
For additional information on the matter related to evaluation on credit exposures refer to Section 2 - Risks of the prudential consolidated financial
statements, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies.
(€ million)
ASSETS OF EVIDENT LOW CREDIT QUALITY
OTHER ASSETS
PORTFOLIOS/QUALITY
CUMULATED LOSSES
NET EXPOSURE
NET EXPOSURE
1. Financial assets held for trading
3
25
43,927
2. Hedging derivatives
-
-
1,351
Total
31.12.2024
3
25
45,278
Total
31.12.2023
2
7
50,342
528
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
B. Structured entities (other than entities for securitisation transaction)
B.1 Consolidated structured entities
The Group has involvements in structured entities that are consolidated because it has both power on the underlying assets and exposure to
variability of returns arising from the structured entities activities as a result of the financial instruments subscribed.
The consolidated structured entities of the Group belong to one of the following categories:
• Leasing SPV: these structured entities are set-up in order to meet the needs of customers interested into entering into finance leasing. The Group
provides funding to these structured entities, both in form of equity and in form of loans. Such funding is used by structured entities to buy assets
(real estate, equipment, etc.) that are leased to a customer under a finance leasing contract;
• Project finance SPV: these structured entities are set-up in order to finance capital intensive projects according to the need of specific customers.
Typically the funds needed to develop the project are provided by the customer, in form of equity and by the Group in form of loans. The Group
consolidates such structured entities as a result of deterioration of the credit worthiness of the customer and subsequent acquisition of the right to
manage the project;
• Real estate SPV: these structured entities are entities that have been set-up in order to fund real estate projects used in the business by the
Group or that have been acquired it the course of credit recovery processes;
• Funding SPV: these structured entities are set-up by so to gather funding in specific markets that is guaranteed by a Group Legal entity. This
funding is then transferred to the Group legal entity that guarantees it;
• Market Related structured entities: these structured entities are set-up in order to allow customers to invest into specific financial instruments or
to fund their specific credits. The Group consolidates these structured entities in cases where it provides its own guarantee on the reimbursement
of such instruments or credits or predominantly finances the SPV. This category includes the Italian vehicle, established pursuant to law 130/99,
for the purchase of tax credits;
• Investment funds: these structured entities are open ended and closed ended investment funds that the Group controls under IFRS10 having
acquired enough quotas to expose it to variability of returns and the ability to manage, directly and indirectly, the underlying portfolio;
• Warehousing SPV: these structured entities are set-up in order to subsequently perform securitisation transactions. In particular they purchase
mortgages in specific markets and from different originators until a “critical mass” that allow to perform securitisation is reached. The purchases of
mortgages are funded through loans provided by the Group.
During the period the Group has not provided financial support to consolidated structured entities, other than those for securitisation transactions, in
absence of contractual obligation to do so and it doesn’t have current intention to provide such support.
The following table provides on-Balance sheet and off-Balance sheet, credit line, fund commitments and financial guarantees, provided by Group
companies to consolidated structured entities, excluding possible exposures and Group’s Legal entities classified as held for sale as at 31
December 2024.
These exposures are eliminated in the consolidation process.
(€ million)
BALANCE SHEET ITEM/SPV TYPE
TOTAL ASSETS
OFF BALANCE SHEET
EXPOSURES
Leasing SPV
1,213
2
Project Finance SPV
-
-
Real Estate SPV
-
-
Funding SPV
-
-
Market Related SPV
3,221
6,498
Investment funds
1,066
60
Warehousing SPV
-
-
Total
5,500
6,560
B.2 Non-consolidated for accounting purposes structured entities
B.2.1. Consolidated for regulatory purposes structured entities
The Group has not exposure toward structured entities consolidated for regulatory purpose but that are not consolidated for accounting purpose.
B.2.2. Other structured entities
Qualitative information
The Group has exposure toward unconsolidated structured entities either as a result of its lending activities or through the investments in quotas
issued by funds that are structured entities under IFRS12 definition.
529
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
In particular, unconsolidated structured entities in which the Group is exposed to belong to the following categories:
• Acquisition and Leveraged Finance structured entities are set up for providing funding for the acquisition of a target business, where sponsors
participate with equity contribution and lenders structure their facilities according to the cash flow profile of the target. The Group provides funding
to these structured entities according to the applicable internal credit policies described in the paragraph 1. General Aspects that also define the
level of equity that has to be provided by the sponsor, Notes to the consolidated accounts, Part E - Information on risks and related hedging
policies - Section 2 - Risks of the prudential consolidated perimeter, 2.1 Credit risk, Qualitative information.
The Group has no control over these structured entities because it neither manages the company whose acquisition is being financed nor is
significantly exposed to the associated variability of returns;
• Leasing structured entities are set-up to buy an asset and rent it to customers (based on a financial leasing contract). The funding is provided
through loans, and the structured entities are the owner of the asset. At the end of the contract the asset is usually sold to the customer at a price
usually equal to the residual value defined by the contract.
The Group provides funding to these structured entities according to the applicable internal credit policies described in the paragraph 1. General
Aspects that also define the level of equity that has to be provided by the customer, Notes to the consolidated accounts, Part E - Information on
risks and related hedging policies - Section 2 - Risks of the prudential consolidated perimeter, 2.1 Credit risk, Qualitative information. In particular,
the contracts ruling such transactions and associated guarantees ensure that the Group has no control over these structured entities because it
neither manages the activities of the structured entities nor is significantly exposed to variability of returns of the leased assets;
• Market Related structured entities are set-up in order to allow customers to invest into financial instruments having features, in term of currency
of denomination or interest rate, different from those offered in the market. In this context the Group maintains exposures against these vehicles
that, however, do not transfer to the Group the main risks of the underlying;
• Notes issuing structured entities are structured entities that issue security different from ABS that are backed up by certain type of assets.
These include covered bonds issued by third parties.
The Group does not control these structured entities as it has neither the ability to manage the underlying assets nor retains significant exposures
to its variability of returns;
• Project Finance structured entities are structured entities set up for the financing capital intensive business initiatives, where customers
participate with equity contribution. The Group provides funding to these structured entities according to the applicable internal credit policies
described in the paragraph 1. General Aspects that also define the level of equity that has to be provided by the customers, Part E - Information on
risks and related hedging policies, Section 2, Risks of the prudential consolidated perimeter, 2.1 Credit risk, Qualitative information.
The Group has no control over these structured entities because it neither manages the assets being financed nor is significantly exposed to the
resulting variability of returns;
• Real Estate structured entities are set-up for the financing of specific real estate initiatives. In these structures the customers, typically
commercial and residential development companies and institutional investors set up the structured entities and provides the equity. The Group
provides funding according to the applicable internal credit policies described in the paragraph 1. General Aspects that also define the level of
equity that has to be provided by the customers, Part E - Information on risks and related hedging policies, Section 2, Risks of the prudential
consolidated perimeter, 2.1 Credit risk, Qualitative information.
The Group has no control over these structured entities because it neither manages the assets being financed nor is significantly exposed to the
resulting variability of returns;
• Shipping and Aircraft structured entities are set up for the building or the acquisition of a ship or an aircraft that is then used by the customers
in the context of their business activities.
The Group provides funding to these structured entities according to the applicable internal credit policies described in the paragraph 1. General
Aspects that also define the level of equity that has to be provided by the customers, Notes to the consolidated accounts, Part E - Information on
risks and related hedging policies, Section 2, Risks of the prudential consolidated perimeter, 2.1 Credit risk, Qualitative information.
The Group has no control over these structured entities because it neither manages the assets being financed nor is significantly exposed to the
resulting variability of returns;
• Warehousing structured entities support subsequent securitisation transactions through the purchase of mortgages in specific markets and from
different originators until a “critical mass” that allows to perform such securitisation is reached;
• Investments funds comprise open ended and closed ended investment funds in which the Group has subscribed quotas or provided loans.
Quantitative information
The following table provides indication on assets, liabilities and off-Balance sheet exposures recognised in the Balance sheet of the Group held
towards SPVs different from non-consolidated securitisation vehicles and broken down by role of the Group.
The maximum exposure to loss has been calculated by grossing up the difference between assets and liabilities with off-Balance sheet positions
(credit lines, fund commitments and financial guarantees) held toward these vehicles reported in column “difference between maximum exposure to
loss and accounting value”.
530
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Exposure to structured entities different from Securitisation SPV not Consolidated for accounting purposes
(€ million)
AMOUNT AS AT 31.12.2024
BALANCE SHEET ITEM/SPV TYPE
ACCOUNTING
PORTFOLIO
(ASSETS)
TOTAL ASSETS
(A)
ACCOUNTING
PORTFOLIO
(LIABILITIES)
TOTAL LIABILITIES
(B)
NET ACCOUNTING
VALUE
(C=A-B)
MAXIMUM
EXPOSURE TO
LOSS
(D)
DIFFERENCE
BETWEEN
MAXIMUM
EXPOSURE TO
LOSS AND
ACCOUNTING
VALUE
(E=D-C)
Acquisition and Leverage Finance SPV
839
10
829
1,572
743
HFT
17
Deposits
9
DFV
-
Securities
-
MFV
-
HFT
1
FVOCI
-
DFV
-
AC
822
Leasing SPV
16
-
16
16
-
HFT
-
Deposits
-
DFV
-
Securities
-
MFV
-
HFT
-
FVOCI
-
DFV
-
AC
16
Market Related SPV
273
68
205
436
231
HFT
6
Deposits
65
DFV
-
Securities
-
MFV
-
HFT
3
FVOCI
-
DFV
-
AC
267
Notes Issuing Vehicles
85
-
85
123
38
HFT
-
Deposits
-
DFV
-
Securities
-
MFV
-
HFT
-
FVOCI
-
DFV
-
AC
85
Project Finance SPV
2,537
808
1,729
1,986
257
HFT
107
Deposits
758
DFV
-
Securities
-
MFV
-
HFT
50
FVOCI
-
DFV
-
AC
2,430
Real Estate SPV
3,597
618
2,979
3,427
448
HFT
21
Deposits
601
DFV
-
Securities
-
MFV
-
HFT
17
FVOCI
-
DFV
-
AC
3,576
Shipping Aircraft SPV
35
-
35
36
1
HFT
-
Deposits
-
DFV
-
Securities
-
MFV
-
HFT
-
FVOCI
-
DFV
-
AC
35
Warehousing SPV
-
-
-
-
-
HFT
-
Deposits
-
DFV
-
Securities
-
MFV
-
HFT
-
FVOCI
-
DFV
-
AC
-
Total
7,382
1,504
5,878
7,596
1,718
Notes:
HFT = Financial assets held for trading
Deposits = Deposits from Customers
DFV = Financial assets designated at fair value
Securities = Debt securities in issue
MFV = Financial assets mandatorily at fair value
HFT = Financial liabilities held for trading
FVOCI = Financial assets at fair value through other comprehensive income
DFV = Financial liabilities designated at fair value
AC = Financial assets at amortised cost
The following table provides indication on assets, liabilities and off-Balance sheet exposures recognised in the Balance sheet of the Group held
towards not consolidated investment funds.
531
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Exposure to structured entites different from Securitisation SPV not consolidated for accounting purposes - Investment funds
(€ million)
AMOUNT AS AT 31.12.2024
BALANCE SHEET ITEM/SPV TYPE
ACCOUNTING
PORTFOLIO
(ASSETS)
TOTAL ASSETS
(A)
ACCOUNTING
PORTFOLIO
(LIABILITIES)
TOTAL
LIABILITIES
(B)
NET
ACCOUNTING
VALUE
(C=A-B)
MAXIMUM
EXPOSURE TO
LOSS
(D)
DIFFERENCE
BETWEEN
MAXIMUM
EXPOSURE TO
LOSS AND
ACCOUNTING
VALUE
(E=D-C)
Real Estate investment funds
5,612
781
4,831
6,361
1,530
HFT
17
Deposits
757
DFV
-
Securities
-
MFV
303
HFT
24
FVOCI
-
DFV
-
AC
5,292
Mixed Asset investment funds
559
951
(392)
323
715
HFT
477
Deposits
945
DFV
-
Securities
-
MFV
34
HFT
6
FVOCI
-
DFV
-
AC
48
Equity investment funds
1,514
3,696
(2,182)
(1,871)
311
HFT
1,279
Deposits
3,689
DFV
-
Securities
-
MFV
2
HFT
7
FVOCI
-
DFV
-
AC
233
Private Equity/Debt investment funds
814
67
747
1,312
565
HFT
-
Deposits
67
DFV
-
Securities
-
MFV
529
HFT
-
FVOCI
-
DFV
-
AC
285
Fixed Income investment funds
1,406
1,079
327
1,295
968
HFT
433
Deposits
1,061
DFV
-
Securities
-
MFV
-
HFT
18
FVOCI
-
DFV
-
AC
973
Other investment funds
2,063
3,691
(1,628)
(1,397)
231
HFT
304
Deposits
3,660
DFV
-
Securities
10
MFV
1,448
HFT
21
FVOCI
-
DFV
-
AC
311
Total
11,968
10,265
1,703
6,023
4,320
Notes:
HFT = Financial assets held for trading
Deposits = Deposits from Customers
DFV = Financial assets designated at fair value
Securities = Debt securities in issue
MFV = Financial assets mandatorily at fair value
HFT = Financial liabilities held for trading
FVOCI = Financial assets at fair value through other comprehensive income
DFV = Financial liabilities designated at fair value
AC = Financial assets at amortised cost
It should be noted that during the year the Group has recognised commission income for €43 million as a result of the management of investment
funds not consolidated.
Information on Sovereign Exposures
With reference to the Group’s sovereign exposures76, the book value of sovereign debt securities as at 31 December 2024 amounted to €116,130
million77, of which over 75% concentrated in eight countries; Italy, with €39,824 million, represents over 34% of the total. For each of the eight
countries, the following table shows the book value and the fair value of the exposures broken down by portfolio as at 31 December 2024.
76 Sovereign exposures are bonds issued by and loans given to central and local governments and governmental bodies. To the purpose of this risk exposure are not included:
• Sovereign exposures and Group’s Legal entities classified as held for sale as at 31 December 2024, if any;
• ABSs, if any.
77 Information on Sovereign exposures refers to the scope of the UniCredit Consolidated financial statements as at 31 December 2024, determined under IAS/IFRS.
532
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Breakdown of sovereign debt securities by country and portfolio
(€ million)
COUNTRY/PORTFOLIO
AMOUNTS AS AT 31.12.2024
BOOK VALUE
FAIR VALUE
- Italy
39,824
39,894
financial assets/liabilities held for trading (net exposures*)
43
43
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
56
56
financial assets at fair value through other comprehensive income
20,136
20,136
financial assets at amortised cost
19,589
19,659
- Spain
15,475
15,477
financial assets/liabilities held for trading (net exposures*)
109
109
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
-
-
financial assets at fair value through other comprehensive income
5,809
5,809
financial assets at amortised cost
9,557
9,559
- Germany
7,646
7,578
financial assets/liabilities held for trading (net exposures*)
246
246
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
212
212
financial assets at fair value through other comprehensive income
3,057
3,057
financial assets at amortised cost
4,131
4,063
- U.S.A.
6,478
6,507
financial assets/liabilities held for trading (net exposures*)
969
969
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
-
-
financial assets at fair value through other comprehensive income
3,065
3,065
financial assets at amortised cost
2,444
2,473
- France
5,365
5,261
financial assets/liabilities held for trading (net exposures*)
232
232
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
14
14
financial assets at fair value through other comprehensive income
2,972
2,972
financial assets at amortised cost
2,147
2,043
- Japan
5,239
5,242
financial assets/liabilities held for trading (net exposures*)
-
-
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
-
-
financial assets at fair value through other comprehensive income
4,592
4,592
financial assets at amortised cost
647
650
- Austria
3,849
3,831
financial assets/liabilities held for trading (net exposures*)
50
50
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
71
71
financial assets at fair value through other comprehensive income
2,955
2,955
financial assets at amortised cost
773
755
- Czech Republic
3,547
3,535
financial assets/liabilities held for trading (net exposures*)
20
20
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
-
-
financial assets at fair value through other comprehensive income
2,193
2,193
financial assets at amortised cost
1,334
1,322
Total on-balance sheet exposures
87,423
87,325
Notes:
(*) Including exposures in Credit Derivatives.
Negative amount indicates the prevalence of liabilities positions.
533
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
The weighted duration of the sovereign bonds shown in the table above, divided by the banking78 and trading book, is the following:
Weighted duration
(years)
TRADING BOOK
COUNTRY
BANKING BOOK
ASSETS POSITIONS
LIABILITIES POSITIONS
Italy
3.86
7.91
6.46
Spain
5.44
22.08
13.87
Germany
5.17
9.59
7.34
U.S.A.
8.93
15.93
-
France
6.90
21.71
22.63
Japan
4.72
-
-
Austria
7.30
17.04
7.11
Czech Republic
4.38
4.13
-
The remaining 25% of the total of sovereign debt securities, amounting to €28,707 million with reference to the book values as at 31 December
2024, is divided into 33 countries, including Romania (€3,188 million), (Bulgaria (€2,674 million), Croatia (€2,374 million), Hungary (€1,666 million),
Slovakia (€1,522 million), Poland (€1,249 million), Portugal (€1,001 million), Serbia (€893 million), Ireland (€714 million), Russia (€574 million) and
China (€558 million).
With respect to these exposures, as at 31 December 2024 there were no indications that default have occurred and the Group is closely monitoring
the evolution of the situation.
With particular reference to the book value of the sovereign debt securities exposure to Russia it should be noted that it is almost totally held by the
Russian controlled bank in local currency and classified in the banking book. For more information on the criteria adopted for the evaluation of the
Russian counterparties, refer to Section 5 - Other matters, Notes to the consolidated account Part A - Accounting policies - A.1 - General.
It should also be noted that among the aforementioned remaining part of sovereign debt securities as at 31 December 2024 there are also debt
securities towards Supranational Organisations such as the European Union, the European Financial Stability Facility and the European Stability
Mechanism amounting to €9,994 million.
The table below shows the classification of bonds belonging to the banking book and their percentage proportion of the total of the portfolio under
which they are classified.
Breakdown of sovereign debt securities by portfolio (banking book)
AMOUNTS AS AT 31.12.2024
FINANCIAL ASSETS
DESIGNATED AT
FAIR VALUE
FINANCIAL ASSETS
MANDATORILY AT
FAIR VALUE
FINANCIAL ASSETS AT
FAIR VALUE THROUGH
OTHER
COMPREHENSIVE
INCOME
FINANCIAL ASSETS AT
AMORTISED COST
TOTAL
Book value (€ million)
238
650
56,428
56,869
114,185
% Portfolio
96.36%
10.24%
72.33%
10.10%
17.63%
78 The banking book includes financial assets designated at fair value, those mandatorily at fair value, those at fair value through other comprehensive income and those at amortised cost.
534
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
In addition to the exposures to sovereign debt securities, loans79 given to central and local governments and governmental bodies must be taken
into account.
The table below shows the total amount as at 31 December 2024 of loans booked in financial assets at amortised cost portfolio given to countries
towards which the overall exposure exceeds €100 million, representing over 96% of the total.
Breakdown of sovereign loans by country
(€ million)
COUNTRY
AMOUNTS AS AT
31.12.2024
BOOK VALUE
- Germany(*)
8,147
- Austria (**)
5,349
- Italy
4,316
- Croatia
1,918
- Qatar
745
- Romania
441
- Hungary (***)
366
- Egypt
350
- Angola
259
- Slovakia
225
- Serbia
211
- Indonesia
207
- Slovenia
192
- Kenya
160
- Turkey
153
- Bulgaria
143
- Bosnia and Hercegovina
137
- Trinidad and Tobago
122
- Czech Republic
114
Total on-balance sheet exposures
23,555
Notes:
(*) of which €479 million in financial assets mandatorily at fair value.
(**) of which €24 million in financial assets mandatorily at fair value.
(***) of which €5 million in financial assets mandatorily at fair value.
It should also be noted that, as at 31 December 2024, there are in addition also loans to Supranational Organisations amounting to €2,141 million
mainly booked in financial assets held for trading portfolio.
Lastly, it should be noted that derivatives are traded within the ISDA master agreement and accompanied by Credit Support Annexes, which provide
for the use of cash collaterals or low-risk eligible securities.
For more details on the sensitivity analysis of credit spreads and on the results of stress tests refer to the "Recession Scenario" and “Hawkish
Scenario” in chapter Stress test of the Section 2.2 - Market risk, Notes to the consolidated accounts, Part E - Information on risks and related
hedging policies, Section 2 - Risks of the prudential consolidated perimeter and for liquidity management policies see Section 2.4 Liquidity risk,
Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated
perimeter.
79 Tax items are not included.
535
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Section 2 - Risks of the prudential consolidated perimeter
2.1 Credit risk
Qualitative information
1. General aspects
Credit policies
In UniCredit, the current governance model of credit risk, intended as risk of impairment of a credit exposure deriving from an unexpected
deterioration of the counterparty’s creditworthiness, provides for two levels of control:
• on the one hand, the supervision of the Parent Company functions which steer and control the credit risk and perform a managerial coordination
with respect to the relevant Group legal entities’ Risk Management functions;
• on the other hand, the supervision of the relevant Group legal entities’ Risk Management functions which perform the control and the management
of the risks’ portfolio at Country level.
With reference to credit risk management topics, the mechanisms of interaction between the Parent Company and the Group Legal Entities are
defined by specific credit governance rules that, on the one hand, regulate the respective responsibilities and, on the other hand, ensure the
compliance of the overall credit risk framework with the regulatory framework which the Parent Company is subject to.
Within its role of guidance, support and control, the Parent Company acts in the following areas: credit rules (principles, policies and processes),
credit strategies and credit risk limits, models development, rating systems validation, large exposures management, credit risk portfolio monitoring
and reporting.
In line with these credit governance rules, the Group Legal Entities request the either Holding Company Credit Committee’s or the Group Risk
Management Functions’ opinion before granting new or reviewing existing credit lines to single counterparties/Economic Groups whenever they
exceed defined thresholds, also with reference to their compliance with the credit risk concentration limits, being measured with respect to the
regulatory capital.
According to the role assigned by the Group governance to the Parent Company, specifically to the Group Risk Management function, general
provisions are established (“Group General Principles for Credit Activities”, “Group Credit Risk Management Framework”, “Guidelines on Loan
Categorization and Forbearance Classification”, “Credit Risk Parameters and IFRS9 Modelling and Planning”, “Credit Risk Strategies”, “Non-
Performing Exposures Risk Strategies”, “Credit Risk Mitigation”), defining Group-wide rules and principles for guiding, classifying, managing,
governing and standardising the credit risk assessment and management, as well as the development of its models, in line with the regulatory
requirements and the Group best practice. These general provisions are further supplemented by policies which, regulating specific topics (e.g.,
business areas, segment activities, type of counterpart/transaction), are divided into two categories:
• policies on Group-wide topics, drafted and issued by the Parent Company and sent to all the Legal Entities;
• policies locally developed by single Legal Entities, fully in line with the guidelines defined at Parent Company level, that regulate credit practices
relating to rules and peculiarities of the local market and that are, therefore, applicable only within the respective perimeter.
Credit policies, which usually have a static approach and are revised when necessary (e.g. in case of evolution of the external regulatory
framework), are supplemented by credit risk strategies (approved by the Board of Directors in the context of the Risk Appetite Framework) which,
instead, are updated at least once a year and define with which customers/products, industry segments and geographical areas the Group and the
Group Legal Entities intend to develop their credit business.
At both Legal Entity and Parent Company level, the policies are further detailed through operating instructions that describe specific rules supporting
the execution of day-by-day activities.
In UniCredit S.p.A., lending is governed by a regulatory framework, which is constantly updated. This framework includes the guidelines and
operating procedures for managing the various phases of the credit life cycle, taking into account potential changes in the credit strategy and
progressive process and procedural improvements.
More specifically, the following process phases are regulated:
• the assessment of the creditworthiness of the borrower, including the rating assignment procedures;
• the decision to grant credit lines, their implementation and the rules for managing them;
• the acquisition, management and monitoring of the value of collaterals and guarantees;
• the performance monitoring process and the initiatives to improve the sustainability of the counterpart, the customer classification process;
• the restructuring and the credit recovery process (debt collection policy/workout).
The creditworthiness assessment involves the analysis of the counterparty, any guarantors and the type of financing; these analyses include a
structured path for collecting customer data and are supported by a combined approach of subjective assessments and automated processes. In
particular, the analysis of the counterparty requires the preliminary assignment of a rating, which includes, depending on the type of customer and
536
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
the complexity/size of the credit transaction, a quantitative component and a qualitative component. The analysis of the counterparty's repayment
capacity is carried out by the Business functions that manage the relationship with the customer, with a forward-looking perspective, also evaluating
possible adverse scenarios. Depending on the customer segment, the economic sector of reference, the complexity and size of the transaction,
aspects of reputational risk, legal risk and climate risks (transition risk and physical risk) are considered in the analysis.
The review of credit proposals for customers with exposure exceeding a certain threshold is entrusted to specialists in the Risk Management
function, who prepare reasoned opinions in favor of the corporate bodies or committees responsible for making credit decisions. The approval of
credit transactions is delegated to the bodies authorized with a specific sub-delegation of powers, updated regularly to consider the riskiness of the
portfolios and any organizational changes that have occurred in the meantime.
Debtors are subject to regular review on an annual basis, unless a greater frequency is envisaged for cases in which signs of deterioration in the
credit risk profile have emerged. Credit exposures are also continuously subjected to a performance monitoring process, through which the Business
and independent Credit Monitoring specialists assess any signs of deterioration in the risk profile, establish any risk mitigation strategies and, where
appropriate, classify customers in specific managerial 'watch-lists' or propose, in the most serious cases, the transfer of customer management to
Risk Management structures specialized in customer management for restructuring or credit recovery purposes.
Real estate collaterals, where present, are subject to an assessment by a party independent of the credit process during the granting phase, though
the value of the collateral, except for so-called asset-based financing, is to be considered an element of credit risk mitigation and does not constitute
the only assessment element. They are subject to regular monitoring to assess their consistency over time, in line with the requirements set out in
the CRR regarding credit risk mitigation.
The granting, review and monitoring activities of credit in UniCredit are carried out in line with the EBA Guidelines on granting and monitoring (EBA
GL on loan origination and monitoring).
The Non-Performing Exposure (NPE) Strategy represents the base on which specialised debt collection processes are developed. The NPE
Strategy defines, at both the Group and Legal Entity level, the qualitative NPE management approach and quantitative time-bound targets by time-
horizon and dynamics (i.e., write-off, recoveries, disposals, flows etc.) with the goal of managing NPE stock in a clear, credible, and feasible manner.
The Group customer base is mixed and heterogeneous and is managed through segmentations which makes it possible to manage customers
competently through dedicated functions, as well as through tailored products/initiatives.
The recovery initiatives are supported by a combined approach between subjective assessments and automated processes. Depending on the
strategy and organizational set-up implemented locally by the Legal Entities, Group collection rules stipulate an early transfer of files/clients to
specialised functions independently from, and long before, a possible default. This is done to anticipate and avoid defaults through a relationship
management framework committed to proactive risk management.
To allow proactive risk management and the related reduction of a client’s existing exposure, Legal Entities may grant forbearance measures as
described in the relevant section of the current Notes to consolidated accounts. The main objective of this activity is to protect the economic and
financial structure of the borrowers. In the forbearance context, the restructuring can be conducted in a Performing or Non-Performing classification
according to the related Regulatory Framework ruling the loan classification.
The co-operation of clients is a pre-condition to any restructuring activity. Close and direct interaction with the borrower, as well as with other
parties/stakeholders involved, is crucial for the success of the restructuring process. UniCredit acts in line with its Code of Conduct, adopting
appropriate behavior and language in order to build and maintain a relationship of trust with the customer (e.g., use of non-coercive language and a
non-harassment attitude). For this reason, the relationship with the borrower is assigned to specialised functions which maintain the responsibility of
the borrower as long as the restructuring is in place. In case the credit restructuring activities are not feasible or successful, or there is no
improvement of the client risk profile, Workout activities aim at maximizing the credit recovery, and the credit exposure must be classified in the
relevant default status, if not already done. These activities are carefully devised to ensure that the relationships fostered with clients are maintained
to the best extent possible.
Recovery activities at UniCredit are carried out in compliance with EBA guidelines on the management of credit impaired and forborne exposures.
Credit strategies
More in general, the Group credit strategies are an effective tool for managing credit risk, contributing to the definition of the budget objectives in line
with the Group's Risk Appetite, of which they are an integral part. They also constitute a management tool as they translate the metrics defined
within the Risk Appetite into concrete form.
537
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Based on the macroeconomic and credit scenario, the outlook at the economic sector level, as well as the business initiatives/strategies, the credit
strategies provide a set of guidelines and operational targets aimed at the countries and business segments in which the Group work and are
performed on the operating structures of each Group legal entity and included in their respective commercial policies. The ultimate goal is to ensure
sustainable commercial growth, consistent with the risk profile of each company, remaining within the limits defined by the Group Risk Appetite
Framework.
Within the framework of the strategies underlying credit activity, concentration risk is considered particularly important. This is the risk associated
with losses generated by a single exposure or group of related exposures that (in relation to the capital of a bank, total assets, or the overall risk
level) can generate potentially serious effects on the solidity and "core" operation of the Group.
In compliance with the relevant regulatory framework, UniCredit group manages the concentration credit risk through specific limits that represent
the maximum risk that the Group intends to accept regarding, for example:
• individual counterparties or groups of connected counterparties (Single Name Bulk Risk);
• counterparties belonging to the same economic sector (Industry Concentration Risk).
The results of stress test simulations relating to expected loss are an integrated part of the definition of credit strategies.
2. Credit risk management policies
2.1 Organisational aspects
Factors that generate credit risk
During the ongoing credit and business activities, the Group is exposed to the risk that an unexpected change in a counterparty's creditworthiness
may generate a corresponding unexpected change in the value of the associated credit exposure and may thus result in a partial or full write-off.
This risk is always associated to the traditional lending practice, regardless of the form of the credit facility (whether cash or credit commitments,
secured or unsecured, etc.).
The main reasons of a default lie in the borrower’s failure to fulfil its credit obligation (due to the lack of liquidity, for insolvency reasons, etc.), as well
as the occurrence of macro-economic and political events that are affecting the debtor’s operating and financial conditions.
Other banking operations, in addition to traditional lending and deposit activities, can constitute other credit risk factors. In this view, “non-traditional”
credit risk may arise from:
• subscription of derivative contracts;
• purchase and selling of securities, futures, currencies or commodities;
• holding third-party securities.
The counterparties in these transactions or issuers of securities held by Group Legal Entities could default as a result of insolvency, political and
economic events, lack of liquidity, operational deficiencies or other reasons. Defaults of a large number of transactions, or of one or more large
transactions, could have a material adverse impact on the Group’s activities, financial condition and operating profits. The Group therefore monitors
and manages the specific risk of each counterparty as well as the overall risk of loan portfolios through procedures, Functions and rules that steer,
govern and standardise the assessment and management of credit risk, in line with the Group principles and best practice.
Organisational structure
Credit risk management in the UniCredit group is under the responsibility of the Competence Line Group Risk Management, which is responsible for
the direction, governance and control of credit risk. The operational management of credit activities is assigned to Business and Credit Risk
Operations functions at local level, with the activities of granting, periodic review and performance monitoring requiring the cooperation between
Commercial Relationship Managers, Credit Analysts supporting Business Managers and Credit Risk Managers of the Credit Operations functions
(Credit Underwriting, Credit Monitoring) who intervene for cases of greater complexity or amount, while the activities of classification, restructuring
and credit recovery are under the responsibility of local Credit Operations functions, internally divided into different levels:
• functions with responsibilities at Group level;
• functions with responsibilities at Country level.
Regarding Group Risk Management, Parent Company Functions with responsibilities at Group level include:
• Group Credit Risk
The Structure has the following mission: it is responsible for the general orientation and governance of credit risk at Group level, which includes the
definition of the Group's credit risk strategies and limits, portfolio monitoring and control, the definition of the credit risk management activity
framework, and of the methodologies for calculating risk parameters, asset quality planning and monitoring, the Non-Performing Exposures
management strategy, the implementation of Climate & Environmental (C&E) risks analysis in the Credit Pillar, the credit risk analysis of large credit
files and the assessment, review and monitoring at Group level of FIBS (Financial Institutions, Banks and Sovereign) client segments and of country
538
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
and cross-border risk, the development and management of credit risk models and the governance over the credit risk models roadmap.
The structure of “Group Credit Risk” breaks down in the following structures:
- Group NPE
The structure has the following mission: responsible for developing the strategy for managing non-performing exposures, supervising their
management, monitoring, process, setting objectives and executing portfolio sales, defining the characteristics of the management platforms for
Non-Performing Exposures, repossessed assets and any other impaired assets of the Group.
Group NPE is also responsible for assessing transactions relating to counterparties managed by the local Restructuring or Workout functions in
the event of exposures above the thresholds defined from time to time.
It is responsible for managing and approving (i.e. risk classification status, adequacy of provisions, risk mitigation strategy) exposures to
Corporate customers with a impaired risk profile (managed in restructuring or workout) on the books of UniCredit S.p.A. (“Profit Center Milano”);
responsible for issuing Binding Credit Opinion/ BCO for impaired exposures on the books of UniCredit S.p.A. and for the issuance of Non-Binding
Credit Opinion/NBCO for impaired exposures on the books of the Group Entities above the credit competences assigned to each Entity.
- Credit Models & Risk Policies
The structure has the following mission: it is responsible for ensuring at Group level the coordination and guidance of all Pillar I credit risk models
(including IFRS9 models and other managerial models) and related methodologies as well as the management of credit stress tests (regulatory
and managerial). It is also responsible for defining rules and guiding principles for the management of credit activity and for evaluating proposals
regarding the revision of credit frameworks presented by other competent Group functions, as well as collaborating with other Group functions in
the area of Risk Weighted Assets/RWEA issues.
- Credit Risk Strategies, Monitoring and Controls
The structure has the following mission: it is responsible, at Group level, for defining credit risk strategies (both performing and non-performing),
monitoring and controlling the relevant risk KPIs of the Group portfolio (e.g. asset quality, provisions) as well as, within the credit processes, for
defining and applying the risk assessment methodology in order to identify the risk areas and the mitigation actions to be implemented. The
above-mentioned responsibilities also apply to exposures to Retail and Corporate customer segments relating to the CE&EE portfolio in the
books of the CE&EE Entities or in the books of UniCredit S.p.A. (“Profit Center Milano”). With reference to the PCM portfolio, further activities are
carried out aimed at analyzing and monitoring this portfolio.
Furthermore, it is responsible for supporting the definition and implementation of climate and environmental factors in credit risk strategies and
processes, as well as monitoring physical and transition risk in the credit portfolio, also through functional analyses for the definition of limits and
credit strategies.
- Group Credit Transactions
The structure has the following mission: it is responsible for the assessment, monitoring and supervision at Group level of Large Credit
Transactions and for the management of the global credit model of Financial Institutions, Banks and Sovereign States (FIBS). Furthermore, it is
responsible for the assessment, approval and daily management of Country Risks and the assumption of cross-border credit risk and the
mapping of the economic Groups defined as “Top”. Finally, it is responsible for supporting, as a point of reference at Group level, credit
transactions above defined thresholds or in accordance with other applicable regulations, the preparation and coordination of the various
procedural phases and information flows to facilitate the functioning of the approval and reporting processes involving the Committees under its
jurisdiction or the higher Bodies.
With respect to credit risk, the following specific Committees are active:
• the “Risks” session of the GEC (Group Executive Committee), with approval, proposal and consultancy functions, supports the CEO in the
direction, coordination and control of all risk categories (including compliance risk), in the management and supervision of the internal control
system also at Group level as well as in the discussion and approval of risk issues of strategic relevance such as the Group Risk Appetite
Framework, ICAAP, ILAAP, SREP, NPE strategy in line with the global risk profile defined by the RAF and the direction of Environmental, Social
and Governance (ESG) issues including Climate & Environmental Risks (i.e. physical and transition risks);
• the Group Financial and Credit Risks Committee (GFRC) supports the CEO in the role of addressing, coordinating and controlling credit and
financial risks (including Climate & Environmental risks) at Group level, also through the management and supervision of the related Internal
Control System (ICS) and is divided into various sessions, two of which are relevant to credit risk management: (i) Credit Risk session, responsible
for defining policies, operating limits and methodologies for measuring, managing and controlling credit risk, as well as defining methodologies for
measuring and controlling internal capital and assessing risk reporting and estimating risk provisions; ii) Rating approval session, responsible,
within its own scope of competence and within its delegated powers, for approving rating changes (rating override);
• the Group Transactional Committee (GTC) that consists in the following sessions:
- (i) Group Credit Committee Session (GCC) has, in particular, approval/NBCO functions (decision-making and/or issuing of non-binding credit
opinions to the Group Legal Entities), within the delegated powers, for:
• sub-delegation to the Personnel of the Bank, without the right to further sub-delegate, the powers to take decisions;
• credit proposals referring to all files, including restructuring/workout ones;
• status classification of files;
539
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
• relevant strategies and corrective actions to be taken for watchlist files;
• specific limits for transactions related to Debt Capital Markets on Trading book;
• single issuer exposures limits on Trading book;
• temporary/annual breaches to Single Names Concentration Risk Limits within the thresholds defined by Group regulation of competence;
• Debt to Equity transactions and transactions related to Equity participations deriving from Debt to Equity transactions;
• the Debt Capital Market (DCM) transactions issuing Non-Binding Credit Opinion (NBCO);
• ECM (Equity Capital Market) Risk transactions above specific threshold levels of transaction’s value.
- (ii) Group Transactional Credit Committee Session (GTCC) has, in particular, approval/NBCO functions (decision-making and/or issuing of non-
binding credit opinions to the Group Legal Entities) within the delegated powers for:
• credit proposals referring to all files, including the Group NPE files;
• credit proposals within the sub-delegations of powers and competence of Large Corporates, Corporates CE&EE, Group Financial Institution
functions in case of escalation activated by them on files assessed with a "not supportive unless all conditions are met " or a "not supportive"
opinion expressed by the Head of Group Credit Risk and/or the Head of Group Credit Transactions, on the basis of new evidences with respect
to those presented at the time of issuing of the opinion;
• classification status of files;
• relevant strategies and corrective actions to be taken for watch-list counterparties;
• single issuer exposure limits on Trading book;
• Debt to Equity transactions and/or actions/rights-execution related to equity participations resulting from Debt to Equity transactions;
• Debt to Assets transactions and/or actions/rights execution related to asset resulting from Debt to Asset transactions;
• proposal of distressed asset disposal, in accordance with the regulated specifications and limitations in force;
• the Debt Capital Market (DCM) transactions issuing Non-Binding Credit Opinion (NBCO);
• on semiannual basis, the “DCM pre-approved list”: list of a selected group of names and respective commitment amounts for which there is no
need to have the NBCO on the single transaction;
• ECM (Equity Capital Market) Risk transactions above specific threshold levels of transaction’s value;
• temporary/annual breaches to Single Names Concentration Risk Limits within the thresholds defined by dedicated Group regulation.
Specific committees related to UniCredit S.p.A. are described in the paragraph “2.1 Organisational aspects which is herewith quoted entirely” of the
Company financial statements of UniCredit S.p.A., Notes to the accounts, Part E - Information on risks and related hedging policies, Section 1 -
Credit risk, Qualitative information, 2. Credit risk management policies, which is herewith quoted entirely.
2.2 Credit risk management, measurement and control
2.2.1 Credit risk management
The credit risk, associated to the potential loss arising either from a default of the borrower/issuer or from a decrease in the market value of a
financial obligation due to a deterioration in its credit quality, is measured at both single borrower/transaction and at whole portfolio level.
Credit lending to single customers, during both the approval and monitoring phases, is supported by a credit rating process, differentiated by
customer segment and product. The assessment of a counterpart’s creditworthiness, within the credit proposal evaluation, begins with an analysis of
the financial statements and the qualitative data (competitive positioning, corporate and organisational structure, etc.), regional and industry factors
and counterpart behavior within the entity or the banking system (e.g. Centrale dei Rischi of Banca d’Italia), and results in a rating, i.e. the
counterpart’s probability of default (PD) on a one-year time horizon.
Each borrower’s credit rating is reviewed at least annually on the basis of the new information acquired. Each borrower is also assessed in the
context of the belonging economic group considering, when needed, the risk for the entire group.
The internal rating assigned to each borrower and its economic group exposure both contribute to the lending decision calculation, defined in such a
way that, at a constant credit amount, the approval powers granted to each decision-making corporate body are gradually reduced in proportion to
the increased borrower/related risk level.
The organisational model used by UniCredit group also includes a dedicated function, which is separated from loan approval and business functions
and is responsible for the management of the so-called rating “overrides”, i.e., any changes to the automatic rating calculated by the rating system
(where it is foreseen).
Regular monitoring of the rating focuses on the borrower’s performance management, using all the internal and external available information in
order to get a score representing a synthetic assessment of the risk associated. This score is obtained using a statistical function that summarises
the available information using a set of significant variables that are predictors of an event of default within a 12-months horizon.
540
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
In addition to the usual estimation of risk parameters over one-year time horizon, multi-period risk parameters are estimated to provide a more
robust assessment of the risk-adjusted performance in compliance with the accounting standards requirements.
All the above-mentioned risk parameters are subject to an initial validation and a regular monitoring process for each rating system in all its
components: models, processes, IT architecture and data quality. The aim is to give evidence of the systems compliance, highlighting improvement
areas as well as possible misalignments in the methodologies, which could limit the full comparability among the resulting risk measures.
2.2.2 Risk parameters
Besides the methodologies summarised in the rating systems, the Group Risk Management function leverages on portfolio model enabled to
measure credit risk for Basel Pillar 2 purposes on an aggregated basis and to identify the contribution of single sub - portfolio or obligor to the overall
risk.
There are two fundamental portfolio credit risk measures which are calculated and evaluated on a time horizon of one year:
• Expected Loss (EL);
• Credit Value at Risk (Credit VaR).
The estimate of Credit VaR at overall portfolio level is derived from the distribution of losses obtained by Monte Carlo simulation on the horizon of
one year, considering the correlations among counterparties. The total loss in each default scenario is the sum of the individual losses, being
defined as the product of LGD TTC (Loss Given Default Through the Cycle) and EAD (Exposure at Default) for transactions related to defaulted
counterparts. For exposures classified at amortised cost, in each simulated scenario, the loss estimation related to their simulated creditworthiness
deterioration is added to the total loss related to the counterparts simulated in default.
Within the Credit VaR framework, the Expected Loss (EL) at portfolio level is defined as the sum of the product of PD, LGD (both TTC) and EAD for
each obligor in the considered portfolio plus a migration risk charge related to the expected creditworthiness deterioration for exposures classified at
amortised cost.
The Value at Risk (VaR) represents the monetary threshold of the losses distribution which is overcome only with a given probability level (a 99.9%
confidence level VaR implies that the loss threshold is exceeded in 1 case out of 1,000). Economic Capital is derived from Value at Risk subtracting
the Expected Loss and is an input for determining Economic Capital set up to cover potential losses from all the sources of risk (Reference is made
to paragraph “Other risks included in Economic Capital”, Notes to the consolidated accounts, Part E - Information on risks and related hedging
policies, Section 2.6 Other risks).
The measures of Economic Capital based on Credit VaR are also a fundamental input for the design and application of credit strategies, the analysis
of credit limits and risk concentration. The Economic Capital calculation engine is also one of the instruments used for the analysis of stress testing
of the credit portfolio.
The internal Credit VaR model is also subject to assessment in the context of Pillar II validation.
The calculation of the credit economic capital is available on a single technological platform (Group Credit Portfolio Model, GCPM), with a shared
methodology for the structures of UniCredit S.p.A. and the main entities of the Group.
In order to assess the credit risk transfer created by securitisation transactions originated by the Group, an engine (Structured Credit Analyser) has
also been developed, which simulates the loss distribution of the securitised portfolio and of the tranches, both for synthetic securitisations (in which
the risk is transferred through guarantees/credit derivatives) and for traditional ones (where the assets are sold to a special purpose vehicle).
2.2.3 Rating systems
Banca d’Italia, with act No.365138 dated 28 March 2008, authorised UniCredit group to use IRB Advanced approach in order to determine capital
requirements for credit risks.
The Group has been authorised to use internal estimations of PD, LGD and EAD parameters for Group wide credit portfolios (Sovereign, Banks,
Multinational Corporate and Global Project Finance) and for local credit portfolios of relevant subsidiaries (Corporate and Retail). With reference to
Italian Mid-corporate and Small Business portfolios, regulatory EAD parameters are currently used.
These methodologies have been adopted by UniCredit S.p.A. (UCI S.p.A.), UniCredit Bank GmbH (UCB GmbH) and UniCredit Bank Austria AG
(UCBA AG). According to the Roll-out plan, providing a progressive extension of the IRB rating methods, approved by the Group and shared with
the Supervisory Authorities, the methods have been extended starting from 2008 to the following Legal Entities: UniCredit Banka Slovenija d.d.,
UniCredit Bulbank AD, UniCredit Bank Czech Republic and Slovakia a.s., UniCredit Bank Hungary Zrt., UniCredit Bank (SA) Romania and AO
UniCredit Bank in Russia.
In October 2021, UniCredit Leasing GmbH and Subsidiaries have been authorized to revert to the use of the Standardised Approach (Permanent
Partial Use) for all former AIRB portfolios. From 1 November 2021, UniCredit Bank Ireland plc. was merged in UCI S.p.A. and for exposures coming
from UniCredit Bank Ireland plc. the RWEA calculation approaches authorised in UCI S.p.A. were adopted.
541
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
This qualitative information provides the description of the rating systems authorized by the Supervisory Authorities for each main exposure class, as
illustrated in the following table. Further details are present in the paragraph use of the IRB approach, Credit risk, of UniCredit group Disclosure
(Pillar III).
PREVAILING ASSET CLASS
RATING SYSTEM
LEGAL ENTITY
Central governments and
central banks
Group Wide
Sovereign (PD, LGD, EAD)
UCI S.p.A., UCB GmbH, UCBA AG, UCB CZ & SK, UCB
RO(*)
Institutions
Financial Institutions & Banks (PD, LGD, EAD)
UCI S.p.A., UCB GmbH, UCBA AG, UCB Slo(*), UCB
BG(*), UCB CZ & SK, UCB HU(*), UCB RO(*)
Corporate
Multinational Corporate (PD, LGD, EAD)
UCI S.p.A., UCB GmbH, UCBA AG, UCB Slo(*), UCB BG,
UCB CZ & SK, UCB HU(*), UCB RO(*), AO UCB(*)
Global Project Finance (PD, LGD, EAD)
UCI S.p.A., UCB GmbH, UCBA AG, UCB CZ & SK
Local
Integrated Corporate Rating (RIC) (PD, LGD)
UCI S.p.A.(**)
Mid Corporate (PD, LGD, EAD)
UCB GmbH, UCBA AG, UCB CZ & SK, UCB BG, UCB
HU(*), UCB RO(*)
Foreign Small and Medium Sized Enterprises (PD, LGD, EAD) UCB GmbH
Income Producing Real Estate (IPRE) (PD, LGD, EAD)
UCB GmbH, UCB CZ & SK
Acquisition and Leverage Finance (PD, LGD, EAD)
UCB GmbH
Wind Project Finance (PD, LGD, EAD)
UCB GmbH
Real Estate (PD, LGD)
UCI S.p.A.
Commercial Real Estate Finance (PD, LGD, EAD)
UCB GmbH
Real Estate Customers Rating (PD, LGD, EAD)
UCBA AG
Income Producing Real Estate (IPRE) (Slotting criteria)
UCI S.p.A., UCBA AG, UCB BG
Project Finance (Slotting Criteria)
UCB BG
Retail exposures
Integrated Small Business Rating (RISB) (PD, LGD) (***)
UCI S.p.A.
Integrated Private Rating (RIP-One) (PD, LGD, EAD)
UCI S.p.A.
Small Business (PD, LGD, EAD)
UCB GmbH, UCBA AG, UCB CZ & SK, UCB BG
Private Individuals (PD, LGD, EAD)
UCB GmbH, UCBA AG, UCB CZ & SK, UCB BG
Securitisation
Asset Backed Commercial Paper (PD, LGD, EAD)
UCB GmbH
Notes:
(*) These entities are currently authorized only to use the IRB Foundation, therefore use only PD internal estimations for determination of capital requirements. Moreover, for AO UCB the use of the FIRB approach is for
consolidated purposes only.
(**) The Integrated Rating Corporate (RIC) rating system is also adopted for the Italian Large Corporate (ILC) portfolio for the estimation of PD and LGD parameters, which includes Italian companies with an operating
revenues/value between €250 and €500 million.
(***) PD Parameter is applied, among others, also to Natural Persons characterized by entrepreneurship risk ("Private-like") which are excluded from the scope of application of the PD RIP-One but included within the unique
framework of LGD RIP One.
Keywords:
UCI S.p.A.: UniCredit S.p.A.
UCB GmbH: UniCredit Bank GmbH
UCBA AG: UniCredit Bank Austria AG
UCB Slo: UniCredit Banka Slovenija d.d.
UCB BG: UniCredit Bulbank AD
UCB CZ & SK: UniCredit Bank Czech Republic and Slovakia, a.s.
UCB HU: UniCredit Hungary Zrt.
UCB RO: UniCredit Bank SA (Romania)
AO UCB: AO UniCredit Bank (Russia)
542
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
2.2.4 Stress test
With reference to the strategies of credit risk management, the use of Credit Risk Stress Test is considered of particular importance because its aim
is to analyse the portfolio vulnerability in case of an economic downturn or a structural change of the macroeconomic framework. In performing the
stress test exercises, different scenarios are considered, based on increasing levels of severity. In addition, scenarios may also be defined based on
specific economic hypotheses.
The credit Stress Test models (or satellite models) are the set of models aimed at translating the macro-economic conditions into credit risk
parameters (PD/LGD). Within the wider stress testing framework, the models serve as basis for calculating the stressed PD/LGD projections under
the Adverse Scenarios. They are used in the same way for the estimation of Forward-Looking component within the IFRS9 framework.
As regards the modelling methodology, the current framework envisages to estimate at cluster level (Country/Asset Class) through time series
and/or panel regressive analysis, the relationships between the macro-economic factors and the internal default/recovery rate historically observed.
However, regarding the low default portfolios (Multinational, Banks, Sovereigns), for which not sufficiently robust time series of defaults
events/internal recovery rates are available, alternative approaches are considered. These imply to leverage either on external data (i.e. external
rating) or directly stressing the input of Group Wide Rating System (i.e. Sovereign Rating System).
Model’s output in terms of expected variations of PD/LGD conditional to the macro-economic scenarios are then used in order to obtain stressed
PD/LGD of each credit exposure. Starting from the stressed PD/LGD the Pillar I Credit Risk metrics (LLP and RWEA) are calculated through
dedicated simulation engines and according to the EBA Stress test methodology, while Pillar II stress metrics (EC and AFR) are calculated
according to the following methodology:
• Credit Economic Capital: stressed PDs and LGDs are used as a basis to recalculate the Credit Economic Capital using the GCPM.
The result represents the Credit Economic Capital that would be obtained in the current Bank portfolio if the stressed scenario is experienced;
• AFR: the amount stemming from the difference between the Stressed Expected Loss (calculated based on PD-TTC and LGD-TTC) and the actual
Expected losses is deducted from AFR.
2.3 Measurement methods for expected losses
Risk management practices
2.3.1 Staging Allocation and Expected Credit Losses (ECL) Calculation
The Credit Risk Management, Measurement and Control processes described in the previous paragraph, are also used for the calculation of
impairment of Loans and debt securities classified as financial assets at amortised cost, financial assets at fair value through other comprehensive
income and relevant off-Balance sheet exposures as required by IFRS9.
For this purpose, the calculation of impairment in accordance with expected credit losses is based on two main pillars:
• the Stage allocation of the credit exposures;
• the associated calculation of expected credit loss.
Stage allocation - General framework
In the UniCredit group, the Stage allocation is based on the application of qualitative and quantitative components. With reference to the quantitative
component of the stage allocation model, the Group has adopted a statistic approach, whose goal is to define a threshold in terms of maximum
variation acceptable between the PD measure at the disbursement and the one at the reference date. In this regard, in the context of the initiatives
for the revision of IFRS9 framework, a new IFRS9 staging framework, aiming to make staging and provisioning more consistent with economic
expectations, has been progressively rolled-out at Group level during first half of 2024 leading overall to release LLPs for €126 million.
In more detail among the others qualitative and quantitative elements to be assessed, the following are worth to be outlined:
• comparison, on a transaction basis, between the PD as of origination date, and the PD as of the reporting date, both calculated according to the
internal models and based on a Lifetime view; the thresholds consider all the key variables that can affect the Bank's expectation about PD
changes over time (e.g., residual maturity, PD level at the time of first origination). In the comparison between Lifetime PDs as of origination and
reporting dates, beside considering the specific current and forward-looking conditions as a key element affecting the PD comparison, also the
repayment structure (specifically bullet/balloon compared to amortizing loans) is taken into consideration in the PD comparison, in order to factor-in
higher riskiness of financial instruments with significant repayment at maturity, where the risk of a default occurring may not necessarily decrease
as time passes80;
80 In line with IFRS9 Par. B5.5.11. In this regard, the Lifetime PD considered for bullet/balloon loans and used in the PD comparison for staging allocation is also consistently adopted for Expected Credit Loss calculation.
543
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
• further quantitative criteria, in order to support the timely detection of the Significant Increase in Credit Risk, namely:
- threefold increase in lifetime PD, Stage 2 classification is triggered in case the Lifetime PD at the reporting date results higher than three times
the one at the inception date of the financial instruments, in line with Supervisory expectations;
- adoption of a threshold value of 1 year IFRS9 PD equal or higher than 20% as a Stage 2 criterion, such threshold, adopted considering the
benchmark value retrievable within the ECB Asset Quality Review Manual, has the aim to identify financial instruments that, with little room for
interpretation, have registered a significant increase of credit risk since inception date and with high risk of migration to default;
• absolute elements, such as the backstops required by law (e.g., 30 days past-due). In this case, the Group has chosen not to reject the significant
deterioration presumption after 30 days past-due by allocating in Stage 2 transactions with more than 30 days past due81;
• additional internal assessment, also including renegotiations of financial instruments due to financial difficulties met by the counterparty (e.g.,
Forborne classification) and certain kinds of credit monitoring watchlist classifications.
The Stage allocation model is tested at each reporting date, to timely capture both significant deterioration and its reverse in a symmetric way and to
correctly allocate each transaction within the proper stage and related expected loss calculation model. In this regard it is noted that in order to
achieve lower volatility in the migrations of the Stage classifications the following measures are in place:
• adoption of a minimum time permanence in stage 2 of at least 3 months, since initial classification in such a stage, preventing the reclassification
to Stage 1 from Stage 2 in case of overcoming of the quantitative and/or qualitative conditions underlying the Significant Increase in Credit Risk
before a minimum period in stage 2 has passed, stabilising Staging migrations;
• full alignment of the Stage 2 classification to the Forborne Performing status, thus ensuring a minimum period of permanence for concessions to
clients in financial difficulty equal to the regulatory Probation Period. Such measure makes consistent the entrance/exit criteria to/from Stage 2 due
to Forborne Performing classification, avoiding potentially premature reverts to Stage 1 for obligors having yet significantly higher credit risk than
the ordinary performing portfolio.
The outcome of the Stage allocation is the classification of credit exposure in Stage 1, Stage 2, or Stage 3 according to their absolute or relative
credit quality with respect to the initial disbursement. Specifically:
• the Stage 1 includes:
- newly issued or acquired credit exposures;
- exposures for which credit risk has not significantly deteriorated since initial recognition;
- exposures having low credit risk (low credit risk exemption), qualifiable as investment grade debt securities as well as loans on clients having a 1-
year IFRS9 PD lower than 0.3%82. Such a treatment of these types of exposure allows to stabilise staging 2 migrations, reducing volatility and
avoiding classification for customers characterised by a clearly low level of credit risk;
• the Stage 2 includes credit exposures that, although performing, have seen their credit risk significantly deteriorating since initial recognition;
• the Stage 3 includes impaired credit exposures. With reference to Stage 3, it should be noted that it includes impaired exposures in accordance
with Banca d’Italia rules, defined in Circular No.272 of 30 July 2008 and subsequent updates, to the aggregate Non-Performing Exposures as ITS
EBA (EBA/ITS/2013/03/rev1 24 July 2014). In particular, EBA83 has defined as “Non-Performing” exposures that meet one or both of the following
criteria:
- material exposures more than 90 days past due;
- exposures for which the bank assesses that is unlikely that the debtor would pay in full his credit obligations without recurring to enforcement and
realisation of collaterals, regardless of past due exposures and the number of days the exposure is past due.
The result of the stage allocation affects the amount of expected credit losses recognised in financial statements (ref. to the next caption). Indeed:
• for exposures in Stage 1, impairment is equal to the expected loss calculated over a time horizon of up to one year;
• for exposures in Stages 2 or 3, impairment is equal to the expected loss calculated over a time horizon corresponding to the entire life of the
exposure.
81 The only one exception on the adoption of 30 days past-due as backstop is in UniCredit S.p.A. in presence at client level of purchased receivables without recourse. Indeed, given the peculiarity of factoring business,
characterised by roll-over of receivables payment and technical timing for management of the payment of the receivables, the 30 days past-due can be prone to be breached due to pure technical reasons. Consequently, the
30 days past-due significant deterioration presumption may be rebutted demonstrating that most of the client exposures in 30 days past-due is related to factoring activities. In such case the backstop for 30 days past-due is
set out at 60 days past-due.
82Such threshold, in addition to be a supervisory benchmark retrievable from ECB Asset Quality Review Manual, is also consistent with an Investment Grade equivalent level of risk.
83 The regulatory framework for the new definition of default has been integrated with the entry into force, starting from 1 January 2021 of the "Guidelines on the application of the definition of default under article 178 of
(EU) Regulation 575/2013 "(EBA/GL/2016/07).
544
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Expected credit loss calculation - General framework
To calculate expected loss, the Group has developed specific models based on PD, LGD and EAD parameters and the effective interest rate.
In particular:
• PD (Probability of Default), which expresses the exposure probability of default in a given time horizon (e.g.: 1 year);
• LGD (Loss Given Default), which expresses the estimated loss percentage and therefore the expected recovery rate when a default event occurs;
• EAD (Exposure at Default), expresses the level of the exposure at the time of default event;
• the effective interest rate is the base rate which expresses the time value of money.
Such parameters are calculated starting from the same parameters applied for regulatory purposes, specifically adjusted to guarantee full
consistency, however respecting the different requirements between accounting and regulatory treatment. The main adjustments are aimed at:
• removing the conservativism required for regulatory purposes;
• introducing “point in time” adjustments which replace the “through-the-cycle” view required by the regulation;
• including “forward looking” information;
• extending credit risks parameters to a multi years horizon.
With reference to lifetime PD, PD curves calculated through-the-cycle are calibrated to reflect the point-in-time and forward-looking expectation with
reference to the portfolio default rate. The recovery rate embedded in the LGD calculated along the economic cycle (through-the-cycle) is adjusted
to remove the margin of conservatism and reflect the current trends in recovery rates as well as expectations about future trends discounted to the
effective interest rate or its best approximation.
The EAD calculated along the instrument lifetime is determined by extending the prudential or managerial one-year model, removing the margin of
conservatism. The forecast in terms of default rate and recovery rate, determined through models that estimate a relationship between these
variables and macroeconomic indicators, is embedded in the PD and LGD parameters during the calibration phase. The credit parameters, in fact,
are normally calibrated on a horizon that considers the entire economic cycle (Through-the-cycle - TTC), so it is necessary to calibrate them Point -
in - time (PIT) and Forward - Looking (FL) allowing to reflect in these credit parameters the current situation as well as expectations about the future
evolution of the economic cycle.
The expected credit loss deriving from the parameters previously described considers macroeconomic forecasts through the application of multiple
scenarios to the forward-looking components in order to compensate the partial non-linearity that is naturally embedded in the correlation between
the macroeconomic changes and expected credit loss. Specifically, the non-linearity effect is incorporated by estimating a correction factor applied
directly to the expected credit loss (ECL) of the portfolio.
Expected credit loss calculation - adjustments applied as at 31 December 2024
Overlay
As at 31 December 2024, in light of persistence of the geopolitical uncertainty, the relevant adjustments with impact on loan loss provisions’
recognition were maintained.
In this regard, UniCredit applied the following adjustments:
• a Real Estate overlay was recognised since 31 December 2023 to cover refinancing risk and collateral value reduction given the real estate risk,
which might impact the ability of Commercial Real Estate clients to repay their credit exposures giving the persistent high interest rates and lower
price of real estate assets; such overlay is applied to clients having Commercial Real Estate Financing business or belonging to Real Estate
Industry;
• a Geopolitical overlay was recognised since 31 December 2022 in order to consider the sharp rise in energy costs, inflation and interest rates for
both Corporate and private individuals. In detail the following portfolios were kept into account:
- Corporate energy-intensive industry sectors prone to be more affected by spill-over effects linked to Russia-Ukraine crisis, specifically impacting
the energy supply and related price soaring;
- Retail clients, for: (i) floating rate mortgages (not having overdue instalments), given the sensitiveness in this context of increasing interest
rate/inflation, and (ii) at least 1 unpaid instalment on their exposures, the latter indicative of counterparties with already difficulties in payments
and as such particularly vulnerable in this specific contingency.
545
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
With reference to both overlays, as far as calculation is concerned:
• the credit exposures belonging to the above categories were identified according to their specific features;
• satellite models were run by applying, as macro - economic conditions, the Alternative Scenario (refer to Part A - Accounting policies, A.1 -
General, Section 2 - General preparation criteria)84;
• then, the resulting adjusted default rate is applied to the relevant categories to estimate the expected new inflows of defaulted exposures;
• eventually, additional LLPs are calculated by applying to the expected new inflows of defaulted exposures the average coverage rate applied to
Unlikely to Pay.
As at 31 December 2024, as a result of the approach here outlined the total amount of overlays is equal to €1,659 million (€1,162 million Geopolitical
overlay and €497 million Commercial Real estate Overlay), of which UniCredit S.p.A. €919 million (€692 million related to Geopolitical Overlay and
€227 million Commercial Real Estate overlay). As at 31 December 2023, the amount of overlays was equal to €1,818 million (€1,314 million
Geopolitical overlay and €505 million Commercial Real estate Overlay), of which UniCredit S.p.A. €961 million (€758 million related to Geopolitical
Overlay and €203 million Commercial Real Estate overlay). The reduction is the result of (i) default in-flows and portfolio dynamic and (ii)
Macroeconomic scenario evolution.
2.3.2 Non-performing exposures
With reference to impaired exposures (Stage 3) the expected recoverable amount, and therefore the expected credit loss, is the present value of
future cash flows expected to be recovered, discounted at the original interest rate.
Therefore, the main determinants of this value are:
• the expected cash flows;
• the expected timing of payments of these cash flows;
• the effective interest rate used for discounting.
Expected cash flows on defaulted exposures are calculated on an individual basis for individually significant exposures.
Expected cash flows on already defaulted exposures that are not individually significant are calculated either on an individual or a collective basis.
Where a Legal Entity has several individually significant exposures towards one single counterparty, each loan is individually assessed while also
considering the overall position of the counterparty.
Future cash flows must be estimated considering the historical trend of recovery for exposures having similar credit risk features. The historical trend
in any case is adjusted so to embeds the current economic environment and the expected economic outlooks.
2.3.3 Selling scenarios
In the assessment of impaired exposures (Stage 3), possible sales scenarios are also considered where the Group's NPE strategy envisages
experiencing recovery through their sale to the market.
For this purpose, the presumed recovery value of credit exposures classified as Bad Loans and Unlikely to Pay is determined as weighted average
between two scenarios:
• internal recovery scenario, whose expected recovery value is estimated assuming an internal work-out process according to what has previously
been described;
• sale scenario, whose expected recovery value is estimated assuming the sale of the exposures on the market. The expected sale price is
determined considering market or internal information based on the following hierarchy:
- prices deriving from past sales of impaired loans with homogeneous characteristics with those evaluated;
- prices observable on the market for impaired loans with homogeneous characteristics with those evaluated;
- internal evaluation models.
In line with the new strategy to maximize the value of non-performing portfolio through all possible levers, during 2024 deleveraging actions on non-
performing positions for which the sale was considered the solution optimizing have been launched for total GBV of €1.7 billion (of which €1.1 billion
related to UniCredit S.p.A.), of which €53 million evaluated, in UniCredit S.p.A., in selling scenario.
The residual perimeter in UniCredit S.p.A. evaluated under IFRS9 “selling scenario” evaluation approach at 31 December 2024 is €234 million. With
reference to the credit exposures evaluated with the selling scenario as at 31 December 2024, the prices, strategies and probability of disposal were
updated in respect of those applied as at 31 December 2023, leading to LLPs release for €20 million.
84 For the geopolitical overlay and the CREF one the alternative scenarios were kept equal as at 31 December 2022 and 31 December 2023 respectively as such scenarios were still deemed to be appropriate. In addition,
specifically for commercial real estate overlay, the alternative scenario was adjusted to neutralize the components favorably affecting the creditworthiness of the Commercial Real Estate portfolio by implicitly lowering the
default rate. In detail: (i) the short-term interest rates used in the baseline scenario were applied; (ii) the upside on the House Price Index (HPI) foreseen by the recessive scenario as a result of lower interest rate was
neutralized.
546
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
2.3.4 Scenarios and Sensitivity
In line with the IFRS9 standard and group internal regulation, the IFRS9 parameters have been calibrated considering updated macro-economic
scenarios as of fourth quarter 2024.
Specifically, the Group selected three macroeconomic scenarios to determine the forward-looking component of expected credit loss (ECL):
• Baseline scenario, which assumptions are aligned with the scenario used for the Shareholding Impairment Test and the Deferred Tax Assets
Sustainability Test. It represents the reference central scenario with the higher probability of realization (60%);
• Adverse scenario, which is in line with the alternative scenario adopted for Budget/Multiyear Plan and embedding a worsened evolution of macro-
economic context, but with a lower probability of realization vis-à-vis the baseline (35%);
• Positive scenario, reflecting better macroeconomic forecast than the baseline scenario, with a lower probability than the other two scenarios (5%).
For a description of main assumptions behind “baseline”, “adverse” and “positive” scenarios and related probability realization, refer to Part A -
Accounting policies, A.1 General, Section 2 - General preparation criteria.
For purposes of calculating the IFRS9 ECL which is determined as weighted average of ECL underlying each scenario, the interest rate trend of the
positive scenario has been capped at values of the baseline to ensure consistent outcome in terms of ECL (i.e. ECL Positive lower than ECL Baseline
and ECL Adverse).
Besides the update of macroeconomic scenario, the default rates and recovery rates, underlying IFRS9 PD and LGD calibration, have been updated
accordingly, in line with ordinary process.
The update of the macro-economic scenarios under the rules reported above has determined in the fourth quarter 2024 the recognition of releases
for € 8.1 million as result of update on macro-economic factors and weights assigned to scenarios, with the following break-down by geography:
• Germany: €8.0 million of write-downs;
• Central & Eastern Europe (excluding Russia): €11.0 million of write-downs;
• Russia: €6.9 million of write-backs;
• Italy: €20.2 million of total net write-backs to which UniCredit S.p.A. contributes for €20.0 million of net write-backs.
Sensitivity of Expected Credit Losses (ECL)
The sensitivity of IFRS9 ECL to scenarios change is estimated by comparing the ECL calculated alternatively weighting at 100% the adverse, baseline
and positive scenarios.
With respect to the baseline in the adverse scenario the ECL would increase by about 7% (5.8% for UniCredit S.p.A.) equivalent to around €303 million
(of which €97 million for UniCredit S.p.A.). While the ECL in the positive scenario would decrease by about 2.1% (2.3% for UniCredit S.p.A.) equivalent
to around €95 million (of which €39 million for UniCredit S.p.A.).
Furthermore, a sensitivity factor to 1 point of GDP drop cumulated over the reference time horizon (2025-27) has been calculated. More in details ECL
sensitivity to GDP change is calculated as the ratio of:
• the difference between ECL estimated under the alternative scenarios (positive and adverse) vis-à-vis the baseline;
• the GDP points deviations (on 3 years cumulative basis) between alternative scenarios and baseline scenario.
Implied assumptions are:
• GDP growth is assumed to be the most relevant economic factor as indicator of scenario severity;
• for each Legal Entity the GDP of the reference country is considered for the calculation of the respective sensitivity (e.g., for UniCredit S.p.A. the
Italian GDP was considered, for UniCredit Bank AG the German GDP, etc.).
The results considering the current IFRS9 scenarios and portfolio are the following:
• for 1 point of increase in GDP (cumulated over 3 Years) the ECL at Group level is estimated to decrease by -0.9% (-1.1% for UniCredit S.p.A.);
• for 1 point of GDP drop (cumulated over 3 years) the ECL at Group level is estimated to increase by +1.2% (+1.1% for UniCredit S.p.A.).
Inclusion of Climate Risk in provisioning (ECL)
Acknowledging the growing importance that climate change might also have for the financial sector and in continuous dialogue with the competent
authorities, the group has recently finalized to development of a modelling framework aims at incorporating the climate related risks into the
methodology employed to calculate IFRS9 provisions.
The approach adopted provides to include effects of energy transition and extreme natural events directly in the evolution of forward-looking
parameters (PD/LGD) and use them to calculate the IFRS9 Expected Credit Losses. The impacts due to extreme natural events on loans secured
by immovable properties (therefore in LGD) have been recognized since the financial reporting of 2024 half-year. Starting from the fourth quarter of
2024, the impacts associated to the energy transition have been included both in the forward-looking PD of corporate obligors and in LGD of
secured loans based on the energy performance of the related immovable properties. The effects of extreme natural events on the corporate PD
have been also included starting from the fourth quarter.
547
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
In line with the industry best practices and IFRS9 standards the impacts of C&E risk have been calibrated considering alternative assumptions in
terms of transition policies and severity on physical risk. For the purpose of IFRS9 ECL the following scenarios have been selected among those
defined by Network for Greening the Financial System (NGFS):
• Net Zero 2050 - this scenario limits global warming to 1.5C° through stringent climate policies and innovation, reaching global net zero CO₂
emissions around 2050. Some jurisdictions reach net zero for all greenhouse gases by this point. Physical risks are relatively low, but transition
risks are high;
• Delayed Transition - that assumes global annual emissions do not decrease until 2030 as new climate policies are not introduced until that year.
Strong policies are then needed to limit warming to below 2 °C. The level of action differs across countries and regions based on currently
implemented policies. This leads to both higher transition and physical risks than the Net Zero 2050;
• Current Policies - that assumes that only currently implemented policies are preserved, leading to limited transition risk but severe physical risks.
The final amount of Expected Credit Losses (ECL) due to C&E risk have been then calculated as simple average of the ECL underlying the three
climate scenarios. The Expected Credit Loss of the single exposure is calculated considering the forward-looking PD and LGD which reflecting both
macro-economic and climate scenarios and based on the specific stage and loan's maturity.
The inclusion of climate risks in the calculation of IFRS9 ECL, according to the aforementioned methodology, has determined the recognition of
impairment for €106 million for the 2024. Future adjustments of impairments due to C&E risk will be driven by update on scenario assumptions (e.g.
transition policies) and portfolio composition.
2.4 Credit risk mitigation techniques
UniCredit group uses various credit risk mitigation techniques to reduce potential credit losses in case of the obligor default. Consistent with the
“Regulation (EU) 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and
investment firms (CRR)”, UniCredit group is firmly committed to satisfy the requirements for the correct application of credit risk mitigation
techniques, according to the different approaches adopted Standardised, Foundation IRB (F-IRB) or Advanced IRB (A-IRB), for both operational and
regulatory purposes.
Specific Group guidelines are in force, issued by the Parent Company, defining group-wide rules and principles with the aim to steer the credit risk
mitigation management, in accordance with the relevant regulatory requirements.
Integrating these guidelines, Legal entities have adopted local regulations, specifying processes, strategies, and procedures for collateral
management. In particular, such internal regulations detail, according to each Country's local legal system, collateral eligibility, acquisition, valuation
and monitoring rules and ensure, the soundness, legal enforceability and timely liquidation of valuable collateral.
Legal entities are responsible for managing collateral and verifying the compliance of risk mitigation techniques with regulatory requirements, with a
particular focus on Internal Rating System applications, in order to assess the presence of adequate documentation and procedure concerning the
credit risk mitigation instruments used for supervisory capital.
According to the credit policies, collaterals or guarantees can be accepted to support loans but cannot serve as a substitute for the borrower’s ability
to meet its obligations. For this reason, in addition to the overall analysis of the borrowers’ credit worthiness and of his repayment capacity,
collaterals are subject to specific assessment with the aim to verify their viability to support the repayment of the exposure85.
Collaterals accepted in support of credit lines granted by the Legal entities, primarily include:
• real estate, both residential and commercial;
• financial collateral, including cash deposits, debt securities, equities, and units of Undertakings for Collective Investment in Transferable Securities
(UCITS).
Other types of collateral are envisaged, including insurance policies and pledged goods or pledged loans (the latter are less common).
UniCredit group also makes use, between funded credit protection, of bilateral netting agreements regarding OTC derivatives (by means of ISDA
and CSA agreements), Repos and securities lending transactions where the counterparties are, generally, Financial Institutions.
In relation to personal guarantees, their use is widespread within UniCredit group, though their characteristics differ among the different local
markets; they can be accepted as complementary and accessory to the granting of loans.
Personal guarantees can be provided by banks, government, central banks and other public entities and others. The last category includes the
personal guarantees provided by natural persons, whose eligibility for CRM depends on the approach used by the different Legal Entities.
85 Except for "asset-based" loans, which identify the primary source of repayment in the collateral supporting the loan in preference to the borrower's cash flow/income, which is usually the source of income to be considered
for borrower valuation purposes.
548
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
In case the guarantee is represented by credit derivatives, the protection providers are mainly banks and institutional counterparties. As already
highlighted, the list of eligible protection providers depends on the specific approach adopted by each single Legal entity. Specifically:
• under the standardised approach, eligible protection providers pertain to a restricted list of counterparts, such as central government and central
banks, public sector entities and regional and local authorities, multilateral development banks, supervised institutions and corporate entities that
have a credit assessment by an eligible ECAI;
• under A-IRB approach, for the recognition of guarantees in the calculation of capital requirements, in addition to verify that the relevant minimum
requirements are satisfied, the Legal entity can evaluate the protection provider risk profile, through an internal rating system, at the time the
guarantee is provided and over its entire duration.
The management system of credit risk mitigation techniques is embedded in the credit approval process and in the credit risk monitoring process, to
support the evaluation and data quality checks of collaterals/guarantees and their linking to the defined categories. Controls and related
responsibilities are duly formalised and documented in internal rules. Furthermore, processes are implemented to control relevant information
regarding the identification and evaluation of the credit protection and for their proper registration in the system.
In the collateral acquisition phase, UniCredit group emphasises the importance of processes and controls of the legal certainty requirements of the
protection, as well as the assessment of the suitability of the collateral or guarantee. In case of personal guarantees, the protection provider (or the
protection seller in case of credit default swap) has to be assessed in order to measure his/her credit worthiness and risk profile.
Monitoring processes of credit risk mitigation techniques ensure that general and specific requirements set by credit policies, internal and regulatory
rules are met over the time.
Among such processes it is pointed out that one connected to concentration risk, which occurs when the major part of Group-wide collateral financial
assets (at portfolio level) are concentrated in a small number of collateral types, protection instruments, or specific providers of collaterals.
Such concentration is monitored and controlled by the following processes/mechanisms:
• in case of personal guarantees/credit derivatives, a contingent liability (indirect risk) is charged to the protection provider. In the evaluation of the
credit application, a secondary commitment is added to the guarantor, and it is reflected in the guarantor’s total credit exposure as deemed
competent and approved in accordance with the internal authority system of each Group Entity;
• in case the protection provider, directly or indirectly, is a Central Bank or a Sovereign country, a specific credit limit has to be instructed; if the
guarantor is a foreign subject, it is necessary to evaluate case by case the definition of a country limit.
549
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
3. Non-performing credit exposures
3.1 Management strategies and policies
In order to ensure a homogeneous approach in the classification of credit exposures for regulatory and reporting purposes, UniCredit has defined
guidelines at Group level for the classification of non-performing exposures that refer to the principles reported in the Implementing Technical
Standards issued by the Authority European Banking in 2014. This definition of non-performing exposures complements the definition of “default”
exposures, disciplined by EBA Guidelines on default definition in line with article 178 of Regulation (EU) 575/2013 of the European Parliament and
of the Council (EBA/GL/2016/07) in force since 1 January 2021, and “impaired” exposures defined by IFRS9 Accounting Standards. A substantial
alignment within the Group has been pursued between the three definitions, providing the Supervisory Authorities with a harmonised view of these
concepts, and strengthening the tools available to the Authorities for assessing the asset quality.
The default classification criteria in force since 1 January 2021 include, among the main aspects, harmonized thresholds at European level for past
due materiality and additional Unlikely to Pay triggers further regulated by EBA/GL/2016/07 with respect to the high-level provisions of article 178 of
Regulation (EU) 575/2013. In this regard, it is highlighted the Distressed Restructuring for credit obligation object of concession, where a maximum
threshold for decreasing the Net Present Value of 1% has been set, as well as specific requirements on the contagion effects of default in the case
of connected customers (mainly, groups of companies, joint headings between individuals and links between individuals and companies with
unlimited liability). In addition, a mandatory minimum probation period before returning to the non-defaulted status has been defined.
Furthermore, in accordance with the provisions of Banca d ’Italia in Circular 272/2008, non-performing credit exposures of each Group entity must
be classified in one of the following risk classes:
• past-due and/or overdue exposures: problematic exposures that are more than 90 days past due on any material obligation (the latter assessed in
line with article 178 (2d) of Regulation (EU) 575/2013 and the Technical Standards of the EBA);
• unlikely to pay: the classification in this category is the result of the judgment of the bank about the unlikeliness, without recourse to actions such
as realising collaterals, that the obligor will pay in full (principal and/or interest) its credit obligations. This assessment should be carried out
independently of the presence of any (or rate) past due and unpaid amount;
• bad loans: exposures to borrowers in a state of insolvency (even when not recognised in a court of law) or in an essentially similar situation,
regardless of any loss forecasts made by the bank.
According to the Group rules, all debtors in the bank's portfolio must be mapped in the classes defined by Banca d’Italia, regardless of local
reporting which has to be performed according to local accounting standards and/or local supervisory regulations or instructions.
These classification rules are further integrated by accounting principles defined in IFRS9, according to which credit exposures must be allocated in
three "stages" (for details refer to section "2.3 Expected loss measurement method”). With regard to non-performing exposures, the allocation to
"Stage 3" occurs when the customer's status changes into "non-performing". This is a classification at counterparty level and not at transaction level
based on specific regulations on the classification of non-performing exposures.
In accordance with Art.156 EBA ITS, an exposure must remain classified as non-performing86 as long as the following criteria (exit criteria) are not
met simultaneously:
• the situation of the debtor has improved to the extent that full repayment of the original due amount is likely to be made;
• the debtor does not have any amount past-due by more than 90 days.
Specific exit criteria must be applied in case the Forbearance measures are extended to non-performing exposures, listed below:
• the starting date of the observation period of one year is the latest between the adoption of Forbearance measures and the classification as non-
performing;
• any past due amount is verified if no past due occurs at debtor level;
• from a judgmental evaluation by the empowered Body, there are no doubts regarding the “full repayment” of the amount owed by the debtor.
86 The regulatory framework for the transition from performing to non-performing exposures ("criteria for a return to a non-defaulted status ") has been integrated with the entry into force of the "Guidelines on the application
of the definition of default under Art.178 of Regulation (EU) 575/2013 "(EBA/GL/2016/07) as at 1 January 2021.
550
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
In the non-performing credit exposures management, UniCredit group adopts certain strategies that operationally define the activities necessary to
achieve the targets defined yearly.
The aforementioned strategies concerning impaired loans include:
• an effective internal restructuring activity, aiming at bringing fully back to bonis the portfolio thanks to qualified resources with specific skills
dedicated to the management of loans classified as unlikely to pay;
• proactive portfolio management through judicial and extra-judicial procedures managed by internal Workout professionals or assigned to external
agencies specialised in credit recovery;
• optimization of recovery performance thanks to formalised partnerships with specialized servicers
• disposal of impaired loans as further strategy for internal recovery both for individual positions and for portfolios of impaired loans, already
classified as bad loans and unlikely to pay.
These strategies reflect the main levers for reducing the amount of impaired loans and have led to an important result during 2024, highlighting:
• write-off for €1,124 million;
• recoveries of €3,510 million;
• total non-performing loans sold for €1,914 million.
The decrease amount of the stock of impaired loans to Group customers was higher than the reduction targets set within the strategic plan
“UniCredit Unlocked”, confirming sound asset quality with the NPE ratio at 2.6% at the end of 2024 (-5bps compared to 2023 end of year ratio). This
result was possible thanks also to several disposal operations carried on during the year together with the activation of a coordinated set of
additional levers aimed at reducing the stock.
A successful NPE Strategy execution requires effective interaction between the Group Risk Management structure and the functions dedicated to
the management of non-performing exposures directly reporting the local CROs of the Legal Entities.
More specifically, within Group Risk Management, the Group NPE structure was set-up to ensure on the one hand an adequate control over the
execution and monitoring of the NPE Strategy.
In the all Legal Entities dedicated functions to the management of non-performing exposures are in place; they cover all the phases of the NPEs life
cycle, take into account local regulations and the specific characteristics of portfolios, monitor and manage the amount of NPEs coherently with both
European Central Bank Guidelines and Group organisational model.
The structures dedicated to the operational management of non-performing exposures are therefore tailored to each state of the life cycle of non-
performing loans, starting from a careful monitoring of the performing portfolio, up to the recovery activity that includes the disposal of credit or the
“repossession” of the collateral.
In particular, the monitoring activity is aimed at preventing flows to default and reducing the amount of past due exposures by detecting signals of
risk of deterioration and early warning, as well as identifying the needed corrective measures to manage the potential deterioration of exposures
starting from the early signs of worsening of the counterparties’ credit quality.
Soft collection, door-to-door and re-management activities which pertain both performing (though already overdue) counterparties and already
defaulted clients are carried out through the use of multiple channels, also using outsourcing solutions to third-party companies (in particular for
door-to-door recovery activities). These activities also aim at preventing flows to default and facilitating the back-to-performing classification (main
focus), thus contributing to a reduction of the overall amount of non-performing exposures.
In some Legal Entities the aforementioned activities can be managed within either the Monitoring, or Restructuring or Workout units; with reference
to UniCredit S.p.A. these responsibilities are allocated to the Credit Monitoring unit within which an ad hoc department was created (i.e. Customer
Recovery) exclusively dedicated to soft collection and re-management for retail portfolio.
As part of the overall management of deteriorated exposures, the Restructuring activity is aimed at mitigating the risk of insolvency and the quality of
exposures with restructuring agreements and company reorganisation plans as well as reducing the amount of unlikely to pay with recoveries and
performing re-classification, by means of forbearance measures. Specifically, among the strategies for managing unlikely to pay loans to corporate
counterparties, there are also restructuring platforms (up to now limited to the Italian market), the disposal of individual exposures and extraordinary
finance transactions.
The coordination and implementation of recovery strategy on positions classified as bad loans fall instead within the responsibility of the "Workout"
unit, whose reporting structures identify the optimal strategies for maximising recoveries, including the timely enforcement of collaterals.
In some Group legal entity the activity is also implemented by leveraging on service agreements with external agencies.
As pertains the disposal activities, these refer to the organisation, management and execution of sales processes (both credit portfolios and
individual positions), through the application of a transparent and competitive methodology based on market criteria. At Group level, these activities
are performed by Group NPE, which evaluates various disposal options alternatives, in cooperation with the legal entity’s peer function where
deemed necessary to handle specific local cases.
More in general, Group NPE oversees the relationships with external partners and is responsible of the services and of the contracts among
UniCredit S.p.A. and the servicers in charge of the recovery activity for the NPE portfolios.
551
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
3.2 Write-off
Group guidelines for write-offs on financial assets provides that whenever a loan is deemed to be uncollectable/unrecoverable it needs to be
identified at the earliest possible opportunity and properly dealt with in accordance with financial regulations. Write-offs can relate to a financial asset
in its entirety, or to a portion of it.
In assessing the recoverability of non-performing exposures (NPE) and in determining internal NPE write-off approaches, the following cases, in
particular, are considered:
• exposures with prolonged arrears: it is assessed the recoverability of an exposure that presents arrears for a prolonged period. If, following this
assessment, an exposure or part of an exposure is deemed as non-recoverable, it should be written-off in a timely manner, adopting different
thresholds predefined on the basis of the different portfolios;
• exposures under insolvency procedure: where the collateralization of the exposure is low, legal expenses often absorb a significant portion of the
proceeds from the bankruptcy procedure and therefore estimated recoveries are expected to be very low;
• a partial write-off may be warranted where there are reasonable elements to demonstrate the debtor's inability to repay the full amount of the debt,
i.e., a significant level of debt, even following the implementation of a forbearance treatment and/or the execution of collateral.
Below a non-exhaustive list of hard evidence implying, with high likelihood, the not recoverability of the exposure, to be assessed, for the potential
(total or partial) write-off:
• the Bank cannot call the guarantor(s), or his assets are not sufficient for the recovery of the debtor’s exposures;
• negative outcome of the judicial and/or out-of-court initiatives with absence of other assets that can be called in the event of un-recoverability of
the debtor’s exposures;
• impossibility to initiate actions to recover credit;
• current insolvency procedure, from which the procedure itself states that the unsecured exposures will not have redress;
• loans not backed by mortgage security older than 3 years that have not registered repayments/collections during the first 3 years after the NPE
classification.
Specifically, for UniCredit group perimeter, Write-offs on financial assets still subject to an enforcement procedure amount to €8,491 million as of 31
December 2024, of which partial write-offs amount to €692 million and total write-offs amount to €7,799 million. The amount of write-offs (both partial
and total) related to the 2024 financial year is €540 million. 2024 write-offs cannot be compared with write-offs amount reported in gross changes in
non-performing exposures, because the latter includes “debt forgiveness”.
3.3 Acquired or originated impaired financial assets
Purchased or Originated Credit Impaired (POCI) are credit exposures that are already impaired on initial recognition. Consequently, every purchase
of credit assets of Non Performing obligors or significant new origination done on obligors already in Non-Performing status, considering the full
alignment between impaired status and Non-Performing one, shall be considered as POCI Assets (though, in general, POCI classification is the
result of the restructuring of impaired exposures which has led to the provision of significant new finance, either in absolute or in relative terms,
compared with the among of the original exposure).
These exposures are subject to management, measurement, and control according to the principles described in the paragraph “2.2 Credit risk
management, measurement and control”, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 -
Risk of the prudential consolidated perimeter, 2.1 Credit risk, Qualitative information, 2. Credit risk management policies.
In particular, the expected credit losses recorded at initial recognition within the carrying amount of the instrument are periodically reviewed on the
basis of the processes described in the previous paragraphs.
The expected credit loss calculated for these credit exposures is always determined considering their residual life, and such exposure are
conventionally allocated into Stage 3, or in Stage 2 if, as a result of an improvement in the creditworthiness of the counterparty following the initial
recognition, the assets are performing.
These assets are never classified under Stage 1 because the expected credit loss must always be calculated considering a time horizon equal to the
residual duration.
552
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
4. Financial assets subject to commercial renegotiations and forborne exposures
Renegotiation of existing financial instruments which determine a modification of contractual conditions might be the result of either:
• commercial initiatives, which may be specific for each customer or applied to portfolio of customers also as a result of dedicated initiatives
sponsored by public authorities or banking associations;
• concessions granted in light of debtor’s financial difficulties (Forbearance).
Such changes are accounted on the basis of whether the modification is considered significant or not. In this regard, reference is made to paragraph
A.2 - Main items of the accounts. Notes to the consolidated account, Part A - Accounting policies.
The concessions granted due to debtor’s financial difficulties, so-called Forbearance initiatives, are usually considered not significant from an
accounting perspective.
4.1 Loan categorisation in the risk categories and forborne exposures
In July 2014, the European Banking Authorities issued the “Implementing Technical Standards” (ITS) on non-performing and Forborne exposures,
with the aim to allow a closer supervisory monitoring of banking forbearance practices. In line with the mentioned ITS, a transaction has to be
considered as forborne when both of the following conditions are simultaneously met:
• a concession in favour of the debtor exists, in the form of either (i) a contractual modification or (ii) refinancing aimed at ensuring the repayment of
pre-existing obligation;
• the debtor is facing or about to face financial difficulties.
To comply with EBA ITS, since 2015 UniCredit S.p.A. has worked on the definition of a common methodological framework for forbearance process,
issuing group’s guidelines on forbearance management and setting up a shared IT infrastructure (i.e., Forbearance engine). Specifically, the
Forbearance engine automatically performs, on the basis of a set of a pre-defined criteria, an assessment of the overall financial difficulty of the
client subject to a concession (Trouble Debt Test). In coherency with the overall solution, the different Group’s legal entities adopted some fine
tunings to adapt the Group’s framework to the local IT tools and credit practices.
Starting from 2017, the regulatory framework relating to the management of Forborne exposures has been integrated with the following papers:
• “Guidance to Banks on Non-Performing Loans”, issued by European Central Bank in March 2017, which require to Banks to define a clear NPL
strategy aiming at the reduction of NPE Stock;
• “Guidelines on management of non-performing and forborne exposures”, issued by European Banking Authority in October 2018, which are
overall aligned with the ECB Guidance;
• “Guidelines on disclosure of non-performing and forborne exposures”, issued by European Banking Authority in December 2018, which is focused
on the disclosure templates to be used for Group’s supervisory reporting purposes.
553
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
In order to ensure ongoing alignment with the regulatory and supervisory requirements mentioned above regarding bank’s forbearance practices,
the Parent Company finalised the following activities:
• review of the list of the potential Forbearance measures to acknowledge: (i) with the split between short-term measures (duration less than 24
months) and long-term measures (duration higher than or equal to 24 months), (ii) with the possibility of granting combinations of short and long-
term FBE measures and (iii) with the “viability criteria” defined by Supervisory for each FBE measure;
• reinforcement of the affordability assessment of the client prior to the Forbearance concession taking care to the case of multiple forbearance
measures on the same exposure;
• extension of financial difficulty criteria to better capture significant increase in credit risk deterioration and to be more sensitive to credit
monitoring managerial evidence;
• collection and monitoring of the relevant information within FINREP Reporting with disclosure on:
- performing and non-performing portfolio;
- guarantees;
- default inflows and outflows;
- list of the FBE Measures granted.
With reference to the monitoring and reporting activity on forborne exposures, on 31 December 2024, at the Group level, the number of instruments
(loans and advances at amortized cost) with forbearance measures amounts to 71,532 (45,613 for UniCredit S.p.A. perimeter).
Specifically, on a consolidated level, of the total forbearance measures:
• forbearance measures granted during the period represent 32% of the total (29% considering only UniCredit S.p.A.);
• forbearance measures granted on the performing portfolio represent the 44% of the total (46% considering only UniCredit S.p.A.).
As regards the vintage of classification of forborne exposures, the information reported below pertain to loan and advances at amortized cost, as
financial assets at fair value and off-balance sheet exposures do not represent (out of the overall forborne portfolio) a materially significant
relevance. More in details, at consolidated level, 79% of forborne performing exposures has a vintage of classification less or equal to 24 months, in
line with UniCredit S.p.A. portfolio (79%). In terms of forborne non-performing loans, 55% of consolidated exposures fall within a classification
vintage less or equal 24 months (43% for UniCredit S.p.A. portfolio).
554
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Quantitative information
In the following tables, the volume of impaired assets according to the IFRS definition is equivalent to the one for non-performing exposures referred
to in the EBA standards.
A. Credit quality
For the purposes of the disclosure of quantitative information about credit quality, the term “credit exposures” does not include equity instruments
and units in investment funds except for the tables of the paragraph “A.2 Classification of credit exposure based on internal and external ratings”, in
which units in investment funds are included.
A.1 Non-performing and performing credit exposures: amounts, writedowns, changes, distribution by business activity
A.1.1 Regulatory consolidation - Breakdown of financial assets by past-due buckets (carrying value)
(€ million)
PORTFOLIOS/RISK STAGES
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR ORIGINATED
CREDIT-IMPAIRED FINANCIAL
ASSETS
FROM 1
TO 30
DAYS
OVER 30
AND UP
TO 90
DAYS
OVER 90
DAYS
FROM 1
TO 30
DAYS
OVER 30
AND UP
TO 90
DAYS
OVER 90
DAYS
FROM 1
TO 30
DAYS
OVER 30
AND UP
TO 90
DAYS
OVER 90
DAYS
FROM 1
TO 30
DAYS
OVER 30
AND UP
TO 90
DAYS
OVER 90
DAYS
1. Financial assets at amortised
cost
4,304
689
183
1,814
543
162
1,156
353
2,269
20
4
16
2. Financial assets at fair value
through other comprehensive
income
-
-
-
-
-
-
32
-
-
-
-
-
3. Financial instruments
classified as held for sale
-
-
-
-
-
-
12
5
69
-
-
-
Total 31.12.2024
4,304
689
183
1,814
543
162
1,200
358
2,338
20
4
16
Total 31.12.2023
4,706
87
85
2,468
646
161
1,382
310
2,302
-
-
2
The amounts past due over 90 days and related to Stage 1 and Stage 2 exposures refer to loans that do not meet the definition of Non-performing
past due (below the materiality threshold).
A.1.2 Regulatory consolidation - Financial assets, loan commitments and financial guarantees given: changes in overall impairments
and provisions
(€ million)
OVERALL WRITE-DOWNS
FINANCIAL ASSETS CLASSIFIED IN STAGE 1
FINANCIAL ASSETS CLASSIFIED IN STAGE 2
SOURCES/RISK STAGES
CURRENT
ACCOUNTS
AND DEMAND
DEPOSITS
WITH BANKS
AND CENTRAL
BANKS
FINANCIAL
ASSETS AT
AMORTISED
COST
FINANCIAL
ASSETS AT FAIR
VALUE THROUGH
OTHER
COMPREHENSIVE
INCOME
FINANCIAL
INSTRUMENTS
CLASSIFIED AS
HELD FOR
SALE
OF WHICH:
INDIVIDUAL
IMPAIRMENT
OF WHICH:
COLLECTIVE
IMPAIRMENT
CURRENT
ACCOUNTS
AND DEMAND
DEPOSITS
WITH BANKS
AND CENTRAL
BANKS
FINANCIAL
ASSETS AT
AMORTISED
COST
FINANCIAL
ASSETS AT FAIR
VALUE THROUGH
OTHER
COMPREHENSIVE
INCOME
FINANCIAL
INSTRUMENTS
CLASSIFIED AS
HELD FOR
SALE
OF WHICH:
INDIVIDUAL
IMPAIRMENT
OF WHICH:
COLLECTIVE
IMPAIRMENT
Opening balance (gross amount)
4
889
73
263
47
1,181
2
3,961
5
224
471
3,720
Increases in acquired or originated financial
assets
-
219
2
-
12
209
-
229
1
-
1
229
Reversals different from write-offs
-
(171)
(2)
-
(2)
(171)
-
(362)
-
-
(12)
(350)
Net losses/recoveries on credit impairment
-
(126)
(66)
-
(54)
(138)
-
(358)
(2)
-
(84)
(276)
Contractual changes without cancellation
-
(8)
-
-
-
(8)
-
(10)
-
-
-
(10)
Changes in estimation methodology
-
(22)
-
-
-
(22)
-
23
-
-
-
23
Write-off not recognised directly in profit or
loss
-
-
-
-
-
-
-
(1)
-
-
-
(1)
Other changes
1
250
-
-
97
154
(1)
(347)
(2)
-
(163)
(186)
Closing balance (gross amount)
5
1,031
7
263
100
1,205
1
3,135
2
224
213
3,149
Recoveries from financial assets subject to
write-off
-
1
-
-
-
1
-
-
-
-
-
-
Write-off recognised directly in profit or loss
-
-
-
-
-
-
-
(12)
-
-
-
(12)
555
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
continued: A.1.2 Regulatory consolidation - Financial assets, loan commitments and financial guarantees given: changes in overall impairments
and provisions
(€ million)
SOURCES/RISK STAGES
OVERALL WRITE-DOWNS
ASSETS BELONGING TO THIRD STAGE
PURCHASED OR ORIGINATED CREDIT-IMPAIRED FINANCIAL ASSETS
CURRENT
ACCOUNTS
AND DEMAND
DEPOSITS
WITH BANKS
AND
CENTRAL
BANKS
FINANCIAL
ASSETS AT
AMORTISED
COST
FINANCIAL
ASSETS AT FAIR
VALUE THROUGH
OTHER
COMPREHENSIVE
INCOME
FINANCIAL
INSTRUMENTS
CLASSIFIED
AS HELD FOR
SALE
OF WHICH:
INDIVIDUAL
IMPAIRMENT
OF WHICH:
COLLECTIVE
IMPAIRMENT
FINANCIAL
ASSETS AT
AMORTISED
COST
FINANCIAL
ASSETS AT FAIR
VALUE THROUGH
OTHER
COMPREHENSIVE
INCOME
FINANCIAL
INSTRUMENTS
CLASSIFIED
AS HELD FOR
SALE
OF WHICH:
INDIVIDUAL
IMPAIRMENT
OF WHICH:
COLLECTIVE
IMPAIRMENT
Opening balance (gross amount)
81
5,498
2
305
4,098
1,763
4
-
-
4
-
Increases in acquired or originated financial assets
-
244
-
-
160
84
-
-
-
-
-
Reversals different from write-offs
-
(978)
-
(645)
(771)
(852)
-
-
-
-
-
Net losses/recoveries on credit impairment
-
1,315
80
(9)
713
673
(3)
-
-
(3)
-
Contractual changes without cancellation
-
(13)
-
-
(11)
(2)
2
-
-
2
-
Changes in estimation methodology
-
22
-
-
-
22
-
-
-
-
-
Write-off not recognised directly in profit or loss
-
(993)
-
(15)
(780)
(228)
(1)
-
-
(1)
-
Other changes
2
3
-
445
271
180
1
-
-
1
-
Closing balance (gross amount)
83
5,098
82
81
3,680
1,640
3
-
-
3
-
Recoveries from financial assets subject to write-off
-
182
-
-
148
33
-
-
-
-
-
Write-off recognised directly in profit or loss
-
(111)
-
-
(74)
(37)
(1)
-
-
(1)
-
continued: A.1.2 Regulatory consolidation - Financial assets, loan commitments and financial guarantees given: changes in overall impairments
and provisions
(€ million)
SOURCES/RISK STAGES
OVERALL WRITE-DOWNS
TOTAL
TOTAL PROVISIONS ON LOANS COMMITMENTS AND FINANCIAL GUARANTEES GIVEN
STAGE 1
STAGE 2
STAGE 3
COMMITMENTS
FUNDS AND
FINANCIAL
GUARANTEES
PURCHASED OR
ORIGINATED CREDIT-
IMPAIRED
Opening balance (gross amount)
137
449
609
-
12,506
Increases in acquired or originated financial assets
35
12
32
-
774
Reversals different from write-offs
(18)
(45)
(34)
-
(2,255)
Net losses/recoveries on credit impairment
(24)
(104)
(43)
-
660
Contractual changes without cancellation
-
2
-
-
(27)
Changes in estimation methodology
(9)
-
1
-
15
Write-off not recognised directly in profit or loss
-
-
-
-
(1,010)
Other changes
36
(64)
9
-
333
Closing balance (gross amount)
157
250
574
-
10,996
Recoveries from financial assets subject to write-off
-
-
-
-
183
Write-off recognised directly in profit or loss
-
(3)
-
-
(127)
556
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.1.3 Regulatory consolidation - Financial assets, loan commitments and financial guarantees given: transfers between risk stages
(gross values and nominal values)
(€ million)
PORTFOLIOS/RISK STAGES
GROSS VALUES/NOMINAL VALUES
TRANSFERS BETWEEN STAGE 1
AND STAGE 2
TRANSFERS BETWEEN STAGE 2
AND STAGE 3
TRANSFERS BETWEEN STAGE 1
AND STAGE 3
FROM STAGE 1
TO STAGE 2
FROM STAGE 2
TO STAGE 1
FROM STAGE 2
TO STAGE 3
FROM STAGE 3
TO STAGE 2
FROM STAGE 1
TO STAGE 3
FROM STAGE 3
TO STAGE 1
1. Financial assets at amortised cost
22,308
29,988
2,570
480
1,474
288
2. Financial assets at fair value through other
comprehensive income
677
443
-
-
114
-
3. Financial instruments classified as held for sale
-
-
-
-
-
-
4. Loan commitments and financial guarantees given
4,174
8,370
325
61
44
56
Total
31.12.2024
27,159
38,801
2,895
541
1,632
344
Total
31.12.2023
43,702
29,512
2,438
1,211
1,750
179
A.1.3a Other loans and advances guaranteed by Covid-19 public guarantee: transfers between impairment stages (gross values)
(€ million)
PORTFOLIOS/RISK STAGES
GROSS VALUES
TRANSFERS BETWEEN STAGE 1
AND STAGE 2
TRANSFERS BETWEEN STAGE 2
AND STAGE 3
TRANSFERS BETWEEN STAGE 1
AND STAGE 3
FROM STAGE 1
TO STAGE 2
FROM STAGE 2
TO STAGE 1
FROM STAGE 2
TO STAGE 3
FROM STAGE 3
TO STAGE 2
FROM STAGE 1
TO STAGE 3
FROM STAGE 3
TO STAGE 1
A. Financial assets at amortised cost
531
1,214
178
39
96
8
B. Financial assets at fair value through other
comprehensive income
-
-
-
-
-
-
Total at 31.12.2024
531
1,214
178
39
96
8
557
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.1.4 Regulatory consolidation - On- and off-balance sheet credit exposures with banks: gross and net values
(€ million)
AMOUNTS AS AT
31.12.2024
EXPOSURE TYPES/VALUES
GROSS EXPOSURE
OVERALL WRITE-DOWNS AND PROVISIONS
NET
EXPOSURE
OVERALL
PARTIAL
WRITE-
OFFS(*)
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
A. On-balance sheet credit
exposures
A.1 On Demand
37,675
37,069
499
74
33
88
5
1
59
24
37,587
-
a) Non-performing
107
X
-
74
33
83
X
-
59
24
24
-
b) Performing
37,568
37,069
499
X
-
5
5
1
X
-
37,563
-
A.2 Other
83,639
77,616
2,641
49
-
38
20
9
9
-
83,601
-
a) Bad exposures
4
X
-
4
-
4
X
-
4
-
-
-
of which: forborne exposures
-
X
-
-
-
-
X
-
-
-
-
-
b) Unlikely to pay
45
X
-
45
-
5
X
-
5
-
40
-
of which: forborne exposures
-
X
-
-
-
-
X
-
-
-
-
-
c) Non-performing past due
-
X
-
-
-
-
X
-
-
-
-
-
of which: forborne exposures
-
X
-
-
-
-
X
-
-
-
-
-
d) Performing past due
48
35
13
X
-
-
-
-
X
-
48
-
of which: forborne exposures
-
-
-
X
-
-
-
-
X
-
-
-
e) Other performing exposures
83,542
77,581
2,628
X
-
29
20
9
X
-
83,513
-
of which: forborne exposures
-
-
-
X
-
-
-
-
X
-
-
-
Total (A)
121,314
114,685
3,140
123
33
126
25
10
68
24
121,188
-
B. Off-balance sheet credit
exposures
a) Non-performing
-
X
-
-
-
-
X
-
-
-
-
-
b) Performing
36,584
10,607
853
X
-
7
5
1
X
-
36,577
-
Total (B)
36,584
10,607
853
-
-
7
5
1
-
-
36,577
-
Total (A+B)
157,898
125,292
3,993
123
33
133
30
11
68
24
157,765
-
Note:
(*) Value shown for information purposes.
On-Balance sheet exposures to banks include all balance-sheet assets regardless of their belonging portfolio (held-for-trading, assets designed and
mandatorily at fair value through profit or loss, assets at fair value through other comprehensive income, assets at amortised cost and assets held
for sale). In more details columns Stage1, Stage 2, Stage 3 and Purchased or Originated Credit-Impaired financial assets include assets at
amortized cost, assets at fair value through other comprehensive income, current accounts and demand deposits with Banks and Central Banks and
assets held for sale; the overall gross exposures also report held-for-trading, assets designed and mandatorily at fair value through profit or loss.
Off-Balance sheet exposures to banks comprise guarantees given, irrevocable commitments, derivatives regardless of each transaction’s
classification category and the revocable commitments to disburse funds.
558
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.1.5 Regulatory consolidation - On- and off-balance sheet credit exposures with customers: gross and net values
(€ million)
AMOUNTS AS AT
31.12.2024
EXPOSURE TYPES/VALUES
GROSS EXPOSURE
OVERALL WRITE-DOWNS AND PROVISIONS
NET
EXPOSURE
OVERALL
PARTIAL
WRITE-
OFFS(*)
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
A. On-balance sheet credit
exposures
a) Bad exposures
3,137
X
-
3,113
11
2,169
X
-
2,155
2
968
681
of which: forborne exposures
593
X
-
578
2
398
X
-
386
1
195
13
b) Unlikely to pay
7,682
X
-
7,453
128
2,902
X
-
2,835
1
4,780
11
of which: forborne exposures
2,839
X
-
2,816
21
1,201
X
-
1,200
-
1,638
2
c) Non-performing past due
809
X
-
790
14
265
X
-
261
-
544
-
of which: forborne exposures
20
X
-
17
4
8
X
-
8
-
12
-
d) Performing past due
8,213
5,372
2,838
X
-
405
49
356
X
-
7,808
-
of which: forborne exposures
209
1
208
X
-
33
-
33
X
-
176
-
e) Other performing exposures
561,545
499,180
48,160
X
8
3,753
980
2,773
X
-
557,792
-
of which: forborne exposures
6,063
35
5,990
X
1
442
1
441
X
-
5,621
-
Total (A)
581,386
504,552
50,998
11,356
161
9,494
1,029
3,129
5,251
3
571,892
692
B. Off-balance sheet credit
exposures
a) Non-performing
3,025
X
-
2,126
1
621
X
-
574
-
2,404
-
b) Performing
364,132
217,790
21,324
X
-
415
152
249
X
-
363,717
-
Total (B)
367,157
217,790
21,324
2,126
1
1,036
152
249
574
-
366,121
-
Total (A+B)
948,543
722,342
72,322
13,482
162
10,530
1,181
3,378
5,825
3
938,013
692
Note:
(*) Value shown for information purposes.
On-Balance sheet exposures to customers include all balance-sheet assets regardless of their belonging portfolio (held-for-trading, assets designed
and mandatorily at fair value through profit or loss, assets at fair value through other comprehensive income, assets at amortised cost and assets
held for sale). In more details columns Stage1, Stage 2, Stage 3 and Purchased or Originated Credit-Impaired financial assets include assets at
amortized cost, assets at fair value through other comprehensive income and assets held for sale; the overall gross exposures also report held-for-
trading, assets designed and mandatorily at fair value through profit or loss.
Off-Balance sheet exposures to customers comprise guarantees given, irrevocable commitments, derivatives regardless of each transaction’s
classification category and the revocable commitments to disburse funds.
The total amount, on-balance and off-Balance sheet, of forborne exposures (including those belonging to disposal groups/held for sale) is €10.7
billion (€3.7 billion non-performing and €7 billion performing). These exposures refer for 55% to the Italian perimeter, while the remaining amount
mainly refers to Austria (16%) and Germany (13%).
For a description of the rules for identification of forborne exposures refer to paragraph “4. Financial assets subject to commercial renegotiations and
forborne exposures”, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the
prudential consolidated perimeter, 2.1 Credit Risk, Qualitative information.
On-Balance sheet impaired gross exposures connected to the proposals for recourse to an arrangement with creditors made by the debtor
amounted to a total of €336 million as at 31 December 2024, against which specific impairments have been made for €191 million, with a total
coverage level of 57%.
559
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.1.5a Other loans and advances guaranteed by Covid-19 public guarantee: gross and net value
(€ million)
AMOUNTS AS AT 31.12.2024
GROSS EXPOSURE
OVERALL WRITE-DOWNS
EXPOSURE TYPES/VALUES
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT
IMPAIRED
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT
IMPAIRED
NET
EXPOSURE
OVERALL
PARTIAL
WRITE-OFFS(*)
A. Bad loans
16
-
-
15
1
5
-
-
5
-
11
-
B. Unlikely to pay loans
430
-
-
427
3
86
-
-
86
-
344
-
C. Non-performing past due loans
15
-
-
15
-
1
-
-
1
-
14
-
D. Performing past due loans
245
104
141
-
-
2
-
2
-
-
243
-
E. Other performing exposures loans
9,791
8,709
1,082
-
-
29
14
14
-
-
9,762
-
Note:
(*) Value shown for information purposes.
At 31 December 2024, gross exposure of loans and advance subject to Covid-19 public guarantee amounted to €10,497 million, of which €10,036
million performing and €461 million non-performing (4.4% of total loans), of which €16 million bad loans, €430 million unlikely to pay, €15 million
non-performing past due. The largest part of gross exposures benefitting from Covid-19 initiatives are in Italy, representing 88% of Group figures (of
which 96% classified as Performing).
A.1.6 Regulatory consolidation - On-balance sheet exposures with banks: changes in gross non-performing exposures
(€ million)
CHANGES IN 2024
SOURCES/CATEGORIES
BAD EXPOSURES
UNLIKELY TO PAY
NON-PERFORMING PAST
DUE
A. Opening balance (gross amount)
4
169
-
of which sold non-cancelled exposures
-
-
-
B. Increases
-
4
-
B.1 Transfers from performing loans
-
-
-
B.2 Transfers from acquired or originated impaired financial assets
-
-
-
of which: business combinations
-
-
-
B.3 Transfers from other categories of non-perforiming exposures
-
-
-
B.4 Contractual changes with no cancellations
-
-
-
B.5 Other increases
-
4
-
of which: business combinations - mergers
-
-
-
C. Reductions
-
23
-
C.1 Transfers to performing loans
-
-
-
C.2 Write-offs
-
-
-
C.3 Collections
-
23
-
C.4 Sale proceeds
-
-
-
C.5 Losses on disposal
-
-
-
C.6 Transfers to other non-performing exposures
-
-
-
C.7 Contractual changes with no cancellations
-
-
-
C.8 Other decreases
-
-
-
of which: business combinations
-
-
-
D. Closing balance (gross amount)
4
150
-
of which sold non-cancelled exposures
-
-
-
Sub-items “B.5 Other increases” and “C.3 Collections” include amounts recovered during the year concerning impaired exposures which were
derecognised in their entirety.
A.1.6bis Regulatory consolidation - On-balance sheet exposures with banks: changes by credit quality in gross forborne exposures
No data to be disclosed.
560
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.1.7 Regulatory consolidation - On-balance sheet credit exposures with customers: changes in gross non-performing exposures
(€ million)
CHANGES IN 2024
SOURCES/CATEGORIES
BAD EXPOSURES
UNLIKELY TO PAY
NON-PERFORMING PAST
DUE
A. Opening balance (gross amount)
2,949
8,482
962
of which sold non-cancelled exposures
12
41
12
B. Increases
2,883
4,898
754
B.1 Transfer from performing loans
1,118
3,142
634
B.2 Transfer from acquired or originated impaired financial assets
7
21
16
of which: business combinations
7
11
16
B.3 Transfer from other non-performing exposures
1,300
262
23
B.4 Contractual changes with no cancellations
-
1
-
B.5 Other increases
458
1,472
81
of which: business combinations - mergers
-
-
-
C. Decreases
2,695
5,698
907
C.1 Transfers to performing loans
13
651
193
C.2 Write-offs
692
428
3
C.3 Collections
1,124
2,106
284
C.4 Sale proceeds
238
590
7
C.5 Losses on disposals
34
89
-
C.6 Transfers to other non-performing exposures
56
1,160
369
C.7 Contractual changes with no cancellations
-
1
-
C.8 Other decreases
538
673
51
of which: business combinations
-
-
-
D. Closing balance (gross amount)
3,137
7,682
809
of which sold non-cancelled exposures
25
18
20
Sub-items “B.5 Other increases” and “C.3 Collections” include amounts recovered during the year concerning impaired exposures which were
derecognised in their entirety.
561
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.1.7bis Regulatory consolidation - On-balance sheet exposures with customers: changes by credit quality in gross forborne exposures
(€ million)
CHANGES IN 2024
SOURCES/QUALITY
FORBORNE EXPOSURES:
NON-PERFORMING
FORBORNE EXPOSURES:
PERFORMING
A. Opening balance (gross amount)
4,344
5,825
of which sold non-cancelled exposures
35
7
B. Increases
1,751
4,549
B.1 Transfers from performing non-forborne exposures
417
3,340
B.2 Transfers from performing forbone exposures
487
X
B.3 Transfers from non-performing forborne exposures
X
291
of which: business combinations
X
-
B.4 Transfers from non-performing non-forborne exposures
505
-
B.5 Other increases
342
918
of which: business combinations - mergers
-
-
C. Reductions
2,643
4,102
C.1 Transfers to performing non-forborne exposures
X
1,368
C.2 Transfers to performing forbone exposures
280
X
C.3 Transfers to non-performing forborne exposures
X
487
C.4 Write-offs
231
-
C.5 Collections
1,001
2,154
C.6 Sale proceeds
510
-
C.7 Losses from disposal
60
-
C.8 Other reductions
561
93
of which: business combinations
-
-
D. Closing balance (gross amount)
3,452
6,272
of which sold non-cancelled exposures
8
3
562
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.1.8 Regulatory consolidation - On-balance sheet non-performing credit exposures with banks: changes in overall write-downs
(€ million)
CHANGES IN 2024
NON-PERFORMING LOANS
UNLIKELY TO PAY
NON-PERFORMING PAST DUE
SOURCES/CATEGORIES
TOTAL
OF WHICH
FORBORNE
EXPOSURES
TOTAL
OF WHICH
FORBORNE
EXPOSURES
TOTAL
OF WHICH
FORBORNE
EXPOSURES
A. Opening balance (gross amount)
4
-
87
-
-
-
of which sold non-cancelled exposures
-
-
-
-
-
-
B. Increases
-
-
5
-
-
-
B.1 Write-downs of acquired or originated impaired
financial assets
-
X
-
X
-
X
of which: business combinations
-
-
-
-
-
-
B.2 Other write-downs
-
-
3
-
-
-
B.3 Losses on disposal
-
-
-
-
-
-
B.4 Transfers from other categories of non-performing
exposures
-
-
-
-
-
-
B.5 Contractual changes with no cancellations
-
X
-
X
-
X
B.6 Other increases
-
-
2
-
-
-
of which: business combinations - mergers
-
-
-
-
-
-
C. Reductions
-
-
5
-
-
-
C.1 Write-backs from valuation
-
-
-
-
-
-
C.2 Write-backs from collections
-
-
3
-
-
-
C.3 Gains from disposals
-
-
-
-
-
-
C.4 Write-offs
-
-
-
-
-
-
C.5 Transfers to other categories of non-performing
exposures
-
-
-
-
-
-
C.6 Contractual changes with no cancellations
-
X
-
X
-
X
C.7 Other decreases
-
-
2
-
-
-
of which: business combinations
-
-
-
-
-
-
D. Closing balance (gross amount)
4
-
87
-
-
-
of which sold non-cancelled exposures
-
-
-
-
-
-
563
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.1.9 Regulatory consolidation - On-balance sheet non-performing credit exposures with customers: changes in overall write-downs
(€ million)
CHANGES IN 2024
NON-PERFORMING LOANS
UNLIKELY TO PAY
NON-PERFORMING PAST DUE
SOURCES/CATEGORIES
TOTAL
OF WHICH
FORBORNE
EXPOSURES
TOTAL
OF WHICH
FORBORNE
EXPOSURES
TOTAL
OF WHICH
FORBORNE
EXPOSURES
A. Opening balance (gross amount)
2,173
371
3,438
1,720
275
9
of which sold non-cancelled exposures
9
1
17
16
2
-
B. Increases
1,863
252
2,412
818
229
12
B.1 Write-downs of acquired or originated impaired
financial assets
-
X
-
X
-
X
of which: business combinations
-
-
-
-
-
-
B.2 Other write-downs
1,114
135
1,781
537
157
5
B.3 Losses on disposal
34
9
89
51
-
-
B.4 Transfers from other categories of non-performing
exposures
362
68
77
10
11
2
B.5 Contractual changes with no cancellations
-
X
1
X
-
X
B.6 Other increases
353
40
464
220
61
5
of which: business combinations - mergers
-
-
-
-
-
-
C. Reductions
1,867
225
2,948
1,337
239
13
C.1 Write-backs from valuation
158
24
545
255
23
1
C.2 Write-backs from collections
363
44
622
166
54
3
C.3 Gains from disposals
27
6
17
15
-
-
C.4 Write-offs
692
46
428
185
3
-
C.5 Transfers to other categories of non-performing
exposures
39
7
338
69
73
4
C.6 Contractual changes with no cancellations
-
X
1
X
-
X
C.7 Other decreases
588
98
997
647
86
5
of which: business combinations
-
-
-
-
-
-
D. Closing balance (gross amount)
2,169
398
2,902
1,201
265
8
of which sold non-cancelled exposures
12
1
1
1
1
-
564
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.2 Classification of credit exposure based on internal and external ratings
A.2.1 Regulatory consolidation - Breakdown of financial assets, loan commitments and financial guarantees given by external rating
classes (gross amounts)
(€ million)
AMOUNT AS AT 31.12.2024
EXTERNAL RATING CLASSES
NO RATING
TOTAL
EXPOSURES
CLASS 1
CLASS 2
CLASS 3
CLASS 4
CLASS 5
CLASS 6
A. Financial assets at amortised cost
- Stage 1
57,212
32,463
57,957
4,482
1,703
4
355,205
509,026
- Stage 2
180
552
1,930
835
215
7
48,909
52,628
- Stage 3
-
-
14
-
151
28
10,890
11,083
- Purchased or Originated Credit-
Impaired Financial Assets
-
-
7
-
-
-
111
118
B. Financial assets at fair value through
other comprehensive income
- Stage 1
30,525
14,000
23,089
72
-
-
5,419
73,105
- Stage 2
-
-
1
196
168
-
646
1,011
- Stage 3
-
-
-
-
-
-
114
114
- Purchased or Originated Credit-
Impaired Financial Assets
-
-
-
-
-
-
-
-
C. Financial instruments classified as
held for sale
- Stage 1
-
-
-
-
-
-
37
37
- Stage 2
-
-
-
-
-
-
-
-
- Stage 3
-
-
-
-
-
-
208
208
- Purchased or Originated Credit-
Impaired Financial Assets
-
-
-
-
-
-
44
44
Total (A+B+C)
87,917
47,015
82,998
5,585
2,237
39
421,583
647,374
D. Loan commitments and financial
guarantees given
- Stage 1
8,966
19,865
40,317
6,950
1,955
130
150,213
228,396
- Stage 2
68
167
2,632
1,360
307
3
17,638
22,175
- Stage 3
-
-
16
1
-
-
2,108
2,125
- Purchased or Originated Credit-
Impaired Financial Assets
-
-
-
-
-
-
-
-
Total (D)
9,034
20,032
42,965
8,311
2,262
133
169,959
252,696
Total (A+B+C+D)
96,951
67,047
125,963
13,896
4,499
172
591,542
900,070
565
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
The table details on- and off-Balance sheet credits granted to counterparties rated by external rating. The rating agencies provide an assessment of
the creditworthiness of different classes of borrowers such as Countries, Banks, Public-Sector Entities, Insurance Companies and (usually large)
Enterprises.
The table refers to classification of Circular 262 of 22 December 2005 of Banca d’Italia (and subsequent amendments); then it provides, for external
ratings, 6 classes of creditworthiness.
Rating Agencies utilised to fill the table are: S&Ps and Fitch.
Where more than one agency rating is available, the CRR criteria is used to determine the rating (Art. 138).
Here below the mapping between the external rating classes and the ECAI’s rating used.
EXTERNAL RATING CLASSES
ECAI
STANDARD & POOR'S
FITCH
LONG
SHORT
LONG
SHORT
TERM
TERM
TERM
TERM
1
AAA AA-
A1+ A1
AAA AA-
F1+ F1
2
A+ A-
A2
A+ A-
F2
3
BBB+ BBB-
A3
BBB+ BBB-
F3
4
BB+ BB-
worse than A3
BB+ BB-
worse than F3
5
B+ B-
worse than A3
B+ B-
worse than F3
6
CCC+ or less
inferiori a A3
CCC+ or less
worse than F3
The 94% of rated counterparties were investment grade (from Class 1 to Class 3), referring to highly rated borrowers.
Unrated exposures, i.e. those with no external rating, were 80,8% of the portfolio, due to the fact that a considerable proportion of borrowers were
private individuals or SMEs, which are not externally rated.
A.2.2 Regulatory consolidation - Breakdown of financial assets, loan commitments and financial guarantees given by internal rating
classes (gross amounts)
(€ million)
AMOUNT AS AT 31.12.2024
INTERNAL RATING CLASSES
NO RATING
TOTAL
EXPOSURES
1
2
3
4
5
6
7
8
A. Financial assets at amortised cost
- Stage 1
90,970
93,471
104,708
65,152
52,220
26,501
6,659
1,961
67,384
509,026
- Stage 2
155
261
2,451
8,147
10,342
8,028
6,065
5,739
11,440
52,628
- Stage 3
-
-
-
-
-
-
-
-
11,083
11,083
- Purchased or Originated Credit-Impaired Financial Assets
-
-
-
-
1
2
3
2
110
118
B. Financial assets at fair value through other comprehensive
income
- Stage 1
35,619
26,461
5,784
710
2
11
-
-
4,518
73,105
- Stage 2
-
-
-
99
53
-
-
-
859
1,011
- Stage 3
-
-
-
-
-
-
-
-
114
114
- Purchased or Originated Credit-Impaired Financial Assets
-
-
-
-
-
-
-
-
-
-
C. Financial instruments classified as held for sale
- Stage 1
-
-
-
21
1
5
-
10
-
37
- Stage 2
-
-
-
-
-
-
-
-
-
-
- Stage 3
-
-
-
-
-
-
-
-
208
208
- Purchased or Originated Credit-Impaired Financial Assets
-
-
-
-
-
-
-
-
44
44
Total (A+B+C)
126,744
120,193
112,943
74,129
62,619
34,547
12,727
7,712
95,760
647,374
D. Loan commitments and financial guarantees given
- Stage 1
32,821
56,541
51,722
30,864
15,852
6,331
1,579
522
32,164
228,396
- Stage 2
173
530
2,573
6,619
5,322
2,611
1,910
627
1,810
22,175
- Stage 3
-
-
-
-
-
-
-
-
2,125
2,125
- Purchased or Originated Credit-Impaired Financial Assets
-
-
-
-
-
-
-
-
-
-
Total (D)
32,994
57,071
54,295
37,483
21,174
8,942
3,489
1,149
36,099
252,696
Total (A+B+C+D)
159,738
177,264
167,238
111,612
83,793
43,489
16,216
8,861
131,859
900,070
566
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
The table contains exposures grouped according to the counterparties’ internal rating.
Ratings are assigned to individual counterparties using Group banks’ internally developed models used in their credit risk management processes.
The internal models validated by the regulators are either “group-wide” (e.g. for Banks, Multinationals, Sovereign) or bank-specific, by segment (e.g.
retail or corporate).
In 2023, the Group master-scale was upgraded, homogenizing the different rating scales of the internal models. There are 8 rating classes, based
on Probability of default (Probability of Default - PD).
65% of internally rated exposures are investment grade (classes 1 to 3), while exposures towards unrated counterparties are 14,6% of the total. No
rating is assigned to these counterparties as either they belong to a segment not yet covered by the models, or the appropriate model is still in the
roll-out phase.
Internal Ratings are used for Capital Requirements calculation by the Legal Entities/portfolios only with the approval of the appropriate supervisory
authority. Legal Entities currently authorised are UniCredit S.p.A., UniCredit Bank GmbH, UniCredit Bank Austria AG, UniCredit Banka Slovenija
d.d., UniCredit Bulbank AD, UniCredit Bank Czech Republic, and Slovakia a.s., UniCredit Bank Hungary Zrt., UniCredit Bank S.A. (Romania) and
AO UniCredit Bank (Russia), the later authorized only at the consolidated level.
A.3 Distribution of secured credit exposures by type of security
A.3.1 Regulatory consolidation - Secured on-balance and off-balance sheet credit exposures with banks
(€ million)
AMOUNT AS AT 31.12.2024
GROSS EXPOSURE
NET EXPOSURE
COLLATERALS (1)
PROPERTY -
MORTGAGES
PROPERTY - LEASE
LOANS
SECURITIES
OTHER
COLLATERALS
1. Secured on-balance sheet credit exposures
1.1 Totally secured
18,802
18,801
63
-
14,302
3,833
of which non-performing
-
-
-
-
-
-
1.2 Partially secured
11,819
11,818
35
-
11,525
7
of which non-performing
34
33
-
-
-
-
2. Secured off-balance sheet credit exposures
2.1 Totally secured
2,141
2,141
-
-
1,352
6
of which non-performing
-
-
-
-
-
-
2.2 Partially secured
1,151
1,151
-
-
-
22
of which non-performing
-
-
-
-
-
-
continued: A.3.1 Regulatory consolidation - Secured on-balance and off-balance sheet credit exposures with banks
(€ million)
AMOUNT AS AT 31.12.2024
GUARANTEES (2)
CREDIT DERIVATIVES
SIGNATURE LOANS (LOANS GUARANTEES)
TOTAL (1)+(2)
OTHER CREDIT DERIVATIVES
CLN
GOVERNMENT
AND
CENTRAL
BANKS
BANKS
OTHER
PUBLIC
ENTITIES
OTHER
ENTITIES
GOVERNMENTS
AND OTHER
PUBLIC
SECTOR
ENTITIES
BANKS
OTHER
PUBLIC
ENTITIES
OTHER
ENTITIES
1. Secured on-balance sheet credit
exposures
1.1 Totally secured
-
-
-
-
-
394
7
-
-
18,599
of which non-performing
-
-
-
-
-
-
-
-
-
-
1.2 Partially secured
-
-
-
-
-
60
27
-
-
11,654
of which non-performing
-
-
-
-
-
32
-
-
-
32
2. Secured off-balance sheet credit
exposures
2.1 Totally secured
-
-
-
-
-
-
202
1
580
2,141
of which non-performing
-
-
-
-
-
-
-
-
-
-
2.2 Partially secured
-
-
-
-
-
612
93
-
141
868
of which non-performing
-
-
-
-
-
-
-
-
-
-
567
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.3.2 Regulatory consolidation - Secured on-balance and off-balance sheet credit exposures with customers
(€ million)
AMOUNT AS AT 31.12.2024
GROSS EXPOSURE
NET EXPOSURE
COLLATERALS (1)
PROPERTY -
MORTGAGES
PROPERTY - LEASE
LOANS
SECURITIES
OTHER
COLLATERALS
1. Secured on-balance sheet credit exposures
1.1 Totally secured
198,656
195,169
120,907
6,795
17,994
15,656
of which non-performing
4,288
2,648
1,402
279
12
165
1.2 Partially secured
79,174
77,747
23,653
554
849
2,694
of which non-performing
2,132
1,486
324
12
12
40
2. Secured off-balance sheet credit exposures
2.1 Totally secured
40,154
39,999
4,989
-
9,230
3,732
of which non-performing
541
451
66
-
4
41
2.2 Partially secured
31,413
31,232
1,202
-
629
1,377
of which non-performing
416
285
9
-
27
7
continued: A.3.2 Regulatory consolidation - Secured on-balance and off-balance sheet credit exposures with customers
(€ million)
AMOUNT AS AT 31.12.2024
GUARANTEES (2)
CREDIT DERIVATIVES
SIGNATURE LOANS (LOANS GUARANTEES)
TOTAL (1)+(2)
OTHER CREDIT DERIVATIVES
CLN
GOVERNMENT
AND
CENTRAL
BANKS
BANKS
OTHER
PUBLIC
ENTITIES
OTHER
ENTITIES
GOVERNMENTS
AND OTHER
PUBLIC
SECTOR
ENTITIES
BANKS
OTHER
PUBLIC
ENTITIES
OTHER
ENTITIES
1. Secured on-balance sheet credit
exposures
1.1 Totally secured
-
-
-
-
-
11,546
826
1,296
19,180
194,200
of which non-performing
-
-
-
-
-
487
27
14
244
2,630
1.2 Partially secured
101
-
-
-
-
9,443
1,836
1,428
6,015
46,573
of which non-performing
-
-
-
-
-
458
96
7
140
1,089
2. Secured off-balance sheet credit
exposures
2.1 Totally secured
-
-
-
-
-
3,045
461
1,072
15,956
38,485
of which non-performing
-
-
-
-
-
87
25
42
181
446
2.2 Partially secured
-
-
-
-
-
2,629
242
531
1,590
8,200
of which non-performing
-
-
-
-
-
10
6
3
35
97
A.4 Regulatory consolidation - Financial and non-financial assets obtained by taking possession of collaterals
(€ million)
CANCELLED CREDIT
EXPOSURE
GROSS AMOUNT
OVERALL WRITE-
DOWNS
CARRYING VALUE
OF WHICH OBTAINED
DURING THE YEAR
A. Property, plant and equipment
485
477
155
323
28
A.1 Used in business
1
1
-
1
-
A.2 Held for investment
62
92
44
48
17
A.3 Inventories
422
384
111
274
11
B. Equity instruments and debt securities
701
551
506
45
-
C. Other assets
-
-
-
-
-
D. Non-current assets and disposal groups
classified as held for sale
-
-
-
-
-
D.1 Property, plant and equipment
-
-
-
-
-
D.2 Other assets
-
-
-
-
-
Total
31.12.2024
1,186
1,028
661
368
28
Total
31.12.2023
1,276
1,136
654
483
34
568
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
B. Distribution and concentration of credit exposures
B.1 Regulatory consolidation - Distribution by segment of on-balance and off-balance sheet credit exposures with customers
(€ million)
GOVERNMENTS AND OTHER
PUBLIC SECTOR ENTITIES
FINANCIAL COMPANIES
FINANCIAL COMPANIES (OF
WHICH INSURANCE COMPANIES)
NON-FINANCIAL COMPANIES
HOUSEHOLDS
EXPOSURES/COUNTERPARTIES
NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS
A. On-balance sheet credit exposures
A.1 Bad exposures
-
4
6
50
-
-
709
1,568
253
547
of which: forborne exposures
-
-
4
32
-
-
157
300
34
66
A.2 Unlikely to pay
345
26
192
226
-
-
3,320
2,304
923
346
of which: forborne exposures
8
6
71
47
-
-
1,193
1,005
366
143
A.3 Non-performing past-due
20
2
1
4
-
-
165
46
358
213
of which: forborne exposures
-
-
-
-
-
-
5
1
7
7
A.4 Performing exposures
143,590
131
77,480
235
1,476
1
208,761
2,406
135,769
1,386
of which: forborne exposures
13
-
498
58
-
-
4,700
344
586
73
Total (A)
143,955
163
77,679
515
1,476
1
212,955
6,324
137,303
2,492
B. Off-balance sheet credit exposures
B.1 Non-performing exposures
105
4
22
5
-
-
2,224
608
53
4
B.2 Performing exsposures
15,625
2
60,530
24
7,515
1
268,379
354
15,268
35
Total (B)
15,730
6
60,552
29
7,515
1
270,603
962
15,321
39
Total (A+B)
31.12.2024
159,685
169
138,231
544
8,991
2
483,558
7,286
152,624
2,531
Total (A+B)
31.12.2023
156,517
257
131,795
650
5,642
2
492,825
8,241
143,186
2,923
B.2 Regulatory consolidation - Distribution of on-balance and off-balance sheet credit exposures with customers by geographic area
(€ million)
ITALY
OTHER EUROPEAN COUNTRIES
AMERICA
ASIA
REST OF THE WORLD
EXPOSURES/GEOGRAPHIC AREAS
NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS
A. On-balance sheet credit exposures
A.1 Bad exposures
407
857
558
1,205
2
8
1
78
-
21
A.2 Unlikely to pay
1,558
1,135
2,834
1,739
17
19
102
7
269
2
A.3 Non-performing past-due
318
133
226
132
-
-
-
-
-
-
A.4 Performing exposures
197,971
1,747
330,159
2,373
12,505
20
10,560
5
14,405
13
Total (A)
200,254
3,872
333,777
5,449
12,524
47
10,663
90
14,674
36
B. Off-balance sheet credit exposures
B.1 Non-performing exposures
1,441
301
847
319
35
-
1
-
80
-
B.2 Performing exposures
129,767
99
206,952
309
19,467
4
2,426
1
1,192
-
Total (B)
131,208
400
207,799
628
19,502
4
2,427
1
1,272
-
Total (A+B)
31.12.2024
331,462
4,272
541,576
6,077
32,026
51
13,090
91
15,946
36
Total (A+B)
31.12.2023
349,157
4,742
515,932
7,090
32,909
69
15,623
130
10,705
38
569
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
B.3 Regulatory consolidation - Distribution of on-balance and off-balance sheet credit exposures with banks by geographic area
(€ million)
ITALY
OTHER EUROPEAN COUNTRIES
AMERICA
ASIA
REST OF THE WORLD
EXPOSURES/GEOGRAPHIC AREAS
NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS
A. On-balance sheet credit exposures
A.1 Bad exposures
-
-
-
-
-
4
-
-
-
-
A.2 Unlikely to pay
-
-
64
87
-
-
-
1
-
-
A.3 Non-performing past-due
-
-
-
-
-
-
-
-
-
-
A.4 Performing exposures
21,747
17
86,488
17
5,552
-
3,886
-
3,451
-
Total (A)
21,747
17
86,552
104
5,552
4
3,886
1
3,451
-
B. Off-balance sheet credit exposures
B.1 Non-performing exposures
-
-
-
-
-
-
-
-
-
-
B.2 Performing exposures
2,436
3
23,820
2
1,683
-
4,289
-
1,572
1
Total (B)
2,436
3
23,820
2
1,683
-
4,289
-
1,572
1
Total (A+B)
31.12.2024
24,183
20
110,372
106
7,235
4
8,175
1
5,023
1
Total (A+B)
31.12.2023
21,488
16
106,891
100
5,830
4
8,490
5
3,196
1
B.4 Large exposures
31.12.2024
a) Amount book value (€ million)
243,226
b) Amount weighted value (€ million)
36,961
c) Number
20
According to Art.4.1 39 of Regulation (EU) No.575/2013 (CRR), in case of exposures towards a group of connected clients formed by a Central
Government and other groups of connected clients, such exposure towards the Central Government is reported for each group of connected clients
when remitting regulatory reporting; despite the abovementioned regulatory approach, both the amounts shown in letter a), b), and the number in
letter c) in the table above disclose only once the exposure towards the Central Government. It should be noted that deferred tax assets towards
Central Government were considered as fully exempted and, consequently, the weighted amount reported is null.
Carrying and weighted amounts also include the indirect exposures towards the issuers of securities used as collateral under reverse repurchase
agreement transactions included in master netting agreements, in compliance to EBA Q&A n.5496.
570
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
C. Securitisation transactions
Qualitative information
In securitisation transactions the Group plays, as the case may be, the role of originator, sponsor or investor.
The Group as originator
The Group’s origination of traditional transactions consists in the sale of on-Balance sheet receivables portfolios to vehicles set up as securitisation
companies under Law 130/99 or similar non-Italian legislation.
The transferee company finances the purchase of the receivables portfolios by issuing bonds of varying seniority and transfers its issue proceeds to
the Group87.
The yield and maturity of the bonds issued by the buyer therefore mainly depend on the cash flow expected from the assets being sold. As a further
form of security to bondholders, these transactions may include special types of credit enhancement, e.g., subordinated loans, financial guarantees,
standby letters of credit, etc.
The Group’s objectives when carrying out these transactions are usually the following:
• to originate securities that can be used to secure refinancing transactions with Banca d’Italia and the ECB (counterbalancing capacity);
• to obtain funding through the placement of securities on the market. This also allows a diversification of the funding sources and of the investors’
basis with improvements in reducing the cost of Group’s funding;
• to free up economic and regulatory capital by carrying out transactions that reduce capital requirements under current rules by reducing credit risk
of the underlying portfolio;
• to reduce the exposures towards non-performing customers;
• to optimise the recoveries of exposures portfolios towards non-performing customers, referring to specific asset classes;
• other purposes related for example to corporate re-organization, M&A or divestment’s assets where the true sale securitisation is instrumental to
the deleveraging and assets transfer or for business purposes.
The Group carries out both traditional securitisations whereby the receivables portfolio is sold to the SPV, as described above, and synthetic
securitisations which use financial guarantees to purchase protection over all or part of the underlying credit risk of the portfolio. The latter, on the
contrary to traditional securitisations, is not sold to vehicles but remains also legally within the Group. In this case, moreover, the financial
guarantees purchased as protection of such loans are also booked on the Balance sheet as well as the impacts on the Income statement related to
them.
Under traditional securitisations generally the Group, in addition to provide in some cases servicing role, retains the first loss in the form of junior
bonds or similar exposure and in some cases provides further credit enhancement as described above. This enables the Group to benefit from the
portion of the sold receivables’ yield in excess of the yield due to the senior and mezzanine tranches.
Retention by the Group of the overall first loss risk and the corresponding yield means that most of the risk and return on the portfolio is retained in
these cases. Consequently these transactions are recognised in the accounts as loans and no profits arising out of the transfer of the assets are
recognised as well as the sold receivables are not derecognised.
In the consolidated financial statements, exposure to the variability of the cash flows deriving from maintenance of the excess rewards of the
portfolio and of the first loss risk, together with the role of servicer of the underlying assets, determines in general control by the Group over these
securitisation vehicles. Therefore they are subject to full consolidation.
Differently, in order to improve the quality of its assets and optimise the capital allocation, the Group also carries out transactions that involve the
portfolios’ derecognition and/or the related significant risk transfer, by subscribing a limited portion of securities issued by vehicles of securitisation or
keeping a minimum percentage of the portfolio, in compliance with the rules for maintaining a net economic interest in the securitisation transaction
according to the current regulatory requirements (Retention Rule).
87 The legislation also foresees other securitisation structures in which the proceeds deriving from the issue of a single class or classes of securities (or from other alternative forms of funding, such as through the taking of
deposits), are used by the vehicle for the granting of a loan to the Originator of the assets; in any case, however, the repayment of the loan is guaranteed by the proceeds of the same assets, which are returned to the
vehicle. Furthermore, the legislation also foresees that the SPV can obtain the assets through the direct grant to the client, utilizing the bank, and not through the purchase of the portfolio from the bank itself.
571
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
The Group's main objectives in its securitisation transactions (whether traditional or synthetic) are the optimisation of the loan portfolio by freeing up
regulatory and economic capital and obtaining fresh liquidity (in case of traditional transactions) together with greater diversification of its sources of
funding. The crisis in the markets experienced since the second half of 2007 made it advisable to use traditional securitisation also as a means of
increasing counterbalancing capacity, i.e. the availability of assets that can be readily used to create liquidity, by retaining the securities issued by
the vehicle within the Group. Moreover traditional securitisations have been used also for corporate re-organisation’s or divestment’s purposes, for
assets deleveraging, for business projects’ purposes, for boosting recovery’s activity through the recourse to specialised management companies
external to the Group and for accelerating the sale of non-performing loans as well.
The assessment process on the realisation of securitisation transactions is carried out within the Parent in close cooperation with the Group
originator entities involved and with UniCredit Bank GmbH, as preferred counterparty, as Arranger and potential Investment Banking. This process
requires an economic feasibility study to assess the impact of transactions (according to their nature and aims), on regulatory and economic capital,
on risk-adjusted profitability measures, on the level of liquidity and on the Group’s asset quality. If this initial phase produces a positive result, a
technical and operational feasibility study is carried out to identify the assets to be securitised and define the structure of the transaction. Once
technical feasibility has been established, the transaction is realised.
Eventually it should be noted that "self-securitisations" and transactions in warehousing phase are not included in the quantitative tables of this
paragraph (C. Securitisation transactions), as required by regulations.
Developments of the period
During 2024, the Group carried out various synthetic and traditional securitisation transactions with the aim of optimizing risk-weighted assets and
improving the related ROAC in line with the provisions of the 2022-2024 “UniCredit Unlocked” Strategic Plan.
Anyway, in this year the Group makes limited use of traditional transactions. However the amount of securitised loans88 at 31 December 2024, net of
the transactions in which the Group has acquired all the liabilities issued by the SPVs (the so-called self-securitisations), accounts for 4.94% of the
Group’s credit portfolio. Self-securitisations in turn account for 1.72% of the loan portfolio as at 31 December 2024.
During 2024 the Group carried out 10 new transactions, of which 1 traditional and 9 synthetic ones:
• Leopard - traditional (originator UniCredit S.p.A.);
• A.R.T.S. Corporate 2024 - synthetic (originator UniCredit S.p.A.);
• A.R.T.S. Large Corporate 2024 - synthetic (originator UniCredit S.p.A.);
• A.R.T.S. ReMo 2024 - synthetic (originator UniCredit S.p.A.);
• TC Italia – synthetic (originator UniCredit S.p.A.);
• TC Italia 2 – synthetic (originator UniCredit S.p.A.);
• TC MiniBond 2023 - synthetic (originator UniCredit S.p.A.);
• A.R.T.S. Leasing 2024 - synthetic (originator UniCredit Leasing S.p.A.);
• Arabellapark 2024 – synthetic (originator UniCredit Bank GmbH);
• ARTS Morava – synthetic (originator UniCredit Bank Czech Republic and Slovakia A.S.).
Details are given in the tables published in the “Annexes”, which also describe transactions, traditional and synthetic, carried out in previous financial
years.
The Group as sponsor
The Group defines the role of sponsor as that performed by an entity, other than the transferor, which organises and administers a securitisation or
asset-backed commercial paper structure in which financial assets are purchased from third parties.
The Group acts as sponsor of asset backed commercial paper vehicles (i.e. commercial paper issuing conduits) set-up in order to allow customers
the access to the securitisations’ market (multi-seller Customer conduits).
Customer conduits require the formation and management of a bankruptcy-remote company (i.e. one that would be immune from any financial
difficulties of the originator) which directly or indirectly buys receivables created by companies outside the Group.
The receivables underlying these transactions are not bought directly by the conduit set up by the Group, but by a purchase company which in turn
is wholly funded by the conduit by means of commercial paper or Medium Term Notes (MTN).
In some circumstances purchase companies fund further SPVs which buy loan portfolio.
88 It refers to loans sold, also synthetically, but not derecognised from Balance sheet.
572
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
The main purpose of these transactions is to give corporate customers access to the securitisation market and thus to lower funding costs than
would be borne with direct funding.
The conduits’ purchase of assets is financed by short-term commercial paper and Medium Term Note (MTN) issues.
Payment of interest and redemption of the securities issued by the conduit therefore depends on cash flow from the receivables purchased (credit
risk) and the ability of the conduit to roll over or replace its market funding on maturity (liquidity risk).
To guarantee prompt redemption of the securities issued by the conduit, these transactions are guaranteed by a standby letter of credit covering the
risk of default both of specific assets and of the whole programme.
The underwriters of issued securities also benefit from security provided by specific liquidity lines which the conduit may use if it unable to place new
commercial paper to repay maturing paper, e.g. during market turmoil.
These liquidity lines may not however be used to guarantee redemption of securities issued by the conduit in the event of default by the underlying
assets.
In its role as sponsor, the Group selects the asset portfolios purchased by conduits or purchase companies, provides administration of the assets
and both standby letters of credit and liquidity lines and purchases commercial papers issued when required by market conditions.
For these services the Group receives fees and also benefits from the spread between the return on the assets purchased by the SPV and the
securities issued.
These circumstances put the Group in the condition of having the power over the assets of the conduits and being at the same time exposed to the
variability deriving from such assets. Therefore, the conduits sponsored by the Group have come within the perimeter of consolidation starting from
2007, in application of the conditions provided for in IFRS10 and previously by SIC12.
In addition to the Customer Conduits, purchase companies may also be consolidated if the Group is exposed to the variability of yields deriving from
funding provided directly or indirectly, through the conduit, and also has the power to manage the underlying assets.
The Group as investor
The Group also invests in structured credit products issued by special-purpose entities that are not consolidated pursuant to the accounting rules in
force, insofar as such instruments do not bear most of the risk or receive most of the returns associated with the activity carried out by these special-
purpose entities.
With regard to these activities, the Group holds within the Global ABS portfolio exposures of securitisations established by third-parties such as
RMBS, CMBS, CDO, CBO/CLO and other ABS.
In line with the development of the financial markets and, specifically, the securitisation market, the Global ABS Portfolio was transformed from a
separate portfolio in liquidation to strategic investment portfolio for the Group in 2011 and was integrated into the Markets Strategic Portfolio (MSP),
managed with a view to generating a profit margin and creating an appreciable capital return through long-term investments in fixed-income
securities.
The development of client-related operations is also an integral part of MSP activities and includes actions to strengthen the customer base and
support securitisations. This portfolio is subject to monitoring and reporting by the business and risk management functions. All activities relating to
the MSP are carried out in conformity with established policies and procedures, specifically credit approval procedures.
The analysis of investments in ABS focuses specifically on the following elements:
• structural analysis of all internal and external risks inherent to a similar investment, e.g. Default Risk, Dilution Risk, Residual Value Risk, Servicer
Risk, Interest Rate Risk, Liquidity Risk, Commingling Risk, Legal Risk, Adequacy of performance triggers, etc. These risks may differ according to
the underlying asset class;
• analysis of the underlying portfolio, including the analysis of all performance indicators significant for each underlying asset class;
• cash flows/quantitative analysis/modelling;
• credit rating and experience of the participants e.g. vendor/servicer - financial soundness, capacity and availability to service assets.
573
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Quantitative information
The tables below do not include information on the so-called “self-securitisations”, i.e. securitisation transactions in which the Group has acquired all
the liabilities issued by the SPVs, and transactions in warehousing phase.
C.1 Regulatory consolidation - Exposure from the main "in-house" securitisation transactions broken down by type of securitised asset
and by type of exposure
(€ million)
TYPE OF SECURITISED ASSETS/EXPOSURE
BALANCE-SHEET EXPOSURE
SENIOR
MEZZANINE
JUNIOR
CARRYING VALUE
WRITE-DOWNS/
WRITE-BACKS CARRYING VALUE
WRITE-DOWNS/
WRITE-BACKS CARRYING VALUE
WRITE-DOWNS/
WRITE-BACKS
A. Totally derecognised
1,492
-
32
-
8
-
A.1 - Residential mortgages
468
-
-
-
-
-
A.2 - Loans to corporates
269
-
9
-
-
-
A.3 - Loans to SME
510
-
22
-
8
-
A.4 - Leasing
245
-
1
-
-
-
B. Partially derecognised
-
-
-
-
-
-
B.1 - Loans to SME
-
-
-
-
-
-
C. Not-derecognised
22,072
-
-
-
267
-
C.1 - Residential mortgages
4,831
-
-
-
201
-
C.2 - Loans to corporates
14,102
-
-
-
18
-
C.3 - Loans to SME
849
-
-
-
1
-
C.4 - Leasing
2,241
-
-
-
25
-
C.5 - Consumer loans
49
-
-
-
22
-
Possible write-downs and write-backs, including depreciations and revaluations posted on the Income statement or to reserves, refer to financial
year 2024 only.
continued C.1 Regulatory consolidation - Exposure from the main "in-house" securitisation transactions broken down by type of securitised asset
and by type of exposure
TYPE OF SECURITISED ASSETS/EXPOSURE
GUARANTEES GIVEN
SENIOR
MEZZANINE
JUNIOR
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
A. Totally derecognised
-
-
-
-
-
-
A.1 - Residential mortgages
-
-
-
-
-
-
A.2 - Loans to corporates
-
-
-
-
-
-
A.3 - Loans to SME
-
-
-
-
-
-
A.4 - Leasing
-
-
-
-
-
-
B. Partially derecognised
-
-
-
-
-
-
B.1 - Loans to SME
-
-
-
-
-
-
C. Not-derecognised
-
-
-
-
-
-
C.1 - Residential mortgages
-
-
-
-
-
-
C.2 - Loans to corporates
-
-
-
-
-
-
C.3 - Loans to SME
-
-
-
-
-
-
C.4 - Leasing
-
-
-
-
-
-
C.5 - Consumer loans
-
-
-
-
-
-
574
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
continued C.1 Regulatory consolidation - Exposure from the main "in-house" securitisation transactions broken down by type of securitised asset
and by type of exposure
TYPE OF SECURITISED ASSETS/EXPOSURE
CREDIT FACILITIES
SENIOR
MEZZANINE
JUNIOR
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
A. Totally derecognised
-
-
-
-
-
-
A.1 - Residential mortgages
-
-
-
-
-
-
A.2 - Loans to corporates
-
-
-
-
-
-
A.3 - Loans to SME
-
-
-
-
-
-
A.4 - Leasing
-
-
-
-
-
-
B. Partially derecognised
-
-
-
-
-
-
B.1 - Loans to SME
-
-
-
-
-
-
C. Not-derecognised
-
-
-
-
-
-
C.1 - Residential mortgages
-
-
-
-
-
-
C.2 - Loans to corporates
-
-
-
-
-
-
C.3 - Loans to SME
-
-
-
-
-
-
C.4 - Leasing
-
-
-
-
-
-
C.5 - Consumer loans
-
-
-
-
-
-
With reference to transactions with own underlying assets it should be noted that the decrease in balance-sheet net exposures relating to
transactions not derecognised to €259 million as at December 2024 from €345 million as at December 2023 was due to the natural development of
the transactions.
Moreover, the increase in balance-sheet net exposures concerning synthetic transactions from €11,922 million in December 2023 to €22,080 million
in December 2024 was due to the 9 new transactions of the year in addition to the natural development of the other synthetic transactions.
Finally, it should be noted that the net balance-sheet exposure totally derecognised refers to the traditional securitisations Itaca, Olympia, PEVA,
Pillarstone, Prisma, FINO Project, Panthers Project, Relais 2020, Tahiti and to the new traditional securitisation Leopard, for which see the
information provided in the tables published in the “Annexes”.
C.2 Regulatory consolidation - Exposure resulting from the main third-party securitisation transactions broken down by type of
securitised asset and by type of exposure
(€ million)
TYPE OF SECURITISED ASSETS/EXPOSURE
BALANCE-SHEET EXPOSURE
SENIOR
MEZZANINE
JUNIOR
CARRYING VALUE
WRITE-DOWNS/
WRITE-BACKS CARRYING VALUE
WRITE-DOWNS/
WRITE-BACKS CARRYING VALUE
WRITE-DOWNS/
WRITE-BACKS
A.1 - Residential mortgages
2,093
-
13
-
-
-
A.2 - Commercial mortgages
9
-
12
-
-
-
A.3 - Loans to corporates
4,481
-
-
-
-
-
A.4 - Loans to SME
171
-
-
-
10
-
A.5 - Leasing
1,192
-
-
-
-
-
A.6 - Consumer loans
11,182
-
-
-
-
-
A.7 - Other retail exposures
877
-
-
-
2
-
A.8 - Trade receivables
2,721
-
-
-
4
-
Note:
For the items "Loans to corporates", "Leasing" and "Trade receivables" are included exposures of subsidiaries subject to consolidation, but not belonging to the banking group.
Possible write-downs and write-backs, including depreciations and revaluations posted on the Income statement or to reserves, refer to financial
year 2024 only.
575
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
continued C.2 Regulatory consolidation - Exposure resulting from the main third-party securitisation transactions broken down by type of
securitised asset and by type of exposure
TYPE OF SECURITISED ASSETS/EXPOSURE
GUARANTEES GIVEN
SENIOR
MEZZANINE
JUNIOR
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
A.1 - Residential mortgages
-
-
-
-
-
-
A.2 - Commercial mortgages
-
-
-
-
-
-
A.3 - Loans to corporates
-
-
-
-
-
-
A.4 - Loans to SME
-
-
-
-
-
-
A.5 - Leasing
-
-
-
-
-
-
A.6 - Consumer loans
-
-
-
-
-
-
A.7 - Other retail exposures
-
-
-
-
-
-
A.8 - Trade receivables
-
-
-
-
-
-
continued C.2 Regulatory consolidation - Exposure resulting from the main third-party securitisation transactions broken down by type of
securitised asset and by type of exposure
TYPE OF SECURITISED ASSETS/EXPOSURE
CREDIT FACILITIES
SENIOR
MEZZANINE
JUNIOR
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
A.1 - Residential mortgages
-
-
-
-
-
-
A.2 - Commercial mortgages
-
-
-
-
-
-
A.3 - Loans to corporates
773
-
-
-
-
-
A.4 - Loans to SME
-
-
-
-
-
-
A.5 - Leasing
815
-
-
-
-
-
A.6 - Consumer loans
-
-
-
-
-
-
A.7 - Other retail exposures
32
-
-
-
-
-
A.8 - Trade receivables
4,501
-
27
-
-
-
Note:
For the items "Loans to corporates", "Leasing" and "Trade receivables" are included exposures of subsidiaries subject to consolidation, but not belonging to the banking group.
The transactions with third-party underlying assets are those in which the Group acts as sponsor, lender or investor.
With reference to transactions in which the Group acts as sponsor, the total amount of net exposure is equal to €5,925 million (€5,941 million as at
31 December 2023), broken down into asset backed commercial paper and loans for €1,964 million and undrawn credit lines for €3,961 million.
It should be noted that the lines of credit shown are the difference between total credit lines granted and the amount of commercial paper and loans
underwritten by the Group. This figure is the additional risk exposure incurred by the Group in addition to the underwritten commercial paper and
loans.
With reference to transactions in which the Group acts as investor, refer to the subsequent tables ‘Exposures toward other consolidated SPVs’ and
“C.4 Regulatory consolidation - Special Purpose Vehicles for securitisation not subject to consolidation” that shows the exposure of the Group
toward these SPVs.
576
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
With reference to sponsor exposures the following table provides information about exposures held toward consolidated conduits in which the Group
acts as sponsor.
Exposures sponsored by the Group
(€ million)
AMOUNTS AS AT 31.12.2024
Asset Backed Commercial Paper / Loans
1,961
- Arabella Finance DAC
1,961
- Elektra Purchase No. 28 DAC
-
- Elektra Purchase No. 31 DAC
-
- Elektra Purchase No. 32 S.A. - Compartment 1
-
- Elektra Purchase No. 33 DAC
-
- Elektra Purchase No. 36 DAC
-
- Elektra Purchase No. 37 DAC
-
- Elektra Purchase No. 38 DAC
-
- Elektra Purchase No. 43 DAC
-
- Elektra Purchase No. 46 DAC
-
- Elektra Purchase No. 54 DAC
-
- Elektra Purchase No. 56 DAC
-
- Elektra Purchase No. 69 DAC
-
- Elektra Purchase No. 71 DAC
-
- Elektra Purchase No. 74 DAC
-
- Elektra Purchase No. 79 DAC
-
- Elektra Purchase No. 82 DAC
-
- Elektra Purchase No. 350 DAC
-
Credit facilities
2,294
- Arabella Finance DAC
-
- Elektra Purchase No. 28 DAC
153
- Elektra Purchase No. 31 DAC
66
- Elektra Purchase No. 32 S.A. - Compartment 1
234
- Elektra Purchase No. 33 DAC
197
- Elektra Purchase No. 36 DAC
477
- Elektra Purchase No. 37 DAC
83
- Elektra Purchase No. 38 DAC
97
- Elektra Purchase No. 43 DAC
119
- Elektra Purchase No. 46 DAC
82
- Elektra Purchase No. 54 DAC
38
- Elektra Purchase No. 56 DAC
122
- Elektra Purchase No. 69 DAC
47
- Elektra Purchase No. 71 DAC
130
- Elektra Purchase No. 74 DAC
102
- Elektra Purchase No. 79 DAC
170
- Elektra Purchase No. 82 DAC
136
- Elektra Purchase No. 350 DAC
41
The lines of credit shown are the difference between total credit lines granted and the amount of commercial paper and loans underwritten by the
Group. This figure is the additional risk exposure incurred by the Group in addition to the underwritten commercial paper.
Moreover, it should be noted that as at 31 December 2024 there were 3 SPVs of third parties securitisations, Ice Creek Pool No.1 DAC, Ice Creek
Pool No.5 DAC and PaDel Finance 01 DAC where the Group acts as lender or investor, and subject to consolidation. Exposures to these vehicles
amount to €1,126 million of cash exposures and €78 million of credit lines.
577
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
C.3 SPVs for securitisations
(€ million)
NAME OF SECURITISATION/NAME OF
VEHICLE
COUNTRY OF INCORPORATION
CONSOLIDATION
ASSETS
LIABILITIES
LOANS AND
RECEIVEBLES DEBT SECURITIES
OTHERS
SENIOR MEZZANINE
JUNIOR
Arabella Finance DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
4,744
-
4
4,746
-
-
ARTS Consumer
VIALE DELL'AGRICOLTURA 7, 37135 VERONA
Y
347
-
65
216
179
17
ARTS Consumer 2023
VIALE DELL'AGRICOLTURA 7, 37135 VERONA
Y
601
-
91
500
181
10
Capital Mortgage S.r.l. - CAPITAL MORTGAGE 2007 - 1
Piazzetta Monte 1 - 37121 Verona
Y
248
-
62
132
74
55
Elektra Purchase No. 28 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
225
-
225
-
-
Elektra Purchase No. 31 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
-
-
-
-
-
Elektra Purchase No. 32 S.A. - Compartment 1
52-54 avenue du X Septembre, L-2550 Luxembourg
Y
269
-
269
-
-
Elektra Purchase No. 33 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
69
-
69
-
-
Elektra Purchase No. 36 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
700
-
1
700
-
-
Elektra Purchase No. 37 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
120
-
120
-
-
Elektra Purchase No. 38 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
102
-
102
-
-
Elektra Purchase No. 43 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
157
-
157
-
-
Elektra Purchase No. 46 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
12
-
12
-
-
Elektra Purchase No. 54 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
46
-
46
-
-
Elektra Purchase No. 56 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
109
-
109
-
-
Elektra Purchase No. 69 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
52
-
52
-
-
Elektra Purchase No. 71 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
112
-
112
-
-
Elektra Purchase No. 74 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
106
-
106
-
-
Elektra Purchase No. 79 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
250
-
250
-
-
Elektra Purchase No. 82 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
200
-
1
200
-
-
Elektra Purchase No. 350 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
41
-
41
-
-
F-E Mortgages S.r.l. - 2005
Piazzetta Monte 1 - 37121 Verona
Y
66
-
11
-
16
32
Ice Creek Pool No. 1 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
224
-
224
-
-
Ice Creek Pool No. 5 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
204
-
204
-
-
PaDel Finance 01 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
Y
475
-
475
-
-
ALTEA SPV S.R.L.
VIA VALTELLINA,15/17, 20159 MILANO
N
357
-
64
249
86
22
ARCOBALENO FINANCE SRL
FORO BUONAPARTE,70 20121 MILANO
N
10
-
2
-
-
18
ARTS LARGE CORPORATE S.R.L.
VIA VITTORIO ALFIERI 1, 31015 CONEGLIANO (TV)
N
241
-
65
267
-
29
CREDIARC SPV SRL
FORO BUONAPARTE,70 20121 MILANO
N
6
-
-
-
22
Elektra Purchase No. 8 Limited
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
160
-
160
-
-
Elektra Purchase No.17 S.A. (RE COMPARTMENT 14)
52-54 avenue du X Septembre, L-2550 Luxembourg
N
35
-
35
-
-
Elektra Purchase No. 25 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
54
-
54
-
-
Elektra Purchase No. 29 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
254
-
254
-
-
Elektra Purchase No. 41 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
61
-
60
-
-
Elektra Purchase No. 45 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
250
-
250
-
-
Elektra Purchase No. 60 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
99
-
99
-
-
Elektra Purchase No. 61 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
25
-
25
-
-
Elektra Purchase No. 62 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
419
-
419
-
-
Elektra Purchase No. 65 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
95
-
95
-
-
Elektra Purchase No. 66 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
39
-
39
-
-
Elektra Purchase No. 68 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
54
-
54
-
-
Elektra Purchase No. 70 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
43
-
43
-
-
Elektra Purchase No. 72 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
17
-
17
-
-
Elektra Purchase No. 73 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
120
-
120
-
-
Elektra Purchase No. 75 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
141
-
141
-
-
Elektra Purchase No. 76 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
214
-
214
-
-
Elektra Purchase No. 77 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
21
-
21
-
-
Elektra Purchase No. 78 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
-
-
-
-
-
Elektra Purchase No. 80 DAC
1-2 Victoria Buildings, Haddington Road, Dublin 4, D04 XN32, Ireland
N
66
-
66
-
-
FINO 1 SECURITISATION SRL
VIALE LUIGI MAJNO 45, 20122 MILANO
N
95
-
36
-
-
1
FINO 2 SECURITISATION SRL
VIALE LUIGI MAJNO 45, 20122 MILANO
N
72
-
383
180
201
40
ITACA SPV S.R.L.
VIA VITTORIO ALFIERI 1, 31015 CONEGLIANO (TV)
N
711
-
43
30
24
6
KREOS SPV S.R.L.
VIA VALTELLINA 15/17, 20159 MILANO
N
108
-
4
85
25
3
OLYMPIA SPV S.R.L.
VIA VITTORIO ALFIERI 1, 31015 Conegliano
N
92
-
100
109
26
3
ONIF FINANCE SRL
VIA ALESSANDRO PESTALOZZA 12/14, 20131 MILANO
N
119
-
9
-
-
84
Pillarstone Italy SPV S.r.l. - Premuda
Via Pietro Mascagni 14, 20122 MILANO
N
29
-
2
1
180
92
Pillarstone Italy SPV S.r.l. - Rainbow
Via Pietro Mascagni 14, 20122 MILANO
N
46
-
26
26
106
PRISMA SPV S.R.L.
VIA MARIO CARUCCI 131, Roma
N
218
-
425
475
80
30
RELAIS SPV S.r.l.
VIA VITTORIO ALFIERI 1, 31015 Conegliano
N
581
-
66
218
91
10
Sestante Finance S.r.l.
Via Borromei, 5 - 20123 Milano
N
86
-
-
45
90
9
Tahiti SPV S.r.l.
PZA GEN.ARMANDO DIAZ 5, 20123 MILANO
N
23
-
2
19
5
1
578
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
C.4 Regulatory consolidation - Special Purpose Vehicles for securitisation not subject to consolidation
As mentioned before in the context of securitisation transactions the Group may operate as investor, sponsor and originator.
The following table provides indication on assets and liabilities recognised in the Balance sheet as well as off-balance exposures of the Group
toward non-consolidated securitisation vehicles and broken down by role of the Group. The maximum exposure to loss has been calculated by
grossing up the difference between assets and liabilities with off-Balance sheet positions, credit lines and financial guarantees, held toward these
vehicles and reported in column “difference between maximum exposure to loss and accounting value”.
Exposures to Securitisation SPVs not subject to consolidation
(€ million)
AMOUNTS AS AT 31.12.2024
BALANCE SHEET ITEM/SPV TYPE
ACCOUNTING
PORTFOLIO
(ASSETS)
TOTAL ASSETS
(A)
ACCOUNTING
PORTFOLIO
(LIABILITIES)
TOTAL
LIABILITIES
(B)
NET
ACCOUNTING
VALUE
(C=A-B)
MAXIMUM
EXPOSURE TO
LOSS
(D)
DIFFERENCE
BETWEEN
MAXIMUM
EXPOSURE TO
LOSS AND
ACCOUNTING
VALUE
(E=D-C)
ABS Issuing vehicles (Investor)
19,640
101
19,539
19,657
118
HFT
69
Deposits
93
DFV
-
Securities
-
MFV
29
HFT
8
FVOCI
-
DFV
-
AC
19,542
Commercial Paper Conduits (Sponsor)
263
95
168
2,709
2,541
HFV
-
Deposits
95
DFV
-
Securities
-
MFV
4
HFT
-
FVOCI
-
DFV
-
AC
259
Own securitisations (Originator)
1,532
468
1,064
1,064
-
HFT
-
Deposits
390
DFV
-
Securities
-
MFV
31
HFT
78
FVOCI
827
DFV
-
AC
674
Total
21,435
664
20,771
23,430
2,659
Notes:
HFT = Financial assets held for trading
Deposits = Deposits from Customers
DFV = Financial assets designated at fair value
Securities = Debt securities in issue
MFV = Financial assets mandatorily at fair value
HFT = Financial liabilities held for trading
FVOCI = Financial assets at fair value through other comprehensive income
DFV = Financial liabilities designated at fair value
AC = Financial assets at amortised cost
579
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Exposures toward ABS Issuing vehicles are constituted for the most part, €18,731 million, by exposures in Asset Backed Securities. The remaining
part is constituted by loans and, marginally, derivatives.
Exposures toward Commercial Paper Conduit comprise credit line provided to the purchase companies that acquire the receivables from the
originators external to the Group. These credit lines are granted by credit enhancements (deferred purchase price and credit insurance) so that the
Group does not bear the variability of the underlying portfolio.
Exposures toward own securitisation comprise securities and off-Balance sheet exposure toward SPV that are not consolidated as the conditions
required by IFRS10 are not fulfilled. Absent the conditions requested by IFRS9 the securitised loans have not been derecognised from the Balance
sheet of the originator. For further information on these securitisations refer to the tables published in the “Annexes”.
During the period the Group has not provided financial support to any non-consolidated securitisation vehicle in absence of contractual obligation to
do so. The Group has not the current intention to provide such support. The Group does not act as sponsor of securitisation vehicles in which it has
not exposures at the end of the reporting period.
C.5 Regulatory consolidation - Servicer activities - Collections of securitised loans and redemptions of securities issued by the
securitisation's vehicle
(€ million)
SERVICER
SPECIAL PURPOSE
VEHICLE
SECURITISED ASSETS
(YEAR END FIGURES)
LOANS COLLECTED DURING
THE YEAR
PERCENTAGE OF SECURITIES REDEEMED
(YEAR END FIGURES)
IMPAIRED PERFORMING
IMPAIRED PERFORMING
SENIOR
MEZZANINE
JUNIOR
IMPAIRED
ASSETS
PERFORMING
ASSETS
IMPAIRED
ASSETS
PERFORMING
ASSETS
IMPAIRED
ASSETS
PERFORMING
ASSETS
UniCredit S.p.A.
Arts Consumer
18
329
6
260
-
67.73%
-
-
-
-
Arts Consumer 2023
24
577
4
346
-
25.74%
-
-
-
-
Capital Mortgage S.r.l.
4
244
1
51
-
94.47%
-
-
-
-
F-E Mortgage S.r.l. -
SERIE 2005
4
62
1
16
-
100.00%
-
60.89%
-
10.31%
580
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
C.6 Regulatory consolidation - Consolidated securitisation vehicles
(€ million)
31.12.2024
SPECIAL PURPOSE VEHICLE
Arabella Finance DAC
ARTS Consumer
ARTS Consumer 2023
COUNTRY OF INCORPORATION
1-2 Victoria Buildings,
Haddington Road, Dublin
4, D04 XN32, Ireland
VIALE
DELL'AGRICOLTURA 7,
37135 VERONA
VIALE
DELL'AGRICOLTURA 7,
37135 VERONA
A. Securitised assets
4,744
347
601
A.1 Loans
4,744
347
601
A.2 Bonds
-
-
-
B. Loans disbursed
0
-
-
C. Use of liquid assets resulting from loan operations
4
40
84
C.1 Loans (including bank current account)
4
40
84
C.2 Bonds
-
-
-
D. Other assets
-
25
7
D.1 Derivatives
-
0
-
D.2 Other assets
-
25
7
TOTAL ASSETS (A+B+C+D)
4,748
412
692
E. Bond issued
4,746
395
681
E.1 Senior
4,746
216
500
E.2 Mezzanine
-
179
181
E.3 Junior
-
-
-
F. Loans received
-
17
11
F.1 Senior
-
-
-
F.2 Mezzanine
-
-
-
F.3 Junior
-
17
11
G. Other liabilities
2
-
-
G.1 Derivatives
-
-
0
G.2 Due to originator
-
-
-
G.3 Other liabilities
5
0
-
G.4 Own funds
-3
-
-
TOTAL LIABILITIES (E+F+G)
4,748
412
692
H. Interest expense
189
41
51
H.1 Interest expense on bond issued
-
39
50
H.2 Interest expense on loans received
189
2
1
H.3 Interest expense on derivatives
-
-
-
I. Commissions and fees related to the transaction
31
1
1
I.1 for servicing
31
1
1
I.2 for other services
-
0
0
J. Other charges
3
16
29
J.1 Additional positive returns for exposure junior
-
-
17
J.2 Other costs
3
16
12
TOTAL COSTS (H+I+J)
223
58
81
K. Interest generated by securitised assets
177
35
67
L. Interest income on derivatives
-
5
6
M. Other revenues
45
18
8
M.1 Additional returns for exposure junior
-
11
-
M.2 Other revenues
45
7
8
TOTAL REVENUES (K+L+M)
222
58
81
PROFIT (LOSS) FOR THE PERIOD
-1
-
-
581
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
continued C.6 Regulatory consolidation - Consolidated securitisation vehicles
(€ million)
31.12.2024
SPECIAL PURPOSE VEHICLE
Capital Mortgage S.r.l. -
CAPITAL MORTGAGE 2007
- 1
Elektra Purchase No. 28
DAC
Elektra Purchase No. 31
DAC
COUNTRY OF INCORPORATION
Piazzetta Monte 1 - 37121
Verona
1-2 Victoria Buildings,
Haddington Road, Dublin
4, D04 XN32, Ireland
1-2 Victoria Buildings,
Haddington Road, Dublin
4, D04 XN32, Ireland
A. Securitised assets
248
225
-
A.1 Loans
248
225
-
A.2 Bonds
-
-
-
B. Loans disbursed
0
0
0
C. Use of liquid assets resulting from loan operations
48
-
-
C.1 Loans (including bank current account)
48
-
-
C.2 Bonds
-
-
-
D. Other assets
14
0
-
D.1 Derivatives
-
-
-
D.2 Other assets
14
0
-
TOTAL ASSETS (A+B+C+D)
310
225
-
E. Bond issued
233
-
-
E.1 Senior
133
-
-
E.2 Mezzanine
74
-
-
E.3 Junior
26
-
-
F. Loans received
29
225
-
F.1 Senior
-
225
-
F.2 Mezzanine
-
-
-
F.3 Junior
29
-
-
G. Other liabilities
48
0
0
G.1 Derivatives
-
-
-
G.2 Due to originator
48
-
-
G.3 Other liabilities
0
0
0
G.4 Own funds
0
0
0
TOTAL LIABILITIES (E+F+G)
310
225
-
H. Interest expense
11
9
0
H.1 Interest expense on bond issued
10
-
-
H.2 Interest expense on loans received
1
9
0
H.3 Interest expense on derivatives
-
-
-
I. Commissions and fees related to the transaction
0
1
1
I.1 for servicing
0
1
1
I.2 for other services
-
-
-
J. Other charges
5
-
0
J.1 Additional positive returns for exposure junior
5
-
-
J.2 Other costs
-
-
0
TOTAL COSTS (H+I+J)
16
10
1
K. Interest generated by securitised assets
13
10
1
L. Interest income on derivatives
-
-
-
M. Other revenues
3
-
-
M.1 Additional returns for exposure junior
-
-
-
M.2 Other revenues
3
-
-
TOTAL REVENUES (K+L+M)
16
10
1
PROFIT (LOSS) FOR THE PERIOD
0
-
-
582
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
continued C.6 Regulatory consolidation - Consolidated securitisation vehicles
(€ million)
31.12.2024
SPECIAL PURPOSE VEHICLE
Elektra Purchase No. 32
S.A. - Compartment 1
Elektra Purchase No. 33
DAC
Elektra Purchase No. 36
DAC
COUNTRY OF INCORPORATION
52-54 avenue du X
Septembre, L-2550
Luxembourg
1-2 Victoria Buildings,
Haddington Road, Dublin
4, D04 XN32, Ireland
1-2 Victoria Buildings,
Haddington Road, Dublin
4, D04 XN32, Ireland
A. Securitised assets
269
69
700
A.1 Loans
269
69
700
A.2 Bonds
-
-
-
B. Loans disbursed
0
0
0
C. Use of liquid assets resulting from loan operations
-
-
-
C.1 Loans (including bank current account)
-
-
-
C.2 Bonds
-
-
-
D. Other assets
0
0
1
D.1 Derivatives
-
-
-
D.2 Other assets
0
0
1
TOTAL ASSETS (A+B+C+D)
269
69
701
E. Bond issued
-
-
-
E.1 Senior
-
-
-
E.2 Mezzanine
-
-
-
E.3 Junior
-
-
-
F. Loans received
269
69
700
F.1 Senior
269
69
700
F.2 Mezzanine
-
-
-
F.3 Junior
-
-
-
G. Other liabilities
0
0
1
G.1 Derivatives
-
-
-
G.2 Due to originator
-
-
-
G.3 Other liabilities
0
0
1
G.4 Own funds
0
0
0
TOTAL LIABILITIES (E+F+G)
269
69
701
H. Interest expense
13
4
27
H.1 Interest expense on bond issued
-
-
-
H.2 Interest expense on loans received
13
4
27
H.3 Interest expense on derivatives
-
-
-
I. Commissions and fees related to the transaction
2
2
4
I.1 for servicing
2
2
4
I.2 for other services
-
-
-
J. Other charges
-
-
-
J.1 Additional positive returns for exposure junior
-
-
-
J.2 Other costs
-
-
-
TOTAL COSTS (H+I+J)
15
6
31
K. Interest generated by securitised assets
15
6
31
L. Interest income on derivatives
-
-
-
M. Other revenues
-
-
-
M.1 Additional returns for exposure junior
-
-
-
M.2 Other revenues
-
-
-
TOTAL REVENUES (K+L+M)
15
6
31
PROFIT (LOSS) FOR THE PERIOD
0
0
0
583
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
continued C.6 Regulatory consolidation - Consolidated securitisation vehicles
(€ million)
31.12.2024
SPECIAL PURPOSE VEHICLE
Elektra Purchase No. 37
DAC
Elektra Purchase No. 38
DAC
Elektra Purchase No. 43
DAC
COUNTRY OF INCORPORATION
1-2 Victoria Buildings,
Haddington Road, Dublin
4, D04 XN32, Ireland
1-2 Victoria Buildings,
Haddington Road, Dublin
4, D04 XN32, Ireland
1-2 Victoria Buildings,
Haddington Road, Dublin
4, D04 XN32, Ireland
A. Securitised assets
120
102
157
A.1 Loans
120
102
157
A.2 Bonds
-
-
-
B. Loans disbursed
0
0
0
C. Use of liquid assets resulting from loan operations
-
-
-
C.1 Loans (including bank current account)
-
-
-
C.2 Bonds
-
-
-
D. Other assets
0
0
0
D.1 Derivatives
-
-
-
D.2 Other assets
0
0
0
TOTAL ASSETS (A+B+C+D)
120
102
157
E. Bond issued
-
-
-
E.1 Senior
-
-
-
E.2 Mezzanine
-
-
-
E.3 Junior
-
-
-
F. Loans received
120
102
157
F.1 Senior
120
102
157
F.2 Mezzanine
-
-
-
F.3 Junior
-
-
-
G. Other liabilities
0
0
0
G.1 Derivatives
-
-
-
G.2 Due to originator
-
-
-
G.3 Other liabilities
0
0
0
G.4 Own funds
0
0
0
TOTAL LIABILITIES (E+F+G)
120
102
157
H. Interest expense
5
4
8
H.1 Interest expense on bond issued
-
-
-
H.2 Interest expense on loans received
4
4
8
H.3 Interest expense on derivatives
-
-
-
I. Commissions and fees related to the transaction
1
2
1
I.1 for servicing
1
2
1
I.2 for other services
-
-
-
J. Other charges
-
-
-
J.1 Additional positive returns for exposure junior
-
-
-
J.2 Other costs
-
-
-
TOTAL COSTS (H+I+J)
5
6
9
K. Interest generated by securitised assets
5
6
9
L. Interest income on derivatives
-
-
-
M. Other revenues
-
-
-
M.1 Additional returns for exposure junior
-
-
-
M.2 Other revenues
-
-
-
TOTAL REVENUES (K+L+M)
5
6
9
PROFIT (LOSS) FOR THE PERIOD
0
0
0
584
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
continued C.6 Regulatory consolidation - Consolidated securitisation vehicles
(€ million)
31.12.2024
SPECIAL PURPOSE VEHICLE
Elektra Purchase No. 46
DAC
Elektra Purchase No. 54
DAC
Elektra Purchase No. 56
DAC
COUNTRY OF INCORPORATION
1-2 Victoria Buildings,
Haddington Road, Dublin
4, D04 XN32, Ireland
Haddington Road, 1-2
Victoria Buildings, D04
XN32 Dublin
1-2 Victoria Buildings, 4
Dublin
A. Securitised assets
12
46
109
A.1 Loans
12
46
109
A.2 Bonds
-
-
-
B. Loans disbursed
0
0
0
C. Use of liquid assets resulting from loan operations
-
-
-
C.1 Loans (including bank current account)
-
-
-
C.2 Bonds
-
-
-
D. Other assets
0
0
-
D.1 Derivatives
-
-
-
D.2 Other assets
0
0
-
TOTAL ASSETS (A+B+C+D)
12
46
109
E. Bond issued
-
-
-
E.1 Senior
-
-
-
E.2 Mezzanine
-
-
-
E.3 Junior
-
-
-
F. Loans received
12
46
109
F.1 Senior
12
46
109
F.2 Mezzanine
-
-
-
F.3 Junior
-
-
-
G. Other liabilities
0
0
0
G.1 Derivatives
-
-
-
G.2 Due to originator
-
-
-
G.3 Other liabilities
0
0
0
G.4 Own funds
0
0
0
TOTAL LIABILITIES (E+F+G)
12
46
109
H. Interest expense
1
2
7
H.1 Interest expense on bond issued
-
-
-
H.2 Interest expense on loans received
1
1
7
H.3 Interest expense on derivatives
-
-
-
I. Commissions and fees related to the transaction
1
1
1
I.1 for servicing
1
1
1
I.2 for other services
-
-
-
J. Other charges
-
-
-
J.1 Additional positive returns for exposure junior
-
-
-
J.2 Other costs
-
-
-
TOTAL COSTS (H+I+J)
2
2
8
K. Interest generated by securitised assets
2
2
8
L. Interest income on derivatives
-
-
-
M. Other revenues
-
-
-
M.1 Additional returns for exposure junior
-
-
-
M.2 Other revenues
-
-
-
TOTAL REVENUES (K+L+M)
2
2
8
PROFIT (LOSS) FOR THE PERIOD
0
0
0
585
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
continued C.6 Regulatory consolidation - Consolidated securitisation vehicles
(€ million)
31.12.2024
SPECIAL PURPOSE VEHICLE
Elektra Purchase No. 69
DAC
Elektra Purchase No. 71
DAC
Elektra Purchase No. 74
DAC
COUNTRY OF INCORPORATION
Haddington Road; 1-2
Victoria Buildings; 4;
Dublin
Haddington Road; 1-2
Victoria Buildings;
D04XN32; Dublin
Haddington Road; 1-2
Victoria Buildings; DO4
XN32; Dublin
A. Securitised assets
52
112
106
A.1 Loans
52
112
106
A.2 Bonds
-
-
-
B. Loans disbursed
0
0
0
C. Use of liquid assets resulting from loan operations
-
-
-
C.1 Loans (including bank current account)
-
-
-
C.2 Bonds
-
-
-
D. Other assets
0
0
0
D.1 Derivatives
-
-
-
D.2 Other assets
0
0
0
TOTAL ASSETS (A+B+C+D)
52
112
106
E. Bond issued
-
-
-
E.1 Senior
-
-
-
E.2 Mezzanine
-
-
-
E.3 Junior
-
-
-
F. Loans received
52
112
106
F.1 Senior
52
112
106
F.2 Mezzanine
-
-
-
F.3 Junior
-
-
-
G. Other liabilities
0
0
0
G.1 Derivatives
-
-
-
G.2 Due to originator
-
-
-
G.3 Other liabilities
0
0
0
G.4 Own funds
0
0
0
TOTAL LIABILITIES (E+F+G)
52
112
106
H. Interest expense
4
4
5
H.1 Interest expense on bond issued
-
-
-
H.2 Interest expense on loans received
4
4
5
H.3 Interest expense on derivatives
-
-
-
I. Commissions and fees related to the transaction
1
2
1
I.1 for servicing
1
2
1
I.2 for other services
-
-
-
J. Other charges
-
-
-
J.1 Additional positive returns for exposure junior
-
-
-
J.2 Other costs
-
-
-
TOTAL COSTS (H+I+J)
5
6
6
K. Interest generated by securitised assets
5
6
6
L. Interest income on derivatives
-
-
-
M. Other revenues
-
-
-
M.1 Additional returns for exposure junior
-
-
-
M.2 Other revenues
-
-
-
TOTAL REVENUES (K+L+M)
5
6
6
PROFIT (LOSS) FOR THE PERIOD
0
0
0
586
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
continued C.6 Regulatory consolidation - Consolidated securitisation vehicles
(€ million)
31.12.2024
SPECIAL PURPOSE VEHICLE
Elektra Purchase No. 79
DAC
Elektra Purchase No. 82
DAC
Elektra Purchase No. 350
DAC
COUNTRY OF INCORPORATION
1-2 Victoria Buildings,
Haddington Road, Dublin
4, D04 XN32, Ireland
1-2 Victoria Buildings,
Haddington Road, Dublin
4, D04 XN32, Ireland
1-2 Victoria Buildings,
Haddington Road, Dublin
4, D04 XN32, Ireland
A. Securitised assets
250
200
41
A.1 Loans
250
200
41
A.2 Bonds
-
-
-
B. Loans disbursed
0
-
-
C. Use of liquid assets resulting from loan operations
-
-
C.1 Loans (including bank current account)
-
-
C.2 Bonds
-
-
-
D. Other assets
0
0
0
D.1 Derivatives
-
-
-
D.2 Other assets
0
1
0
TOTAL ASSETS (A+B+C+D)
250
201
41
E. Bond issued
-
-
-
E.1 Senior
-
-
-
E.2 Mezzanine
-
-
-
E.3 Junior
-
-
-
F. Loans received
250
200
41
F.1 Senior
250
200
41
F.2 Mezzanine
-
-
-
F.3 Junior
-
-
-
G. Other liabilities
0
1
0
G.1 Derivatives
-
-
-
G.2 Due to originator
-
-
G.3 Other liabilities
0
1
-
G.4 Own funds
0
0
0
TOTAL LIABILITIES (E+F+G)
250
201
41
H. Interest expense
8
2
1
H.1 Interest expense on bond issued
-
-
-
H.2 Interest expense on loans received
8
2
1
H.3 Interest expense on derivatives
-
-
-
I. Commissions and fees related to the transaction
2
-
1
I.1 for servicing
2
-
1
I.2 for other services
-
-
-
J. Other charges
-
-
-
J.1 Additional positive returns for exposure junior
-
-
-
J.2 Other costs
-
-
-
TOTAL COSTS (H+I+J)
10
2
2
K. Interest generated by securitised assets
10
2
2
L. Interest income on derivatives
-
-
-
M. Other revenues
-
-
-
M.1 Additional returns for exposure junior
-
-
-
M.2 Other revenues
-
-
-
TOTAL REVENUES (K+L+M)
10
2
2
PROFIT (LOSS) FOR THE PERIOD
0
-
-
587
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
continued C.6 Regulatory consolidation - Consolidated securitisation vehicles
(€ million)
31.12.2024
SPECIAL PURPOSE VEHICLE
F-E Mortgages S.r.l. - 2005
Ice Creek Pool No. 1 DAC
Ice Creek Pool No. 5 DAC
COUNTRY OF INCORPORATION
Piazzetta Monte 1 - 37121
Verona
1st Fl., 1-2 Victoria
Building; Haddington
Road; D04 XN32; Dublin
1-2 Victoria Buildings,
Haddington Road, Dublin
4, D04 XN32, Ireland
A. Securitised assets
66
224
204
A.1 Loans
66
224
204
A.2 Bonds
-
-
-
B. Loans disbursed
-
0
0
C. Use of liquid assets resulting from loan operations
11
-
-
C.1 Loans (including bank current account)
11
-
-
C.2 Bonds
-
-
-
D. Other assets
0
-
-
D.1 Derivatives
-
-
-
D.2 Other assets
0
-
-
TOTAL ASSETS (A+B+C+D)
77
224
204
E. Bond issued
49
-
-
E.1 Senior
-
-
-
E.2 Mezzanine
16
-
-
E.3 Junior
33
-
-
F. Loans received
-
224
204
F.1 Senior
-
224
204
F.2 Mezzanine
-
-
-
F.3 Junior
-
-
-
G. Other liabilities
28
0
0
G.1 Derivatives
0
-
-
G.2 Due to originator
24
-
-
G.3 Other liabilities
4
0
0
G.4 Own funds
-
-
0
TOTAL LIABILITIES (E+F+G)
77
224
204
H. Interest expense
3
12
9
H.1 Interest expense on bond issued
3
-
-
H.2 Interest expense on loans received
-
12
9
H.3 Interest expense on derivatives
0
-
-
I. Commissions and fees related to the transaction
0
1
2
I.1 for servicing
0
1
2
I.2 for other services
0
-
-
J. Other charges
1
0
0
J.1 Additional positive returns for exposure junior
1
-
-
J.2 Other costs
0
0
0
TOTAL COSTS (H+I+J)
4
13
11
K. Interest generated by securitised assets
3
13
11
L. Interest income on derivatives
-
-
-
M. Other revenues
1
0
-
M.1 Additional returns for exposure junior
-
-
-
M.2 Other revenues
1
0
-
TOTAL REVENUES (K+L+M)
4
13
11
PROFIT (LOSS) FOR THE PERIOD
-
-
0
588
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
continued C.6 Regulatory consolidation - Consolidated securitisation vehicles
(€ million)
31.12.2024
SPECIAL PURPOSE VEHICLE
PaDel Finance 01 DAC
COUNTRY OF INCORPORATION
1-2 Victoria Buildings,
Haddington Road, Dublin
4, D04 XN32, Ireland
A. Securitised assets
475
A.1 Loans
475
A.2 Bonds
-
B. Loans disbursed
0
C. Use of liquid assets resulting from loan operations
-
C.1 Loans (including bank current account)
-
C.2 Bonds
-
D. Other assets
-
D.1 Derivatives
-
D.2 Other assets
-
TOTAL ASSETS (A+B+C+D)
475
E. Bond issued
-
E.1 Senior
-
E.2 Mezzanine
-
E.3 Junior
-
F. Loans received
475
F.1 Senior
475
F.2 Mezzanine
-
F.3 Junior
-
G. Other liabilities
0
G.1 Derivatives
-
G.2 Due to originator
-
G.3 Other liabilities
0
G.4 Own funds
0
TOTAL LIABILITIES (E+F+G)
475
H. Interest expense
22
H.1 Interest expense on bond issued
-
H.2 Interest expense on loans received
22
H.3 Interest expense on derivatives
-
I. Commissions and fees related to the transaction
1
I.1 for servicing
1
I.2 for other services
-
J. Other charges
0
J.1 Additional positive returns for exposure junior
-
J.2 Other costs
0
TOTAL COSTS (H+I+J)
23
K. Interest generated by securitised assets
23
L. Interest income on derivatives
-
M. Other revenues
0
M.1 Additional returns for exposure junior
-
M.2 Other revenues
0
TOTAL REVENUES (K+L+M)
23
PROFIT (LOSS) FOR THE PERIOD
0
589
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
D. Sales transactions
A. Financial assets sold and not fully derecognised
Quantitative information
Any exposures that at the reference date are booked under item “120. Non-current assets and disposal groups classified as held for sale”, in the
tables below are shown in correspondence of the original accounting portfolio.
D.1 Regulatory consolidation - Financial assets sold and fully recognised and associated financial liabilities: book value
(€ million)
FINANCIAL ASSETS SOLD AND FULLY RECOGNISED
ASSOCIATED FINANCIAL LIABILITIES
BOOK VALUE
OF WHICH:
SUBJECT TO
SECURITISATION
TRANSACTION
OF WHICH:
SUBJECT TO SALE
AGREEMENT WITH
REPURCHASE
OBLIGATION
OF WHICH NON-
PERFORMING
BOOK VALUE
OF WHICH:
SUBJECT TO
SECURITISATION
TRANSACTION
OF WHICH:
SUBJECT TO SALE
AGREEMENT WITH
REPURCHASE
OBLIGATION
A. Financial assets held for trading
2,888
-
2,888
X
2,742
-
2,742
1. Debt securities
1,266
-
1,266
X
1,120
-
1,120
2. Equity instruments
1,622
-
1,622
X
1,622
-
1,622
3. Loans
-
-
-
X
-
-
-
4. Derivative instruments
-
-
-
X
-
-
-
B. Other financial assets mandatorily at fair value
52
-
52
-
46
-
46
1. Debt securities
52
-
52
-
46
-
46
2. Equity instruments
-
-
-
X
-
-
-
3. Loans
-
-
-
-
-
-
-
C. Financial assets designated at fair value
20
-
20
-
17
-
17
1. Debt securities
20
-
20
-
17
-
17
2. Loans
-
-
-
-
-
-
-
D. Financial assets at fair value through other
comprehensive income
17,518
-
17,518
-
15,587
-
15,587
1. Debt securities
17,518
-
17,518
-
15,587
-
15,587
2. Equity instruments
-
-
-
X
-
-
-
3. Loans
-
-
-
-
-
-
-
E. Financial assets at amortised cost
26,865
10,959
15,832
50
14,822
1,044
13,708
1. Debt securities
25,604
9,698
15,832
-
13,778
-
13,708
2. Loans
1,261
1,261
-
50
1,044
1,044
-
Total 31.12.2024
47,343
10,959
36,310
50
33,214
1,044
32,100
Total 31.12.2023
44,103
15,511
28,592
49
24,764
1,461
23,303
590
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
D.2 Regulatory consolidation - Financial assets sold and partially recognised and associated financial liabilities: book value
(€ million)
ORIGINAL GROSS VALUE
OF ASSETS BEFORE SALE
BOOK VALUE OF ASSETS
STILL PARTIALLY
RECOGNISED
OF WHICH NON-
PERFORMING
BOOK VALUE OF
ASSOCIATED FINANCIAL
LIABILITIES
A. Financial assets held for trading
-
-
X
-
1. Debt securities
-
-
X
-
2. Equity instruments
-
-
X
-
3. Loans
-
-
X
-
4. Derivative instruments
-
-
X
-
B. Other financial assets mandatory at fair value
-
-
-
-
1. Debt securities
-
-
-
-
2. Equity instruments
-
-
X
-
3. Loans
-
-
-
-
C. Financial assets designated at fair value
-
-
-
-
1. Debt securities
-
-
-
-
2. Loans
-
-
-
-
D. Financial assets at fair value through other comprehensive income
-
-
-
-
1. Debt securities
-
-
-
-
2. Equity instruments
-
-
X
-
3. Loans
-
-
-
-
E. Financial assets at amortised cost
-
-
-
-
1. Debt securities
-
-
-
-
2. Loans
-
-
-
-
Total
31.12.2024
-
-
-
-
Total
31.12.2023
60
14
14
1
D.3 Regulatory consolidation - Sale transactions relating to financial liabilities with repayment exclusively based on assets sold and not
fully derecognised: fair value
(€ million)
FULLY
RECOGNISED
PARTIALLY
RECOGNISED
TOTAL
31.12.2024
31.12.2023
A. Financial assets held for trading
-
-
-
-
1. Debt securities
-
-
-
-
2. Equity instruments
-
-
-
-
3. Loans
-
-
-
-
4. Derivative instruments
-
-
-
-
B. Other financial assets mandatorily at fair value
-
-
-
-
1. Debt securities
-
-
-
-
2. Equity instruments
-
-
-
-
3. Loans
-
-
-
-
C. Financial assets designated at fair value
-
-
-
-
1. Debt securities
-
-
-
-
2. Loans
-
-
-
-
D. Financial assets at fair value through other comprehensive income
-
-
-
-
1. Debt securities
-
-
-
-
2. Equity instruments
-
-
-
-
3. Loans
-
-
-
-
E. Financial assets at amortised cost (fair value)
10,929
-
10,929
15,511
1. Debt securities
9,698
-
9,698
10,700
2. Loans
1,231
-
1,231
4,811
Total associated financial assets
10,929
-
10,929
15,511
Total associated financial liabilities
1,044
-
X
X
Total net amount
31.12.2024
9,885
-
9,885
X
Total net amount
31.12.2023
14,072
13
X
14,085
591
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
B. Financial assets sold and fully derecognised with recognition of continuous involvement
Qualitative and quantitative information
At the end of the year there were no disposals of financial assets that had been fully derecognised, which required the recognition of continuing
involvement.
C. Financial assets sold and fully derecognised
Quantitative information
As at 31 December 2024, UniCredit group holds asset-backed securities and units in investment funds acquired following the sale of financial assets
fully derecognised, carried out in 2024 and in previous years.
These transactions involved the sale of financial assets, consisting of loans non-performing, by the originator companies of the Group to
securitisation vehicles or investment funds and their derecognition from the financial statements pursuant to IFRS9, following the assessment that
the originator itself has substantially transferred the risks and benefits of the assets sold and at the same time has not maintained any control over
the same assets.
Instead of these derecognised assets, the asset-backed securities or the units in investment funds received in the same transactions were
recognised among the Financial assets.
For further information on each transaction carried out in the 2024 and also in the previous years, refer to “Annex 3 - Securitisations - qualitative
tables” and “Annex 4 - Sales of financial assets to investment funds, receiving as consideration units issued by the same funds - qualitative tables”.
C. Regulatory Consolidation - Financial assets sold and fully derecognised
(€ million)
ORIGINAL BOOK VALUE OF
ASSETS BEFORE SALE OF WHICH NON-PERFORMING
BOOK VALUE OF THE
BALANCE-SHEET EXPOSURE
ACQUIRED
A. Financial assets held for trading
-
X
-
1. Debt securities
-
X
-
2. Equity instruments
-
X
-
3. Loans
-
X
-
4. Derivative instruments
-
X
-
B. Other financial assets mandatorily at fair value
3
3
1
1. Debt securities
-
-
-
2. Equity instruments
-
X
-
3. Loans
3
3
1
C. Financial assets designated at fair value
-
-
-
1. Debt securities
-
-
-
2. Loans
-
-
-
D. Financial assets at fair value through other comprehensive income
-
-
-
1. Debt securities
-
-
-
2. Equity instruments
-
X
-
3. Loans
-
-
-
E. Financial assets at amortised cost
440
440
346
1. Debt securities
-
-
-
2. Loans
440
440
346
Total 31.12.2024
443
443
347
The asset-backed securities acquired during the year by such transactions, amounting to €86 million, are classified in the Financial assets at
amortised cost and in those mandatorily at fair value, while the units in investment Funds underwritten, amounting to €261 million, are classified in
the Financial assets mandatorily at fair value portfolio.
592
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
D. Covered Bond Transactions
In 2008 the Group initiated a first Covered Bond (OBG or Obbligazioni Bancarie Garantite) Programme with residential mortgage loans as the
underlying assets and in 2012 a second Covered Bond Programme with both residential and commercial mortgage loans as underlying assets, in
line with Law 130/99 and Banca d’Italia circular 285/2013.
Under these programmes:
• UniCredit S.p.A. is issuer and also acts as transferor of suitable assets and servicer;
• UniCredit BpC Mortgage S.r.l. and UniCredit OBG S.r.l. (special purpose vehicles set up within the banking group as expressly authorised by
Banca d’Italia) are guarantors of the OBG holders of the first and the second programme respectively, within the limits of the cover pools and;
• the auditing firm BDO Italia S.p.A. is Asset Monitor for both the programmes.
The first programme, guaranteed by UniCredit BpC Mortgage S.r.l., is characterised by a Soft Bullet method89 of reimbursement and is rated by
Fitch (AA), S&P (AA-), Moody’s (Aa3).
The second programme, guaranteed by UniCredit OBG S.r.l., previously characterised by a Conditional Pass-Through method90 of reimbursement,
subsequently to contractual amendments finalized in May 2022, is currently characterised by a Soft Bullet method1 of repayment and is rated by
Moody’s (Aa3). Furthermore, the program has been amended in May 2023 in order to comply with the updated regulation, including EU Directive
2162/2019, law 130/99 amended in November 2021 and the update 42 of Banca d’Italia circular 285/2013 dated 30 March 2023.
The Group’s main aims in issuing OBGs are to diversify its funding sources and fund at competitive rates. As with the securitisations, in case of
difficulties in the markets covered bonds could be used also as a means of increasing the Group’s counterbalancing capacity by retaining with the
Group part of the securities issued.
An integral feature of OBG Programme management is maintaining a balance between the characteristics of the assets sold and the issues. This is
necessary to maintain the efficacy of the guarantee given by the SPV to the bondholders.
Given the complexity of the transaction, a system of first- and second-level controls and procedures has been set up, as required by Banca d’Italia
instructions, to identify units, functions, duties and responsibilities, and specific policy has been issued to this end.
The policy was approved by the competent committees, the Statutory Auditors and the Board of Directors of UniCredit S.p.A.
As required by Banca d’Italia instructions on controls:
• UniCredit’s Risk Management function is charged with the management of the issuer’s risks and checks:
- the quality, suitability and integrity of the assets sold to guarantee the OBGs;
- that the maximum ratio of OBGs issued to assets sold to guarantee them is adhered to;
- that limits on sales and supplementary sales procedures are followed;
- the effectiveness and adequacy of the hedges provided by any derivatives contracts entered into in relation to the Programme; and
- the trend in the balance between the cash flow arising from the cover pool and that absorbed by the OBGs in issue;
• the Asset Monitor is an outside independent entity charged with checking at least annually the regularity of the transactions and the integrity of the
guarantee to the bondholders;
• UniCredit’s internal audit department is responsible for a complete audit (to be conducted at least once a year) of the adequacy of the controls
performed;
• the results of the audits performed by the Asset Monitor and the issuer’s internal audit department are submitted to the governing bodies.
As at 31 December 2024 the series of covered bonds issued under the two programmes totalled 17 and were worth €16,506 million, of which
€11,250 million was repurchased by UniCredit S.p.A.
89 Soft Bullet repayment method: in case the issuer is insolvent and the OBG guarantor has insufficient funds to repay in full the OBG at the maturity date, the maturity date is automatically extended by 1 year and any
unpaid and due amount shall be payable by such date. In case the OBG guarantor is not able to redeem the OBG at the extended maturity all the outstanding OBG become due and payable and the guarantor has to sale
the whole underlying portfolio.
90 Conditional pass-through repayment method: in case the issuer is insolvent and the OBG guarantor has insufficient funds to repay in full the OBG at the maturity date, the OBG turns in to “pass-through” and the maturity
date is extended by 38 years. During the extended period the OBG guarantor has the option to attempt a selected sale of the underlying portfolio every 6 months in order to redeem the pass-through OBG..
593
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
NAME
SOFT BULLET COVERED BONDS PROGRAMME
Originator:
UniCredit S.p.A. (formerly UniCredit Family Financing Bank S.p.A.)
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit Bank GMBH (ex UniCredit Bank AG)
Target transaction:
Funding
Type of asset:
Residential Mortgage loans
Quality of Asset:
performing
Book value of the underlying assets at the end of accounting period (€ million): 1,424
Covered Bonds issued at the end of accounting period (€ million):
256
Other Credit Enhancements:
UniCredit S.p.A. granted to the SPV a subordinated loan of total Eur 1,700 million.
Rating Agencies:
S & P - Moody's - Fitch
Rating:
AA- (since 01/03/2019) - Aa3 (since 24/10/2018) - AA (since 22/12/2021)
NAME
SECOND SOFT BULLET COVERED BONDS PROGRAMME
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit Bank GMBH (ex UniCredit Bank AG)
Target transaction:
Funding - Counterbalancing Capacity
Type of asset:
Residential and Commercial Mortgage loans
Quality of Asset:
Performing
Book value of the underlying assets at the end of accounting period (€ million): 28,803
Covered Bonds issued at the end of accounting period (€ million):
16,250
Other Credit Enhancements:
UniCredit S.p.A. granted to the SPV a subordinated loan of total Eur 29,860 million.
Rating Agencies:
Moody's
Rating:
Aa3 (since 24/10/2018)
594
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Other transactions
With reference to the indications of Banca d’Italia/Consob/IVASS document No.6 of 8 March 2013 - Booking of "long-term structured repos"
instructions, there are no transactions of this kind to report.
Information on structured trading derivatives with customers
The business model governing OTC derivatives trading with customers provides for the centralisation of market risk in Group Client Risk
Management, while credit risk is assumed by the Group company which, under the divisional or geographical segmentation model, manages the
relevant customer’s account.
The Group’s operational model provides for customer trading derivatives business to be carried on, as part of each subsidiary’s operational
independence:
• by the commercial banks and divisions that close transactions in OTC derivatives in order to provide non-institutional clients with products to
manage currency, interest-rate and price risks. Under these transactions, the commercial banks transfer their market risks to the Group Client Risk
Management by means of equal and opposite contracts, retaining only the relevant counterparty risk. The commercial banks also place or collect
orders on behalf of others for investment products with embedded derivatives (e.g. structured bonds);
• by CE and EE Banks, which transact business directly with their customers (and possibly manage market risk associated with specific products
and/or risk factors).
UniCredit group trades OTC derivatives on a wide range of underlying, e.g. interest rates, currency rates, share prices and indexes, commodities
(precious metals, base metals, petroleum and energy materials) and credit rights.
OTC derivatives offer considerable scope for personalisation: new payoff profiles can be constructed by combining several OTC derivatives (for
example, a plain vanilla IRS with one or more plain vanilla or exotic options). The risk and the complexity of the structures obtained in this manner
depend on the respective characteristics of the components (reference parameters and indexation mechanisms) and the way in which they are
combined.
Credit and market risk arising from OTC derivatives business is controlled by the Chief Risk Officer competence line (CRO) in the Parent and/or in
the Division or subsidiary involved. This control is carried out by means of guidelines and policies covering risk management, measurement and
controls in terms of principles, rules and processes, as well as by setting VaR limits.
The business with non-institutional clients does not (usually) entail the use of margin calls, whereas with institutional counterparties recourse may be
made to ‘credit-risk mitigation’ (CRM) techniques, by using netting and/or collateral agreements.
Write-downs and write-backs of derivatives to take account of counterparty risk are determined in line with the procedure used to assess other credit
exposure, specifically:
• performing exposure to customers are mapped by deriving EAD (Exposure at Default) with simulation techniques that take into account the
Wrong-Way Risk and measured with PD (Probability of Default) and LGD (Loss Given Default) implied by current market default rates obtained
from credit & loan-credit default swaps, in order to obtain a value in terms of ‘expected loss’ (EL) to be used for items designated and measured at
fair value maximising the usage of market’s inputs;
• non-performing positions are valued in terms of estimated expected future cash flows according to specific indications of impairment (which are
the basis for the calculation of the amount and timing of the cash flow).
Here follows the breakdown of balance-sheet asset item “20. Financial assets at fair value through profit or loss: a) financial assets held for trading”
and of balance-sheet liability item “20. Financial liabilities held for trading”.
For the purpose of the distinction between customers and banking counterparties, the definition contained in Circular 262 of 22 December 2005 of
Banca d’Italia and subsequent amendments (which was used for the preparation of the accounts) was used as a reference.
Structured products were defined as derivative contracts that incorporate in the same instrument forms of contracts that generate exposure to
several types of risk (with the exception of cross-currency swaps) and/or leverage effects.
595
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Fair values of OTC derivatives managed through Central Clearing counterparts are reported on a net basis. The related reduction of balances is
€116,138 million and €120,075 million on trading asset (item “20. Financial assets at fair value through profit or loss: a) financial assets held for
trading”) and liabilities (“20. Financial liabilities held for trading”), respectively.
The balance of item “20. Financial assets at fair value through profit or loss: a) financial assets held for trading” of the Consolidated accounts with
regard to derivative contracts totaled €29,518 million (with a notional value of €3,239,690 million) including €18,321 million with customers. The notional
value of derivatives with customers amounted to €1,721,684 million including €1,709,261 million in plain vanilla (with a fair value of €17,396 million)
and €12,423 million in structured derivatives (with a fair value of €925 million).
The notional value of derivatives with banking counterparties totaled €1,518,006 million (fair value of €11,062 million) including €10,621 million relating
to structured derivatives (fair value of €565 million).
The balance of item “20. Financial liabilities held for trading” of the Consolidated accounts with regard to derivative contracts totaled €25,164 million
(with a notional value of €3,208,888 million) including €12,961 million with customers. The notional value of derivatives with customers amounted to
€1,667,383 million including €1,657,824 million in plain vanilla (with a fair value of €12,515 million) and €9,559 million in structured derivatives (with a
fair value of €447 million).
The notional value of derivatives with banking counterparties totaled €1,541,505 million (fair value of €11,388 million) including €14,106 million relating
to structured derivatives (fair value of €815 million).
E. Prudential perimeter - Credit risk measurement models
As at 31 December 2024 the expected loss on the credit risk perimeter was 0.39% of total UniCredit group credit exposure. The result does not
include the exposures which have migrated to default and therefore do not enter in the calculation of expected loss. Besides, since risk
measurement systems tend to be anti-cyclical, this may result in a smaller elasticity to the swift changes of the macroeconomic scenario.
As at 31 December 2024, the ratio between credit economic capital (including a component to cover migration risk) and its relative credit exposure
amount is 2.01%.
As far as UniCredit S.p.A. quantitative information, reference is made to the paragraph “F. Credit risk measurement models” of Company financial
statements of UniCredit S.p.A., Notes to the accounts, Part E - Information on risks and related hedging policies, Section 1 - Credit Risk,
Quantitative information, which is herewith quoted entirely.
596
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
2.2 Market risks
Market risk derives from the effect that changes in market variables (interest rates, securities prices, exchange rates, etc.) can cause to the
economic value of the Group's portfolio, including the assets held both in the Trading book, as well as those posted in the Banking book, which
involve both the operations typical of the commercial banking and in the choice of strategic investments. Market risk management within UniCredit
group accordingly includes all the activities relating to cash transactions and capital structure management, both for the Parent Company, as well as
for the individual entities of the Group.
From a regulatory perspective, market risk stems from all the positions included in banks' trading book as well as from commodity and foreign
exchange risk positions in the whole Balance sheet.
Therefore, the risks subject to market risk capital requirements include but are not limited to:
• default risk, interest rate risk, credit spread risk, equity risk, foreign exchange (FX) risk and commodities risk for trading book instruments;
• FX risk and commodities risk for banking book instruments.
From a managerial perspective, the Group extends the definition of Market Risk to include Fair value through Profit and Loss (i.e., FVtPL) and Other
Comprehensive Income (i.e., FVtOCI assets, net of Micro Fair Value Hedges) portfolios, which are therefore monitored and limited through a set of
market-risk specific metrics.
Amortised Cost (AC) securities are also included in the scope with the aim to check the consistency with the Investment Plan.
The current organisational model guarantees the ability to steer, coordinate and control the activities of some aggregated risks (so-called Portfolio
Risks), through dedicated responsibility centers (Portfolio Risk Managers), completely focused and specialised on such risks, under a Group and
inter-divisional perspective.
According to this organisation, the structure at first level of reporting to "Group Risk Management", dedicated to market risk governance is the
"Group Financial Risk" department.
Risk management strategies and processes
The Parent Company's Board of Directors lays down strategic guidelines for taking on market risks by calculating capital allocation for the Parent
Company and its subsidiaries, depending on risk appetite and value creation objectives in proportion to the risks assumed. The Parent Company
has defined Global Rules to manage and control market risk, including strategies and processes to be followed. Market risk strategies are set by the
Parent Company at least on an annual basis, in line with the definition of the overall Group Risk appetite and then cascaded to the legal entities.
Market risk appetite is also fundamental for the development of the Group's business strategy, ensuring the consistence between the budgeted
revenues and the setting of Value-at-Risk limits.
In this context, on an annual basis Market Risk Management function of the Parent Company agrees with the local Market Risk functions possible
changes to the Group Market Risk Framework. Changes to the Group Market Risk Framework can include changes to the perimeter for the
calculation of managerial market risk metrics and methodological changes in the limit monitoring framework.
For this purpose, Market Risk Management of the Parent Company gathers the information needed to set up the Group Market Risk Strategy for the
following year. In particular, Group Market Risk Management receives from the competent function the Group Risk Appetite Framework, which sets,
among others, Market Risk KPIs and from local Market Risk functions the list of legal entities (LEs)/Business Lines allowed to assume market risk
exposures, the severities of the related limits and the proposals for the review of market risk levels.
Based on these inputs, the Group Market Risk strategy is defined including the following information:
• the proposed Market Risk Takers Map;
• limits and Warning Levels (WLs) proposal in accordance with the proposed Market Risk Takers Map;
• any change occurred to the risk limit framework compared to the previous year;
• overview on the macroeconomic scenario and related risks for the Group;
• Market Risk RAF KPIs;
• the business strategy and key initiatives to support the limit proposal.
After that all the Group relevant Bodies have approved the Group Market Risk Strategy and given the relevant NBOs for local market risk limits, the
approval is communicated to the local functions.
In terms of monitoring, the LEs carry out periodical activities (e.g., daily monitoring of VaR, weekly monitoring of Regulatory VaR, IRC and SVaR,
monthly monitoring of Stress Test Warning Level) under the coordination of the Parent Company Market Risk Management function and the
breaches are timely escalated locally to Senior Management and to the Parent Company.
Ultimately, it has to be highlighted that detailed Global Rules on market risk strategy definition, limits setting, monitoring, escalation and reporting
activities are in place and applied at Group level.
597
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Trading Book
In accordance with the Capital Requirements Regulation, and as defined in the current policy "Group Market Risk Governance Guidelines", the
Trading book is defined as all positions in financial instruments and commodities held either with trading intent, or in order to hedge positions held
with trading intent.
Books held with trading intent are composed of:
• positions arising from client servicing and market making;
• positions intended to be resold in the short term;
• positions intended to benefit from actual or expected short-term price differences between buying and selling prices or from other price or interest
rate variations.
In addition, Trading book may include internal or intra-group hedging derivatives transferring risk from Banking book into Trading book, entitled to
manage the relevant risk and having access to the derivatives market.
The essential requirement for the Regulatory Trading book assignment is a clear "trading intent", as defined above, which the trader has to commit
to and has to confirm on an ongoing basis. Additionally, the so-called "tradability", "marketability" and "hedge-ability" requirements have to be
assessed in order to evaluate the appropriateness for the Trading book assignment:
• tradability refers to positions free of restrictions on their tradability and coherently reflected within the "Trader Mandate" of the risk taker;
• marketability refers to the positions for which a reliable Fair Value can be evaluated based to the largest extent on independently verified
observable market parameters;
• hedge-ability refers to positions for which a hedge could be put in place. The hedge-ability is meant to concern the "material" risks of a position
which implies not necessarily that all the various risk features are to be hedge-able.
When opening a new book, the book manager makes the proposal whether the book should be managed as a Trading book, or a Banking book
based on the planned trading activity. This has to be in line with the bank's internal rules and criteria for the assignment to either Trading book or
Banking book. The book manager is required to clearly declare the trading intent and therefore to explain the business strategy behind the request
for the Regulatory Trading assignment. The book manager is then responsible for all the positions held in his book and the eligibility criteria are
expected to be fulfilled on an ongoing basis.
Concerning the monitoring phase, to demonstrate adequate trading intent, the following minimum criteria must be fulfilled at book level and are
checked at least on a quarterly basis:
• minimum of 5 trades during the past 90 trading days;
• minimum of 5% of the volume of each book traded during the past 90 trading days with reference to the last day of the period.
In case a breach of the trading intent criteria, the possibility to re-classify the book must be assessed.
With reference to the methodology used to ensure that the policies and procedures implemented for the management of the Trading book are
appropriate, first of all it has to be noted that any new/updated regulation has to be preliminary shared with the main impacted functions/legal entities
in order to collect their feedback. The competent Group function also assesses the compliance risks with reference to the regulations falling within its
direct scope of competence. In addition, before the issuance, the owner of the rule submits to the competent body/function for the approval.
The financial instruments (an asset or a liability, cash, or derivative) held by the Group are exposed to changes over time driven by moves of market
risk factors. The market risk factors are classified in the following five standard market risk asset classes:
• Credit risk: the risk that the value of the instrument decreases due to credit spreads changes, issuer correlation and recovery rates;
• Equity risk: the risk that the value of the instrument decreases due to increase/decrease of index/stock prices, equity volatilities, implied
correlation;
• Interest rate risk: the risk that the value of the instrument decreases due to interest rates changes, basis risk, interest rates volatility;
• Currency risk: the risk that the value of the instrument decreases due to foreign exchange rates changes, foreign exchange rates volatility;
• Commodity risk: the risk that the value of the instrument decreases due to changes of the commodity prices, for example gold, crude oil,
commodity prices volatility.
Market risk in UniCredit group is measured and limited mainly through two sets of metrics: Broad Market Risk measures and Granular Market Risk
measures:
• Broad market risk measures: these measures are meant to set a boundary to the regulatory capital absorption and to the economic loss
accepted for FVtOCI and/or FVtPL exposures. Limitations on Broad Market Risk measures must be reviewed at least annually in the context of the
drafting of the Group and Local Market Risk Strategies and must be consistent with assigned budget of revenues, the defined risk-taking capacity
(ICAAP process) and Group Risk Appetite KPIs. The set of all limitations on Broad Market Risk measures assigned to a specific market risk taker
must be consistent with each other.
598
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
The consistency must be checked whenever a level for a Broad Market Risk Measure is defined. The legal entity Market Risk Function needs to
provide evidence of such consistency when required. Broad Market Risk measures are:
- Value at Risk (VaR), the potential 1-day loss in value of a portfolio for a 99% single-tail confidence interval; calculated through historical
simulation in full revaluation using the last 250 equally weighted daily observations;
- Stressed VaR (SVaR), the VaR of a portfolio calculated using a 250-day period of significant financial stress;
- Incremental Risk Charge (IRC), the amount of regulatory capital aimed at addressing the credit shortcomings (migration and default risks) that
can affect a portfolio in one year at a 99.9% confidence level;
- 60 days PL, set as the 60 calendar days rolling period Accumulated Economic P&L without resetting at year end; the limitation on this metrics is
called Loss Warning Level (LWL);
- Worst Stress test result, defined as the worst conditional loss on a given portfolio resulting from the application of a predefined set of scenarios;
the limitation on this metrics is called Stress Test Warning Level (STWL); for all STWL included in the Market Risk Taker Maps, Parent Company
monitoring is based on the set of scenarios defined in the Group Market Risk Strategy; legal entities are allowed to add specific scenarios for
local monitoring purposes.
The Group has undertaken a progressive review of Market Risk measure scope and, starting from 2019, Warning Levels for 60 days PL and Worst
Stress test result have been defined on FVtPL and FVtOCI perimeters.
• Granular market risk measures: these measures allow a more detailed and stringent control of risk exposures than Broad Market Risk
measures. Limitations on Granular Market Risk measures (so-called Granular Market Limits, GMLs) are specific limits to individual risk factors or
group of risk factors:
- sensitivity levels, which represent the change in the market value of a financial instrument due to small moves of the relevant market risk asset
classes/factors. Among others, and not limited to, particularly relevant considering the asset and liability structure of the commercial bank are the
Basis Point Value Sensitivity, that measures the change in the present value of the interest rate sensitive positions resulting from a 1 bp parallel
shift to interest rate, and the Credit Point Value Sensitivity, that measure the change in the present value of the credit risk sensitive positions
resulting from a 1 bp parallel shift to credit spread (per issuer, rating or industry);
- stress scenario levels, which represent the change in the market value of a financial instrument due to large moves of the relevant market risk
asset classes/factors;
- nominal levels, which are based on the notional value of the exposure.
The main objectives of Granular Market Limits are:
- supporting the management of market risk;
- ensuring desk's focus to exposure under their mandate;
- restricting risk concentration, i.e., preventing the build-up of positions that, although consistent with allocated VaR limits, could become
unmanageable in case of turmoil or in case of reduced market liquidity;
- complementing VaR when it does not cover sufficiently a specific risk factor;
- facilitating interaction with traders, who manage their books according to sensitivities or scenario analysis;
- limiting P&L volatility due to a specific risk factor;
- complementing the compliance framework (e.g., Volcker rule and the German Trennbanken act).
The Granular Market Limits must be consistent with limitations on Broad Market Risk measures.
To cover also Amortised Cost securities, the Market Risk Strategy defines notional and CPV granular limits on Regulatory Banking book perimeter.
This ensures the monitoring of Credit spread risk in the Banking book, which originates mainly from government bond portfolios held for liquidity
purposes. The main credit spread exposure relates to Italian sovereign risk in the Italian perimeter.
As for Banking book FX risk, the FX Management & Control Global Policy in force requires every legal entity to setup local processes and controls to
transfer the transactional exchange risk exposures to one single unit, generally in the Treasury department, mandated to manage the open exposure
within the allotted limits and the general market risk appetite.
Finally, the Group is exposed to FX risk in relation to the holding of subsidiaries, associates and joint ventures presenting their financial statements
in currencies different than EUR (Structural FX Risk). To limit the impacts of the FX rates movements on the Capital ratios volatility, a RAF KPI on
Structural FX risk is set at Group level to identify an appropriate level of risk the Group is willing to maintain and thresholds that in case of breaches
require the activation of the proper escalation mechanisms. Group risk management strategy could envisage the steering of the FX risk exposure in
the LEs or the booking in the Holding of positions deliberately taken to hedge the Total capital ratio from FX volatility. On a yearly basis, this strategy
is presented to the relevant Group committees and approved by the BoD. The potential losses deriving from the implemented strategy is limited
through the market risk metrics. The general policy is to hedge the foreign currency exposures from dividends and contributions to consolidate profit
(loss) considering hedging cost and market circumstances. The FX exposure is hedged using forwards and options. This general rule is valid for the
Parent Company. The hedge strategy is reviewed by the relevant risk committees on a regular basis.
599
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Banking book
The main components of market risk in the Banking book are: credit spread risk, FX risk and interest rate risk.
As for the first two components (Credit Spread risk and exchange rate risk), please refer to what is reported in this paragraph in the Trading Portfolio
section.
With regards to the third component (interest rate risk), the exposure is measured and monitored as defined in the RAF framework in terms of
sensitivity of the economic value and of the net interest income.
The Group Financial and Credit Risk Committee (GFRC) is responsible for the definition of the interest rate risk strategy for the strategic position of
the banking book, including the strategic management of the capital and structural gap between non-interest rate sensitive assets and liabilities.
The main objective of the interest rate management in the banking book is the reduction of the adverse impacts on net interest income due to
interest rate volatility in a multiyear horizon, in order to achieve a flow of earnings and a return on capital coherent with the strategic plan. The
strategy does not imply any intended directional or discretionary positioning to generate additional earnings, unless approved by the relevant bodies
and separately monitored. The only exception is for those functions authorized to carry interest rates positions within an approved level of limitations
from the relevant risk committees.
The Treasury functions manage the interest rate risk deriving from commercial transactions maintaining the exposure within the limits set by the
relevant risk committees and optimizing the natural hedging opportunities between assets and liabilities. Exposure is measured and monitored daily
by the risk management functions.
The interest rate management strategy takes also into account the main impacts from clients’ behavior, which may impact on the value of interest
margins or on the economic value of the banking book. Such are for instance the loans prepayment and the stability of sight deposits.
The prepayment risk is managed through the adaptation of the contractual profile on the basis of behavior of clients inferred from historical data,
where relevant across the Group.
The stability of sight deposits is assessed by means of an internal model that estimates the stable volume and non-sensitive interest rate portion of it
(“Core deposits”).
Hedging strategy for core deposits is proposed by Finance and approved by GFRC. Such strategy aims to stabilize the NII over time within IRRBB
RAF framework; a prudential stance is kept in determining the volume and duration of the hedging strategy to limit over-hedging risk.
600
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Structure and organisation
The Group Financial Risk department is responsible, at Group level, for the definition of the strategies of financial risk management of the Group to
submit to the competent functions/Bodies (i.e., liquidity risk, Balance sheet interest rate risk, market risk, counterpart risk and credit spread risk of
the non-trading book), ensuring that the control activities of the risks in charge of the UniCredit S.p.A. Foreign Branches are monitored and reported
to the Group Chief Risk Officer and to the Top Management. Furthermore, the structure governs the Group activities aimed to ensure the
independent control of the process and on the Front Office relevant parameters, for the fair value calculation.
Finally, the structure is directly responsible for the approval and the oversight of the internal rule revision plan proposed by the Group Financial Risk
structure in charge of it.
The structure breaks down as follows:
The relevant Committees of reference are:
• Group Financial and Credit Risks Committee (GFRC) - Market Risk session;
• Group Executive Committee (GEC) - Risk Session.
The “Group Financial and Credit Risks Committee (GFRC) - Market Risk session” meets monthly and is responsible for approving strategies,
policies and methodologies for Market, Counterparty and non-trading book Credit Spread Risks and for the monitoring of risks, with the aim to
optimize the usage of financial resources (e.g., capital) in coherence with Risk Appetite and Business Strategies. It is also responsible for evaluating
the impact of transactions significantly affecting the overall market risk portfolio profile.
The “Group Executive Committee (GEC) - Risk Session” which has approval as well as consulting and proposal functions, meets monthly and aims
at supporting the CEO in its role of steering, coordinating and monitoring all categories of risks (included compliance risk), managing and overseeing
the internal control system also at a Group level, as well as discussing and approving strategic risk topics such as Group Risk Appetite Framework,
ICAAP, ILAAP, SREP, NPE strategy coherently with the overall risk profile defined by RAF and the steering of Environmental, Social and
Governance (ESG) including Climate & Environmental Risks (i.e. transition and physical risk).
GROUP FINANCIAL RISK
“Valuation Models and Methodologies & Market Risk Management”, responsible for developing and maintaining Group
methodologies, models, and architectures regarding financial risks and for providing adequate evaluation of financial
instruments of banking and trading book as well as governing and controlling market risk and credit spread risk of the non-
trading book either at Group level and UniCredit S.p.A. level.
“Structured Entities & Counterparty Credit Risks”, responsible for governing and controlling either at Group level and
UniCredit S.p.A. level (with the inclusion of the Foreign Branches) and of the Regional Center Italy (when applicable),
structured entities risks and counterparty risks.
“Liquidity and Interest Rate Risk Management”, responsible for governing and controlling the liquidity risk, balance sheet
interest rate risk and credit spread risk of the non-trading book, either at Group level and UniCredit S.p.A. level (including
the Foreign Branches) and the Country Italy (when applicable).
601
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
The Parent Company’s governing bodies delegate to the Group Financial and Credit Risk Committee (GFRC) the development of detailed internal
regulations with the goal of establishing an integrated and consistent IRRBB management framework within the Group with the goal of facilitating an
effective decision-making process and governance.
Local relevant committee of the liquidity reference banks (LRBs) or Legal Entities (LEs) (in accordance with local rules in force), within the scope of
their responsibilities and delegated powers, are responsible for implementing the IRRBB management framework established by GFRC, also
considering the peculiarities of each LRB or LEs and given the guidelines and indications of their respective governing bodies (both those
responsible for strategic supervision and management).
The GFRC is also responsible for the Group-wide monitoring of IRR within the broader perspective of market risk. Having regard to the overall
operations and risk exposures of the Group, it involves the Group Executive Committee (GEC) within its responsibilities and delegated powers.
The committee’s involvement in interest rate risk management includes:
• the initial approval and fundamental modifications for the measurement and control system of Banking book interest rate risks with the support of
internal validation function (where necessary);
• the definition of the operational strategies of Balance sheet (e.g., replicating portfolio).
Risk measurement and reporting systems
Trading book
UniCredit group continued to improve and consolidate market risk models to properly measure, represent and control the Group risk profile,
reflecting these changes in the reporting activity. As regards market risk measurements, further details can be reported in paragraph “Internal Model
for Price, Interest Rate and Exchange Rate Risk of the Regulatory Trading book”, while for both monthly and daily reporting process, Global Process
Regulation are periodically updated.
Within the organisational context described above, the policy implemented by UniCredit group within the scope of market risk management is aimed
at gradually adopting and using common principles, rules and processes in terms of appetite for risk, limit calculations, model development, pricing
and risk model scrutiny.
The Group Financial Risk department is specifically required to ensure that principles, rules, and processes are in line with industry best practice
and consistent with standards and uses in the various countries in which they are applied.
The main tool used by UniCredit group to measure market risk on trading positions is Value at Risk (VaR), calculated using the historical simulation
method. Further details on risk valuation models are included in the following chapter.
Group Financial Risk defines market risk reporting standards, both in terms of contents and recurrence, and provides timely information to the
Senior Management and regulators regarding the market risk profile at consolidated level.
In addition to VaR and Basel 2 risk measures, stress tests represent an important risk management tool that provides UniCredit with an indication of
how much capital might be needed to absorb losses in case of large financial shocks. Stress testing forms an integral part of the Internal Capital
Adequacy Assessment Process (ICAAP), which requires UniCredit to undertake rigorous, forward-looking stress testing that identifies possible
events or changes in market conditions that could adversely impact on the bank.
602
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Banking book
The primary responsibility of the monitoring and control of the risk management for market risk in the Banking book lies in the bank’s competent
bodies. For instance, the Parent company is responsible for the process of monitoring the market risks on the Banking book at consolidated level.
As such, it defines structure, data, and frequency of the necessary Group reporting.
The Banking book interest rate risk measure covers both the economic value and net interest income risk aspects. In particular, these two
perspectives are complementary and involve:
• Economic Value: variations in interest rates can affect the economic value of assets and liabilities. The economic value of the bank can be viewed
as the present value of the bank’s expected net cash flows, defined as the expected cash flows on assets minus the expected cash flows on
liabilities; a relevant risk measure from this perspective is the economic value sensitivity per time bucket for a 1 bp rate shock. This measure is
reported to the relevant committees to assess the economic value impact of possible changes in the yield curve. In addition, the economic value
sensitivity is computed also for the regulatory scenarios (“Supervisory Outlier Test” described in EBA/GL/2022/14);
• Net Interest Income: the focus of the analysis is the impact of changes of interest rates on Net Interest Income. An example of a measure of risks
used is Net Interest Income sensitivity for a 200 bps parallel shock of rates. This measure is reported to the competent committees to the end of
evaluating its impact on the interest income over the next 12 months under constant Balance sheet assumption as prescribed by relevant
regulation (“Supervisory Outlier Test” described in EBA/GL/2022/14).
As for other sources of market risk, such as Credit Spread risk and FX risk, please refer to the information in the paragraph Risk management
strategies and processes, relating to the Trading Book section.
Hedging policies and risk mitigation
Trading book
The mitigation of Trading book risk is performed through the Market Risk Strategy, where broad and granular Limits are defined. The effective limit
utilisation is provided to “Group Financial and Credit Risks Committee” (through the Market Risk Overview report) and related breaches are
escalated to the competent body, according to the severity assigned by the Market Risk Strategy. The escalation process is ruled by the Global
Policy "Group Market Risk Governance Guidelines" which defines the nature of the various thresholds/limits applied, as well as the relevant bodies
to be involved establishing the most appropriate course of action to restore exposure within the approved limits.
A set of risk indicators is also provided to the Group Executive Committee (and subsequently to the Internal Control & Risk Committee and to the
Board of Directors) on a quarterly basis through the Group Risk Appetite Framework (RAF) and Integrated Risk Report (IRR).
If required, focus is provided to relevant committees on the activity of a specific business line/desk to ensure the highest level of understanding and
discussion of the risks in certain areas which are deemed to deserve particular attention.
Banking book
On a regular basis, at least quarterly, the relevant IRR exposure, complemented by the analysis of the compliance to the limits, must be reported to
Management bodies and internal committees. As a general principle, the compliance to the limits must be reported to Boards and committees
depending on their role in limit setting and it is proportionate to the severity hierarchy.
The Group Financial and Credit Risk Committee (GFRC) receives reporting with respect to RAF KPIs and Overall Group and LRB Granular Limits
and Triggers with the same frequency of the committee’s meetings. The same reporting process must be implemented within LRBs with respect to
Local relevant committees (in accordance with local rules in force).
Breaches of limits and warning levels are reported, upon occurrence, to the relevant bodies. Consequently, the escalation process is activated in line
with the procedures set in relative Policy, to establish the most appropriate course of action to restore exposure within the approved limits.
The execution of structural hedges to mitigate the interest rate risk exposure on client business is responsibility of the treasury functions. The
strategic transactions in the Banking book are managed by the CFO department.
603
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Internal model for price, interest rate and exchange rate risk of the regulatory trading book
The current Market Risk internal model is based on Value-at-Risk (VaR) framework, integrated with other risk measures: incremental risk capital
charge (IRC) and stressed Value-at-Risk (SVaR) aimed at reducing the pro-cyclicality of the minimum capital requirements for market risk, in line
with the European directives in force.
All the regulatory requirements in the contest of Market Risk have been addressed via internal development of the necessary model and IT
infrastructure as opposed to the external acquisition of ready-made solutions.
This enabled UniCredit to craft solutions that in many aspects can be considered on the sophisticated end of the spectrum of practices that can be
found in the industry. In this respect one distinctive feature of the market (and counterparty) risk frameworks implemented in UniCredit group is the
full revaluation approach employing the same pricing libraries used in the Front Office.
UniCredit group calculates both VaR and SVaR for market risk on trading positions using the historical simulation method.
Under the historical simulation method positions are revaluated (in full revaluation approach) based on trends in market prices over an appropriate
observation period. The empirical distribution of profits/losses deriving therefrom is analysed to determine the effect of extreme market movements
on the portfolios.
For a given portfolio, probability and time horizon, VaR is defined as a threshold value so that the probability that the mark-to-market loss on the
portfolio, over the given time horizon, not exceeding this value (assuming no trading in the portfolio) has the given confidence level. Current
configuration of the internal model defines VaR at a 99% confidence level on the 1-day P&L distribution obtained from equally weighted historical
scenarios covering the last 250 days.
Historical scenarios are built relying on proportional shocks for Equities and FX rates, and on absolute shocks for Interest Rates and Credit Spreads.
UniCredit VaR Model simulates all the risk factors, both referring to general and specific risk, thus providing diversification in a straightforward
approach. The model is recalibrated daily. The use of a 1-day time horizon makes the immediate comparison with realised profits/losses possible
and such comparison is the core of the back-testing exercise.
The VaR measure identifies a consistent measure across all the portfolios and products, since it:
• allows a comparison of risk among different businesses;
• provides a means of aggregating and netting position within a portfolio to reflect correlation and offset between different assets classes;
• facilitates comparisons of market risk both over time and against daily results.
Although a valuable guide to risk, VaR should always be viewed within its limitations:
• historical simulation relies on past occurrences to forecast potential losses. In case of extreme shifts this might not be appropriate;
• the length of the time window used to generate the forecasted distribution will necessarily embed a trade-off between the responsiveness of the
metric to recent market evolutions (short window) and the spectrum of scenarios that will embed (long window);
• assuming a constant one/ten-day horizon there is no discrimination between different risk-factor liquidity.
Stressed VaR calculation is based on the very same methodology and architecture of the VaR, and it is analogously calculated with a 99%
confidence level and 1-day time horizon on a weekly basis, but over a stressed observation period of 250 days. The chosen historical period
identifies the 1-year observation window which produces the highest resulting measure for the current portfolio.
Stress windows are recalibrated monthly and are tailored to the portfolio of each legal entity of the Group subject to the internal model, plus the
Group itself that is relevant for RWEA calculation on a consolidated level. The SVaR window for UniCredit S.p.A. at Group and solo level, UniCredit
Bank GmbH and UniCredit Bank Austria AG is the “Lehman Crisis” period (2008-2009). The 10-day capital requirement is however obtained by
extending the 1-day risk measure to the 10-day horizon taking the maximum of the square root of time scaling and a convolution approach that turns
the one-day distribution into a 10-day distribution for both the VaR and the Stressed VaR. The 1-day measures are instead actively used for market
risk management.
In order to validate the consistency of VaR internal models used in calculating capital requirements on market risks, back-testing is performed by
comparing the internal model risk estimates with the portfolio profit and loss, to check if the 99% of the trading outcomes is covered by the 99th
percentile of the risk measures.
The test is based on the last twelve months data (250 daily observations). In case the number of exceptions in the previous year exceeds what
forecasted by the confidence level assumed, a careful revision of model parameters and assumptions is initiated. Group Internal Validation
performed the periodic validation of the VaR/SVaR framework to assess the compliance with regulatory requirements including an independent
back-testing analysis complemented with different parameterisations and detailing the results for a set of representative portfolios of the Bank.
The IRC capital charge captures default risk as well as migration risk for un-securitised credit products held in the Trading book. The internally
developed model simulates via multivariate version of a Merton-type model the rating migration events of all the issuers relevant to the Group
trading positions over a capital horizon of one year. The transition probabilities and the sector correlations are historically calibrated, while
idiosyncratic correlations are derived from the IRB correlation formula. Simulated migration events are turned into credit spread scenarios while
default events are associated to a simulated recovery rate. In doing so a constant position assumption is employed and products are conservatively
all attributed a common liquidity horizon of 1 year.
604
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
In each scenario all the relevant product inventory is revaluated under such spread and default events producing a simulated profit or loss (P&L) that
fully reflects convexity, basis risk, portfolio effects and portfolio concentration risks. In this way a high number of paths Monte Carlo simulation
generates a P&L distribution for the Group (and each leaf of its portfolio tree).
IRC is defined as the 99.9 percentile of such loss distribution.
Additional capital charge for securitisations and credit products not covered by IRC is evaluated through the standardised approach.
The following table summarises the main characteristics of the different measures that define the capital requirement for market risk in UniCredit.
MEASURE
RISK TYPE
HORIZON
QUANTILE
SIMULATION
CALIBRATION
VaR
All Market Risk Factors
10d
99%
Historical
1Y window, equally weighted
SVaR
All Market Risk Factors
10d
99%
Historical
1Y window, equally weighted
IRC
Rating Migration & Default
1Y
99.9%
Monte Carlo
Through-the-cycle (min 16Y)
The IRC Model is subject to a quarterly program of Stress tests aimed at evaluating the robustness of the model. The relevant parameters as
Recovery Rates, Transition Probabilities, idiosyncratic correlation, Credit Spread shocks are stressed and the impact on the IRC measure is
computed.
“Group Internal Validation” performed its analyses to evaluate the conceptual soundness of the IRC model, to supplement the available analyses on
that topic and to ensure the compliance of the resulting risk management environment with all the relevant regulatory requirements and internal
standards. As already remarked by the regulation, traditional back-testing procedures, regarding the 99.9% one-year soundness standard for IRC,
are not applicable due to the 1-year time horizon of the measure.
Consequently, while validation of the IRC model relied heavily on indirect methods (including stress tests, sensitivity analysis and scenario analysis)
in order to assess the qualitative and quantitative reasonableness of the model, special focus has indeed been given to the specific situation of
UniCredit portfolios.
“Group Internal Validation” Department kept the scope of their analyses as wide as possible in order to comprise the many diverse issues that are
acting concurrently in such a model (general model design, regulatory compliance, numerical implementation, outcomes explanation). Group
Internal Validation performed a full spectrum of validation analyses on the IRC measure calculation using its internal replica libraries. The replica
allows a simple verification of the results provided by the productive environment, and in addition opens the door to a more dynamical and tailored
implementation of the needed tests. The spectrum of analysis encompassed Monte Carlo stability, correlation analysis and stressing, assessment
on portfolio concentration, calculation of parameters sensitivity, marginal contribution analysis, alternative models’ comparisons. All major
parameters were tested, i.e., correlation matrices, transition probabilities matrices, transition shocks, recovery rates, probabilities of default, number
of scenarios.
To understand the overall performance of the model in replicating the real-world migration and default phenomena, Group Internal Validation also
performs a historical performance exercise comparing the migrations and defaults predicted by UniCredit IRC model with the ones actually observed
since 1981 (due to data availability).
Banca d’Italia authorised UniCredit group to use internal models for the calculation of capital requirements for market risk. As of today, the Group
legal entities within CEE countries are the ones that are mainly using the standardised approach for calculating capital requirements relating to
trading positions. However, the VaR measure is used for the management of market risk in the abovementioned entities.
For Trading book VaR the bank differentiates between regulatory and managerial views. The managerial measure is used for Risk monitoring and
Business steering purposes as prescribed by Market Risk Framework: in particular VaR limits represent the main metric translating the Risk Appetite
into the Market Risk framework.
The managerial VaR has a wider scope: it is used to monitor both Trading book and Banking book perimeter (specifically FVtPL and FVtOCI
positions), also including legal entities for which the standardised measurement method is applied for Regulatory purposes, in order to have a
complete picture of risk through PL and capital.
Furthermore, the exposure coming from hedges of the XVA sensitivities is excluded from managerial VaR monitoring but included in the Regulatory
VaR limits in order to allow a proper steering of Market Risk RWEA; additionally, respective sensitivities are closely monitored against XVA risk.
The standardised measurement method is also applied to the calculation of capital covering the risk of holding Banking book exposure in foreign
currencies for UniCredit S.p.A., which does not have an approval for FX Risk simulation under Internal Model. In this respect the FX risk for both
Trading and the Banking book is included in VaR and SVaR for Regulatory purposes as for the approved legal entities (UniCredit Bank GmbH and
UniCredit Bank Austria AG); as regards the managerial view the FX Risk of Banking book is included in the Overall (Trading book and Banking
book) VaR. UniCredit Internal Model Approach includes the Risk Not In Model Engine framework, that provides an estimate on the completeness of
the risk factors included in VaR, SVaR and IRC. Although RNIME program shows that UniCredit IMA captures adequately the material price risks,
since fourth quarter 2019 UniCredit computes via Stress Test a prudential capital add-on.
605
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
To sum up, the Internal Model approach is used for Regulatory purposes for UniCredit S.p.A., UniCredit Bank GmbH, UniCredit Bank Austria AG,
and UniCredit Bank Austria sub-group, while it is used for all legal entities (including CEE countries) for managerial purposes.
Finally Trading portfolios are subject to Stress tests according to a wide range of simple and complex scenarios. Simple scenarios which envisage
the shock of single asset classes, are defined in the context of Interest Rate Risk/Price Risk/Exchange Rate Risk/Credit Spread Risk Sensitivity.
Complex scenarios apply simultaneous changes on several risk factors. Both simple and complex scenarios are applied to the whole Trading book.
Detailed descriptions are included in the paragraph on the Stress test.
Stress tests results are calculated in the Group Market Risk system, thus ensuring a common methodological approach across the Group. Results
are calculated applying a full revaluation approach meaning that all positions are revalued under stressed conditions; no ad hoc models or pricing
functions are applied for stress testing.
According to national regulations, some relevant scenarios are also a matter of regulatory reporting on a quarterly basis.
In addition, a set of scenarios is run monthly on overall Group perimeter, thus covering both Trading and Banking book positions. Results are
discussed monthly in Market Risk Stress Test Open Forum involving Market Risk function’s representatives of all the legal entities and Business’
representatives.
Results are analysed in depth in the monthly report “Monthly Overview on Market Stress Test”.
Stress test Warning levels Usage is monitored monthly. More details on Warning Levels and Strategy are given in the previous paragraph Risk
management strategies and processes.
VaR, SVaR and IRC
Diversified VaR, SVaR and IRC are calculated taking into account the diversification arising from positions taken by different entities within the Imod
perimeter (i.e., for which the use of the internal model for the risk calculation is approved). VaR is however in place for all the Legal Entities and its
value is reported in Managerial VaR section for information purpose.
The VaR and SVaR reduction observed in the fourth quarter of 2024 is mostly driven by changes in the trading book positions related to the strategic
transactions. While the IRC reduction observed in the third quarter of 2024 is mainly driven by changed exposure towards Republic of Italy in the
trading book.
Risk on trading book
Daily VaR on Regulatory Trading Book
(€ million)
27 DECEMBER
2024
AVERAGE
LAST 60 DAYS
2024
2023
I-MOD PERIMETER
AVERAGE
MAX
MIN
AVERAGE
Diversified UniCredit group
5.0
5.1
7.2
20.4
3.8
8.3
SVaR on Regulatory Trading Book
(€ million)
27 DECEMBER
2024
AVERAGE
LAST 12 WEEKS
2024
2023
I-MOD PERIMETER
AVERAGE
MAX
MIN
AVERAGE
Diversified UniCredit group
17.1
17.7
15.4
47.3
7.3
13.4
IRC on Regulatory Trading Book
(€ million)
27 DECEMBER
2024
AVERAGE
LAST 12 WEEKS
2024
2023
I-MOD PERIMETER
AVERAGE
MAX
MIN
AVERAGE
Diversified UniCredit group
33.6
48.0
55.8
112.6
24.4
95.2
Note:
End of month for Regulatory risk metrics refers to last Thursday of the month, differently from managerial metrics. End of 2024 refers to 27 December due to bank holiday on 28 December.
606
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
EU MR4 Comparison of VaR estimates with gain/losses
The following graph shows back-testing results referred to the market risk on the Trading book, in which VaR results for the last twelve months are
compared to the hypothetical “profit and loss” results for Group (I-Mod Perimeter).
During the second half of 2024, four overdrafts occurred at UniCredit group level:
• 1 August 2024 (hypothetical): the VaR overshooting is mainly driven by equity price movements in Unicredit S.p.A.;
• 27 September 2024 (actual): the VaR overshooting took place in the context of a regular update of Fair Value Adjustments (FVA), mostly affecting
the Close-out-Cost component under UCB GmbH perimeter;
• 28 November 2024 (actual): the VaR overshooting took place in the context of a regular contribution of Fair Value Adjustments (FVA), IPV and
EUREX-LCH adjustments under Unicredit Bank GmbH;
• 20 December 2024 (actual and hypothetical): the VaR overshooting is mainly driven by the combined market movements of several risk factors,
mostly interest rates and equity price movements.
-30
-20
-10
-
10
20
30
40
50
(€ million)
VaR 1d
Hypothetical P&L
607
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Managerial VaR
Below are reported the Managerial Diversified Trading book VaR as of end of December 2024 at Group and Legal Entities levels and the
Undiversified Trading book VaR at Group level, calculated as sum of the values of all Legal Entities (without considering diversification benefit).
Difference with Regulatory Trading book was described above.
Daily VaR on Managerial Trading Book
(€ million)
TRADING BOOK
31 DECEMBER 2024
Diversified UniCredit group as per internal model
3.6
Germany
2.5
Italy
3.8
Central Europe
0.8
Austria
0.0
Czech Republic
0.8
Hungary
0.1
Slovenia
0.0
Eastern Europe
0.7
Bosnia
0.0
Bulgaria
0.1
Croatia
0.0
Romania
0.7
Russia
0.6
Serbia
0.1
Undiversified UniCredit group
8.6
Marginal Regulatory VaR
The table below provides a breakdown of 10-days VaR figure (i.e., referred to a 10-days’ time horizon) according to the different market risks (debt,
equity, FX, commodities) and its evolution during the year, in the form of template C24 of COREP.
Risk on Trading book by instruments classes
10-days VaR on Regulatory Trading book
(€ million)
2024
2023
Q1
Q2
Q3
Q4
Q4
Traded Debt Instruments
20.2
17.7
13.8
16.0
19.0
TDI - General Risk
22.6
18.1
12.7
14.2
18.9
TDI - Specific Risk
8.6
5.0
4.8
7.0
11.0
Equities
15.6
13.2
33.5
6.9
10.0
Equities - General Risk
-
-
-
-
-
Equities - Specific Risk
15.6
13.2
33.5
6.9
10.0
Foreign Exchange Risk
3.0
3.1
4.7
4.7
3.8
Commodities Risk
2.6
4.5
3.9
5.0
5.0
Total Amount For General Risk
23.5
18.6
13.4
14.7
19.8
Total Amount For Specific Risk
17.4
12.1
33.1
9.7
13.4
The VaR reduction observed in the fourth quarter of 2024 is mostly driven by changes in the trading book positions related to the strategic
transactions.
608
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
CVA
The CVA charge data values for the Trading book for the Group are reported below (as sum of the individual legal entities charges since the
diversification benefit is not considered). The charge accounts for the credit-spread volatility affecting regulatory CVA. It consists of a VaR figure
computed over the current window (CVA VaR) and a VaR figure computed over a stressed window (CVA SVaR).
For exposures not covered by the CCR Internal model (used to calculate CVA exposure profiles) the standardised approach (SA) is used. The
mitigation of the XVA exposure across UniCredit group is managed by a dedicated CVA Desk, whose mandate is to provide a centralised Front
Office service function with the responsibility for XVA pricing & exposure management for OTC derivatives. The CVA Desk actively hedges the
exposure to risk factors within the prescribed limit framework in UniCredit S.p.A., UniCredit Bank GmbH and UniCredit Bank Austria AG.
Overall CVA RWEA remained relatively stable with respect to the first half of 2024.
Risk on Trading book
CVA Trading book
(€ million)
2024
2023
Q1
Q2
Q3
Q4
Q4
CVA
82.1
83.1
83.2
80.7
83.3
CVA VaR
11.6
9.8
10.2
9.6
13.3
CVA SVaR
37.5
43.0
47.8
47.7
35.1
CVA SA
33.0
30.4
25.1
23.4
34.9
2.2.1 Interest rate risk and price risk - Regulatory trading book
Qualitative information
Interest rate risk
A. General aspects
Interest rate risk arises from financial positions taken by Group specialist centres holding assigned market risk limits within certain levels of
discretion. Regardless of use of the internal models in calculating capital requirements on market risks, risk positions in the Group are monitored and
subject to limits assigned to the portfolios on the basis of managerial responsibilities and not purely on regulatory criteria.
B. Risk management processes and measurement methods
For both a description of internal processes for monitoring and managing risk and an illustration of the methodologies used to analyse exposure,
also refer to the introduction on internal models.
As regards Stress Test refer to the introduction on Risk Management Strategies and Processes and for the complex scenarios’ description to Stress
Test paragraph.
In addition to the monitoring of Granular Market Limits, Group Market Risk functions conduct sensitivity analysis at least on monthly basis, in order to
determine the effect on the Income statement of changes in the value of individual risk factors or several risk factors of the same type.
Additionally, to the sensitivity of financial instruments to changes in the underlying risk factor, the sensitivity to the volatility of interest rates is also
calculated assuming positive and negative shifts of 30% in volatility curves or matrices.
Price risk
A. General aspects
Price risk relating to equities, commodities, C.I.U and related derivative products included in the Trading book originates from positions taken by
Group specialist centres holding assigned market risk limits within certain levels of discretion.
Price risk deriving from own trading of these instruments is managed using both directional and relative value strategies via direct sale and purchase
of securities, regulated derivatives and OTCs and recourse to security lending. Volatility trading strategies are implemented using options and
complex derivatives.
B. Risk management processes and measurement methods
For both a description of internal processes for monitoring and managing risk and an illustration of the methodologies used to analyse exposure,
refer to the introduction on internal models.
As regards stress test refers to the introduction on “Risk management strategies and processes” and for the complex scenarios’ description to the
“Stress test” paragraph.
609
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Quantitative information
1. Regulatory trading portfolio: distribution by residual duration (re-pricing date) of financial assets and liabilities for cash and financial
derivatives
The table is not reported since a table showing Interest Rate sensitivity is described below, in accordance with Internal Model.
2. Regulatory trading portfolio: distribution of equity exposures and equity indices for the main listing countries
The table is not reported since a table showing price risk sensitivity is described below, in accordance with Internal Model.
3. Regulatory trading portfolio: internal models and other methods for sensitivity analysis
For both a description of internal processes for monitoring and managing risk and an illustration of the methodologies used to analyse exposure,
also refer to the introduction on internal models.
Interest rate risk
Interest rate risk sensitivity
Sensitivity to changes in interest rates is determined using both parallel shifts of interest-rate curves, and changes in the curve itself.
The curves are analysed using parallel shifts of ±1 bp/±10 bps and ±100 bps.
For each 1 bp shift, sensitivity is calculated for a series of time-buckets. Sensitivity for changes in the steepness of the rate curve is analysed by
clockwise turning (Turn CW), i.e. an increase in short-term rates and a simultaneous fall in long-term rates, and by counter-clockwise turning (Turn
CCW), whereby short-term rates fall and long-term rates rise.
In particular, clockwise and counter-clockwise turning use the following changes in absolute terms:
• +50 bps/-50 bps for the one-day bucket;
• 0 bps for the one-year bucket;
• -50 bps/+50 bps for the 30-year plus bucket;
• for buckets between the above ones, the change to be set is found by linear interpolation.
The Group also calculates sensitivity to the volatility of Interest Rate assuming a positive shift of 30% or negative change of 30% in volatility curves
or matrixes.
The tables below show trading book sensitivities.
(€ million)
INTEREST
RATES
+1BP LESS
THAN 1
MONTH
+1BP 1
MONTH TO
6 MONTHS
+1BP 6
MONTHS
TO 1 YEAR
+1BP 1
YEAR TO 5
YEARS
+1BP 5
YEARS TO
10 YEARS
+1BP 10
YEARS TO
20 YEARS
+1BP
OVER 20
YEARS
+1 BP
TOTAL -10 BP +10 BP
-100 PB +100 BP
CW
CCW
Total
-0.1
0.9
-0.3
-0.4
0.4
-0.4
-0.1
0.0
-2.8
3.1
2.1
22.0
29.5
-20.7
of which:
EUR
-0.1
0.9
-0.0
-0.3
0.3
-0.5
-0.1
0.2
-4.6
4.8
-14.3
40.1
34.2
-25.4
USD
-0.0
-0.0
-0.3
0.0
0.2
0.1
-0.0
-0.0
0.3
-0.3
2.8
-3.1
-5.8
5.8
GBP
0.0
-0.0
-0.0
-0.0
0.0
0.0
-0.0
-0.1
0.7
-0.7
6.7
-7.0
-0.6
0.6
CHF
-0.0
0.0
0.0
-0.0
-0.0
-0.0
0.0
-0.0
0.4
-0.4
4.0
-3.9
0.4
-0.4
JPY
-0.0
0.0
0.0
-0.0
0.0
-0.0
-0.0
0.0
-0.3
0.3
-2.6
2.5
0.3
-0.3
(€ million)
-30%
+30%
Interest Rates
-28.6
11.9
EUR
-27.9
11.1
USD
-0.7
0.8
610
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Price risk
Share-price sensitivity
Share-price sensitivity is expressed in two ways:
• as a “Delta cash-equivalent”, i.e. the euro equivalent of the quantity of the underlying that would expose the bank to the same risk arising from its
actual portfolio;
• as the economic result of a rise or fall in spot prices of 1%, 10% and 20%.
The Delta cash-equivalent and the Delta 1% (i.e. the economic impact of a 1% rise in spot prices) are calculated both for each geographical region
(assuming that all stock markets in the region are perfectly correlated) and on the total (assuming therefore that all stock markets are perfectly
correlated). The sensitivity arising from changes of 10% and 20% is calculated solely on the total.
The Group also calculates sensitivity to the volatility of equities assuming a positive shift of 30% or negative change of 30% in volatility curves or
matrixes.
In addition, sensitivity to commodity price changes is calculated according to the above criteria. Given its secondary importance as compared to
other risk exposures, this is calculated as a single class.
The tables below show Trading book sensitivities.
(€ million)
EQUITIES
ALL MARKETS
DELTA
CASH-EQUIVALENT
-20%
-10%
-1%
+1%
+10%
+20%
Europe
-91.4
-
-
-
-0.9
-
-
USA
113.5
-
-
-
1.1
-
-
Japan
1.8
-
-
-
0.0
-
-
Asia ex-Japan
-1.6
-
-
-
0.0
-
-
Latin America
0.0
-
-
-
0.0
-
-
Other
-31.3
-
-
-
-0.3
-
-
Total
-9.0
-32.3
-0.7
-0.1
-0.1
8.9
32.8
Commodity
4.6
-1.4
0.0
0.0
0.0
0.3
0.4
(€ million)
-30%
+30%
Equities
-19.7
20.8
611
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
2.2.2 Interest rate risk and price risk - Banking book
Qualitative information
Interest rate risk
A. General aspects, operational processes and methods for measuring interest rate risk and price risk
a) Interest rate risk refers to the current or future risk to the bank's capital and earnings arising from unfavorable movements in interest rates that
affect the bank's positions. As interest rates change, the present value and timing of future cash flows change and this, in turn, changes the
underlying value of a bank's assets, liabilities and off-Balance sheet items and therefore its economic value. Changes in interest rates also affect
the formation of the interest margin and, consequently, the bank's profits.
Dedicated interest rate risk monitoring and management procedures are applied to all positions sensitive to changes in interest rates, excluding
portfolios held for trading and Defined Benefit Obligations (DBO) portfolio for which a specific framework within the market risk management is
envisaged.
The main sources of interest rate risk can be classified as follows:
• “Gap” risk: arises from the term structure of the banking book; this is the risk that is generated from different timings in the rate changes of the
instruments. The extent of the change in the "gap" also depends on the linearity of the change in the term structure of rates, which can occur
consistently across the entire rate curve (parallel risk) or differently from period to period of the curve (non-parallel risk). The “gap” risk also
includes the repricing risk, i.e., the risk of changes in the interest margin which occurs when the rate of a financial contract resets; the same also
refers to the yield curve risk, which occurs when a shift in an interest rate curve impacts the economic value of the assets and liabilities sensitive to
interest rate risk.
• Basis risk: it can be divided into two types of risk:
- “tenor” risk: derives from the mismatch between the maturity of the instrument and changes in interest rates;
- currency risk: derives from the potential lack of compensation between interest rate sensitivities emerging from different currencies;
• Option risk: derives from positions in derivatives or from optional elements incorporated in many assets, liabilities and off-Balance sheet items of
the bank, where either the bank or the customer have the right to change the amount and timing of cash flows.
b) The Group Financial and Credit Risk Committee is responsible for defining the operational strategy for managing the interest rate risk of the
banking book, including the strategy for managing the capital and the structural gap between assets and liabilities not sensitive to the interest rate.
The management of the interest rate risk of the banking book is also aimed at guaranteeing the reduction of the negative impacts on the long-term
interest margins, due to the volatility of interest rates, to achieve a flow of profits and a return on capital consistent with the strategic plan. The
strategy does not envisage any directional or discretionary positioning aimed at generating additional profits, unless approved by the competent
bodies and monitored separately. The only exception refers to the functions authorized to take positions on interest rates within the limits approved
by the Risk Committees.
The treasury functions manage the interest rate risk stemming from commercial transactions while maintaining the exposure within the limits set by
the Risk Committees.
Limits and alert thresholds are defined for each Bank or Group Company in terms of sensitivity to the economic value or interest margin. The set of
metrics is defined according to the level of complexity of the Company's business and each of the banks or companies of the Group is responsible
for managing the exposure to interest rate risk within the defined limits.
At consolidated level, the Group Risk Management function is responsible for measuring interest rate risk, which reports to the Group Financial
and Credit Risk Committee the interest rate risk of the banking book exposures and analysis, on a monthly basis.
The interest rate risk management strategy is established considering also the main impacts deriving from the behavioral aspects of customers,
which can impact on the value of interest margins and the economic value of the banking book, such as the example of early repayments of
disbursed loans ("prepayment") and the stability of on demand items.
The monitoring activity is coupled with constant Stress Testing aimed at verifying compliance with the limits under more severe stress scenarios
from those expected and occurred in the market. The calibration and monitoring of stress test scenarios takes place at least annualy.
The Internal Validation functions periodically carries out an independent assessment of the correct application of the measurement methodology
applied by the risk functions within the monitoring perimeter of the banking book including behavioral assumptions.
The Audt functions ensure the adequacy and compliance with regulatory and internal regulations, at least with an annual frequency.
c) The interest rate risk is monitored daily in terms of the sensitivity of the economic value, for an instantaneous and parallel shock of +1 basis point
of the term structure of the interest rates. The function responsible for managing interest rate risk checks on a daily basis the use of the limits for
exposure to interest rate risk following a 1 bp shock. The basis risk and the risk emerging from options are also measured daily respectively by the
"IR Basis" and "IR Vega" metrics. On a monthly basis, the sensitivity of the Economic Value is monitored for more severe parallel and non-parallel
shocks on the term structure of interest rates and that of the interest margin, as described in the previous paragraph.
612
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
d) The measurement of interest rate risk includes:
• the sensitivity analysis of interest margins to changes in interest rates: a constant Balance sheet analysis (under the assumption that positions
remain constant during the period), and a simulation of the impact on the interest margin for the current period, that also considering the elasticity
assumptions for items on demand. Furthermore, with the simulation analysis is assessed the impact on income of different shocks of the interest
rate curves, including the Supervisory Outlier Test scenarios prescribed in the EBA Guidelines (EBA/GL/2022/14) and other instantaneous parallel
rate scenarios. Additional scenarios are simulated to consider basis risk and other non-parallel shocks;
• the analysis of the sensitivity of the Economic Value to changes in interest rates: it includes the calculation of duration measures, sensitivity of the
economic value of the Balance sheet items for the different points of the curve, as well as the impact on the economic value deriving from large
changes in market rates, in accordance with the SOT scenarios required by the above EBA Guidelines.
e) The assumptions and parameters of the behavioral models used for the internal measurement systems are the same used to generate the
regulatory exposures published in EU IRRBB1 template.
f) The mitigation of the interest rate risk and the hedging activities of the banking book are carried out through the use of regulated or Over the
Counter (OTC) derivatives with an underlying interest rate. The optimization of the natural hedge of the assets with the bank's liabilities is
managed by the Treasury function in each legal entity. The remaining interest rate risk is mainly transferred from regulatory banking book to
regulatory trading book optimizing group's hedging costs and market execution. Derivative contracts hedging the interest rate risk of the banking
book and not held for trading are recognized in the accounts as cash flow hedges or fair value hedges.
g) The presence and effects of behavioral options in the Balance sheet are taken into consideration through the development and application of
behavioral models. The maturity profile as well as the repricing profile of non-maturity deposits takes into account the identification of the "stable"
portion of the balances that is the amount of the deposit that could represent a stable source of financing despite the short contractual maturity,
and the identification of the "core" part of the deposits that is the amount of the deposits which is stable and unlikely to reprice even under
significant changes in the interest rates environment and/or other deposits with limited elasticity to interest rate changes. Both components are
estimated through statistical models evaluating the stability of the volume and elasticity of the customer rate (i.e. the beta parameter). Hedging
strategy for core deposits is proposed by Finance and approved by the Group Financial and Credit Risk Committee. Such strategy aims to
optimize the NII over time within IRRBB RAF framework; a prudent stance is kept in determining the volume and duration of the hedging strategy
to limit over-hedging risk. The maturity profile, as well as the average repricing maturity of mortgages and retail loans, both take into account the
optionality of the advance payment, which is assessed through the statistical estimate of the CPR (conditional early repayment rate) on the loan
portfolio.
h) The scenarios used in the EU IRRBB1 template related to the change in both economic value and interest margin correspond to the scenarios of
the Supervisory Outlier Test required by the EBA Guidelines (EBA/GL/2022/14).
i) The average repricing maturity assigned to non-maturity deposits is 2.8 years (the longest repricing maturity is up to 40 years for a residual part of
the portfolio naturally hedging assets in some countries).
Price risk
A. General aspects, operational processes and methods for measuring price risk
Banking Book price risk primarily originates from equity interests held by the Parent Company and its subsidiaries as stable investments, as well as
units in mutual investment funds not included in the Trading Book as they are also held as stable investments.
For Stress Test refer to the introduction on Risk Management Strategies and Processes paragraph and for the complex scenarios’ description to
Stress Test paragraph.
613
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Quantitative information
1. Banking book: breakdown by maturity (repricing date) of financial assets and liabilities
(€ million)
AMOUNTS AS AT 31.12.2024
TYPE/RESIDUAL MATURITY
ON DEMAND
UP TO 3
MONTHS 3 TO 6 MONTHS
6 MONTHS TO 1
YEAR
1 TO 5 YEARS
5 TO 10 YEARS
OVER 10
YEARS
INDEFINITE
MATURITY
1. On-balance sheet assets
92,537
207,230
48,629
28,982
138,787
99,899
53,746
270
1.1 Debt securities
3,281
27,790
10,993
7,101
58,363
55,326
12,294
3
- With prepayment option
-
212
92
10
1,689
792
97
-
- Other
3,281
27,578
10,901
7,091
56,674
54,534
12,197
3
1.2 Loans to banks
18,997
29,684
7,070
3,279
5,894
148
5
-
1.3 Loans to customers
70,259
149,756
30,566
18,602
74,530
44,425
41,447
267
- Current accounts
21,419
1,755
143
106
257
21
449
-
- Other loans
48,840
148,001
30,423
18,496
74,273
44,404
40,998
267
- With prepayment option
2,553
48,351
15,312
5,138
18,615
11,109
11,607
-
- Other
46,287
99,650
15,111
13,358
55,658
33,295
29,391
267
2. On-balance sheet liabilities
403,899
138,618
23,453
19,686
57,012
25,928
8,075
156
2.1 Deposits from customers
380,866
88,110
12,814
6,928
3,198
1,046
1,245
100
- Current accounts
362,776
3,377
760
349
264
186
23
33
- Other
18,090
84,733
12,054
6,579
2,934
860
1,222
67
- With prepayment option
384
-
-
1
1
-
-
-
- Other
17,706
84,733
12,054
6,578
2,933
860
1,222
67
2.2 Deposits from banks
18,907
30,705
3,671
2,663
7,636
3,616
256
-
- Current accounts
9,422
38
1
2
12
-
-
-
- Other
9,485
30,667
3,670
2,661
7,624
3,616
256
-
2.3 Debt secuties in issue
1,725
15,117
6,881
9,941
45,634
21,163
6,564
-
- With prepayment option
-
574
-
151
5,283
862
435
-
- Other
1,725
14,543
6,881
9,790
40,351
20,301
6,129
-
2.4 Other liabilities
2,401
4,686
87
154
544
103
10
56
- With prepayment option
-
-
-
-
126
-
-
-
- Other
2,401
4,686
87
154
418
103
10
56
3. Financial derivatives
3.1 With underlying security
- Option
+ Long positions
897
1,332
941
1,324
-
-
-
-
+ Short positions
1,947
1,355
917
276
-
-
-
-
- Other derivates
+ Long positions
-
-
-
-
-
-
-
-
+ Short positions
-
-
-
-
-
-
-
-
3.2 Without underlying security
- Option
+ Long positions
-
1,442
119
20
-
40
4
-
+ Short positions
-
1,444
120
20
-
40
4
-
- Other derivatives
+ Long positions
95,985
297,887
61,118
77,833
171,020
95,585
22,949
-
+ Short positions
97,253
311,751
66,482
73,319
165,988
80,397
26,957
-
4. Other off-balance sheet transactions
+ Long positions
104,485
28,456
2,082
3,438
5,311
1,586
5,084
4,327
+ Short positions
116,381
19,573
2,392
3,322
3,471
928
4,088
4,326
614
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
1. Banking book: breakdown by maturity (repricing date) of financial assets and liabilities - Currency: euro
(€ million)
AMOUNTS AS AT 31.12.2024
TYPE/RESIDUAL MATURITY
ON DEMAND
UP TO 3
MONTHS 3 TO 6 MONTHS
6 MONTHS TO 1
YEAR
1 TO 5 YEARS
5 TO 10 YEARS
OVER 10
YEARS
INDEFINITE
MATURITY
1. On-balance sheet assets
73,710
177,068
44,326
25,777
120,755
88,921
50,066
251
1.1 Debt securities
745
24,795
9,934
5,866
49,808
47,465
9,629
1
- With prepayment option
-
88
92
10
1,616
792
97
-
- Other
745
24,707
9,842
5,856
48,192
46,673
9,532
1
1.2 Loans to banks
16,551
14,584
5,351
3,175
5,872
120
2
-
1.3 Loans to customers
56,414
137,689
29,041
16,736
65,075
41,336
40,435
250
- Current accounts
18,997
1,368
132
78
249
21
448
-
- Other loans
37,417
136,321
28,909
16,658
64,826
41,315
39,987
250
- With prepayment option
2,510
47,742
14,849
4,918
17,717
10,420
11,596
-
- Other
34,907
88,579
14,060
11,740
47,109
30,895
28,391
250
2. On-balance sheet liabilities
357,038
121,274
21,626
18,229
53,757
22,501
6,606
113
2.1 Deposits from customers
339,056
74,826
11,113
5,742
2,871
812
1,218
58
- Current accounts
322,457
3,127
719
307
117
79
23
7
- Other
16,599
71,699
10,394
5,435
2,754
733
1,195
51
- With prepayment option
384
-
-
1
1
-
-
-
- Other
16,215
71,699
10,394
5,434
2,753
733
1,195
51
2.2 Deposits from banks
14,429
27,634
3,617
2,648
7,535
3,606
251
-
- Current accounts
7,650
18
1
2
12
-
-
-
- Other
6,779
27,616
3,616
2,646
7,523
3,606
251
-
2.3 Debt secuties in issue
1,307
14,128
6,809
9,687
42,817
17,984
5,128
-
- With prepayment option
-
574
-
151
5,283
862
435
-
- Other
1,307
13,554
6,809
9,536
37,534
17,122
4,693
-
2.4 Other liabilities
2,246
4,686
87
152
534
99
9
55
- With prepayment option
-
-
-
-
126
-
-
-
- Other
2,246
4,686
87
152
408
99
9
55
3. Financial derivatives
3.1 With underlying security
- Option
+ Long positions
897
1,332
941
1,324
-
-
-
-
+ Short positions
1,947
1,355
917
276
-
-
-
-
- Other derivates
+ Long positions
-
-
-
-
-
-
-
-
+ Short positions
-
-
-
-
-
-
-
-
3.2 Without underlying security
- Option
+ Long positions
-
1,442
119
20
-
40
4
-
+ Short positions
-
13
7
20
-
40
4
-
- Other derivatives
+ Long positions
94,302
296,294
56,829
76,126
155,565
92,553
22,637
-
+ Short positions
97,253
307,162
57,342
72,808
159,585
74,418
23,643
-
4. Other off-balance sheet transactions
+ Long positions
100,004
27,734
1,502
1,823
3,958
1,139
3,131
4,180
+ Short positions
111,757
18,811
1,848
1,760
2,172
569
2,218
4,179
615
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
1. Banking book: breakdown by maturity (repricing date) of financial assets and liabilities - Currency: other currencies
(€ million)
AMOUNTS AS AT 31.12.2024
TYPE/RESIDUAL MATURITY
ON DEMAND
UP TO 3
MONTHS 3 TO 6 MONTHS
6 MONTHS TO 1
YEAR
1 TO 5 YEARS
5 TO 10 YEARS
OVER 10
YEARS
INDEFINITE
MATURITY
1. On-balance sheet assets
18,827
30,162
4,303
3,205
18,032
10,978
3,680
19
1.1 Debt securities
2,536
2,995
1,059
1,235
8,555
7,861
2,665
2
- With prepayment option
-
124
-
-
73
-
-
-
- Other
2,536
2,871
1,059
1,235
8,482
7,861
2,665
2
1.2 Loans to banks
2,446
15,100
1,719
104
22
28
3
-
1.3 Loans to customers
13,845
12,067
1,525
1,866
9,455
3,089
1,012
17
- Current accounts
2,422
387
11
28
8
-
1
-
- Other loans
11,423
11,680
1,514
1,838
9,447
3,089
1,011
17
- With prepayment option
43
609
463
220
898
689
11
-
- Other
11,380
11,071
1,051
1,618
8,549
2,400
1,000
17
2. On-balance sheet liabilities
46,861
17,344
1,827
1,457
3,255
3,427
1,469
43
2.1 Deposits from customers
41,810
13,284
1,701
1,186
327
234
27
42
- Current accounts
40,319
250
41
42
147
107
-
26
- Other
1,491
13,034
1,660
1,144
180
127
27
16
- With prepayment option
-
-
-
-
-
-
-
-
- Other
1,491
13,034
1,660
1,144
180
127
27
16
2.2 Deposits from banks
4,478
3,071
54
15
101
10
5
-
- Current accounts
1,772
20
-
-
-
-
-
-
- Other
2,706
3,051
54
15
101
10
5
-
2.3 Debt secuties in issue
418
989
72
254
2,817
3,179
1,436
-
- With prepayment option
-
-
-
-
-
-
-
-
- Other
418
989
72
254
2,817
3,179
1,436
-
2.4 Other liabilities
155
-
-
2
10
4
1
1
- With prepayment option
-
-
-
-
-
-
-
-
- Other
155
-
-
2
10
4
1
1
3. Financial derivatives
3.1 With underlying security
- Option
+ Long positions
-
-
-
-
-
-
-
-
+ Short positions
-
-
-
-
-
-
-
-
- Other derivates
+ Long positions
-
-
-
-
-
-
-
-
+ Short positions
-
-
-
-
-
-
-
-
3.2 Without underlying security
- Option
+ Long positions
-
-
-
-
-
-
-
-
+ Short positions
-
1,431
113
-
-
-
-
-
- Other derivatives
+ Long positions
1,683
1,593
4,289
1,707
15,455
3,032
312
-
+ Short positions
-
4,589
9,140
511
6,403
5,979
3,314
-
4. Other off-balance sheet transactions
+ Long positions
4,481
722
580
1,615
1,353
447
1,953
147
+ Short positions
4,624
762
544
1,562
1,299
359
1,870
147
616
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
2. Banking book: internal models and other methods for sensitivity analysis
Interest Rate Risk
The economic value and net interest income sensitivity to a change in interest rate is computed as described in EBA guidelines (EBA/GL/2022/14)
and in regulation update (2024/856) that adopts the Regulatory Technical Standard on SOTs.
The EU IRRBB1 template reported below, contains the interest rate risk exposure metrics as of 31 December 2024 and 31 December 2023. For the
descriptions of the scenarios refer to Qualitative information - Interest rate risk section. Regarding the sensitivity of the economic value of
shareholders’ equity the worst of the six SOT scenarios is the Short rates up and for that scenario a sudden change in interest rates, differentiated
by currencies and time buckets, is applied. The sensitivity of the economic value of shareholders’ equity of the worst of the six SOT scenarios as at
31 December 2024 was equal to €-2,038 million. The economic value of shareholders’ equity sensitivity change in 2024 is mainly driven by the
evolution of replicating strategy mostly in UniCredit S.p.A. and UCB GmbH.
As at 31 December 2024, the net interest income sensitivity (with annual time-horizon and constant balance-sheet) for the worst of two SOT
scenarios (Parallel down) was equal to €-1,706 million. The Parallel down scenario apply immediate and parallel change in interest rates
differentiated by currencies (e.g. -200 bps for EUR and USD, -300 bps for HUF etc.). The net interest income sensitivity in 2024 remained almost
stable.
Template EU IRRBB1 - Interest rate risks on positions not held in the trading book
(€ million)
SUPERVISORY SHOCK SCENARIOS
a
b
c
d
CHANGES OF THE ECONOMIC VALUE OF EQUITY
CHANGES OF THE NET INTEREST INCOME
31.12.2024
31.12.2023
31.12.2024
31.12.2023
1
Parallel up
(2,025)
(2,614)
600
581
2
Parallel down
124
476
(1,706)
(1,726)
3
Steepener
1,090
879
-
-
4
Flattener
(1,776)
(1,841)
-
-
5
Short rates up
(2,038)
(2,282)
-
-
6
Short rates down
722
781
-
-
Note:
The template above is prepared according to Regulation (EU) 631/2022 of 13 April 2022 amending the implementing technical standards laid down in Implementing Regulation (EU) 637/2021 as regards the disclosure of
exposures to interest rate risk on positions not held in the trading book.
As at 31 December 2024 the net interest income sensitivity to an immediate and parallel change in interest rates of +100 bps was equal to €+610
million, while the sensitivity to an immediate and parallel change in interest rates of -100 bps was equal to €-711 million.
Sensitivity of the net interest income to the +/-100bps scenarios
(€ million)
INTEREST RATE RISK SCENARIOS
a
b
CHANGES OF THE NET INTEREST INCOME
31.12.2024
31.12.2023
1
NII +100bps
610
647
2
NII -100bps
(711)
(753)
Note:
With respect to the disclosure published on 31 December 2023, the NII+/-50 bps scenarios have been removed and the NII-100 bps scenario has been introduced.
617
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Sensitivity of the net interest income to the +100bps scenario
(€ million)
SCENARIO PER CURRENCY
a
b
CHANGES OF THE NET INTEREST INCOME
31.12.2024
31.12.2023
1
Total
610
647
2
Euro (EUR)
550
556
3
US Dollar (USD)
28
(9)
4
Hungarian Forint (HUF)
16
16
5
Other currencies
16
84
Note:
With reference to the disclosure published as at 31 December 2023, the Czech Republic Koruna (CZK) currency has been reclassified under the item "Other currencies" while United States Dollar (USD) previously reported
in Other currencies is now explicit in the above table.
2.2.3 Exchange rate risk
Qualitative information
A. General aspects, risk management processes and measurement methods of the exchange risk
Exchange rate risk originates both from banks in the Group operating in currency areas other than the Eurozone and from positions taken by
specialist centres holding the Group's market risk within the limits assigned.
Risk deriving from own trading of these instruments is managed using both directional and relative value strategies via direct sale and purchase of
securities, regulated derivatives and OTC. Volatility trading strategies are implemented using options. Exchange rate risk is constantly monitored
and measured by using internal models developed by Group companies.
For both a description of internal processes for monitoring and managing risk and an illustration of the methodologies used to analyse exposure,
refer to the introduction on internal models. These models are also used to calculate capital requirements on market risks due to the exposure to
such risk.
As regards stress test refer to the introduction on “Risk management strategies and processes” paragraph and for the complex scenarios’
description to “Stress test” paragraph.
B. Hedging exchange risk
The exchange risk hedging activity within the Trading book is aimed at keeping the FX risk within the defined Granular and Global limits.
Regarding banking book, the Group adopts hedge strategies for profits and dividends arising from its subsidiaries not belonging to the euro zone,
considering market circumstances for the hedging strategies.
618
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Quantitative information
1. Distribution by currency of assets and liabilities and derivatives
(€ million)
ITEMS
AMOUNTS AS AT 31.12.2024
CURRENCIES
EURO
CZECH KORUNA
U.S. DOLLAR
BRITISH POUND HUNGARIAN FORINT
OTHER
CURRENCIES
A. Financial assets
28,915
872
34,366
4,168
182
12,973
A.1 Debt securities
2,737
345
15,839
394
13
5,414
A.2 Equity securities
-
-
954
394
-
676
A.3 Loans to banks
2,318
97
4,825
152
62
2,803
A.4 Loans to customers
23,783
429
12,726
3,217
107
4,037
A.5 Other financial assets
77
1
22
11
-
43
B. Other assets
319
39
395
8
3
28
C. Financial liabilities
23,274
313
32,262
1,277
119
3,272
C.1 Deposits from banks
1,096
1
8,844
207
6
195
C.2 Deposits from customers
19,848
213
15,075
1,043
85
2,664
C.3 Debt securities in issue
2,164
99
8,036
25
28
204
C.4 Other financial liabilities
166
-
307
2
-
209
D. Other liabilities
320
4
264
11
7
32
E. Financial derivatives
- Options
+ Long positions
270
36
2,324
1,057
10
342
+ Short positions
229
1,016
2,454
1,114
229
885
- Other derivatives
+ Long positions
3,572
9,660
174,133
28,914
2,645
50,199
+ Short positions
2,550
3,784
178,202
30,163
1,074
60,107
Total assets
33,076
10,607
211,218
34,147
2,840
63,542
Total liabilities
26,373
5,117
213,182
32,565
1,429
64,296
Difference (+/-)
6,703
5,490
(1,964)
1,582
1,411
(754)
2. Internal models and other methodologies for sensitivity analysis
Transactional FX risk (impact of fluctuations in foreign exchange rates on the Group’s Profit & Loss in the period) measurement and reporting is part
of the Group´s market risk framework.
In UGM, transactional exchange risk exposures are incorporated in the relevant risk calculation, limit monitoring and reporting. Every Legal Entity is
required to setup, as part of the respective Market Risk framework, a sound limit system for managing and controlling Transactional Exchange Risk.
As a minimum requirement, the limit system shall envisage FX Delta limits for the main currencies which the business is exposed to or for
aggregation of currencies.
FX Delta limits are part of the Granular Market Risk Limits and are ruled by the Group Policy “Group Market Risk Governance Guidelines”.
619
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Credit spread risk
Qualitative information
A. General aspects
Risk relating to credit spreads and related credit derivative products included in Trading book originates from positions taken by Group specialist
centres holding assigned market risk limits within certain levels of discretion.
Risk deriving from own trading of these instruments is managed using both directional and relative value strategies via direct sale and purchase of
securities, regulated derivatives and OTC.
B. Risk management processes and measurement methods
For both a description of internal processes for monitoring and managing risk and an illustration of the methodologies used to analyse exposure,
refer to introduction on internal models, Notes to the consolidated account, Part E - Information on risks and related hedging policies, 2.2 Market
risk. As regards Stress Test refer to the introduction on “Risk management strategies and processes” and for the complex scenarios’ description to
“Stress test” paragraph, Notes to the consolidated account, Part E - Information on risks and related hedging policies, 2.2 Market risk.
Quantitative information
Credit spread sensitivity
Credit spread sensitivity is calculated by assuming a worsening of creditworthiness seen in a parallel shift of +1 bp/+10 bp/+100 bps in the credit
spread curves.
These sensitivities are calculated both inclusively, assuming a parallel shift of all the credit spread curves, and in respect of specific rating classes
and economic sectors.
The table below shows Trading book sensitivities.
(€ million)
+1BP
LESS THAN
1 MONTH
+1BP
1 MONTH TO
6 MONTHS
+1BP
6 MONTHS
TO 1 YEAR
+1BP
1 YEAR TO
5 YEARS
+1BP
5 YEARS TO
10 YEARS
+1BP
10 YEARS
TO
20 YEARS
+1BP
OVER 20
YEARS
+1 BP
TOTAL
+10BP
+100BP
Total
-0.0
0.0
0.0
0.6
0.1
-0.1
0.0
0.7
6.5
63.7
Rating
AAA
-0.0
-0.0
-0.0
-0.1
-0.1
0.0
0.1
-0.1
-0.8
-10.3
AA
0.0
0.0
0.0
0.1
0.1
-0.1
-0.1
0.0
0.4
7.1
A
-0.0
0.0
-0.0
0.2
-0.0
0.0
-0.0
0.2
2.0
19.0
BBB
-0.0
0.0
0.0
0.5
-0.0
-0.1
0.1
0.5
5.0
48.5
BB
-0.0
-0.0
-0.0
0.0
-0.0
0.0
0.0
-0.0
-0.0
-0.2
B
0.0
-0.0
-0.0
-0.0
-0.0
0.0
0.0
-0.0
-0.0
-0.4
CCC and NR
0.0
-0.0
-0.0
0.0
-0.0
-0.0
0.0
0.0
0.0
0.0
Sector
Sovereigns & Related
-0.0
0.0
-0.0
-0.0
0.1
-0.1
-0.0
-0.0
-0.2
-1.3
ABS and MBS
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Financial Services
-0.0
0.0
0.0
0.2
-0.1
-0.0
0.1
0.2
1.9
19.0
All Corporates
-0.0
-0.0
-0.0
0.4
0.0
0.0
0.0
0.5
4.8
45.9
Basic Materials
0.0
0.0
-0.0
0.0
0.0
0.0
0.0
0.0
0.3
3.3
Communications
0.0
-0.0
-0.0
0.1
-0.0
-0.0
0.0
0.1
0.6
6.2
Consumer Cyclical
0.0
-0.0
-0.0
0.1
0.0
0.0
0.0
0.1
1.3
12.3
Consumer Non cyclical
-0.0
0.0
0.0
0.1
-0.0
0.0
0.0
0.1
0.9
8.5
Energy
0.0
-0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
2.3
Technology
0.0
0.0
0.0
0.0
-0.0
0.0
0.0
0.0
0.0
0.4
Industrial
0.0
-0.0
0.0
0.1
0.0
0.0
0.0
0.1
1.0
9.2
Utilities
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
4.1
All other Corporates
0.0
-0.0
-0.0
0.0
0.0
0.0
0.0
0.0
1.1
31.0
620
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Stress test
Stress tests complement the sensitivity analysis and VaR results in order to assess the potential risks in a different way. A stress test performs the
evaluation of a portfolio under both simple scenarios (assuming change to single risk factors) and complex scenarios (assuming simultaneous
changes in a number of risk factors).
The description of complex scenarios, which combine changes in interest rate, price, exchange-rate and credit spread risk factors is reported below.
For the description of simple scenarios, refer to the previous paragraphs.
As far as complex scenarios are concerned, different scenarios have been applied to the Trading book and Banking book (specifically FVtPL and
FVtOCI positions) on a monthly basis and reported to the Top Management.
Recession Scenario
In this scenario, we assume that an intensification of geopolitical tensions in the Middle East and Ukraine pushes up the price of oil and natural gas,
while causing shortages and delays in delivery times as pressure on supply chains builds. The negative supply shock hits western economies when
activity is already weak (eurozone) or is about to decelerate (US) due to restrictive monetary policy. The shock tips the eurozone into a recession,
given its openness and geographical proximity, while the US is less affected.
In the eurozone, the contraction in GDP causes a marked increase in unemployment as firms face shrinking margins and can no longer afford to
hoard labor. The output gap turns deeply negative and underlying price pressures weaken fast, more than offsetting the impulse from supply shocks.
In turn, weaker demand eases the pressure on energy prices and supply chains.
We assume that disinflationary forces prevail overall, leading central banks to cut interest rates more aggressively than in the baseline scenario.
In terms of timing, we assume that the shock starts in 2025.
In the eurozone, activity starts contracting in 2025 (-0.6%) and the recession deepens in 2026 (-1.3%). This is followed by a tentative recovery in
2027 (+0.5%) as rate cuts feed through while supply-side shocks fade. The cumulative hit to GDP growth is 4.8 pp.
Eurozone inflation declines below the ECB’s 2% goal throughout the forecast horizon, as the effects of demand weakness and a widening of the
output gap prevail over supply-side shocks.
Overall, inflation settles a cumulative 1 pp below the baseline. Inflation expectations drift lower, increasing pressure on the ECB to cut rates swiftly.
The ECB cuts rates aggressively, lowering the deposit rates to 1.25% by the end of 2025 and to 1.0% by end-2026, hence pushing rates below the
level that we regard as neutral. Monetary policy would then remain unchanged in 2027. The Fed funds rate falls to 2.75% by the end of 2025 and
bottoms out at 2.50% in 2026-27.
Sovereign credit spreads would be under moderate widening pressure due to lower growth outlook, only in part countered by accommodative
monetary policy. BTPs are expected to widen 90 bps in ASW once the shock materializes.
Corporate credit spreads would also be under widening pressure, especially at the lower end of the rating scale. Pharma, telecoms and consumer
goods, notably staples, should benefit from their defensive nature and strong credit metrics. Cyclicals such as energy, industrials and automobiles
would suffer particularly.
Geopolitical tensions causing shortages of gas and oil supply would affect adversely also utilities. Policy easing by the ECB would in part mitigate
the adverse market conditions.
Equity markets are expected to post significant losses, of about 15-30%, reflecting the recessionary environment.
In FX, we expect the EUR to come under pressure given the growth shock is more severe for the eurozone than the US and amid a generalized
increase in risk aversion. We pencil in an 15% depreciation against the USD in 2025 and 13% in 2026. Similarly, in this scenario we expect to see
strengthening of the CHF and the Yen, which are typical safe-haven currencies.
Geopolitical & Trade Shocks Scenario
In this scenario, we assume that the conflict in the Middle East broadens, although falling short of a full-blown regional escalation. Disruption in the
straits of Hormuz and Bab el-Mandeb pushes up the price of oil and natural gas strongly, while stress on supply chains builds. Geopolitical tensions
between the US and China intensify and fresh protectionist measures on both sides further impair the functioning of global supply chains, weighing
on global trade.
China’s growth outlook deteriorates strongly as the downturn in the real estate sector is compounded by the new shocks, which weigh heavily on
sentiment, investment and the labor market. The jump in commodity prices, disruption to supply chains and global trade, faltering growth in China
and surging uncertainty sink the European economy in a deep recession while inflation surges.
621
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Importantly, we assume that inflation expectations become de-anchored, contributing to a strong pick-up in wage-growth. Faster wage growth keeps
inflation well above target levels for a prolonged period of time, triggering a forceful response by central banks. Tighter financial conditions intensify
the downward pressure on economic activity and lead to wider credit spreads. In terms of timing, we assume that the shock starts early in 2025.
Inflation becomes entrenched. The upward drift in inflation expectations plays a key role in this process, fueling second-round effects and materially
faster wage growth compared to the baseline. Firms change their management of supply chains, aiming to strengthen their resilience at the expense
of efficiency. This structurally raises firms’ costs, which are then passed on to the final consumers. In the eurozone, inflation jumps to 5.8% in 2025
and is projected to be 4.5% in 2026 and 3.2% in 2027, hence remaining substantially above the ECB target.
Eurozone GDP contracts by 1.4% in 2025 and by a massive 3.6% in 2026, followed by stabilization in 2027. On a cumulative basis, GDP growth is
projected to be 8.3 pp lower than in the baseline scenario. Growth shocks for Germany and Italy exceed that for the eurozone, especially in 2026,
reflecting greater openness of these economies.
Monetary policy responds forcefully to the shock, sacrificing growth in order to regain control of inflation expectations. The ECB reverses the course
of its policy and hikes the deposit rate to 5.25% by end-2025 and to 5.75% in 2026. This is followed by 50 bp of easing in 2027 as the inflation shock
eases. The deposit rate at the end of 2027 is a highly restrictive 5.25%, 325 bp above the baseline scenario. The Fed follows a similar pattern,
hiking the Fed fund to 6% in 2025 before easing to 5.5% by end-2027 (+150 bp vs. baseline at the end of the forecast horizon).
Importantly, we assume that Italy’s sovereign spread do not spiral out of control thanks to the critical role played by the ECB’s Transmission
Protection Instrument (TPI).
Sovereign credit spreads are expected to come under pressure, due to a combination of slower growth and aggressive monetary policy tightening.
We pencil in a widening of BTP ASW spreads of 130 bp once the shock materializes overshooting the widening expected over the medium term.
Corporate credit spreads would be under strong widening pressure, especially at the lower end of the rating scale. Energy intensive sectors, e.g.
utilities, industrials and automobiles should be under stronger pressure in this scenario, due to increasing supply chain imbalances and rising energy
prices.
In FX, we expect the EUR to come under pressure given the growth shock is more severe for the eurozone than the US and amid a generalized
increase in risk aversion. However, given a less widening of interest rate differential in favor of the USD, we pencil in an 12% depreciation against
the USD in 2025 and 9% in 2026. Similarly, in this scenario we expect to see strengthening of the CHF and the Yen, which are typical safe-haven
currencies.
Equity markets are expected to post very significant losses of over 30%, reflecting the adverse economic environment and higher interest rates.
Stress Test on Trading book
(€ million)
27 DECEMBER 2024
RECESSION SCENARIO
GEOPOLITICAL & TRADE SHOCKS
SCENARIO
UniCredit group total
72
-18
Germany
111
9
Italy
-38
-21
Central Europe
-5
-6
Eastern Europe
4
-1
Note:
End of month for Regulatory risk metrics refers to last Thursday of the month, differently from managerial metrics. End of 2024 refers to 27 December due to bank holiday on 26 December.
Conditional results of Managerial Trading Book, as defined above, have been reported. Conditional losses in Geopolitical & Trade Shocks scenario
are mainly coming from UniCredit S.p.A. and are driven by Fixed Income, Currencies & Commodities business line. Conditional profits in Recession
scenario are mainly coming from UCB GmbH due to structured Equity products in Equity & Brokerage Trading business line, partially offset by
conditional losses in UniCredit S.p.A. due to Fixed Income, Currencies & Commodities business line.
622
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
2.3 Derivative instruments and hedging policies
2.3.1 Trading financial derivatives
A. Financial Derivatives
A.1 Trading financial derivatives: end-of-period notional amounts
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
OVER THE COUNTER
ORGANISED
MARKETS
OVER THE COUNTER
ORGANISED
MARKETS
UNDERLYING ACTIVITIES/TYPE OF DERIVATIVES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL
COUNTERPARTIES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL
COUNTERPARTIES
WITH NETTING
AGREEMENT
WITHOUT
NETTING
AGREEMENT
WITH NETTING
AGREEMENT
WITHOUT
NETTING
AGREEMENT
1. Debt securities and interest rate indexes
5,242,984
467,029
103,632
141,428
6,003,278
732,546
107,978
102,467
a) Options
-
275,686
21,189
47,025
-
252,190
23,196
63,944
b) Swap
5,242,984
189,459
82,438
-
4,111,650
428,143
81,982
-
c) Forward
-
1,884
-
-
1,891,628
52,213
-
-
d) Futures
-
-
5
94,403
-
-
2,800
38,523
e) Other
-
-
-
-
-
-
-
-
2. Equity instruments and stock indexes
-
42,558
5,626
50,879
-
25,355
1,855
65,760
a) Options
-
35,864
4,378
32,413
-
16,052
1,419
44,671
b) Swap
-
6,694
777
-
-
9,303
37
-
c) Forward
-
-
-
-
-
-
-
-
d) Futures
-
-
-
18,463
-
-
-
21,083
e) Other
-
-
471
3
-
-
399
6
3. Gold and currencies
-
432,403
93,402
64
-
344,093
91,929
36
a) Options
-
117,709
9,855
-
-
51,711
12,131
-
b) Swap
-
156,842
17,043
-
-
150,931
13,353
-
c) Forward
-
57,372
46,741
-
-
41,690
41,017
-
d) Futures
-
-
-
64
-
-
-
36
e) Other
-
100,480
19,763
-
-
99,761
25,428
-
4. Commodities
-
5,095
4,572
17,157
-
5,239
6,730
19,065
5. Other
-
2,622
3,945
5,291
-
1,197
4,592
4,779
Total
5,242,984
949,707
211,177
214,819
6,003,278
1,108,430
213,084
192,107
This table refers to the notional values of financial derivatives according to classification within accounting trading portfolio applied in the separate
financial statements of the legal entities belonging to the Regulatory consolidation.
623
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.2 Trading financial derivatives: positive and negative gross fair value - breakdown by product
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
OVER THE COUNTER
ORGANISED
MARKETS
OVER THE COUNTER
ORGANISED
MARKETS
TYPE OF DERIVATIVES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL
COUNTERPARTIES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL
COUNTERPARTIES
WITH NETTING
AGREEMENT
WITHOUT
NETTING
AGREEMENT
WITH NETTING
AGREEMENT
WITHOUT
NETTING
AGREEMENT
1. Positive fair value
a) Options
-
4,683
1,045
1,962
-
3,550
543
2,574
b) Interest rate swap
122,159
8,479
2,649
-
179,593
10,117
2,795
-
c) Cross currency swap
-
3,788
760
-
-
3,658
711
-
d) Equity swap
-
195
33
-
-
-
-
-
e) Forward
-
1,369
1,244
-
1,566
1,658
1,172
-
f) Futures
-
45
-
1,308
-
47
4
1,705
g) Other
-
1,776
2,069
2
-
1,823
1,173
2
Total
122,159
20,335
7,800
3,272
181,159
20,853
6,398
4,281
2. Negative fair value
a) Options
-
4,885
334
3,186
-
3,781
476
4,364
b) Interest rate swap
125,605
6,457
1,307
-
180,369
8,738
2,041
-
c) Cross currency swap
-
4,157
407
-
-
4,555
315
-
d) Equity swap
-
241
26
-
-
-
-
-
e) Forward
-
963
1,172
-
1,567
648
1,396
-
f) Futures
-
-
-
1,340
-
-
3
1,693
g) Other
-
1,844
788
-
-
1,345
740
3
Total
125,605
18,547
4,034
4,526
181,936
19,067
4,971
6,060
This table presents distribution by product of the gross positive and negative financial derivatives’ fair values according to classification within
accounting trading portfolio applied in the separate financial statements of the legal entities belonging to the Regulatory consolidation.
624
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.3 OTC trading financial derivatives: notional amounts, positive and negative gross fair value by counterparty
(€ million)
AMOUNTS AS AT 31.12.2024
UNDERLYING ACTIVITIES
CENTRAL
COUNTERPARTIES
BANKS
OTHER FINANCIAL
COMPANIES
OTHER ENTITIES
Contracts not included in netting agreement
1) Debt securities and interest rate indexes
- Notional amount
X
1,593
36,819
65,220
- Positive fair value
X
61
1,320
1,333
- Negative fair value
X
32
386
1,036
2) Equity instruments and stock indexes
- Notional amount
X
3,336
1,428
862
- Positive fair value
X
39
612
4
- Negative fair value
X
223
32
25
3) Gold and currencies
- Notional amount
X
2,909
26,473
64,020
- Positive fair value
X
43
716
1,817
- Negative fair value
X
41
430
1,273
4) Commodities
- Notional amount
X
2
387
4,183
- Positive fair value
X
3
44
1,672
- Negative fair value
X
6
22
307
5) Other
- Notional amount
X
48
601
3,296
- Positive fair value
X
-
52
84
- Negative fair value
X
3
7
211
Contracts included in netting agreement
1) Debt securities and interest rate indexes
- Notional amount
5,242,984
257,329
128,438
81,262
- Positive fair value
122,159
5,785
1,678
3,837
- Negative fair value
125,605
5,396
1,763
1,711
2) Equity instruments and stock indexes
- Notional amount
-
25,882
16,676
-
- Positive fair value
-
975
646
-
- Negative fair value
-
1,342
710
-
3) Gold and currencies
- Notional amount
-
356,767
45,793
29,843
- Positive fair value
-
4,891
947
1,216
- Negative fair value
-
5,723
780
694
4) Commodities
- Notional amount
-
316
759
4,020
- Positive fair value
-
16
18
275
- Negative fair value
-
56
72
194
5) Other
- Notional amount
-
774
-
1,848
- Positive fair value
-
18
-
33
- Negative fair value
-
36
-
70
This table presents distribution by counterparty of the notional amount and gross positive and negative financial derivatives’ fair values according to
classification within accounting trading portfolio applied in the separate financial statements of the legal entities belonging to the Regulatory
consolidation.
625
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.4 OTC financial derivatives - residual life: notional amounts
(€ million)
UNDERLYING/RESIDUAL MATURITY
UP TO 1 YEAR
OVER 1 YEAR UP TO
5 YEARS
OVER 5 YEARS
TOTAL
A.1 Financial derivative contracts on debt securities and interest rates
1,911,042
2,071,868
1,830,735
5,813,645
A.2 Financial derivative contracts on equity securities and stock indexes
15,574
28,680
3,930
48,184
A.3 Financial derivative contracts on exchange rates and hold
342,676
137,498
45,631
525,805
A.4 Financial derivative contracts on other values
7,110
2,477
80
9,667
A.5 Other financial derivatives
5,513
1,054
-
6,567
Total
31.12.2024
2,281,915
2,241,577
1,880,376
6,403,868
Total
31.12.2023
2,788,593
2,387,581
2,148,616
7,324,790
This table refers to the notional values of financial derivatives according to classification within accounting trading portfolio applied in the separate
financial statements of the legal entities belonging to Regulatory consolidation.
B. Credit derivatives
B.1 Trading credit derivatives: end of period notional amounts
(€ million)
TRADING DERIVATIVES
CATEGORY OF TRANSACTIONS
WITH A SINGLE COUNTERPARTY
WITH MORE THAN ONE
COUNTERPARTY (BASKET)
1. Protection buyer's contracts
a) Credit default products
2,122
1,881
b) Credit spread products
-
-
c) Total rate of return swap
-
-
d) Other
-
-
Total
31.12.2024
2,122
1,881
Total
31.12.2023
401
5,235
2. Protection seller's contracts
a) Credit default products
801
992
b) Credit spread products
-
-
c) Total rate of return swap
1,401
-
d) Other
-
-
Total
31.12.2024
2,202
992
Total
31.12.2023
695
4,403
This table refers to the notional values of credit derivatives according to product and classification within accounting trading portfolio applied in the
separate financial statements of the legal entities belonging to the Regulatory consolidation.
626
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
B.2 Trading credit derivatives: positive and negative gross fair value - breakdown by product
(€ million)
AMOUNTS AS AT
TYPES OF DERIVATIVE INSTRUMENTS
31.12.2024
31.12.2023
1. Positive fair value
a) Credit default products
104
170
b) Credit spread products
-
-
c) Total rate of return swap
65
-
d) Other
-
-
Total
169
170
2. Negative fair value
a) Credit default products
51
190
b) Credit spread products
-
-
c) Total rate of return swap
1
15
d) Other
-
-
Total
52
205
This table presents distribution by product of the gross positive and negative credit derivatives’ fair values according to classification within the
accounting trading portfolio applied in the separate financial statements of the legal entities belonging to the Regulatory consolidation.
B.3 OTC trading credit derivatives: notional amounts, positive and negative gross fair value by counterparty
(€ million)
AMOUNTS AS AT 31.12.2024
CENTRAL
COUNTERPARTIES
BANKS FINANCIAL COMPANIES
OTHER ENTITIES
Contracts not included in netting agreement
1) Protection buyer's contracts
- Notional amount
X
166
-
-
- Positive fair value
X
-
-
-
- Negative fair value
X
4
-
-
2) Protection seller's contracts
- Notional amount
X
1,401
-
45
- Positive fair value
X
65
-
1
- Negative fair value
X
1
-
-
Contracts included in netting agreement
1) Protection buyer's contracts
- Notional amount
-
1,681
2,156
-
- Positive fair value
-
1
25
-
- Negative fair value
-
36
8
-
2) Protection seller's contracts
- Notional amount
-
1,658
89
-
- Positive fair value
-
76
1
-
- Negative fair value
-
3
-
-
This table presents distribution by counterparty of the notional amount and gross positive and negative credit derivatives’ fair values according to
classification within the accounting trading portfolio applied in the separate financial statements of the legal entities belonging to the Regulatory
consolidation.
627
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
B.4 OTC trading credit derivatives - residual life: notional amounts
(€ million)
UNDERLYING/RESIDUAL MATURITY
UP TO 1 YEAR
OVER 1 YEAR UP TO
5 YEARS
OVER 5 YEARS
TOTAL
1. Protection buyer's contracts
1,000
2,148
45
3,193
2. Protection seller's contracts
142
3,639
223
4,004
Total
31.12.2024
1,142
5,787
268
7,197
Total
31.12.2023
634
9,863
235
10,732
This table refers to the notional values of credit derivatives according to classification within accounting trading portfolio applied in the separate
financial statements of the legal entities belonging to Regulatory consolidation.
B.5 Credit derivatives linked to fair value option: annual changes
No data to be disclosed.
2.3.2 Hedging policies
Qualitative information
Hedging derivative transactions are used to manage the exposure to market risks and volatility of financial outcomes that arise as part of our normal
business operations and are executed in accordance with internal policies.
Derivatives are mainly used to manage the banking book interest rate risk with the following goals:
• to reduce banking book interest rate risk profile according to Risk Appetite Framework approved by the Board of Directors and limits defined by
relevant Committees or risk functions. Within Risk Appetite Framework, the banking book exposure to interest rate risk is defined either in terms of
Net Interest Income Sensitivity or Economic Value Sensitivity;
• to optimise the natural hedge between the risk profile of assets and liabilities using derivatives to manage the mismatch, even temporary, between
the volume and the rates of assets and liabilities with different repricing schedules;
• to minimise the net exposure of derivatives used as economic hedges of the most stable portion of either assets or liabilities subject to hedge
accounting, thereby reducing the associated transaction cost.
A Fair value hedging activities
The objective of fair value hedge on assets/liabilities is to hedge the exposure to changes in fair value coming from the embedded risk factor subject
to a hedging transaction.
The fair value hedge is applied both for identified financial instruments (securities, debt issues, loans, borrowings) and for portfolios of financial
instruments (in particular, fixed rate loans/mortgages and non-maturity deposits or other fixed rate liabilities).
The hedging relationship is qualified at the inception of the hedge by identifying the portion and type of risk to be hedged (partial term hedge), the
hedging strategy, the hedging instrument, and the methods used to assess the effectiveness of the hedging relationship.
The hedging strategy on identified financial instruments classified as Held-to-Collect (HTC) and Held-to-Collect & Sell (HTCS) considers the
contractual features of each instrument and relevant risk-management & business intent.
The hedging strategy on portfolios of financial instruments refers to the amounts of money contained in the portfolio of interest rate exposures that
are not already subject to "micro/specific" hedging and mirrors to the nominal amount and financial conditions of hedging derivatives.
The objective of fair value hedge on assets/liabilities denominated in foreign currency could refer to hedge the exposure to changes in fair value by
converting to Euro denominated assets/liabilities.
The hedging instruments used mainly consist of interest-rate swaps, basis swaps, caps, floors, and cross-currencies swaps.
628
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
B. Cash flow hedging activities
The objective of cash flow hedge on assets/liabilities is to hedge the exposure to changes in cash flows from borrowings/lending that bear a floating
interest rate or provide for a variable FX countervalue amount.
The hedging relationship is qualified at the inception of the hedge by identifying the portion and type of risk to be hedged (partial term hedge), the
hedging strategy, the hedging instrument, and the methods used to assess the effectiveness of the hedging relationship.
Cash flow hedges are particularly used to hedge interest rate risk on floating-rate assets and liabilities, including rollovers, and foreign exchange
risks on highly probable forecast of foreign currency cost/revenue streams.
The hedging instruments used mainly consist of interest-rate swaps, caps, floors, cross-currency swaps with a maturity up to 20-30 years for some
commercial hedged assets.
C. Foreign net investments hedge activities
The objective of net investment hedging on entities that have different functional currency from the Group is to reduce the impact of fluctuations in
exchange rates on the Group’s capital adequacy ratios.
The management of this risk embeds the annual definition of hedging strategies in compliance with the EBA guidelines on the treatment of Structural
Foreign Exchange risk (EBA/GL/2020/09), and its continuous monitoring to remain within the relevant Risk Appetite Framework thresholds.
The hedging instruments used mainly consist of foreign exchange options. At consolidated level these derivatives qualify as Net Investment Hedge,
in relationship with the investment. The effective component (intrinsic value) of the hedging instruments is deferred into Other Comprehensive
Income - booked to sub-item “Foreign Investments Hedge” of Valuation Reserves, offsetting the “FX differences” of the related hedged item.
However, at Bank level, a FVH relationship of the controlling stake is recognised.
Furthermore, the Group put in place some economic hedges on forecasted foreign currency revenues stemming from those entities. The objective of
the economic hedge is to reduce the volatility on the Income statement coming from the foreign exchange risks. FX risk on forecasted foreign
currency revenues is continuously monitored and hedging strategies are periodically assessed.
The derivatives used mainly consist of currency options. These derivatives may not or should not qualify for hedge accounting even though achieve
substantially the same economic results. The impact of economic hedges is accounted in Item “80. Net gains (losses) on trading”.
In general term, both the hedging strategies and the percentage to be hedged is defined considering, inter-alia, the diversification effect and taking
into account the volatility and correlation in the FX rates.
D. Hedging instruments and E. Hedged elements
Prospective hedge effectiveness is established by the fact that all derivatives must, at inception, have the effect of reducing interest rate (or other
identified) risk in term of Economic Value Sensitivity (Fair Value Hedge) or Net Interest Income Sensitivity (Cash Flow Hedge) in the specific/portfolio
of hedged underlyings.
Retrospectively the hedge effectiveness is quarterly measured by referring to the most stable portion of assets/liabilities using a portfolio hedge
approach or by referring to the portion of risk being hedged using a micro/specific approach.
Sources of ineffectiveness comes from (i) the Euribor vs Eonia/€STER basis for hedging derivatives transactions subject to a collateral agreement,
(ii) Credit/Debit Value and Funding Value adjustment impacting derivative transactions fair values, (iii) shortfall arising in the underlying’s specifically
associated with that hedge in term of nominal or reverse sensitivity due to prepayment or default on commercial assets or withdrawals on liabilities
included such as commercial non-maturity deposits and are presented in Item “90. Net gains (losses) on hedge accounting”.
629
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Quantitative information
A. Hedging financial derivatives
A.1 Hedging financial derivatives: end-of-period notional amounts
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
OVER THE COUNTER
ORGANISED
MARKETS
OVER THE COUNTER
ORGANISED
MARKETS
UNDERLYING ACTIVITIES/TYPE OF DERIVATIVES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL
COUNTERPARTIES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL
COUNTERPARTIES
WITH NETTING
AGREEMENT
WITHOUT
NETTING
AGREEMENT
WITH NETTING
AGREEMENT
WITHOUT
NETTING
AGREEMENT
1. Debt securities and interest rate indexes
299,329
5,393
6,690
70,069
351,666
10,606
89,472
-
a) Options
-
281
358
4,000
-
837
4,000
-
b) Swap
299,329
5,112
6,332
-
342,666
9,769
479
-
c) Forward
-
-
-
-
9,000
-
-
-
d) Futures
-
-
-
66,069
-
-
84,993
-
e) Other
-
-
-
-
-
-
-
-
2. Equity instruments and stock indexes
-
-
-
-
-
-
-
-
a) Options
-
-
-
-
-
-
-
-
b) Swap
-
-
-
-
-
-
-
-
c) Forward
-
-
-
-
-
-
-
-
d) Futures
-
-
-
-
-
-
-
-
e) Other
-
-
-
-
-
-
-
-
3. Gold and currencies
-
7,368
-
-
-
8,359
-
-
a) Options
-
3,112
-
-
-
3,064
-
-
b) Swap
-
1,367
-
-
-
4,830
-
-
c) Forward
-
2,889
-
-
-
465
-
-
d) Futures
-
-
-
-
-
-
-
-
e) Other
-
-
-
-
-
-
-
-
4. Commodities
-
-
-
-
-
-
-
-
5. Other
-
-
-
-
-
-
-
-
Total
299,329
12,761
6,690
70,069
351,666
18,965
89,472
-
This table refers the notional value of hedging financial derivatives according to classification within the accounting hedging portfolio applied in the
separate financial statements of the legal entities belonging to the Regulatory consolidation.
630
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.2 Hedging financial derivatives: positive and negative gross fair value - breakdown by product
(€ million)
AMOUNT AS AT 31.12.2024
AMOUNT AS AT 31.12.2023
AMOUNT AS AT
AMOUNT AS AT
POSITIVE AND NEGATIVE FAIR VALUE
POSITIVE AND NEGATIVE FAIR VALUE
OVER THE COUNTER
ORGANISED
MARKETS
OVER THE COUNTER
ORGANISED
MARKETS
31.12.2024
31.12.2023
TYPE OF DERIVATIVES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL COUNTERPARTIES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL COUNTERPARTIES
CHANGES IN VALUE USED TO
CALCULATE HEDGE
INEFFECTIVENESS
WITH NETTING
AGREEMENT
WITHOUT NETTING
AGREEMENT
WITH NETTING
AGREEMENT
WITHOUT NETTING
AGREEMENT
1. Positive fair value
a) Options
-
8
3
-
-
7
1
-
-
-
b) Interest rate swap
5,948
60
120
-
5,933
411
2
-
-
-
c) Cross currency
swap
-
132
25
-
-
315
-
-
-
-
d) Equity swap
-
-
-
-
-
-
-
-
-
-
e) Forward
-
37
-
-
-
4
-
-
-
-
f) Futures
-
-
-
-
-
-
80
-
-
-
g) Other
-
-
-
-
-
-
-
-
-
-
Total
5,948
237
148
-
5,933
737
83
-
-
-
2. Negative fair value
a) Options
-
7
27
-
-
29
1
-
-
-
b) Interest rate swap
7,238
229
12
-
7,606
276
24
-
-
-
c) Cross currency
swap
-
3
62
-
-
38
-
-
-
-
d) Equity swap
-
-
-
-
-
-
-
-
-
-
e) Forward
-
10
-
-
2
9
-
-
-
-
f) Futures
-
-
-
-
-
-
123
-
-
-
g) Other
-
-
-
-
-
-
-
-
-
-
Total
7,238
249
101
-
7,608
352
148
-
-
-
This table presents distribution by product of the gross positive and negative hedging financial derivatives’ fair values according to classification
within the accounting hedging portfolio applied in the separate financial statements of the legal entities belonging to the Regulatory consolidation.
631
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.3 OTC hedging financial derivatives: notional amounts, positive and negative gross fair value by counterparty
(€ million)
AMOUNTS AS AT 31.12.2024
UNDERLYING ACTIVITIES
CENTRAL
COUNTERPARTIES
BANKS
OTHER FINANCIAL
COMPANIES
OTHER ENTITIES
Contracts not included in netting agreement
1) Debt securities and interest rate indexes
- Notional amount
X
5,771
919
-
- Positive fair value
X
130
18
-
- Negative fair value
X
71
30
-
2) Equity instruments and stock indexes
- Notional amount
X
-
-
-
- Positive fair value
X
-
-
-
- Negative fair value
X
-
-
-
3) Gold and currencies
- Notional amount
X
-
-
-
- Positive fair value
X
-
-
-
- Negative fair value
X
-
-
-
4) Commodities
- Notional amount
X
-
-
-
- Positive fair value
X
-
-
-
- Negative fair value
X
-
-
-
5) Other
- Notional amount
X
-
-
-
- Positive fair value
X
-
-
-
- Negative fair value
X
-
-
-
Contracts included in netting agreement
1) Debt securities and interest rate indexes
- Notional amount
299,329
4,120
763
510
- Positive fair value
5,948
30
28
1
- Negative fair value
7,238
139
72
18
2) Equity instruments and stock indexes
- Notional amount
-
-
-
-
- Positive fair value
-
-
-
-
- Negative fair value
-
-
-
-
3) Gold and currencies
- Notional amount
-
6,076
1,292
-
- Positive fair value
-
131
47
-
- Negative fair value
-
18
2
-
4) Commodities
- Notional amount
-
-
-
-
- Positive fair value
-
-
-
-
- Negative fair value
-
-
-
-
5) Other
- Notional amount
-
-
-
-
- Positive fair value
-
-
-
-
- Negative fair value
-
-
-
-
This table presents distribution by counterparty of the notional amount and the gross positive and negative hedging financial derivatives’ fair values
according to classification within the accounting hedging portfolio applied in the separate financial statements of the legal entities belonging to the
Regulatory consolidation.
632
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A.4 OTC hedging financial derivatives - residual life: notional amounts
(€ million)
UNDERLYING/RESIDUAL MATURITY
UP TO 1 YEAR
OVER 1 YEAR UP TO
5 YEARS
OVER 5 YEARS
TOTAL
A.1 Financial derivative contracts on debt securities and interest rates
95,977
104,441
110,994
311,412
A.2 Financial derivative contracts on equity securities and stock indexes
-
-
-
-
A.3 Financial derivative contracts on exchange rates and gold
6,264
531
573
7,368
A.4 Financial derivative contracts on other values
-
-
-
-
A.5 Other financial derivatives
-
-
-
-
Total
31.12.2024
102,241
104,972
111,567
318,780
Total
31.12.2023
265,840
131,758
62,504
460,102
This table refers to the notional values of financial derivatives according to classification within accounting hedging portfolio applied in the separate
financial statements of the legal entities belonging to Regulatory consolidation.
B. Hedging credit derivatives
No data to be disclosed.
C. Hedging instruments not derivatives
Note that, as provided by the Circular 262 of 22 December 2005 of Banca d’Italia (and subsequent amendments), the present table is not disclosed
as the Group has exercised the option to continue applying the existing IAS39 hedge accounting requirements for all its hedging relationships until
the IASB completes the project on accounting for macro-hedging.
D. Hedges instruments
Note that the Group has exercised the option to continue applying the existing IAS39 hedge accounting requirements for all its hedging relationships
until the IASB completes the project on accounting for macro-hedging.
D.1 Fair value hedges
No data to be disclosed.
633
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Micro hedging and macro hedging: breakdown by hedged item and risk type
(€ million)
AMOUNT AS AT 31.12.2024
MICRO HEDGE:
CARRYING AMOUNT
MACRO HEDGE:
CARRYING AMOUNT
A) Fair value hedge
1. Assets
1.1 Financial assets measured at fair value through other comprehensive income
59,875
-
1.1.1 Interest rate
59,875
X
1.1.2 Equity
-
X
1.1.3 Foreign exchange and gold
-
X
1.1.4 Credit
-
X
1.1.5 Other
-
X
1.2 Financial assets measured at amortised cost
39,288
(18)
1.2.1 Interest rate
39,288
X
1.2.2 Equity
-
X
1.2.3 Foreign exchange and gold
-
X
1.2.4 Credit
-
X
1.2.5 Other
-
X
2. Liabilites
2.1 Financial liabilities measured at amortised costs
9,341
(1,038)
2.1.1 Interest rate
9,341
X
2.1.2 Equity
-
X
2.1.3 Foreign exchange and gold
-
X
2.1.4 Credit
-
X
2.1.5 Other
-
X
B) Cash flow hedge
1. Assets
188
X
1.1 Interest rate
188
X
1.2 Equity
-
X
1.3 Foreign exchange and gold
-
X
1.4 Credit
-
X
1.5 Other
-
X
2. Liabilites
1
X
2.1 Interest rate
1
X
2.2 Equity
-
X
2.3 Foreign exchange and gold
-
X
2.4 Credit
-
X
2.5 Other
-
X
C) Hedge of net investments in foreign operations
1,556
X
D) Porftolio - Assets
X
(1,682)
E) Porftolio - Liabilities
X
(4,818)
Note:
It should be noted that the column “Macro hedge: carrying amount” reports the revaluation recognised with reference to the hedged item.
E. Effects of hedging policy at equity
This table has to be filled in only by entities that apply IFRS9 hedge accounting rules.
634
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
2.3.3 Other information on derivatives instruments (trading and hedging)
A. Financial and credit derivatives
A.1 OTC financial and credit derivatives: net fair value by counterparty
(€ million)
AMOUNTS AS AT 31.12.2024
CENTRAL
COUNTERPARTIES
BANKS
OTHER FINANCIAL
COMPANIES
OTHER ENTITIES
A. Financial derivatives
1) Debt securities and interest rates
- Notional amount
5,542,080
565
134
167
- Positive net fair value
34
18
1
1
- Negative net fair value
4,724
-
4
3
2) Equity instruments and stock indexes
- Notional amount
-
-
-
-
- Positive net fair value
-
-
-
-
- Negative net fair value
-
-
-
-
3) Gold and currencies
- Notional amount
-
987
39
84
- Positive net fair value
-
8
-
1
- Negative net fair value
-
1
-
-
4) Commodities
- Notional amount
-
-
-
-
- Positive net fair value
-
-
-
-
- Negative net fair value
-
-
-
-
5) Other
- Notional amount
-
-
-
-
- Positive net fair value
-
-
-
-
- Negative net fair value
-
-
-
-
B. Credit derivatives
1) Protection buyer's contracts
- Notional amount
-
-
-
-
- Positive net fair value
-
-
-
-
- Negative net fair value
-
-
-
-
2) Protection seller's contracts
- Notional amount
-
-
-
-
- Positive net fair value
-
-
-
-
- Negative net fair value
-
-
-
-
635
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
2.4 Liquidity risk
Qualitative information
A. General aspects, operational processes and methods for measuring liquidity risk
Liquidity risk is defined as the risk that the Group may find itself unable to fulfil its expected or unexpected payment obligations (by cash or delivery),
current and future, without jeopardising its day-to day operations or its financial condition.
The key principles
The liquidity reference banks
The Group aims at maintaining liquidity at a level that enables to perform the main operations in safe mode, fund its operations at the best rate
conditions under normal operating circumstances, and to remain always in a position to meet payment obligations.
To this end, the Group complies accurately with the legal and regulatory provisions imposed by the national Central Banks and by the national
authorities of each country where it operates.
In addition to local legal and regulatory requirements, the Parent Company, under the responsibility of the Group Risk Management, defines policies
and metrics to be applied at Group level, to ensure that liquidity position of any entity meets the requirements of the Group.
For these reasons, the Group is organised on a managerial perspective, according to the concept of the liquidity reference bank.
The liquidity reference banks are legal entities that act in their responsibility as liquidity hub. They:
• are in charge of the liquidity management and concentration process of liquidity flows of the legal entities falling within their perimeter of
responsibility;
• are in charge of the funding optimisation carried out on the relevant local markets and are responsible to coordinate the access to short-term and
medium-long- term markets of the Legal Entities belonging to their perimeter;
• are, finally, in charge of the implementation of the Group’s liquidity rules at local level in line with Group’s Governance Guideline and Policy and
with local regulations.
A particularly important role is played by the Parent Company, as a “supervisory and overarching liquidity reference bank of the Group” with its role
of steering, coordinating, and controlling all the aspects regarding liquidity for the whole Group.
The Parent Company has the responsibility to set the overall Group risk appetite and sub-allocate the limits in agreement with the liquidity reference
banks and/or Legal Entities. In particular, the Parent Company functions are responsible for the following:
• outlining Group overall liquidity risk management strategies;
• developing liquidity risk metrics and methodologies;
• setting specific limits for liquidity risk exposures, in line with the Group risk appetite;
• optimising liquidity allocation amongst Legal Entities, in compliance to the local regulations and transferability limitation;
• coordinating access to financial markets for liquidity management;
• outlining the yearly Group funding and contingency funding plan, coordinating and monitoring their execution;
• assessing the adequacy of the liquidity reserves buffers at Legal Entity and Group level;
• coordinating the refinancing transactions with the European Central Bank;
• defining, periodically reviewing the Group ILAAP and approving the Group ILAAP Report on yearly basis.
The Parent Company moreover, acts as the liquidity reference bank for the Italian perimeter.
The principle of “self-sufficiency”
This organisational model allows self-sufficiency of the Group by accessing the local and global markets for liquidity in a controlled and coordinated
way. According to Group Policies, structural liquidity surpluses can be up streamed to the Parent Company, unless legal requirements prevent it.
The liquidity available at country level could be subject to restrictions due to legal, regulatory, and political constraints.
The so-called “large exposure regime”, applied throughout Europe, along with specific national laws like the “German Stock Corporation Act”, are
examples of legal constraints to the free circulation of funds within a cross-border banking Group91.
As a general rule, the large exposure regime, ruled by the CRR 575/2013 (from article 387 onwards) partially amended by CRR 876/2019, limits
interbank exposures to a maximum of 25% of the institution’s Tier 1 capital: this rule is also applicable to intra-group exposures.
91 Also, Banca d’Italia rules, Circular 285, foresees that the Group should ensure the maintenance through the time of adequate reserves in each Legal Entity, in order to take into account possible regulatory constraints
(First Part, Title IV, Chapter 6, Section III, paragraph 7).
636
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
However, there are significant differences in the way in which this EU regulation has been implemented in the various countries. In many CE&EE
countries the 25% limit is valid, with some countries showing even stricter rules; in Austria, according to the National law, the 25% limit is not applied
to exposures towards the Parent Company, if located in the European Economic Area; finally, in Germany the national Regulator has set up a
process to apply for a waiver, exempting intra-group exposures from the large exposure limitation.
In the absence of official limits valid at national level, Austrian and German Regulators reserve the right to judge the exposure level on a case-by-
case basis. In the current economic environment, in many of the territories in which the Group operates, Banking Regulatory Authorities are
adopting measures aimed at reducing the exposure of their national banking system towards foreign jurisdictions with potential negative impacts on
the ability of the Group to finance its activities.
For these reasons, the “Group Liquidity Management & Control Policy” provides for a further principle in order to enhance a sound liquidity risk
management; each Legal Entity with market access has to increase its liquidity self-sufficiency, fostering in this way the exploitation of its strengths.
In addition, the Group rule states that each LE (including the liquidity reference bank) should be self-sufficient in terms of liquidity in its local
currency, either on its own or by leveraging on the relevant liquidity reference bank.
This self-sufficiency principle is reflected in a specific “limit structure”: limits are set both at Group and at individual level, with the purpose of
avoiding/controlling significant imbalances among legal entities.
This type of organisation promotes the self-sufficiency of the legal entities, by allowing them to access the local and global markets for liquidity in a
controlled and coordinated way, whilst optimising: i) the liquidity surpluses and deficits within the Group’s Legal Entities ii) the overall costs of
funding across the Group.
The adoption of the Single Point of Entry by the Group implies that the Holding provides internal MREL to all the other subsidiaries within Europe,
representing the only exception to the self-sufficiency principle.
Roles and responsibilities
At Group level, three main functions are identified in the management of the liquidity: the Group Risk Management competence line, the Group
Finance competence line, and the Group Treasury function each with different roles and responsibilities.
In particular, the operational responsibilities reside in the Finance and the Treasury functions, while the Risk Management function has
responsibilities of independent controls and independent reporting compared to the operational functions (in line with the current requirements of
Banca d’Italia).
Specifically, the Risk Management function is responsible for the independent control of liquidity risk and of Balance sheet interest rate and FX risk
at Group level and for the internal and regulatory stress testing. In detail:
• defining policies and methodologies for measuring and controlling the liquidity risk and developing, updating and presenting the independent
internal risk reports/assessments to internal competent functions (second level controls);
• putting in place a strong and comprehensive internal limit and control framework to mitigate or limit the liquidity risk in line with the risk tolerance in
order to monitor the different material drivers of liquidity risk;
• contributing to the setting of the risk appetite framework;
• assessing and monitoring liquidity risk exposure trends at Group and Country level and confronting them with the respective limits and triggers;
• verifying the correct implementation of the agreed mapping rules;
• performing an independent assessment of the Funding Plan and of the Contingency Funding Plan as well as monitoring their execution;
• developing and performing the liquidity stress test at Group level, analysing the outcome, delineating new scenarios to be taken into account and
centralising the action plan relating to the stress test results; it is also responsible of periodically reviewing the liquidity stress test framework;
• monitoring the liquidity risk and producing regular risk reporting at Group level in alignment with Basel Committee’s “Principles for effective risk
data aggregation and risk reporting”, setting common standards in terms of presentations and communications.
• performing internal validation activities at Group level on systems for measuring liquidity risks on related processes and data quality and IT
components, as well as on models for pricing financial instruments in order to check that they are conform to regulatory requirements and in-house
standards;
• developing and back-testing the behavioural models for the measurement of the liquidity risk;
• validating, controlling the implementation and releases independent assessments on the models to map the liquidity profile of Balance sheet items
(i.e. behavioural models on deposit stickiness, on loans prepayment, etc.).
Group Treasury acts as main coordinator in the management of infra-group flows, stemming from liquidity deficits or surplus of the various Group’s
Legal Entities, and applies the appropriate transfer prices to such fund’s movements. By doing so, Group Treasury ensures a disciplined and
efficient access to the markets.
637
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Group Finance competence line is responsible for the coordination of the overall financial planning process at Group, liquidity reference banks and
relevant LEs level, aiming to efficiently ensure the stability and the sustainability of the financial structure through time, addressing assets and
liabilities composition and maturities, in compliance with the limits and triggers set for liquidity and Balance sheet metrics.
It is also responsible for the execution of the medium long term Group’s funding strategy (including securitisation operations), coordinating the
access to national and international capital markets for all the liquidity reference banks and relevant LEs, exploiting local market opportunities in
order to reduce the costs of funding and diversify the financing sources.
In addition to this, the function performs first level controls on liquidity positions managed by Group Finance and Group Treasury aimed at ensuring
the proper P&L and liquidity workflow of the operations and defines conditions and rules for transfer price application.
All the relevant issues that concern the liquidity risk and management perspective of the Group are discussed in GFRC (Group Financial & Credit
risks committee - ALCO session).
The Committee is responsible for approving strategies, policies and methodologies for Financial Risks and for the monitoring of risks related to Fund
Transfer Pricing, across Liquidity Reference Banks, Business Functions and Legal Entities, with the aim to optimize the usage of financial resources
(e.g., liquidity and capital) in coherence with Risk Appetite and Business Strategies.
It is also responsible for the approval of the Financial Plan, Funding Plan, Ordinary Counterbalancing Capacity Plan and Contingency Funding Plan
to be submitted to the Board by the CEO as well as for evaluating the impact of transactions significantly affecting the overall financial risk portfolio
profile.
The optimisation of liquidity risks is pursued through the setting of specific limits on the standard banking activity of transforming short, medium and
long-term maturities.
This is implemented in accordance with legal and regulatory framework in each country and internal rules and policies of the Group companies
through management models in place within the individual liquidity reference banks.
Such models are subject to analyses carried out by the local Risk Management or equivalent structure with the same responsibilities in coordination
with the Group’s Risk Management to ensure that they comply with the metrics and the objectives of the Group’s liquidity framework.
In addition, the regional rules must comply with national laws and regulatory requirements.
Risk measurement and reporting systems
Techniques for risk measurement
The different types of liquidity risk managed by the bank are:
• short term liquidity risk refers to the risk of non-conformity between the amounts and/or the maturities of cash inflows and cash outflows in the
short term (below one year);
• market liquidity risk is the risk that the bank may face a considerable (and unfavourable) price change generated by exogenous or endogenous
factors and incur losses as a result of the sale of assets deemed to be liquid. In the worst case, the bank might not be able to liquidate such
positions;
• intraday liquidity risk appears when a bank is not able "to meet payment and settlement obligations on a timely manner basis under both normal
and stressed conditions";
• structural liquidity risk is defined as the inability to raise the necessary funds to maintain an adequate ratio between medium to long-term (over one
year) assets and liabilities at reasonable pricing level, in a stable and sustainable way, without affecting the daily operations or the financial
condition of the Bank.
It could have a potential impact on the cost of funding (own credit and market funding spreads), affecting future income of the institution;
• contingency risk, or stress liquidity relates to future and unexpected obligations (i. e. draw on committed facilities, deposits withdrawal, increase in
collateral pledging) and could require the bank a greater amount of liquidity compared to what is considered the amount to run the ordinary
business;
• intragroup liquidity risk, that might generate from an excessive exposure or dependency towards/from specific Group counterparts;
• funding concentration risk arises when the bank leverages on such a limited number of funding sources, that they become so significant that the
withdrawal of one or few could trigger liquidity problems;
• foreign exchange liquidity risk, generated by the current and projected liquidity mismatch between cash inflows and cash outflows in foreign
currencies (refinancing risk) or related with the maturity distribution of the assets and liabilities in foreign currencies (foreign currency structural
mismatch risk).
The exposure of the Group and its Legal Entities to any of these risks is measured by associating to any of them a metric or a set of metrics.
Every legal entity of the Group is exposed to the above-mentioned risks at a different extent: a materiality analysis is performed in order to define the
perimeter of the liquidity risk management and control.
638
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Liquidity risk, for its particular nature, is addressed by means of gap analyses, liquidity stress testing, and complementary measures (mainly through
a set of indicators, among which: loans to deposits ratio, liquidity coverage ratio).
In particular, gap analyses are performed within two distinct time horizons:
• liquidity imbalance mismatch approach on a daily basis, which controls the short-term liquidity risk arising from the overnight up to a 12 months
maturity;
• gap ratios on a monthly basis, which control the medium to long-term risk (structural liquidity) from the 1-year maturity onwards.
The management framework of the liquidity risk
The Group’s liquidity framework is based upon the Liquidity Risk Mismatch Model which is characterised by the following fundamental principles:
• short-term liquidity risk management (operational liquidity), which considers the events that will impact upon the Group’s liquidity position from 1
day up to one year. The primary objective is to maintain the Group’s capacity to fulfil its ordinary and extraordinary payment obligations while
minimising the relevant costs;
• structural liquidity risk management (structural risk), which considers the events that will impact upon the Group’s liquidity position over one year.
The primary objective is to maintain an adequate ratio between medium/long term liabilities and medium to long-term assets, with a view to avoid
pressures on short-term funding sources (both current and future), while in the meantime optimising the cost of funding;
• stress tests: Liquidity crisis is a low probability, high impact event. Therefore, stress testing is an excellent tool to reveal potential vulnerabilities in
the Balance sheet. The Bank uses several scenarios ranging from general market crisis to idiosyncratic crisis, and a combination hereof.
In this context, the models to manage the liquidity take into account all assets, liabilities, off-Balance sheet positions and also both present and
future events which generate certain or potential cash flows for the Group, thereby protecting the Group Banks/Companies from risks relating to the
transformation of maturity.
In addition, the liquidity risk is included in the Group’s risk appetite framework through some specific liquidity indicators.
Short-term liquidity management
Short-term liquidity management aims at ensuring that the Group remains in a position to fulfil its cash payment obligations, whether expected or
unexpected, focused on the exposure for the first twelve months.
The standard measures taken for such purposes are the following:
• management of the access to payment systems (operational liquidity management);
• management of cash payments to be made and monitoring of the level of liquidity reserves and the extent of their utilisation (analysis and active
management of the maturity ladder).
These principles are applicable at Group level and have to be used across the liquidity reference banks.
The operative maturity ladder is composed by the net contractual cash flows (in/outflows) affecting the cash position at Central Banks or “Nostro
Account”.
Therefore, these flows impact directly the “core liquidity” of the bank, over pre-defined time buckets.
The operative maturity ladder is composed of:
• primary gap, which shows the net wholesale refinancing requirements over the various time-buckets of the horizon.
• counterbalancing capacity, which shows the amount of unencumbered securities that are accepted as collateral by Central Banks and/or market
counterparties. The counterbalancing capacity is considered at its “liquidity value” (i.e. the market value minus the applicable haircut).
• cumulative gap, which is the sum of the previous components;
• reservation for unexpected flows, which consists of liquidity adjustment to the operative maturity ladder, to consider a buffer that can be used by
the Treasury to refinance unexpected outflows impacting the Central Bank position (included in the short-term buckets).
The reservation for unexpected flows takes into account the volatility of the funding needs of the commercial asset portfolio, the volatility of the
commercial funding sources, including potential concentration effects, the change of liquidity value of the counterbalancing capacity due to
observed market price changes.
The operative maturity ladder is included in the Group risk appetite framework, with a limit of 0 on the 3 months bucket.
The Group also adopts the cash horizon as a synthetic indicator of the short-term liquidity risk levels.
The cash horizon identifies the number of days after which the relevant entity is no longer able to meet its liquidity obligations as expressed in the
operative maturity ladder, after having exhausted the available counterbalancing capacity.
639
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Structural liquidity management
The Group’s structural liquidity management aims at limiting refinancing exposures above one year and thus reducing refinancing needs in the
shorter term. The maintenance of an adequate ratio between medium and long-term liabilities and assets aims at avoiding pressures on short-term
sources, whether present or future.
The standard measures taken for such purposes are the following:
• the spreading of the maturity of funding operations in order to reduce the usage of less stable funding sources, while in the meantime optimizing
the cost of funding (integrated management of strategic liquidity and tactical liquidity);
• the financing of growth through strategic funding activities, setting the most appropriate maturities (yearly funding plan);
• the balancing of medium/to long-term wholesale funding requirements with the need to minimise costs, by diversifying sources, national markets,
currencies of issuance and instruments used (realisation of the yearly funding plan).
The main metric used to measure the medium/long-term position has been the net stable funding ratio, as described by CRR2.
In general, the net stable funding ratio is calculated as the ratio between the stable portion of liabilities and assets.
All the Balance sheet items are mapped according to their contractual maturity. In addition, they are assigned a weight that reflect, for the liabilities,
their stability within the Balance sheet and, for the assets, the portion that is rolled over by the bank or that, more in general, cannot be traded on the
market in exchange of liquidity that would generate relief to the institution.
The internal limit, set at 102.30% for 2024, means that stable liabilities have to fully cover the requirements of funding generated by the stable
assets. In addition to the regulatory perspective offered by the net stable funding ratio, an internal metric, named structural liquidity ratio, is adopted
to steer structural liquidity risk from an economic point of view, i.e. taking into account the liquidity risk stemming from different Balance sheet items
under the perspective of internal models.
Another key structural metric, aimed at measuring the funding needs originated from the commercial activity of the Bank, is the loans to deposits
ratio. It measures the need of funding the bank has to finance on the wholesale market. The indicator is integrated in the risk appetite framework
with the aim of monitoring and managing the level of funding coverage of net loans to customers, coming from funding sources not exclusively
obtained through Treasury/Finance activity.
Liquidity under stress
Stress testing is a risk management technique used to evaluate the potential effects on an institution’s financial condition of a specific event and/or
movement in a set of financial variables.
As a forward-looking tool, liquidity stress testing diagnostics the institution’s liquidity risk. In particular, the results of the stress tests are used to:
• determine liquidity limits both in quantitative and qualitative terms;
• plan and carry out alternative funding transactions for purposes of off-setting liquidity outflows;
• structure/modify the liquidity profile of the Group’s assets;
• provide support to the development of the liquidity contingency plan.
In order to execute stress tests that are consistent across the liquidity reference banks, the Group has a centralised approach, requiring each local
liquidity reference bank to run the same scenario set under the coordination of the Group risk management.
The Group runs liquidity scenarios and sensitivity analyses on a regular basis, the latter by assessing the impact on an institution's financial
condition of a move in one particular risk factor, whereas scenario tests tend to consider the impact of simultaneous moves in a number of risk
factors, based on a hypothetical, well defined and consistent stress scenario.
The Group identifies three different types of potential liquidity crisis:
• market (systemic, global or sector): market downturn scenario. This scenario consists of a sudden turmoil in a monetary and capital market, which
may be caused by closure (or limited access) to market/settlement system, critical political events, country crisis, credit crunch, etc.;
• specific to the Group, or part of it (idiosyncratic): name crisis; the assumptions could be operational risk, events relating to the worsened
perception of the Group reputational risk and a downgrade in UniCredit S.p.A. rating or another legal entities;
• a combination of market and specific crisis: combined scenario.
These scenarios are expected to cause a substantial reduction in the funding coming from rating-sensitive customers, CD/CPs’ investors and inter-
bank markets. In addition, a possible usage of the undrawn portion of the committed lines is considered.
The combined scenario is defined as a general negative development in the market environment and also as a factual or market-hypothesised
problem specific to the Group.
During 2024 the Group liquidity stress test result on the combined scenario was always positive on the time horizon relevant for the internal limit
system.
640
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
In addition to the internal stress test, the bank adopts and monitors the liquidity coverage ratio (LCR), calculated in accordance with the provisions of
Implementing Regulation (EU) 2016/322 in force from 1 October 2016 as amended by DR (EU) 2018/1620.
It is the ratio between the high-quality liquid assets (HQLA) and the net cash outflows expected over the coming 30 days, under stress test
conditions.
The compliance with this regulatory requirement is constantly monitored by setting, in the risk appetite framework, internal limitations above the
binding minimum level of 100%.
Among the liquidity outflows that occur in a stress scenario, the bank monitors on a monthly basis the impact in terms of additional collateral that the
bank may be required to provide given a downgrade of its own credit rating.
All the relevant rating agencies are taken into account. The testing is carried out on a Legal Entity level, but consolidated reporting is available to
analyze the impact on group wide basis. Specific attention is dedicated to exposures towards special purpose vehicles (SPV).
At Group level the amount of material outflows due to deterioration of own credit quality, included in the components of the Liquidity Coverage Ratio,
amount to €2,146 million as at 31 December 2024.
Risk mitigation
Monitoring and reporting
In the Group the governance and control of liquidity risk is mainly performed through the setting and monitoring of operating restrictions managerial
and regulatory aimed at preventing potential vulnerabilities in the bank's ability to meet its cash flow obligations that are embedded in risk metrics
limits or warning/trigger levels.
The short-term liquidity limits are monitored and reported on a daily basis.
The structural liquidity ratios and their exposure against limits are monitored and reported on a monthly basis. The survival period and the result of
the liquidity stress test are reported and monitored on a monthly basis.
In case of limit breach or warning level activation at Group level, the Group Risk Management function investigates the rationale of the events,
triggering the proper escalation and reporting them to the relevant committees.
Mitigation factors
Liquidity risk is considered a relevant risk category for the risk appetite determination of the Group.
The practices and processes are included in the “Group Liquidity Management & Control Policy”, that defines the principles that the Parent
Company and the Legal Entities have to apply for hedging and mitigating this risk and the roles to be interpreted by the different committees and
functions. In addition to an adequate liquidity buffer to face unexpected outflows and robust and regular up-to-date stress testing performed, the
main liquidity mitigation factors for UniCredit group are:
• an accurate plan of short-term and medium to long-term liquidity needs, to be monitored on a monthly basis;
• an effective contingency liquidity policy with feasible and up-to-date contingency action plan to be executed in case of crisis;
• a system of early warning indicators such to anticipate any potential liquidity crisis and give enough time to the Group to restore its safe liquidity
profile.
Funding plan
The funding plan plays a fundamental role in the overall liquidity management, influencing both the short-term and the structural position.
The funding plan, defined at each level (i.e., Group, liquidity reference bank and Legal Entity level), is developed consistently with a sustainable
analysis of uses and sources, both on short-term and structural positions. One of the objectives of accessing the medium and long-term channels is
to avoid the pressure on the short-term liquidity position. The funding plan is updated at least on a yearly basis and is approved by the Board of
Directors. In addition, it is aligned with the budgeting process and the risk appetite framework.
The Parent Company accesses the market for Group capital instruments.
The Parent Company coordinates the market access of the liquidity reference banks and legal entities, while the liquidity reference banks coordinate
the access of the legal entities falling within their perimeter.
Each legal entity or liquidity reference bank can access the markets for medium and long-term funding, in order to increase its self-sufficiency,
exploit market opportunities and functional specialisation, safeguarding the optimisation of cost of funds of the Group.
Group Finance competence line is responsible for the elaboration of the funding plan. Risk management is responsible for providing an independent
assessment of the funding plan.
641
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Group cntingency liquidity management
The liquidity crisis usually develops quickly and the relevant signals may be either difficult to interpret or may even be lacking; it is, therefore,
important to clearly identify players, powers, responsibilities, communication and reporting criteria, in order to increase significantly the probability of
overcoming the state of emergency successfully. A liquidity crisis could be classified as systemic (e.g., overall capital and money market disruption)
or specific (e.g., specific to the bank), or a combination of both.
The ability to act in time is essential to minimise the potentially disruptive consequences of a liquidity crisis. The analysis of the stress tests will form
a valuable tool to identify the expected consequences and to define up front the most suitable actions in a certain crisis scenario. In combination with
the early warning Indicators the organisation may be able to reduce the negative liquidity effects in the initial stages of a crisis.
Therefore, a crisis-mode operating model, that can be activated effectively in case of crisis according to an approved procedure, has been defined.
In order to be able to proceed timely, a set of mitigating actions have been pre-defined.
Depending on the situation some of these actions can then be approved for execution.
The Group contingency liquidity management rules have the objective of ensuring effective interventions starting from the very outset (initial hours)
of the liquidity crisis, through the definition of specific guidelines on activation, meetings, decisions, actions and communications.
This is achieved through:
• a set of early warning indicators that may help to identify emerging vulnerabilities in the Group liquidity risk position;
• activation of extraordinary liquidity governance and operating model linked to indicators included in both the risk appetite and recovery and
resolution plan framework;
• a set of available standby mitigating liquidity actions;
• consistent internal and external communication.
A relevant part of the contingency liquidity management is the contingency funding plan. This plan consists of a set of potential but concrete
management actions to be performed in time of crisis. These actions are described in terms of size, instrument, and timing of execution aimed at
improving the bank’s liquidity position during time of crisis. The contingency funding plan is developed on the basis of the annual Funding Plan.
A specific early warning indicators dashboard is in place, both at Group and Legal Entities level, in order to continuously monitor situations of stress,
which may, among others, be originated by market, sector or name specific events.
They are based either on macroeconomic or market indicators that also reflect the monetary policy stance of the Central Banks variables, or on
specific internal metrics. The system of early warning indicators helps to identify emerging vulnerabilities in the Group’s liquidity risk position or
potential funding needs, triggering a potential response by the Senior management.
A “traffic light approach” is adopted for each metric in order to have sufficient time to inform senior management of a deteriorating situation and allow
to put in place adequate actions aimed at restoring the business-as-usual state.
Adequacy of the liquidity risk management
In the yearly process of the ILAAP, the Senior management is requested to give a judgement on the adequacy of the liquidity position and stability of
funding, called Liquidity Adequacy Statement (LAS). This assessment aims at showing the main drivers that had modified the liquidity position
throughout the year and provides comment also on the evolution of the main metrics that are used to steer the different aspects of the liquidity risk.
During 2024, the Group liquidity situation is deemed adequate, and the liquidity risk management arrangements of the institution ensure that the
liquidity risk management systems put in place are adequate with regard to the institution’s profile and strategy.
The framework of measurement systems and of limits in place aims to ensure that the Group has always an internal liquidity buffer/reserve that
allows it to face expected and unexpected payments.
In the daily Treasury activity, the (managerial) liquidity reserve is represented by the Counterbalancing Capacity (CBC).
Group Treasury, in its role of operational liquidity management function is entitled to monetise also the bonds belonging to the trading book, if this is
necessary to restore the liquidity positions, prevailing on any existing business or risk management strategies.
From a regulatory perspective, the liquidity reserve is represented by the amount of high-quality liquid assets (HQLA). This is the numerator of the
LCR and is made of assets, which can be easily and immediately converted into cash at little or no loss of value even in periods of severe
idiosyncratic and market stress. These assets are unencumbered, which means free of legal, regulatory, contractual or other restrictions on the
ability of the bank to liquidate, sell, transfer, or assign them.
642
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
The adequacy of the liquidity reserve under both perspectives is monitored and controlled through the limitations set on the operative maturity ladder
(managerial) and on the liquidity coverage ratio (regulatory), as described above.
During 2024, the operative maturity ladder of the Group, measured considering the impediments in the transfer of liquidity among Legal Entities, was
constantly above the Risk Appetite Trigger, defined at a level that ensures that the Group would have enough liquidity to survive to a period of
stress.
Similarly, the Group liquidity coverage ratio (LCR) was always well above the trigger (set above the minimum regulatory requirement of 100%),
confirming that its liquidity reserve was large enough to cover one month of stress designed according to the regulatory hypothesis.
While the operative maturity ladder and the LCR restrictions ensure that the liquidity reserves are adequate, the respect of the loan to deposit ratio
and other structural liquidity metrics restrictions ensure that the bank maintains an appropriate balance between assets and liabilities in the medium-
long term (beyond one year), preventing additional pressure on the short-term liquidity position.
During 2024, the net stable funding ratio, the loans to deposit ratio and the structural liquidity ratio were above the limitations set in the risk appetite
framework, thus confirming the relative stability of the funding source of the Group.
Quantitative information
1. Time breakdown by contractual residual maturity of financial assets and liabilities
(€ million)
ITEMS/MATURITY
AMOUNT AS AT 31.12.2024
ON DEMAND
1 TO 7 DAYS
7 TO 15 DAYS
15 DAYS TO ONE
MONTH
1 TO 3 MONTHS
3 TO 6 MONTHS
6 MONTHS TO 1
YEAR
1 TO 5 YEARS
OVER 5 YEARS
INDEFINITE
MATURITY
A. On-balance sheet assets
61,557
13,097
17,096
17,505
34,477
29,657
49,346
221,753
238,023
8,827
A.1 Government securities
2,300
40
57
223
2,363
2,465
6,103
46,828
59,017
33
A.2 Other debt securities
80
7
350
273
1,298
1,575
1,409
22,751
35,060
54
A.3 Units in investment funds
2,241
-
-
-
-
-
-
1
-
2,211
A.4 Loans
56,936
13,050
16,689
17,009
30,816
25,617
41,834
152,173
143,946
6,529
- Banks
20,064
6,311
9,065
1,484
7,029
5,677
5,114
7,135
326
3,100
- Customers
36,872
6,739
7,624
15,525
23,787
19,940
36,720
145,038
143,620
3,429
B. On-balance sheet liabilities
396,857
36,386
20,018
23,960
47,640
21,005
18,475
74,245
42,529
1,144
B.1. Deposits and current accounts
380,222
20,246
16,325
21,582
31,799
15,870
10,616
14,516
8,710
361
- Banks
13,765
3,808
1,569
2,840
4,859
2,834
2,750
8,348
7,594
3
- Customers
366,457
16,438
14,756
18,742
26,940
13,036
7,866
6,168
1,116
358
B.2 Debt securities
27
414
591
455
6,242
4,324
7,111
56,994
32,259
645
B.3 Other liabilities
16,608
15,726
3,102
1,923
9,599
811
748
2,735
1,560
138
C. Off-balance sheet transactions
C.1 Financial derivatives with capital swap
- Long positions
8,861
19,737
14,512
25,336
94,226
72,564
111,475
233,618
128,628
-
- Short positions
7,927
20,698
13,350
20,104
55,192
47,589
90,709
168,305
115,464
-
C.2 Financial derivatives without capital swap
- Long positions
125,894
618
992
2,931
4,557
3,984
6,706
11,815
4,286
-
- Short positions
128,303
626
817
3,001
4,579
4,012
6,734
11,478
4,300
-
C.3 Deposits and loans to be received
- Long positions
-
18,044
-
3
5
398
1,977
2,341
-
-
- Short positions
28
15,011
406
1,322
522
961
2,177
2,341
-
-
C.4 Commitments to disburse funds
- Long positions
87,493
6,788
960
946
3,199
2,439
5,827
16,241
6,439
3,149
- Short positions
99,358
36
772
723
2,756
2,194
5,360
14,331
4,802
3,149
C.5 Financial guarantees given
569
5
34
177
757
819
1,327
2,197
705
-
C.6 Financial guarantees received
29,739
1,697
13
854
1,355
1,028
5,677
11,984
10,010
4,057
C.7 Credit derivatives with capital swap
- Long positions
-
-
-
40
25
113
714
2,645
258
-
- Short positions
-
-
-
15
25
103
46
2,498
59
-
C.8 Credit derivatives without capital swap
- Long positions
-
-
-
-
-
-
-
-
166
-
- Short positions
-
-
-
-
-
-
-
-
166
-
643
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
1. Time breakdown by contractual residual maturity of financial assets and liabilities - Currency: euro
(€ million)
ITEMS/MATURITY
AMOUNT AS AT 31.12.2024
ON DEMAND
1 TO 7 DAYS
7 TO 15 DAYS
15 DAYS TO ONE
MONTH
1 TO 3 MONTHS
3 TO 6 MONTHS
6 MONTHS TO 1
YEAR
1 TO 5 YEARS
OVER 5 YEARS
INDEFINITE
MATURITY
A. On-balance sheet assets
52,339
10,555
7,784
16,341
27,592
24,914
43,273
197,371
211,310
8,747
A.1 Government securities
124
40
28
189
1,622
1,448
4,697
39,155
48,907
1
A.2 Other debt securities
80
7
105
269
761
1,455
1,334
20,145
33,610
43
A.3 Units in investment funds
2,185
-
-
-
-
-
-
1
-
2,211
A.4 Loans
49,950
10,508
7,651
15,883
25,209
22,011
37,242
138,070
128,793
6,492
- Banks
16,658
4,442
625
1,416
3,679
4,027
4,704
7,015
295
3,100
- Customers
33,292
6,066
7,026
14,467
21,530
17,984
32,538
131,055
128,498
3,392
B. On-balance sheet liabilities
351,088
32,301
14,826
20,938
43,438
18,713
16,562
69,742
37,391
1,039
B.1. Deposits and current accounts
336,478
16,491
11,134
18,562
28,228
13,786
9,087
13,753
8,230
320
- Banks
10,880
3,065
976
2,584
4,639
2,464
2,438
7,924
7,380
3
- Customers
325,598
13,426
10,158
15,978
23,589
11,322
6,649
5,829
850
317
B.2 Debt securities
27
414
591
455
5,623
4,142
6,766
53,334
27,606
618
B.3 Other liabilities
14,583
15,396
3,101
1,921
9,587
785
709
2,655
1,555
101
C. Off-balance sheet transactions
C.1 Financial derivatives with capital swap
- Long positions
5,787
7,457
4,710
7,954
50,827
33,200
48,333
144,443
97,224
-
- Short positions
7,826
10,062
7,656
12,440
33,798
36,612
73,106
132,653
105,344
-
C.2 Financial derivatives without capital swap
- Long positions
119,024
251
457
1,327
2,821
2,585
4,369
7,947
3,161
-
- Short positions
120,097
228
358
2,165
3,404
2,631
4,587
7,637
3,181
-
C.3 Deposits and loans to be received
- Long positions
-
18,044
-
-
-
398
1,977
2,341
-
-
- Short positions
28
15,011
406
1,319
517
961
2,177
2,341
-
-
C.4 Commitments to disburse funds
- Long positions
85,791
6,784
921
768
2,727
1,686
3,678
13,673
5,207
1,502
- Short positions
97,512
30
435
548
2,236
1,478
3,262
11,768
3,665
1,502
C.5 Financial guarantees given
553
2
23
68
328
284
598
1,051
304
-
C.6 Financial guarantees received
27,670
1,697
12
838
1,276
916
5,444
11,106
9,617
2,296
C.7 Credit derivatives with capital swap
- Long positions
-
-
-
27
25
110
146
2,072
258
-
- Short positions
-
-
-
11
25
79
32
2,426
59
-
C.8 Credit derivatives without capital swap
- Long positions
-
-
-
-
-
-
-
-
166
-
- Short positions
-
-
-
-
-
-
-
-
166
-
644
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
1. Time breakdown by contractual residual maturity of financial assets and liabilities - Currency: other currencies
(€ million)
ITEMS/MATURITY
AMOUNT AS AT 31.12.2024
ON DEMAND
1 TO 7 DAYS
7 TO 15 DAYS
15 DAYS TO ONE
MONTH
1 TO 3 MONTHS
3 TO 6 MONTHS
6 MONTHS TO 1
YEAR
1 TO 5 YEARS
OVER 5 YEARS
INDEFINITE
MATURITY
A. On-balance sheet assets
9,218
2,542
9,312
1,164
6,885
4,743
6,073
24,382
26,713
80
A.1 Government securities
2,176
-
29
34
741
1,017
1,406
7,673
10,110
32
A.2 Other debt securities
-
-
245
4
537
120
75
2,606
1,450
11
A.3 Units in investment funds
56
-
-
-
-
-
-
-
-
-
A.4 Loans
6,986
2,542
9,038
1,126
5,607
3,606
4,592
14,103
15,153
37
- Banks
3,406
1,869
8,440
68
3,350
1,650
410
120
31
-
- Customers
3,580
673
598
1,058
2,257
1,956
4,182
13,983
15,122
37
B. On-balance sheet liabilities
45,769
4,085
5,192
3,022
4,202
2,292
1,913
4,503
5,138
105
B.1. Deposits and current accounts
43,744
3,755
5,191
3,020
3,571
2,084
1,529
763
480
41
- Banks
2,885
743
593
256
220
370
312
424
214
-
- Customers
40,859
3,012
4,598
2,764
3,351
1,714
1,217
339
266
41
B.2 Debt securities
-
-
-
-
619
182
345
3,660
4,653
27
B.3 Other liabilities
2,025
330
1
2
12
26
39
80
5
37
C. Off-balance sheet transactions
C.1 Financial derivatives with capital swap
- Long positions
3,074
12,280
9,802
17,382
43,399
39,364
63,142
89,175
31,404
-
- Short positions
101
10,636
5,694
7,664
21,394
10,977
17,603
35,652
10,120
-
C.2 Financial derivatives without capital swap
- Long positions
6,870
367
535
1,604
1,736
1,399
2,337
3,868
1,125
-
- Short positions
8,206
398
459
836
1,175
1,381
2,147
3,841
1,119
-
C.3 Deposits and loans to be received
- Long positions
-
-
-
3
5
-
-
-
-
-
- Short positions
-
-
-
3
5
-
-
-
-
-
C.4 Commitments to disburse funds
- Long positions
1,702
4
39
178
472
753
2,149
2,568
1,232
1,647
- Short positions
1,846
6
337
175
520
716
2,098
2,563
1,137
1,647
C.5 Financial guarantees given
16
3
11
109
429
535
729
1,146
401
-
C.6 Financial guarantees received
2,069
-
1
16
79
112
233
878
393
1,761
C.7 Credit derivatives with capital swap
- Long positions
-
-
-
13
-
3
568
573
-
-
- Short positions
-
-
-
4
-
24
14
72
-
-
C.8 Credit derivatives without capital swap
- Long positions
-
-
-
-
-
-
-
-
-
-
- Short positions
-
-
-
-
-
-
-
-
-
-
645
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
2.5 Operational risks
Qualitative information
A. General aspects, operational processes and methods for measuring operational risk
Operational risk definition
Operational risk is the risk of loss due to errors, infringements, interruptions, damages caused by internal processes or personnel systems or caused
by external events. This definition includes legal and compliance risks but excludes strategic and reputational risk.
For example, losses arising from the following can be defined as operational: internal or external fraud, employment practices and workplace safety,
client claims, products distribution, fines and penalties due to regulation breaches, damages to the company’s physical assets, business disruption
and system failures, process management.
Group operational risk framework
UniCredit group sets the operational risk management framework as a combination of policies and procedures for the identification, the assessment
and measurement, the addressing and mitigation, the monitoring and reporting of the operational risk of the Group and of the controlled entities.
In order to ensure that the Operational Risk framework is consistently applied throughout the Group, guaranteeing that an adequate and proportional
oversight mechanism is adopted also with reference to smaller Entities the “Group Operational Risk Oversight “model has been defined.
The operational risk policies, applying to all Group Legal Entities, as defined by the Group Operational Risk Oversight model, are common principles
defining the roles of the company bodies, the operational risk management function, as well as the relationship with other functions involved in the
process.
The Parent Company coordinates the Group Legal Entities according to the internal regulation, Governance Mechanisms and Managerial
Accountability and Organizational Book and Application. A specific Risks Committee, the Group Non-Financial Risks and Controls Committee
(GNFRC) is set up to monitor risk exposure, mitigating actions, measurement, and control methods within the Group. With particular reference to
UniCredit S.p.A. the Italy Non-Financial Risks and Controls Committee (INFRCC) supports the Head of Italy in the role of steering and monitoring of
the Non-Financial Risks (NFRs) at Italy level, also overseeing the related Internal Control System (ICS). The methodologies for data classification
and completeness verification, scenario analysis, risk indicators, monitoring and reporting, capital at risk measurement, Risk and Control Self
Assessments and Operational Risks Mitigation Strategies are set by the Group Non-Financial Risks (GNFR) structure and applied by all Legal
Entities. A pivot element of the risk control framework is the operational risk management application, allowing the collection of the data required for
operational risk control and capital measurement.
The compliance of the Group Operational risk control and measurement system with external regulations and Group standards is assessed through
an internal validation process, which is under the responsibility of the Group Internal Validation department of the Parent Company and is
independent from the Group Non-Financial Risks structure.
Since March 2008 the UniCredit group applies the AMA model (Advanced Measurement Approach) for calculating operational risk capital. The use
of this method has been rolled out to the main Legal Entities of the Group.
Organisational structure
Senior Management is responsible for approving all aspects related to the Group operational risk framework and verifying the adequacy of the
measurement and control system; it is regularly updated on changes to the risk profile and operational risk exposure, with the support of the
appropriate risk committees if required.
The Group Non-Financial Risks and Controls Committee (GNFRC) supports the CEO in the role of steering and monitoring the Non-Financial Risks
(NFRs) at Group level, also overseeing the related internal control system (ICS).
The GNFRC enables the coordination among the “three lines of defence” with the aim to identify and share Group priorities concerning Non-
Financial Risks (e.g., events, regulations or emerging risks), assessing and monitoring the effectiveness of initiatives put in place in order to address
them.
Without prejudice to the role reserved to the Board of Directors by the provisions in being at the time, the GNFRC, in order to support the CEO in
implementing the strategic guidelines and the Group general Risk Management policies is responsible for:
• defining and approving policies, operational limits and methodologies for the measurement, management and control of Non-Financial Risks, as
well as for the definition of the methodologies for the measurement, management, and control of Non-Financial Risks (Operational and
reputational Risk) on the internal capital;
• promoting the annual managerial self-assessment process and evaluating its results, in order to ensure a systematic approach to operational risk
assessment and to the supervision of the Internal Control System;
• overseeing Group Non-Financial Risks profile, emerging threats as well as the internal control system robustness at Group level, through the
monitoring of most relevant events and incidents, weaknesses and shortcomings, also addressing and prioritising, when needed, potential
corrective actions;
646
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
• evaluating and providing guidelines for the management of relevant risks (e.g., reputational, security, data protection) on single customer
transactions or third party contracts, and for definition and implementation of business continuity plans.
With particular reference to the operational risk, GNFRC committee meets with approval, consulting and information functions for:
1) Approving:
• general governance policies for the different types of NFRs;
• Group policies and methodologies for the measurement, management and control of the NFRs as well as for the measurement and control of the
related internal capital;
• Group insurance strategies proposed by the competent functions.
2) Consulting and information concerning:
• the main NFRs, for the industry and for the Group, and overall strategies for their optimisation;
• the relevant Group and local Legal Entities issues (also emerging by the activities carried out by local NFR Committees) concerning NFR and ICS
topics, evaluating weaknesses and shortcomings and, if needed, recommending and prioritising corrective actions, as well as monitoring main
implementation plans milestones;
• external events having potential impact on Group NFRs profile, and best practices and/or lessons learned deriving from events, assessments and
action plans defined by the Group Legal Entities;
• the periodical reporting provided by Risk Management on operational losses (with particular focus on events having relevant financial impacts),
near misses, Risk Weighted Exposure Amounts (RWEA), Indicators and Scenario Analysis;
• the Compliance and Risk Management evidences on second level controls carried out, as well as on current and expected impacts of regulations;
• the Group relevant risks/criticalities highlighted by Internal Audit function, for specific cases and in relation to specific areas or geographies;
• the strategic guidelines on Group Risk Appetite proposals including capitalisation targets and capital allocation criteria for Group Non-Financial
Risks;
• the monitoring of information flows on the exercise of the powers sub-delegated by the CEO according to the current Delegation of Powers by the
Board of Directors and on the new sub delegation granted;
• the Internal Validation annual Regulatory Report on operational risk.
In order to evaluate the strength and the potential criticalities related to the Group ICS, the GNFRC evaluates the significant or critical elements
emerging from reports produced by External Regulators (i.e., ECB, SSM, Banca d ’Italia, Consob, etc.), by other Group Functions with control duties
or operating within the ICS (e.g., ICT, Security, Operations, Procurement and Cost Management) and external Auditors.
Group Non-Financial Risks structure (GNFR) is responsible for the governance and control of non-financial risks of the Group and for evaluating its
exposure to them, through the definition of the framework and the related methodologies.
The structure is also responsible for defining strategies to be submitted to the competent functions/bodies, in order to mitigate non financial risks and
to limit the related losses and risk weighted assets, as well as for setting their continual and independent monitoring and control. The structure is
responsible for ensuring integrated analysis and reporting, in alignment with the other control functions (i.e. Compliance, Audit) on the main non
financial risks of the Group.
The structure is also responsible for the digital risks governance and control leveraging on the established framework methodology (i.e. the
“Framework”), for the evaluations on mitigation measures’ adequacy on digital processes for UniCredit S.p.A., for the oversight of the Framework’s
implementation across the Group Entities as well as for the periodic reporting to the Group Top Management to support risk-based decision making.
The structure is organised as follow:
• Operational and Reputational Risk Management is responsible to define principles and rules at Group level for identification, assessment, control
and reporting of operational and reputational risks, monitoring their correct application by Legal Entities. The structure is also responsible for
defining operational and reputational risk capital measurement methodologies, conducting analysis of the Group's exposure to operational risk also
based on operational risks analytics models. Furthermore, the structure identifies the operational risk strategic priority areas, coordinating and
monitoring the definition and planning of related relevant risks mitigation actions by the Legal Entities of the Group and it is responsible for the
definition of Risk Appetite Framework/RAF metrics of competence as well as for the related periodical monitoring. The structure is also responsible
for the definition of the principles and minimum requirements necessary to identify and address the risks deriving from the development of new
products, together with the competent Compliance function. It also provides oversight and challenge on the execution of the operational risk
assessments for the Holding and Global functions perimeter, ensuring a specific presidia on the identification, ruling and management of Group
activities connected to Reputational Sensitive Sectors. Finally, the structure is responsible to define the methodologies for assessing the
reputational risk related to activities performed by the Group, providing reputational risk assessments for UniCredit S.p.A. and Non-Binding
opinions for the other Legal Entities of the Group.
647
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
• Digital and Third party Risk Management is responsible to define principles and rules at Group level for identification, assessment, control and
reporting - leading to a group-wide evaluation, monitoring and supervision - of digital and Third Parties risks, with the aim to enable the Group as a
safe, secure and resilient digital bank. Determines the most relevant areas within the operational risk framework in regard to the Group Digital
perimeter of activity, in coherence with the Risk Appetite Framework/RAF and Group strategic objectives, as well as defines the guidelines for the
control of the Digital risks (i.e. IT and Cyber) and Third Parties performed by the Group Legal Entities, monitoring their execution. The Structure is
also responsible to identify, assess, respond, monitor and report Digital risks affecting processes belonging to the Group Digital & Information
area.
Internal validation process
In compliance with regulations, an internal validation process for the operational risk control and measurement system has been set up for the
Group and for the relevant Legal Entities in order to verify the compliance with regulations and Group standards. This process is under the
responsibility of Group Internal Validation department. Group methodologies for measuring and allocating the capital at risk and the IT system are
validated at Group level by the above-mentioned department, as well as the implementation of the operational risk control and management system
within the relevant Entities, which is firstly analysed through a self-assessment performed by local Non-Financial Risk Management functions,
following the technical instructions and policies issued by Group Internal Validation. The results of the local self-assessments are annually verified
by Group Internal Validation, which also performs additional analysis on data and documentation. Such evidence is the basis for the release of
specific Validation Reports to the relevant subsidiaries. The local self-assessment, together with the opinion of Group Internal Validation and Internal
Audit report are submitted to the Legal Entities’ competent governing bodies.
The validation outcomes on the operational risk control and measurement system, both at Group and Controlled Entities level, are annually
consolidated with the annual validation report which, with the annual Internal Audit report, is presented to the UniCredit S.p.A. Board of Directors.
Reporting
A reporting system has been developed by the Parent Company to keep senior management and the Management Body regularly informed on the
Group operational risk exposure and the risk mitigation actions.
In particular, weekly reports are provided on operational losses trend, the main initiatives undertaken to prevent or mitigate operational risk in the
various business areas and main operational risk events. Quarterly updates are provided on capital-at-risk estimations and RAF metric monitoring.
Operational loss reports, submitted to Group Non-Financial Risks and Controls Committee are periodically provided to Regulators.
Risk addressing and mitigation
On a yearly basis, NFR priorities are defined at Group and local level on the basis of both internal data (losses, scenarios, incidents, risk indicators)
and external information (external events, market trends and emerging risks).
To address the identified NFR Priorities, the Mitigation Strategies are defined through the identification of Strategic Guidelines aimed at ensuring an
effective presidium on Group and Local priorities.
NFR Priorities represent the basis for the identification and planning of the related Mitigation Strategies. NFR Priorities are yearly defined by GNFR
and Local NFR functions through a qualitative evaluation on selected forward-looking key risk drivers, arising from internal and external data such as
industry, market trends evolution and additional Group or Local drivers.
The defined NFR Priorities are analysed by GNFR and local NFR functions to identify the proper Group and Local Strategic Guidelines to mitigate
such priorities and their main weaknesses/points of concern (overall referring to Group and Local Mitigation Strategies).
Group NFR Priorities and Mitigation Strategies, particularly, are aligned with Risk Appetite Framework (RAF), shared with the other Control Function
for overall coherence and are provided to the local NFR Functions as reference for their further analysis and setting (with the goal to define the
Group NFR Priorities and Strategies applicable at local level and to identify any specific NFR Priority and Strategy locally relevant).
The local NFR function analyses the relevance of each Group NFR Priority at local level to define if it is applicable also in its Legal Entity,
consistently with the Group approach and any other methodological instructions potentially provided by GNFR.
Additionally, the local NFR management functions should identify and evaluate additional priorities affecting their own Legal Entity, considered
relevant on the basis of the local market trends, the business evidences of the last and ongoing year and the specificities of the Legal Entity. For
each locally relevant NFR Priority, the NFR function defines the local second level control activities (i.e. local Mitigation Strategies) addressing the
related risk. Group/Local NFR Priorities and Mitigation Strategies are then submitted the Group/Local Non-Financial Risk Committee or designated
risk Committee for approval.
Afterwards, the status of the related Group and Local mitigation actions is regularly monitored on a risk-based approach by GNFR and local NFR
Functions, reporting any relevant deviation to the designated Committees. In particular, the monitoring is performed through:
• the second Level Controls, aimed at verifying that the actions defined through the NFR Strategic Guidelines in scope are effectively and timely
carried out and in case of significative changes concerning the implementation timeline, mitigation action effectiveness or risk exposure, the local
NFR function is responsible for finding the proper recovery, involving the relevant functions as needed, and/or escalating the issue to the
designated Risk Committee. Same role is acted by GNFR for Group mitigation action. Local NFR function has also to timely inform GNFR;
648
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
• the oversight, during which GNFR checks the actions reported by NFR functions on a risk-based approach and in case of criticalities detected
during the monitoring phase of Local and Group mitigation actions, GNFR and local NFR functions can agree on any recovery action and/ or any
escalation to local or Group designated Risk Committees.
Operational Risk Permanent WorkGroup (PWG)
The “global operational regulation Group Operational & Reputational Risk Mitigation Strategies” rules the PWG, an inter-functional working group
established in the Legal Entities, which aims at identifying the root causes of Operational Risks and reduce the Operational Risk exposure of the
Group Legal Entities, leveraging mainly on the expertise of the NFR management function and the other competent functions (e.g., Compliance,
Security, Business functions, etc.) involved time by time.
The meetings, called at least quarterly, contribute to identify the risks, propose the mitigation actions, and monitor their implementation status.
Insurance as risk mitigation
GNFR/local NFR management function, respectively at Group/Local level, is involved in the decision process related to insurance coverage with
analyses regarding the exposure to operational risks, effectiveness of deductibles and of policy limits. Such functions regularly inform management
on insurance related matters connected to operational risks. The role of GNFR and the local NFR management function in insurance management is
defined in in the “global operational regulation Group Operational & Reputational Risk Mitigation Strategies”.
Any proposal of relevant change in the risk transfer strategy through insurance is submitted to the competent functions/Bodies for approval.
The operational risks commonly insured in the Group are damages to physical assets, frauds, and liability toward third parties.
On the basis of a risk classification, the Group has insurance policies according to the following forms:
• internal fraud: “Bankers Blanket Bond” (BBB) policy, according to Employee Dishonesty insuring clause;
• external fraud: BBB policy, according to the following insuring clauses premises and transit (including loss of property resulting directly from theft &
robbery), forgery or alteration, computer manipulation, included the cases of “fraudulent impersonation of counterparty” aimed at the execution of
fraudulent transactions (e.g., “the so-called CEO frauds”);
• ICT and cyber breach: Cyber policy, coverage for liability claims (including legal expenses and customer notification costs) and business
interruption costs (included also damages to UniCredit group caused by the system failure of the external IT providers). The coverage is extended
also to Group multimedia liability (i.e., infringement of the copyright, defamation and general negligence in the course of publication);
• protection for the personal liabilities of the management including legal expenses: Directors and Officers Liability (D&O) policy;
• Employer’s Liability: protection for the Bank’s liability against claims for damages suffered by employees (compared to third-parties);
• third Party Liability Policy: protection for the Bank’s general liability against claims for damages suffered by third parties;
• external occurrences: “Property all risks” policy as well as “EDP (Electronic Data Processing) all risks” policy are provided in respect of buildings
and other assets, extended to natural events, catastrophic losses, vandalism and terrorism, Fine Art policy to cover entrusted or owned works of
art.
AMA includes the effect of the BBB coverage on ET1 (“Event Type 1”) “Internal Frauds”. In particular, its impact is recognised by applying the
following haircuts (aimed at considering uncertainty and mismatching elements theoretically linked to an insurance), which are updated on annual
basis:
• residual Term of Policy - longer than 1 year aims to keep coverage stability;
• cancellation Terms - longer than 1 year aim to keep coverage stability (as well as for residual term);
• probability of Insurance Recovery (PoIR) - its calculation addresses uncertainties and responsiveness of insurance policies related to “mismatches
in coverage”;
• recovery Rate - it considers the split of fines and penalties in internal losses (other deviations from full recovery already included in PoIR);
• probability of Default of Insurers - it contributes to estimate the ability of insurer to pay in a timely manner, considering the potential credit risk
associated with the insurance asset and the related time delay;
• discount factor - applied to the recoveries, considers that the final payment is expected with a delay defined by the time delay.
Non-Financial Risks Appetite (NFRs Appetite)
Non-Financial Risks Appetite metrics (Key Performance Indicators - KPIs) are reviewed annually and quarterly monitored; KPIs are cascaded to
Legal Entities (in line with the perimeter defined by RAF).
ELOR (Expected Losses on Revenues) is an overarching NFRs metrics within Risk Appetite framework; in addition, Cyber Risk, ICT Risk, Financial
Crime, Outsourcing & Third Parties Risks and Reputational Risk are monitored through dedicated KPIs and/or qualitative statements covering the
main identified risk factors.
ELOR is a ratio estimated with a statistical model, based on the historical losses time series and forward-looking factors, as numerator, and the
budget revenues, as denominator.
ELOR is monitored using the actual losses on actual revenues booked until end of quarters. The comparison between the thresholds estimated at
the beginning of the year and the actual calculated on each quarter allows a close monitoring by the Parent Company of changes or reactions put in
649
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
place by the legal entities to reduce and prevent risks. These analyses are also used to evaluate the impact of mitigation actions implemented in the
past and as a base for future strategies and mitigation activities, as well as the improvement of existing ones.
A disciplined approach in monitoring expected losses and implementing remedial actions will ensure consistency with best practice standards,
increasing accountability and alignment between business and risk control functions.
Risk capital measurement and allocation mechanism
UniCredit group developed an internal model for measuring the capital requirements. It is based on internal loss data, external loss data (collected
from the international consortium ORX - Operational Riskdata eXchange Association), scenario loss data and risk indicators. Capital requirement is
calculated at Group level, considering the risk classes. For each risk class, severity and frequency of loss data are separately estimated to obtain
the annual loss distribution.
The severity distribution is estimated on internal, external and scenario data, while the frequency distribution is determined using only the internal
data. The severity distribution is selected among a portfolio of parametric distributions (truncated lognormal, truncated Weibull, truncated loglogistic,
generalised Pareto, shifted lognormal) applying a decision tree on internal data to identify the set of distribution/threshold best describing the tail
severity data for each risk class.
Frequency of loss data is modelled by a Poisson distribution. For each risk class, the annual loss distribution is obtained from severity and frequency
through Monte Carlo simulation. An adjustment for key operational risk indicators is applied to the annual loss distribution estimated for each risk
class.
Annual loss distributions of risk classes are aggregated considering correlation among monthly loss data of risk classes. Correlation is estimated
through a Student-t copula function and the overall annual loss distribution is obtained though Monte Carlo simulation, considering also insurance
coverage. Group AMA capital requirement is calculated at a confidence level of 99.9% on the overall loss distribution for regulatory purposes and for
economic capital purposes. Expected loss, for each risk class, is calculated as the minimum between median of loss distribution and available
specific provisions related to ordinary internal loss data. Deduction for expected loss is calculated summing up the expected losses of the risk
classes without exceeding the median of overall distribution.
Through an allocation mechanism, the individual Group Legal Entities’ capital requirements are identified, reflecting the Entities exposure to
operational risk.
The allocation mechanism is based on two steps:
• the Group capital requirement is allocated to model Hubs (sets of similar Legal Entities, in terms of geographical area or business type)
proportionally to their relative Standardised Approach (TSA), Operational losses and stand-alone capital at risk figure;
• the Hub capital at risk is then allocated to individual Legal Entities on the basis of their TSA, historical loss profile and scenarios.
AMA approved by the Supervisory Authority in 2008 has been upgraded and deeply revised (starting from 30 June 2014 reporting leading to a
second-generation model newly approved by competent authorities in 2014. The findings resolution on second generation model led to the last
model version, starting from 31 December 2015 reporting. Key operational risk indicators adjustment has been fine-tuned, from 31 December 2017
reporting, to incorporate some observations included in the letter by ECB “follow-up review of AMA 2 findings” submitted in July 2016. A model
change has been applied from 31 December 2018 reporting date, in order to improve the accuracy and the risk sensitivity of the Operational Risk
capital requirement calculation, including an add-on, while the Supervisory Authority was completing the investigation. This model change has been
finalised from the 30 June 2019 reporting, in order to address the Supervisory Authority findings, remove the add-on, and make the model compliant
with the EU Regulatory Technical Standards (EU Regulation 2018/959 of 14 March 2018).
The Legal Entities not yet authorised to use the advanced methods contribute to the consolidated capital requirement on the basis of the
Standardised Approach (TSA) or Basic Indicator Approach (BIA) model.
Stress test
Since 2017, the Group has carried out regular stress analyses for operational risks. These include the stress test exercise for the Group, aimed at
verifying, through the use of a statistical-econometric model, the impact in terms of operating losses, as well as the consequent repercussions on
capital at risk, of the changes in the underlying macro-economic factors, using articulated economic scenarios discussed and defined by the Group
Stress Test Council on the proposal of the Research Department. This exercise is carried out twice a year, or on request, whenever an analysis of
this type is required, to assess the risks deriving from possible worsening of the macro-economic context.
650
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
B. Legal risks
The parent company UniCredit S.p.A. and other UniCredit group companies are named as defendants in several legal proceedings. In particular, as
at 31 December 2024, the parent company UniCredit S.p.A. and other UniCredit group companies were named as defendants in 34,805 legal
proceedings, of which 5,676 involving the parent company UniCredit S.p.A. (excluding labour law cases, tax cases and credit recovery actions in
which counterclaims were asserted or objections raised with regard to the credit claims of Group companies). In addition, from time to time, past and
present directors, officers and employees may be involved in civil and/or criminal proceedings, the details of which UniCredit group may not lawfully
know about or communicate.
The Group is also required to fulfil appropriately various legal and regulatory requirements in relation to certain aspects of its activity, such as
conflicts of interest, ethical issues, anti-money laundering laws, EU, US and international sanctions, client assets, competition law, privacy and
information security rules and others. Actual or alleged failure to do so may lead to additional litigation and investigations and subject the Group to
damages claims, regulatory fines, other penalties and/or reputational damages. In addition, one or more Group companies and/or their current
and/or former directors are subject or may in the future be subject to investigations by the relevant supervisory or prosecutorial authority in a number
of countries in which the Group operates. These include investigations and/or proceedings relating, inter alia, to aspects of systems and controls and
instances of actual and potential regulatory infringement by the relevant Group companies and/or its clients.
Given the nature of UniCredit group’s business and its reorganisation over time, there is a risk that claims or matters that initially involve one Group
company may affect or involve other Group entities.
In many cases, there is substantial uncertainty regarding the outcomes of the proceedings and the amount of possible losses. Where it is possible to
estimate reliably the amount of possible losses and the loss is considered as more likely than not, provisions have been made in the financial
statements to the extent the parent company UniCredit S.p.A., or any of the Group companies involved, deemed appropriate based on the
circumstances of the case and in compliance with the International Accounting Standards (IAS).
To provide for possible liabilities and costs that may result from pending legal proceedings (excluding labour law and tax cases), as at 31 December
2024, UniCredit group set aside a provision for risks and charges of €969.04 million, of which €261.9 million for the parent company UniCredit S.p.A.
As at 31 December 2024, the total amount of claimed damages relating to judicial proceedings other than labour, tax and debt collections
proceedings amounted to €7.7 billion, of which €4.6 billion for the proceedings involving the parent company UniCredit S.p.A.
This figure is affected by both the heterogeneous nature of the pending proceedings and the number of involved jurisdictions and their
corresponding characteristics in which UniCredit group companies are named as defendants.
The estimate for reasonably possible liabilities and the provisions are based upon the available information, however, given the many uncertainties
inherent in legal proceedings, they involve significant elements of judgment.
Therefore, any provision may not be sufficient to meet entirely the legal costs and the fines and penalties that may result from pending legal actions.
Set out below is a summary of information, including, if material and/or indicated, the single requests of the plaintiffs, relating to matters involving
UniCredit group which are not considered groundless or in the ordinary course of the Group companies’ business.
This section also describes pending proceedings against the parent company UniCredit S.p.A. and/or other UniCredit group companies and/or
employees (even former employees) that the parent company UniCredit S.p.A. considers relevant and which, at present, are not characterized by a
defined claim or for which the respective claim cannot be quantified.
Unless expressly mentioned below, labour law and tax claims or debt collections proceedings are excluded from this section and are described
elsewhere in the notes of this section. In accordance with IAS37, information that would seriously prejudice the relevant company’s position in the
dispute may be omitted.
Proceedings which involve the parent company UniCredit S.p.A.
Proceedings arising out of the purchase of UniCredit Bank GmbH (formerly UniCredit Bank AG, "UCB") by the parent company UniCredit
S.p.A. and the related Group reorganization
Squeeze-out of UCB minority shareholders (Appraisal Proceeding)
In 2008, approximately 300 former minority shareholders of UCB filed a request before the District Court of Munich to have a review of the price paid
to them by the parent company UniCredit S.p.A., equal to €38 per share, in the context of the squeeze out of minority shareholders (Appraisal
Proceeding). The dispute mainly concerns the valuation of UCB, which is the basis for the calculation of the price to be paid to the former minority
shareholders. On 22 June 2022, the competent court in Munich rejected all applications for a higher compensation than that which the parent
company UniCredit S.p.A. paid to the former minority shareholders of UCB hence dismissing all claims. Certain claimants have filed appeals.
651
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Squeeze-out of UniCredit Bank Austria AG’s minority shareholders (Appraisal Proceeding)
In 2008, approximately 70 former minority shareholders of UCB Austria commenced proceedings before the Commercial Court of Vienna claiming
that the squeeze-out price paid to them, equal to €129.4 per share, was inadequate, and asking the court to review the adequacy of the amount paid
(Appraisal Proceeding). At present the proceeding is pending in the first instance. In parallel, one contentious proceeding in which the plaintiff claims
damages is still pending, involving however only insignificant amounts in dispute.
Fino arbitration proceedings
In July 2022 Fino 1 Securitisation S.r.l. (Fino 1) commenced an ICC arbitration seeking damages in relation to, inter alia, the alleged breach of
certain representations and warranties included in a transfer agreement for the sale of receivables entered into in 2017. The proceedings are
ongoing.
In March 2023, Fino 2 Securitisation S.r.l. (Fino 2) also commenced an ICC arbitration seeking damages in relation to another transfer agreement
for the sale of receivables also entered into in 2017. The proceedings are ongoing.
Euro-denominated bonds issued by EU countries
On 31 January 2019, the parent company UniCredit S.p.A. and UCB received a Statement of Objections from the European Commission referring to
the investigation by the European Commission of a suspected violation of antitrust rules in relation to European government bonds. The subject
matter of the investigation extended to certain periods from 2007 to 2011 and included activities by UCB between September and November 2011.
The European Commission concluded its investigation by issuance of its decision on 20 May 2021. The decision provides for the imposition of a fine
of €69 million on the parent company UniCredit S.p.A. and UCB. The parent company UniCredit S.p.A. and UCB contested the European
Commission's findings and brought an action for the annulment of its decision before the General Court of the European Union on 30 July 2021. A
decision is expected in 2025.
Proceeding relating to certain forms of banking operations
The UniCredit group is named as a defendant in several proceedings in matters connected to its operations with clients, which are not specific to
UniCredit group, rather affect the financial sector in general.
In this regard, as at 31 December 2024 (i) proceedings against the parent company UniCredit S.p.A. pertaining to compound interest, typical of the
Italian market, had a total claimed amount of €818 million, mediations included; (ii) proceedings pertaining to derivative products, mainly affecting
the Italian market (for which the claimed amount against the parent company UniCredit S.p.A. was €344 million, mediations included); and (iii)
proceedings relating to foreign currency loans, mainly affecting the CE&EE countries (for which the claimed amount was around €267 million).
The proceedings pertaining to compound interest mainly involve damages requests from clients arising from the alleged unlawfulness of the
calculation methods of the amount of interest payable in connection with certain banking contracts. At present, the parent company UniCredit S.p.A.
has made provisions that it deems appropriate for the risks associated with these claims.
With regard to the litigation connected to derivative products, several financial institutions, including UniCredit group companies, entered into a
number of derivative contracts, both with institutional and non-institutional investors. In Germany and in Italy there are a number of pending
proceedings against certain Group companies that relate to derivative contracts concluded by both institutional and non-institutional investors. The
filing of such litigations affects the financial sector generally and is not specific to the parent company UniCredit S.p.A. and its Group companies. At
present, the parent company UniCredit S.p.A. and the involved Group companies have made provisions deemed appropriate based on the best
estimate of the impact which might derive from such proceedings.
With respect to proceedings relating to foreign currency (FX) loans, in the last decade, a significant number of customers in the Central and Eastern
Europe area took out these types of loans and mortgages denominated in a foreign currency. In a number of instances customers, or consumer
associations acting on their behalf, have sought to renegotiate the terms of such FX loans and mortgages, including having the loan principal and
associated interest payments redenominated in the local currency at the time that the loan was taken out, and floating rates retrospectively changed
to fixed rates. In addition, in a number of countries legislation that impacts FX loans was proposed or implemented. These developments resulted in
litigation against subsidiaries of the parent company UniCredit S.p.A. in a number of CE&EE countries including Croatia, Slovenia and Serbia.
In 2015, the Republic of Croatia enacted amendments to the Consumer Lending Act and Credit Institutions Act mandating the conversion with
retroactive effect of Swiss franc (CHF)-linked loans into Euro-linked (the “Conversion Amendments”).
In 2019, the Supreme Court of the Republic of Croatia ruled that the CHF currency clause contained in certain loan and mortgage documentation
was invalid (standing confirmed by the Constitutional Court in March 2021). In March 2020, the Supreme Court ruled that agreements entered into
following the Conversion Amendments whereby customers converted their CHF mortgages and/or loans into EUR are valid and accordingly no
additional payments are due. In May 2022, the European Court of Justice (ECJ) rendered a preliminary ruling in the court case against Zagrebacka
banka d.d. (Zaba) taking the stand that the Directive on unfair terms in consumer contracts is not applicable in cases in which the conversion was
based on national law (as it was in Croatia). The ECJ also referred to the local Croatian courts to decide on the conversion agreements and their
effects.
652
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
In December 2022, the Supreme Court publicly announced three legal standings related to CHF loan conversions:
• Customers who converted their loans under the Conversion Amendments are not entitled to damages;
• Customers who converted their loans are fully entitled to claim both interest and principal;
• Customers who converted their loans are entitled to penalty interest on overpayments made prior to the conversion.
The third legal standing, supported by a majority of 13 judges, was officially confirmed, and provisions were booked accordingly. In July 2024, the
European Court of Justice (ECJ) ruled in the Hann Invest case (C-554/21) that the Croatian Supreme Court’s procedure of withholding final
judgments was invalid. Following this, in October 2024, the Supreme Court issued binding rulings on two of its December 2022 legal standings,
affirming that:
• Customers who converted their CHF loans may be fully entitled to claim both interest and principal;
• Customers may also be entitled to penalty interest on overpayments made prior to the conversion.
These rulings introduced additional legal uncertainty and increased the risk of outflows for the bank. Provisions have been adjusted to reflect these
developments and are deemed appropriate.
Lawsuit brought by “Paolo Bolici”
In May 2014, the company wholly owned by Paolo Bolici sued the parent company UniCredit S.p.A. in the Court of Rome asking for the return of €12
million for compound interest (including alleged usury component) and €400 million for damages. The company then went bankrupt. The parent
company UniCredit S.p.A. won the case in the first instance and, in the course of the appeal, the parties reached a settlement, following which the
case was definitively discontinued, also after the intervention by Mrs Beatrice Libernini, Mr Bolici’s business partner, was declared inadmissible.
On 31 July 2020, Mrs Libernini sued the parent company UniCredit S.p.A., seeking damages based on analogous facts to those alleged in the 2014
proceedings. The Court ruled in favour of the parent company UniCredit S.p.A. The appeal filed by the other party is pending.
In February 2023, Mr Bolici and Mrs Libernini commenced new proceedings before the Court of Rome, in which, recalling most of the claims already
put forward by both of them and identifying the Bank as the main architect of the Group's financial collapse, they claim further damages for various
reasons, invoking new allegations whose merits are currently being assessed. In January 2023 the Court of Rome ruled in favour of the Bank, fully
dismissing the claims by the plaintiffs. The appeal filed by the other party is pending.
Giovanni Lombardi Stronati
In June 2023 Mr Giovanni Lombardi Stronati commenced proceedings before the Court of Rome seeking a declaration that the Bank is contractually
liable for having ordered the sale of securities in his name, which had been seized in the context of criminal proceedings in which he was charged
and then acquitted for embezzlement and fraudulent bankruptcy. The claim amounts to €420 million. In September 2024, the Court ruled in favor of
the Bank, rejecting the claimant’s arguments. The claimant has since appealed the decision, and the appeal is currently pending.
Mazza
In 2005 the parent company UniCredit S.p.A. filed a criminal complaint against a Notary, Mr. Mazza, representatives of certain companies and
disloyal employees of the parent company UniCredit S.p.A. in relation to unlawful lending transactions in favour of certain clients for €84 million. The
criminal court of first instance acquitted the defendants.
The Court of Appeal of Rome reversed this decision and found all the defendants guilty. Following a further appeal, while stating that some
accusations were time-barred, the Supreme Court confirmed the decisions of the Court of Appeal in respect of the damages sought by the Bank. In
May 2022, the insurance company indemnified the parent company UniCredit S.p.A. under the applicable policy, paying an amount of €33 million in
relation to the losses suffered by the bank.
Following the acquittal in the first-instance criminal proceedings, Mr. Mazza and other persons involved in the criminal proceedings filed two lawsuits
for compensation claims against the parent company UniCredit S.p.A.: (i) the first (commenced by Mr. Mazza with a claimed amount of €15 million)
was won by the Bank at first-instance and the judgment is now final; (ii) in the second (commenced by Como S.r.l. and Mr. Colella with a claimed
amount of €379 million) case the Court of Rome ruled in favour of the parent company UniCredit S.p.A. Plaintiffs have appealed and reduced the
claimed amount to €100 million.
Criminal proceedings
Certain entities within UniCredit group and certain of its representatives (including those no longer in office), are involved in various criminal
proceedings and/or, as far as the parent company UniCredit S.p.A. is aware, are under investigation by the competent authorities with regard to
various cases linked to banking transactions.
At present, these criminal proceedings have had no significant negative impact on the operating results and capital and financial position of the
parent company UniCredit S.p.A. and/or the Group, however there is a risk that, if the parent company UniCredit S.p.A. and/or other UniCredit group
entities or their representatives (including those no longer in office) were to be convicted, these events could have an impact on the reputation of the
parent company UniCredit S.p.A. and/or UniCredit group.
653
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
In relation to the criminal proceedings pertaining to the Diamonds offer topic reference is made to the paragraph “E. Other claims by customers -
Diamond offer”, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section - 5 Operational risks,
Qualitative information.
Other proceedings
Claims in relation to guarantee payments and sanctions
In August 2023, UCB was named as a defendant in a lawsuit pertaining to guarantee claims commenced by a Russian energy company before a
court in Saint Petersburg, Russia. UCB had issued part of a guarantee package in favour of the Russian company on behalf of a German guarantee
client. The Russian company had drawn down the guarantees by making payment claims to UCB, which UCB could not fulfil under the applicable
EU sanctions. UCB sought and obtained an anti-suit injunction from the English courts (English ASI), which was granted by the English Court of
Appeal on 29 January 2024 and upheld by the UK Supreme Court on 23 April 2024. Notwithstanding the English ASI, the Russian company
continued the litigation in Russia, including by securing certain injunction measures against UCB and joining AO UniCredit Bank (a member of the
UniCredit group and a bank operating in Russia, AO Bank) as a co-defendant in the lawsuit. On 26 June 2024, the Russian court fully satisfied the
Russian company’s claims. Both UCB and AO Bank have appealed against the ruling. On 19 February 2025 the appeal was rejected. UCB and AO
are entitled to a further appeal (cassation) within two months upon publication of the full decision, which does not affect the enforceability of the
existing judgment. In December 2024 the Russian company obtained an anti-suit injunction from the Russian court (Russian ASI) obliging UCB to
refrain from any legal action against the Russian company in any jurisdiction and to take steps to annul the English ASI. In the event of violations of
the Russian ASI, UCB could become liable to pay a court fine to the Russian company. In light of the obligation in the Russian ASI, on 11 February
2025, UCB obtained a judgment from the English Court of Appeal amending its order of 29 January 2024 and setting aside the English ASI.
Claims in relation to counter guarantees and sanctions
In April 2024, UCB was named as a defendant in a lawsuit brought by AO Bank before a court in Moscow, Russia, in connection with guarantee
claims. UCB issued counter-guarantees to AO Bank for guarantees issued by AO Bank to a Russian company. When AO Bank made a payment
under the guarantees to the Russian company, AO Bank demanded payment under the counter-guarantees from UCB, which UCB was unable to
perform due to applicable EU sanctions. In October 2024, the Russian court ordered UCB to pay the guarantee amounts plus interest. UCB has
appealed against the ruling. In January 2025 the appeal was rejected. UCB has the right to file a further appeal (cassation) within two months of
publication of the full decision, which will not affect the enforceability of the existing judgment.
Proceedings related to claims for withholding tax credits
On 31 July 2014 the Supervisory Board of UCB concluded its internal investigations into the so-called “cum-ex” transactions (the short selling of
equities around dividend dates and claims for withholding tax credits on German share dividends) at UCB. In this context, criminal investigations
have been conducted against current or former employees of UCB and UCB itself as an ancillary party by the Prosecutors in Frankfurt/Main,
Cologne and Munich. With respect to UCB, all proceedings originally initiated by the aforesaid prosecution offices were finally closed with payment
of a fine or the payment of a forfeiture.
In December 2018, in connection with an ongoing investigation against other financial institutions and former Bank employees, UCB was informed
by the Cologne Prosecutor of the initiation of a new investigation in connection with an administrative offence regarding “cum-ex” transactions
involving Exchange Traded Funds (ETF). In April 2019 these investigations were extended to so-called ex/ex-transactions, in which an involvement
of the Bank in the sourcing of cum/ex transactions of other market participants on the ex-day is suspected. The facts are being examined internally.
UCB is cooperating with the authorities.
On 28 July 2021, the Federal Criminal Court (BGH) rendered a decision through which the principle of criminal liability of cum/ex structures was
determined for the first time. With its decisions of 6 April 2022, 17 November 2022, 20 September 2023 and 24 October 2024, the BGH confirmed
four criminal judgements in other cum/ex cases of the Regional Court of Bonn and the Regional Court of Wiesbaden, thus further solidifying its case
law. The Federal Constitutional Court rejected several complaints against decisions of the BGH, thereby confirming the case law of the BGH. UCB is
monitoring the development.
In June 2023, the Munich tax authorities completed a regular field audit of UCB for the years 2013 to 2016 which includes, among other things, a
review of transactions in equities around the dividend record date (so-called cum/cum transactions). During these years UCB performed, among
other things, securities-lending transactions with different domestic counterparties which include, but are not limited to, different types of cum/cum
transactions. It still remains to be clarified whether, and under which circumstances, tax credits can be obtained or taxes refunded with regard to
different types of cum/cum transactions. Some of the taxes credited from the cum/cum transactions are currently not recognised for tax purposes by
the tax audit. UCB appealed against the tax assessments for 2013 to 2015, which were amended based on the findings of the tax audit regarding
cum/cum transactions. Moreover, with respect to cum/cum transactions in which the counterparty of UCB claimed tax credits in the past, it cannot be
ruled out that UCB might be exposed to third party claims under civil law.
Claims in relation to a syndicated loan
UCB, together with several other financial institutions, has been named as a defendant in complaints filed by the judicial administrator and foreign
representative of a Brazilian oil and gas conglomerate in July 2021 in the United States before the Southern District of New York court claiming
damages in connection with the repayment of a syndicated loan for two oil drilling rigs in which UCB participated that defendants are alleged to have
unlawfully obtained.
654
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
VIP 4 Medienfonds
Various investors in “Film & Entertainment VIP Medienfonds 4 GmbH & Co. KG” to whom UCB issued loans to finance their participation, brought
legal proceedings against UCB. In the context of the conclusion of the loan agreements, the plaintiffs claim that the Bank provided inadequate
disclosure about the fund structure and the related tax consequences. A settlement was reached with the vast majority of the plaintiffs. An
outstanding final decision with respect to the question of UCB's liability for the prospectus in the proceeding pursuant to the Capital Markets Test
Case Act (Kapitalanleger-Musterverfahrensgesetz) which is pending at Munich Higher Regional Court, will affect only a few pending cases.
Alpine Holding GmbH
Legal proceedings against UCB Austria arose from bondholders’ claims commenced in June/July 2013. The claims stemmed from the insolvency of
Alpine Holding GmbH, as UCB Austria acted as joint lead manager, together with another bank, for the undertaking of Alpine Holding GmbH bond
issues in 2010 and 2011. Bondholders’ claims are mainly referred to prospectus liability of the joint lead manager, whereas a minority of the cases is
based on misselling due to allegedly unlawful investment advice. The damage claims amount to €19 million in total. These proceedings are mainly
pending in the first instance and may be adverse to UCB Austria.
In the proceedings, the courts of first and second instance confirmed the legal position of UCB Austria and the other issuing banks that the
prospectuses were correct and complete and fully rejected the bondholders’ claims based on prospectus liability. To date, the Supreme Court has
not issued any legally binding decisions against UCB Austria regarding prospectus liability. Therefore, the final outcome of the lawsuits cannot be
assessed as of yet.
In addition to the ongoing proceedings against UCB Austria stemming from the Alpine insolvency, further Alpine-related actions have been
threatened and may be filed in the future. The pending or future actions may have negative consequences for UCB Austria. Despite the favourable
developments mentioned above, at the moment it is impossible to estimate reliably the timing and results of the various lawsuits, nor determine the
level of liability, if any.
Bitminer Litigation in the Republic of Srpska, Bosnia and Herzegovina
In 2019, a local customer, Bitminer Factory d.o.o. Gradiška (Bitminer), filed a lawsuit before the District Commercial Court in Banja Luka claiming
damages for unjustified termination of its current bank accounts by UniCredit Bank a.d. Banja Luka (UCBL), a subsidiary of the parent company
UniCredit S.p.A. in Bosnia and Herzegovina, Republic of Srpska. Bitminer alleged that termination of the accounts obstructed its Initial Coin Offering
(ICO) relating to a start-up renewable-energy-powered cryptocurrency mining project in Bosnia and Hercegovina.
On 30 December 2021, the first instance court adopted most of Bitminer's claims and ordered UCBL to pay damages in the amount of BAM
256,326,152 (€131 million) (the “Judgment”). The appeal was filed in January 2022. On 18 April 2023, the High Commercial Court reversed the
Judgment in its entirety, and issued a final, binding, and enforceable second instance judgement (the "Second-Instance Judgment"). The second
instance court established that Bitminer's claim is unfounded and that UCBL is not liable for any damages. Bitminer duly filed a revision, an
extraordinary legal remedy, to the Supreme Court of the Republic of Srpska. The revision proceedings do not suspend or otherwise affect the finality
and enforceability of the Second-Instance Judgement. In April 2024, the Supreme Court of the Republic of Srpska issued the ruling and rejected the
revisions. Bitminer filed an appeal with the Constitutional Court of Bosnia and Herzegovina.
C. Risks arising from employment law cases
UniCredit is involved in employment law disputes. In general, all employment law disputes are supported by provisions made to meet any
disbursements incurred and anyway UniCredit does not believe that any liabilities relating to the outcome of the pending proceedings could have a
significant impact on its economic and/or financial standing.
Lawsuits filed against UniCredit S.p.A. by members of the former Cassa di Risparmio di Roma Fund
Lawsuits brought against UniCredit S.p.A. aimed to reconstitute the patrimony of the fund, ascertain and quantify social security individual position of
each member, are pending before the Supreme Court following previous degree decisions favourable towards the Bank. Claims’ value is about €384
million. No disbursement and no provisions have been made as these claims are considered groundless.
655
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
D. Risks arising from tax disputes
The following disclosure concerns the most significant disputes that arose in 2024 as well as those that were already outstanding at the beginning of
the fiscal year for which decisions or other definitions have been reached. For what is not mentioned here, please refer to previous financial
statements.
Pending cases arising during the period
In relation to the new disputes, the following should be noted:
Dispute instituted by the Bank before the First Instance Court of Tax Justice of Rome following the tacit denial of the request for reimbursement of
IRES paid on dividends distributed by the Banca d’Italia in relation to the 2014 tax year, value of dispute 21.9 million, awaiting a hearing.
Dispute instituted by the Bank before the First Instance Court of Tax Justice of Rome following the tacit denial of the request for reimbursement of
IRES paid on dividends distributed by the Banca d’Italia in relation to the 2015 tax year, dispute value 19.6 million, awaiting a hearing.
For events in the first half of the year, please refer to paragraph “D. Risks deriving from tax disputes" of the consolidated half-yearly financial report
as at 30 June 2024.
Updates on pending disputes and tax audits
In relation to the dispute initiated by the Bank before the Court of Tax Justice of first instance of Rome following the tacit refusal of the request for
reimbursement of the IRES and IRAP substitute tax (and related additional taxes), relating to the revaluation of the participation shares in the capital
of the Banca d’Italia in relation to the 2014 tax year, disputed value 399.6 million, the hearing before the Tax Court of Justice of first instance in Rome
was held on 22 November 2024. The sentence is pending.
In relation to the litigation initiated by the Bank, in its capacity as the incorporating company of Pioneer Global Asset Management S.p.A., before the
First Instance Tax Court of Justice of Milan following the tacit denial of the request for reimbursement of IRAP on dividends in relation to the tax year
2014, dispute value 2.6 million, concluded in first instance with a ruling unfavorable to the Bank, the hearing before the Court of Tax Justice of
second instance of Lombardy has been set for 13 January 2025.
The proceedings instituted by UniCredit following the partial denial of the IRES refund request in relation to the 2007, 2008 and 2009 tax years, with
a disputed value of 1.9 million in capital, was concluded in the second instance with a ruling filed on 19 January 2024 which partially accepted the
Bank's appeal. Both the Bank and the Office appealed the sentence before the Court of Cassation on the unfavorable side. Waiting for the hearing
to be scheduled.
In relation to the proceedings initiated by UniCredit S.p.A. in its capacity as the incorporating company UniCredit Services S.C.p.A., following the
denial of the VAT refund requests, relating to the 2016 and 2017 tax years (OGSE), total dispute value 5.3 million, concluded at second instance
with a ruling unfavorable to the Bank, the hearing before the Court of Cassation was held on 11 December 2024. Awaiting filing of sentence.
In relation to the dispute introduced by the former Banco di Sicilia (then UniCredit), as the incorporating company Sicilcassa, against the silent
refusal formed on the request for reimbursement of the IRPEG credit for the year 1984, total dispute value 69.13 million, the second instance Tax
Court of Justice of Sicily, upon referral from the Court of Cassation, with a sentence filed on 4 October 2024, rejected the appeal of the Bank which
is evaluating the opportunity to continue the proceedings with an appeal to the Supreme Court.
Within the group of active cases pending against UniCredit S.p.A. following the retrocession, on 29 June 2020, of the receivables previously
transferred to the Banca Farmafactoring company. S.p.A., the following updates are noted.
Denial of reimbursement of the 1989 IRPEG credit of the former Cassa di Risparmio Reggio Emilia, disputed value 1.9 million as IRPEG and 1.82
million for interests; the Emilia-Romagna CTR, with sentence filed on 3 January 2022, rejected the Office's appeal, confirming the Bank's right to
reimbursement of 1.9 million. The Office appealed to the Court of Cassation and the Bank filed a counter-appeal with a cross-appeal. Awaiting
fixation hearing.
Denial of reimbursement of 1997 IRPEG credit of the former Banca di Roma S.p.A. total litigation value 43.5 million; the ruling of the Court of Justice
Second instance tax court of Lazio which rejected the Bank's appeal was challenged both in the Court of Cassation and with an appeal for
revocation before the same Court of Justice of second instance. The hearing has not yet been scheduled at the Court of Cassation. The second
instance Tax Court of Justice of Lazio, with a ruling filed on 10 December 2024, accepted the Bank's appeal, and ordered a new investigation,
appointing a technical consultant to examine the documentation in the documents and report to the panel. The hearing for the oath of the consultant
has been set for 29 January 2025. By 8 January 2025, the Bank will appoint the party consultant to assist in the expert operations and provide his
observations on the technical investigations.
Denial of reimbursement of IRPEG credit for the years 1994-1997 and ILOR 1996, disputed value 31 million of the former Banca Mediterranea
S.p.A.; the 2nd Tax Court of Justice of Basilicata, with sentence filed on 22 January 2024, rejected the Bank's appeal. The Bank has challenged the
sentence with an appeal to the Court of Cassation, pending the setting of a hearing.
656
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
In relation to the settled disputes, it is noted that: the dispute introduced by UniCredit, as transferee of Palmaria s.c.r.l. against the silent rejection of
the request for reimbursement of the 1992 IRPEG credit, with a total litigation value of 1.48 million, was concluded before the Second Instance Tax
Court of Justice of Sicily, during the referral from the Court of Cassation, with a sentence filed on 4 October 2024 which rejected the Bank's appeal.
There are no valid reasons to continue the litigation.
There are currently no tax audits underway.
As of 31 December 2023, the total amount set aside by UniCredit S.p.A. to cover tax risks for disputes and tax audits amounted to 146.89 million, of
which 2.23 million for legal expenses. As of 31 December 2024, the provision for risks and charges amounted to 88.38 million, of which 1.92 million
for legal expenses.
Tax proceedings in Germany
No updates on disputes relating to UniCredit Bank GmbH.
It should be noted that following the tax audit for the years 2009-2012, some findings were made to the Bank for which the pre-litigation
administrative phase is underway.
In extreme summary, the payments made as part of the tax proceedings are: (i) Corporate income tax/Commercial Tax: distribution of cum/ex
transaction costs and "Roth case" referring to the London branch 14.8 million (ii) three small claims 0.5 million (iii) calculation of the pro-rata VAT
deductibility not accepted 22.2 million.
E. Other claims by customers
Reference is made to the paragraph “E. Other claims by customers” of the Company financial statements of UniCredit S.p.A., Notes to the accounts
Part E - Information on risks and related hedging policies, Section 5 - Operational risk, Qualitative information, which is herewith quoted entirely.
Diamond offer
Reference is made to the paragraph “E. Other claims by customers - Diamond offer” of the Company financial statements of UniCredit S.p.A., Notes
to the accounts Part E - Information on risks and related hedging policies, Section 5 - Operational risk, Qualitative information, which is herewith
quoted entirely.
657
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Quantitative information
UniCredit group mainly uses the advanced method (AMA) for calculating the capital against operational risks. Companies not yet authorised to use
the advanced method contribute to the consolidated capital requirement on the basis of the Standardised Approach (TSA) or Basic Indicator
Approach (BIA) method.
The weight of the different methods, expressed in terms of contribution to the total relevant indicator of the Group, is as follows: AMA 87.23%, TSA
9.22%, BIA 3.55%.
The AMA perimeter embeds Group main legal entities in Italy, Germany, Austria. AMA is also applied to main legal entities of CEE countries
including Slovenia, Czech Republic, Slovakia, Romania, Croatia, Bulgaria and Hungary.
Main TSA and BIA legal entities are AO UniCredit Bank (Russia) and UniCredit Factoring S.p.A.
Detailed below is the percentage composition at Group Level, by type of event, of operational risk sources as defined by the New Basel Capital
Accord and acknowledged by the Regulations for the Prudential Supervision of Banks issued by Banca d’Italia in December 2013 (Circular
No.285/2013 and following updates).
The risk categories for event type are the following:
• internal fraud: losses owing to unauthorised activity, fraud, embezzlement or violation of laws, regulations or business directives that involve at
least one internal member of the bank;
• external fraud: losses owing to fraud, embezzlement or violation of laws by subjects external to the bank;
• employment practices and workplace safety: losses arising from actions in breach of employment, health and workplace safety laws or
agreements, from personal injury compensation payments or from cases of discrimination or failure to apply equal treatment;
• clients, products and business practices: losses arising from non-fulfilment of professional obligations towards clients or from the nature or
characteristics of the products or services provided;
• damage to physical assets: losses arising from external events, including natural disasters, acts of terrorism and vandalism;
• business disruption and system failures: losses owing to business disruption and system failures or interruptions;
• process management, execution, and delivery: losses owing to operational or process management shortfalls, as well as losses arising from
transactions with commercial counterparties, sellers and suppliers.
47,6%
19,0%
28,3%
1,6%
3,5%
0,0%
0,0%
Operational losses 2024 divided by risk category
Clients, products and business practices
External fraud
Process management, execution, and delivery
Damage to physical assets
Business disruption and technology system failures
Internal fraud
Employment practices and workplace safety
658
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
“Employment practices and workplace safety” and “internal fraud” are not shown in the chart since they recorded overall positive impacts in the
reference period due to the effects of recoveries and releases of funds.
In 2024, the main source of operational risk was “clients, products and business practices”, which includes losses arising from the non-fulfilment of
professional obligations towards clients or from the nature or characteristics of the products or services provided.
The second largest contribution is the category is “process management execution and delivery” due to operational or process management
shortfalls.
There were also, in decreasing order, losses stemming from “external fraud” (for this purpose, the positive effect, due to a relevant release of
provisions on an external fraud case, has not been considered), “business disruption and technology system failures” and “damage to physical
assets”.
Information on Operational risk is reported in paragraph 2.5 “Operational risks”, Part B “Legal risks”, Part C “Risks arising from employment law
cases” and Part D “Risks arising from tax disputes”, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies,
Section 2 “Risks of the prudential consolidated perimeter”.
2.6 Other risks
Other risks included in Economic Capital
As reported in the paragraph “Introduction”, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, among
the Group’s risks there are other risks relating to Pillar II that are Business Risk, Real Estate Risk, Financial Investment Risk and Reputational Risk
(the latter is described in the paragraph Reputational Risk, Notes to the consolidated accounts, Part E - Information on risks and related hedging
policies 2.6 Other risks). For each risk, the Economic Capital calculation is performed adopting a confidence level equal to the regulatory level
(99.90%) and a one-year time horizon.
1. Business risk
Business Risk is defined as adverse, unexpected changes in business volumes and/or margins on a one-year time horizon; in this context the
margin is defined as the difference between earnings and costs not explained by risk factors already included, e.g., in credit, market, operational
risk. Business risk can result, above all, from changes in the competitive situation or customer behaviour, but may also result from changes in the
reference regulatory framework.
The exposure data used to calculate Business risk are taken from the income statements of each Entity of the Group for which the risk is significant.
Volatility and correlations are estimated from the time series of the relevant items of the Income statement reports.
The Business Risk calculation is performed on a quarterly basis for monitoring and for planning purposes according to the relevant time schedule.
2. Real estate risk
Real Estate Risk is defined as the potential loss resulting from market value fluctuations of the Group’s real estate portfolio, including real estate
Special purpose vehicles. It does not take into consideration properties held as collateral which are evaluated inside credit risk.
The relevant data for the Real Estate Risk calculation includes general information relating to properties and area or regional rental price indexes for
each property to enable calculation of volatility and correlation in the model.
The Real Estate Risk calculation is performed on a quarterly basis for monitoring purposes and for planning purposes according to the relevant time
schedule.
3. Financial investments risk
Financial investments risk stems from the equity investments held in companies not included in the Group consolidation perimeter and not
encompassed in the Market Risk managerial framework.
The relevant portfolio mainly includes listed and unlisted shares, private equity, units of mutual, hedge and private equity funds. For all the Group
equity positions, capital charges may be calculated using either a PD/LGD-based approach or a market-based one. Listed equity holdings and
funds, which are a subset of Financial Investment risk are treated relying on the Market Risk Internal Model infrastructure.
The unlisted component is evaluated into the Group Credit Portfolio Model (GCPM). The calculation of the risk is based on a Value at Risk (VaR)
model calculated at 99.90% confidence level and is executed inside credit and market risk models according to the nature of the underlying portfolio.
The Financial Investments Risk is calculated on a quarterly basis for monitoring and for planning purposes according to the relevant time schedule.
659
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Risk measurement methods
1.Economic Capital
As described in the paragraph Introduction, Notes to the consolidates accounts, Part E - Information on risks and related hedging policies, within the
Internal Capital Adequacy Assessment Process (ICAAP) and in line with the proportionality principle defined in Pillar II of Basel II, the risk profile of
the Group and the main Group legal entities is assessed for all the Pillar II risk types (Credit, Market, Operational, Reputational, Business, Financial
Investments and Real Estate risks).
The Economic Capital represents the capital needed to face the potential losses inherent in the Group’s business activities and takes into
consideration all the Pillar II risk types reported above that are quantifiable in terms of Economic Capital. The effect of the diversification among risk
types (“inter-risk diversification”) and of the diversification at portfolio level (“intra-risk diversification”) is also considered. In addition, a Capital add-on
is calculated as prudential cushion in order to account for Model Risk uncertainty.
As for its components, the Economic Capital is calculated on a one-year time horizon and adopting a confidence level equal to the regulatory level
(99.90%). For monitoring purposes, the Economic Capital is calculated quarterly and disclosed to Senior Management quarterly through RAF
Monitoring & Integrated Risk reporting; it is also calculated for planning purposes according to the relevant time schedule.
Consistently with the corporate governance system, the function Strategic & Integrated Risks of UniCredit S.p.A. is responsible for the Group
Economic methodology development and its measurement, as well as for the setting and implementation of the Group related processes.
The "Group Rules", after the approval, are submitted to relevant Legal Entities for local approval and implementation.
2. Stress Testing
The multidimensional nature of risk requires to supplement the measurement of economic capital with stress testing, not only in order to estimate
losses in certain scenarios, but also to assess their impacts in terms of capital requirements. Stress testing is a key risk management tool for the
management of the relevant risks in order to assess the bank's vulnerability with respect to exceptional but plausible events, providing additional
information to the monitoring activities.
Stress testing activities, in compliance with regulatory requirements, are performed on the basis of a set of internally defined stress scenarios, that
include the Group main geographies where the Group is active and are carried out at least twice a year.
In the context of the activities of risk measurement prescribed by Pillar II, the Group stress test methodology considers the impacts on the various
risks generated from the materialization of the macroeconomic adverse scenarios. These scenarios are drawn analysing both current
macroeconomic events and plausible future events that could take place and that are considered penalizing for the Group.
The stress test exercise is performed both with reference to single risk types and as an overall considering possible interactions. The results of the
exercise are represented by the additional expected losses and by the stressed Economic Capital. The overall results consider both the single risk
variations as well as any possible benefit of diversification.
Since 2017, two complementary approaches are considered in stress testing activities: the so-called “Normative Perspective” focuses on the
impacts of stressed scenarios on regulatory capital metrics while the “Economic Perspective” quantifies impacts of scenarios on the Economic
Capital.
The Group Senior Management is involved in the Group-wide stress test in the following phases:
• macro-economic stressed scenarios approval used to estimate the impacts on regulatory and economic capital;
• after the exercise is finalised, with the approval of the results and impacts and a potential discussion of actions to return into the predetermined
limits of capital.
The adequacy of the risk measurement methodologies supporting the ICAAP, including stress testing and risk aggregation, is checked by internal
validation functions.
660
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Reputational risk
Reputational risk is defined as the current or prospective risk to earnings or capital decrease arising from the adverse perception of the image of the
financial institution on the part of customers, counterparties (also including debtholders, market analysts, other relevant parties, such as civil society,
NGOs, media, etc.), shareholders/investors, regulators or employees (stakeholders).
Reputational risk is a secondary risk generated as a "knock-on effect" from risk categories, such as credit, market, operational and liquidity risks and
all others risks types (e.g., business risk, strategy risk, ESG risk which considers the environmental, social and governance aspects of responsible
investments). Reputational risk could also be generated from material events.
Since 2010 UniCredit group has ruled the reputational risk and the policy currently in place is the Group Reputational Risk management policy which
aims at defining a general set of principles and rules for assessing and controlling reputational risk. On top of the Global Policy Regulation, a set of
sensible sectors policies has been issued during the years, in order to mitigate specific reputational risks that arise from having relationships with
counterparties operating in these sectors. The current policies are “Defense Industry”, “Nuclear Energy”, “Mining”, “Water Infrastructure (dam)”,
“Thermal Coal” and “Oil &Gas”. In 2022, the “Defence Industry” policy has been reviewed, the main improvements refer to the introduction of client’s
classification based on their activity, the explicit inclusion of key components and key infrastructures in the scope of the regulation as well as the
update of the forbidden countries, refining the guideline that deals are not supported if addressed to countries involved in an active conflict or
internal repression against civil population or subject to embargo, and the update of controversial weapons (e.g. depleted uranium). Also, it has been
refreshed the approach of the “Mining” policy, in order to introduce the client’s classification as the other sensitive sectors policies, to assess its
adequacy to the current context and climate requirements and to better clarify the overall set of principles referring to prohibited extraction activities,
sites and behaviors, considering both the best practices (i.e., prohibition on asbestos) and the principles stated in other UCG Policies (i.e.,
prohibition on Arctic extractions). Also, in first half 2022 a new Tobacco Commitment with the guidelines to exit the tobacco industry by the end of
2025 has been issued.
In March 2024 the "Civil Nuclear Sector" and "Water Infrastructure Sector (Large Dams)" policies were updated and are now in line with the other
regulations of sensitive sectors.
Finally, in June 2024, the "Commitment to Human Rights" document was updated, it describes the general approach, the impact measurement
model, the "DE&I - Diversity, Equity & Inclusion" initiatives and the social strategies.
The reputational risk management is in charge to the Group Non-Financial Risks Department of UniCredit S.p.A. and to dedicated functions within
the Group legal entities.
Since 2021 the Group Non-Financial Risks and Controls Committee (GNFRC) - Reputational Risk dedicated session has been established.
The Committee meets with approval functions, according to the regulations in place, for the following topics:
• Governance policies and guidelines for the management of the reputational risk on sensitive sectors and customer relationships;
• Binding Opinions, whenever a relevant reputational risk is present on specific single transactions/relationships - as foreseen by the Internal
Regulations - to be provided to UniCredit S.p.A. functions;
• Non-Binding Opinions, whenever a relevant reputational risk is present on specific single transactions/relationships - as foreseen by the Internal
Regulations - on cases submitted by Local NFRC, to be provided to other Group Legal Entities.
The Committee meets with consulting and information functions for the following topics, evaluating and providing guidelines with reference to:
• Reputational risk relevant emerging trends or material events, for their implications on Group and Local strategies, initiatives, transactions,
projects, customers or other business activities, leveraging on evidences and assessments provided by Risk Management, Compliance, Legal,
Group ESG Strategy & Impact Banking, Group Institutional Affairs and Group Identity and Communication;
• Group relevant risks/criticalities highlighted by Internal Audit function, for specific cases and in relation to specific areas or geographies;
• Periodical reporting provided by Group competent structures on the business activities and decisions taken in relation to the defined sensitive
sectors.
In addition, UniCredit group developed a proprietary methodology for the quantification of reputational risk and the consequent calculation of the
Value-at-Risk (VaR) for such a risk.
The methodology estimates the semi-elasticity between the “media sentiment” referred to UniCredit (summarised into the Media Tonality Index,
provided by an external company, CISION Ltd, qualified in Reputation Intelligence and Media Monitoring) and the market expectations regarding the
Group expected future profits, which are derived from equity prices via the reverse engineering of a dividend discount model, once sterilised from
the effects affecting the whole European banking sector.
The Reputational VaR represents the maximum (at 99.9% confidence level) potential reduction of future earnings as derived from the estimated
model parameters and the distribution of the Media Tonality Index.
661
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Top and emerging risks
In UniCredit, the management and monitoring of risks is based on a dynamic approach; Top Management is promptly informed on top risks and/or
emerging risks through a strict monitoring process embedded in the risk assessment process.
The Risk Management identifies and estimates these risks and submits them regularly to Senior/Top management and Board of Directors which
take the appropriate actions to manage and mitigate them.
The following top and/or emerging risks have been considered relevant during 2024:
1. Ongoing conflicts;
2. Macroeconomic and (geo-)political challenges;
3. Cyber security risks;
4. Risks stemming from the current European Regulatory developments.
1. Ongoing conflicts
Russia-Ukraine conflicts persist in 2024, with Middle East conflict still ongoing since October 2023.
These conflicts had negative consequences on inflation, market volatility, energy cost.
Furthermore, the following effects need to be considered: 1) intensification of sanctions to Russia by United states and Western countries 2) energy
policy rotation towards secure access and source diversification; 3) intensified competition for critical materials, equipment, and commodities. High
level of the uncertainty about the evolution and outcome of the conflict persists, along with the risk of escalation with potentially larger humanitarian,
political and economic impacts hindering global post-pandemic recovery.
Over the years, Europe has come to depend heavily on Russian energy sources: coal, crude oil, fuel oil, and, especially, natural gas.
European countries are taking actions to lower further their demand, increasing gas supplies from countries other than Russia, importing more
Liquefied Natural Gas (LNG) and generating more biofuel. Middle East conflict has added pressure on supply chains due to shipping re-routing and
higher costs.
For additional information about the update of macro-economic scenarios and its effects on valuation of Group’s asset refer to “Section 2 - General
preparation criteria”, Notes to the consolidated accounts, Part A - Accounting policies.
Cyber-attacks remain an important risk factor. Since the beginning of the conflict, several cyber-attacks took place also at banking industry level.
Depending on the evolution of the conflict, cyber threat is expected to continue to be relevant.
2. Macroeconomic and (geo-)political challenges
Macroeconomic environment shows persisting level of uncertainty amid Russia-Ukraine and Middle East conflicts, even worsened by an increasingly
fragmented political and economic scene that could undermine external demand and consumer confidence. Protracted conflicts and escalation risk,
low growth and increasing fragmentation, markets volatility and monetary policy tightening, are among main drawbacks to economic recovery.
Corporate and households’ vulnerabilities persist as financial conditions have tightened and economic outlook weakened. Households’ savings
buffer has been largely reduced; disposable income has been negatively affected both by high inflation and high interest rates.
Phasing out of central banks facilities put in place in 2020 in mitigation of Covid-19 crisis being completed. Further potential drawbacks include the
following: 1) Non-Bank Financial Intermediation (NBFI) sector structural vulnerabilities’ in the form of liquidity mismatch and leverage, considering
the strict interconnection with the banking system; 2) technological advances in Artificial Intelligence (AI) that could erode social trust and disrupt
businesses and markets; 3) impact of higher rates on both residential and commercial housing markets, particularly in countries with high debt and
overvalued property values; 4) impacts from climate change as further detailed within “The Climate-related and environmental risks” section, Notes
to the consolidated accounts, Part E - Information on risks and related hedging policies.
In addition to the above-mentioned factors, the following trends and challenges on the geopolitical arena are relevant:
• US-China tensions over Taiwan;
• trade tariffs tensions (US/EU/China);
• significant wave of elections in 2024/2025, including presidential elections in the United States set to impact the geo-economic landscape amid
increasing geopolitical tensions.
662
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
3. Cyber security risk
In an era where banking services are increasingly digitized, the increasing relevance of cyber threats and the dynamic regulatory environment
continue to place digital risks at the forefront spanning cybercrime, the integration of emergent technologies, and the fortification of IT resilience and
disaster recovery protocols. Cyber threats have not only grown more sophisticated, leveraging artificial intelligence and exploiting third-party and
internal vulnerabilities, but the ongoing Russia-Ukraine conflict also amplifies concerns over service disruptions. The role of third-party entities as
providers of critical business services has emerged sharply within our risk perimeter, in continuity necessitating a comprehensive supplier risk
management approach in line with regulatory expectations. Additionally, the landscape of new regulations across countries and the complexity of
regulatory divergence poses significant challenges for compliance, especially for firms operating internationally. This complex regulatory scenario
mandates a resilient infrastructure capable of rapidly adapting systems and processes to new regulations, ensuring continuous compliance and the
safeguarding of data integrity and service continuity. While the pervasive nature of cyber threats generates a key risk that could have significant
potential impact to overall financial stability, regulatory compliance, and reputation, and also despite UniCredit group facing challenges throughout
2024, such as DDoS (Distributed Denial of Service) attempts and industry-wide global IT outages, UniCredit group successfully mitigated any
material impact to our operations.
4. Developments in the European regulatory framework
Over the last few years, the regulatory framework in which financial institutions act has become increasingly complex and strict. This complexity has
further increased following the introduction of new financial regulations, some of which being still under discussion, and by the ECB central role in
the supervision of a large portion of the European banking system.
All these changes might significantly affect UniCredit and introduce additional challenges for the general banking sector profitability and capital
requirements.
The most relevant changes are the following:
• on 27 March 2020, the Basel Committee's oversight body, the group of central bank Governors and Heads of Supervision (GHOS) changed the
implementation timeline of the outstanding Basel 3 standards. In particular the implementation date of the Basel 3 standards finalised in December
2017 and January 2019 (credit risk, operational risk, output floor and market risk) has been deferred by one year to 1 January 2023;
• the EU Commission, published on 27 October 2021 the Banking Package 2021, which includes the proposals for the final implementation of Basel
3 in the European Union through a legislative package introducing amendments to Capital Requirements Regulation 2013/575/EU (CRR), to the
Directive 2013/36/UE (Capital Requirements Directive), and also a proposal to amend the Capital Requirements Regulation in the area of
resolution (the so-called “daisy chain” proposal). In June 2023, the EU Council and the European Parliament found a provisional agreement on the
revisions to the Commission proposal. In line with the Basel standards, the EU Co-legislators agreed in restricting the usage of internal models for
measuring credit risk on some specific portfolios and to return to a more stringent standardised approach as well as to eliminate internal models for
operational risks. They also agreed to introduce the output floor, applied at “solo” level. The agreement shows that the Co-Legislators have taken
into account some important European specificities that could mitigate the impact on the sector. In addition to the implementation of the Basel
standards, part of the legislative package also aims to strengthen the resilience of the banking sector to environmental, social and governance
(ESG) risks and to improve the Fit and Proper assessment framework. Following the approval by the European Parliament and the Council of the
EU, between April and May 2024, the package entered into force July 9. Most of the CRR3 provisions are applicable from 1 January 2025,
although for some measures there are different application dates, transitional periods or phase-in application. With regards to the CRD6, Member
States will have 18 months to transpose the Directive starting from its entry into force (by 9 January 2026);
• in May 2020 the European Banking Authority (EBA) published its Guidelines on loan origination and monitoring that require institutions to develop
robust and prudent standards to ensure newly originated loans are assessed properly. The Guidelines also aim to ensure that the institutions’
practices are aligned with consumer protection rules and respect fair treatment of consumers. The Guidelines apply from 30 June 2021. But
positively, institutions may benefit from a series of transitional arrangements: (1) the application to the already existing loans and advances that
require renegotiation applies from 30 June 2022, and (2) institutions are allowed to address possible data gaps and adjust their monitoring
frameworks and infrastructure until 30 June 2024;
• on 1 July 2020 the European Banking Authority (EBA) published its final Guidelines on the treatment of structural FX positions, applicable from 1
January 2022. The aim of these Guidelines is to establish a harmonised framework for the application of the structural FX waiver and identify
objective criteria to assist Competent Authorities in their assessment of the structural nature of a foreign-exchange position and to understand
whether such position has been deliberately taken for hedging the capital ratio;
• entry into force of the liquidity requirements envisaged in Basel 3: a short-term indicator (Liquidity Coverage Ratio - LCR), with the goal to have
banks maintain a liquidity buffer to survive a 30-days period of stress, and a structural liquidity indicator (the Net Stable Funding Ratio - NSFR)
referring to a time horizon over one year, introduced to ensure that assets and liabilities have a sustainable structure in terms of maturity. While the
LCR has been in force for some time now, the NSFR has been introduced as a requirement in the CRR2 published in June 2019 and applied since
June 2021;
• MREL: “Pillar 2” MREL is bank-specific and was introduced by the BRRD in 2014 and later amended in June 2019 (BRRD2). MREL is defined
annually by the EU Resolution Authorities, also in its subordinated component, i.e., to be met with subordinated instruments;
663
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
• discussion on the preferential treatment of sovereign exposure in banks’ banking book: banks’ exposures to the home sovereign currently benefit
of a zero-risk weight. There is no concrete proposal under consultation yet, but policy makers and regulators are discussing which approach to
adopt, if any, to remove this preferential treatment (e.g., the Revision of the Treatment of Sovereign Exposure - RTSE, might foresee an
application of concentration charges);
• as announced in July 2022, in January 2023 the EBA kicked-off a new stress test exercise aiming to assess the resilience of EU banks to a
common set of negative economic shocks. The results were published at the end of July 2023;
• climate risk and environmental risk regulation updates:
- ECB issued in November 2020 a Guide with supervisory expectations, based on current regulations, on how banks should incorporate climate-
related and environmental risks into business strategy, governance, credit-granting process, Risk Appetite Frameworks, risk management
framework, liquidity and capital adequacy processes, through dedicated stress testing scenarios;
- the ECB conducted the Stress Test exercise in 2022 exclusively regarding Climate Risks, with the aim of evaluating the exposure of the Euro
Area financial sector to natural disasters (floods or episodes of intense drought and heat) and to a faster-than-expected ecological transition
(e.g., rapid increase in the price of CO2 from 2022). The results of the Stress Test have been integrated into the 2022 Supervisory Review and
Evaluation Process (SREP) letter as a qualitative evaluation and have no quantitative impact on the P2R;
- based on the final agreement between the Council and the European Parliament on the revisions to the European Commission proposal on the
Regulation on Capital Requirements 2013/575/EU (CRR) and on the Capital Requirements Directive 2013/36/EU (CRD) published in the
Banking Package 2021, additional measures are foreseen to deal with climate-related environmental risks. Accordingly, banks are required to
fully include, for the obsolescence of physical collateral, the climate related valuation considerations and take into consideration the long-term
impact of climate related risks when defining their business strategy and processes. Additionally, several mandates were assigned to EBA to: i)
issue guidelines for credit risks stress testing to include climate-related environmental factors by 2025 (potential Pillar 2 impact) ii) define
minimum standards for banks for the assessment of these risks in their portfolios, iii) propose targeted enhancements that could be considered
within the current prudential framework to integrate climate risks (Pillar 1 impact) and iv) assess the effective riskiness of exposures impacted by
environmental factors and a dedicated prudential treatment associated to these exposures by end of 2027 (Pillar 1 impact);
- on 30 November 2022, the EU Commission adopted the implementing technical standards on Pillar 3 which requires large credit institutions to
disclose information on Environmental, Social and Governance (ESG) risks. The new rules aim to ensure comparable quantitative disclosures on
climate change risks, including transition and physical risks, as well as qualitative disclosure regarding the inclusion of ESG factors into banks’
governance and business strategies and foreseen a phase-in period for disclosing information as follows: i) from January 2023, banks must
disclose qualitative info on ESG risks and information related with the credit quality of their exposures; ii) from January 2024 the exposures
towards EU counterparties and households on Taxonomy-aligned activities that are contributing to environmental objectives (Green Asset Ratio),
while from January 2025, on a voluntary basis, the exposures towards non-EU counterparties and SMEs (Banking Book Taxonomy Alignment
Ratio); and iii) Scope 3 emissions (financed greenhouse gas emissions associated with banks’ investment and lending activities to
counterparties) from June 2024;
• capital markets, payments and digital finance regulation updates:
- in June 2023, the European Commission published a legislative proposal on the establishment of a digital euro (d€). Such currency would be an
electronic form of cash for the digitalised world. It would give consumers the option to use central bank money in a digital format, complementing
banknotes and coins. Under the proposal, i) banks will be obliged to provide free of charge basic digital euro payments services upon request of
their clients, but they will be compensated for the costs incurred, even though fees will be subject to a cap; ii) the ECB should develop
instruments to limit the use of the d€ as a store of value, including holding limits, in order to address financial stability risks. In October 2021, the
Governing Council of the ECB launched an investigation phase, aimed at exploring the opportunity to issue this currency. From November 2023,
the ECB has launched a preparation phase of the project in which different technical solutions will be developed and tested. Only after these
steps, and only after the European Parliament and the Council have adopted the Commission's legislative proposal, the ECB will take the final
decision on whether to issue or not a digital euro;
- in October 2022, the European Commission adopted a legislative proposal to make instant payments in euro available to all citizens and
businesses holding a bank account in the EU and in EEA countries. The EU Council and the European Parliament found a provisional
agreement in September 2023. It foresees that all credit institutions should offer (and receive) instant payments to all their customers through all
channels (digital and traditional), already offered for SEPA Credit Transfer (SCT). Moreover, the price of an instant payment transaction should
be aligned to the one of a regular credit transfer. All Payment Service Providers (PSPs) offering the service of sending euro IPs (Instant
Payments) are required to check that the payee’s IBAN matches the payee’s name (so-called IBAN-name check) and must notify the customer of
any detected discrepancy. The text was published in the EU Official Journal in March 2024 and entered into force on April 9; since January 9,
2025, PSPs shall offer their clients the reception of transactions in only 10 seconds. Other measures (sending IPS and IBAN-name check) will
follow in 2025.
- in April 2021, the European Commission presented a proposal for a ‘Regulation laying down harmonised rules on Artificial Intelligence’ (the
Artificial Intelligence Act), which will create a comprehensive, harmonised, regulatory framework for Artificial Intelligence (AI) in the EU but will
also impact use and development of AI systems globally, including within the financial services sector. The regulation introduces a strict regime
and mandatory requirements for ‘high risk’ AI systems, such as those used to evaluate creditworthiness of natural persons. The regulation
entered into force on 1 August 2024;
664
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
• Capital Markets Union regulation updates:
- in May 2023, the European Commission published its Retail Investment Strategy (RIS) legislative package with the aim of ensuring that the legal
framework for retail investments sufficiently empowers consumers, encourages improved and fairer market outcomes and ultimately creates the
necessary conditions to grow retail investor participation in capital markets. The Package mainly presents amendments to the Directive on
Markets in Financial Instruments (MiFID II), the Directive on Insurance Distribution (IDD), and to the Regulation on key information documents for
Packaged Retail and Insurance-based investment Products (PRIIPS). In particular the proposal i) introduces a partial ban on inducements paid
from manufacturers to distributors in relation to the reception and transmission of orders, or the execution of orders to or on behalf of retail clients
(where no advice relationship exists between the investment firm and the client); ii) Value for Money (VfM): amends product oversight and
governance rules to ensure that undue costs are not charged and that products deliver Value for Money to retail investors, with specific
comparability tools (benchmarks); iii) foresees the standardization of information on costs and charges, with a greater degree of detail. The
legislative process is ongoing. As both the EU Council and Parliament finalised their own position within the first half of 2024, reviewing several
parts of the proposal, the negotiations aimed at reaching an agreement on a final legislative text are expected to take place over 2025. The entry
into force of the new package is not expected before the end of 2026.
The climate-related and environmental risks
E1- Climate Change:
Climate change has gained increasing importance in recent years and this is reflected in global frameworks such as the Paris Agreement and the
UN's 2030 Agenda for Sustainable Development, which UniCredit has always supported. Specifically, the process to identify and assess impacts,
risks and opportunities related to climate change and GHG emissions has been based on recognising that climate change has consistently been one
of the most significant issues for UniCredit, both internally and in terms of financing. In fact, as highlighted in previous years reporting, UniCredit
constantly monitors its own emissions and financed counterparties’, which represent actual impacts that the Bank has on the environment. In
parallel, UniCredit fosters climate-related awareness across counterparties and its commitment is concretized through the support towards energy
efficiency initiatives and renewables sources financial projects.
As described in the chapter Strategy - Material impacts, risks and opportunities and their interaction with strategy and business model, UniCredit’s
approach to climate and other environmental topics is based on tangible actions that generate direct and indirect impacts. The Group is committed
to limiting negatives and generating positive impacts to preserve natural capital for the benefit of the communities in which UniCredit operates and
itsself.
The Group strategic approach is based on the double materiality concept which considers both an inside-out and an outside-in perspective.
Inside-out perspective: manage the direct and indirect impacts that Group operations and lending have on the environment:
Indirect impacts - accompany Group clients on their green transition journey by:
• assessing and monitoring Group portfolio exposure towards most climate-related sectors;
• identifying and evaluating the impacts on climate;
• adopting a sector policy framework;
• defining the journey towards Net Zero on portfolio emissions.
Direct impacts - reduce our environmental footprint by:
• steering Group behaviour towards Net Zero on Group own emissions;
• procuring electricity from renewable sources;
• improving energy and space efficiency;
• fostering the efficient use of resources.
Outside-in perspective - prepare to measure the business consequences of climate stress and the associated socio-economic transition and take
advantage of emerging opportunities by:
• executing Group strategy;
• correctly managing climate and environmental risks, in line with the agreed Risk Appetite Framework (RAF) and the ECB climate stress test
requirement.
UniCredit’s strategy incorporates identifying and understanding climate and environmental risks (C&E) and opportunities that the Group may
encounter. C&E factors are related to the quality and functioning of the natural environment and its systems (Natural Capital) and include factors
such as climate change, biodiversity, energy consumption, pollution and waste management.
The table below provides an overview of each identified climate-related risk, its potential impacts, the corresponding time horizons (short, medium
and long-term) and the actions undertaken to monitor and mitigate these risks.
665
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Transition risks
Changes in or
introduction of public
policies and/or
environmental
regulations
Short and medium/long- term
Reduction of business for
corporate clients with
potential drawbacks on
creditworthiness/ solvency
Financial implications arising
from environmental/ESG
regulations and GHG
emission limits and/or
taxes applied to clients
operating in specific
economic sectors
Reduction of Group profits
deriving from concentration
on sectors more sensitive
to climate-related risks
Inclusion of ESG risks
considering both
counterparty scoring
(including the use of an
internally developed
questionnaire) and energy
performance certificates
(EPC) when assessing
credit applications
Enhancement of Market and
Liquidity risk framework
to incorporate the
assessment,
monitoring and control of
ESG risks
Integration of industry
steering signals within the
Credit Risk Strategies
framework, based on
relevant Climate &
Environmental (C&E)
factors
Definition of data governance
processes and related IT
investments to integrate
ESG risks into the risk
management framework
Participation in international
working groups and
commitments related to
climate, such as the Net
Zero Banking Alliance,
stakeholder engagement
initiatives and active
collaboration with policy
makers
Risk identification process
and materiality
assessment, including
stress tests, to evaluate
the significance of climate-
related risks in the short,
medium and long-term
horizons
Transition risks
Technological changes
Short and medium/long- term
Increase in costs for
corporate clients with
potential drawbacks on
creditworthiness/ solvency
Transition risks Changes in
customer/ consumer
preferences
Short and medium/long- term
Reduction of business for
corporate clients with
potential drawbacks on
creditworthiness/ solvency
Potential changes to the
offering of products and
services to clients
Inclusion of specific KPIs
related to transition and
physical risks within the
Risk Appetite Framework.
The risk appetite is then
cascaded to more granular
levels via risk strategies
and policies
Promoting a sustainable
culture within the
organisation by developing
ESG training courses and
workshops
Transition risks Changes in
customer or community
perceptions
Short and medium/long- term
Reputational impacts or
negative perceptions from
the community or
Stakeholders due to
inadequate management
of climate-related risks
Environmental sector policies
and their subsequent
implementation
Reputational Risk
assessment to evaluate
the positioning of clients
and specific projects in
relation to climate-related
topics
POTENTIAL CLIMATE-
RELATED RISKS
TIME HORIZON
MAIN POTENTIAL IMPACTS
SPECIFIC ACTIONS
OVERARCHING ACTIONS
666
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
POTENTIAL CLIMATE-
RELATED RISKS
TIME HORIZON
MAIN POTENTIAL IMPACTS
SPECIFIC ACTIONS
OVERARCHING ACTIONS
Physical risks
Acute
Extreme weather events,
such as floods, droughts,
heavy rainfalls,
heatwaves, fires and hail
Chronic
Chronic weather events,
such as variations in
average temperatures and
sea level rise
Short and medium/long-
term
Financial implications
resulting from
corporate /retail clients
being damaged by
extreme weather
events, potentially
impacting their
creditworthiness/
solvency
Potential damage to
the Group’s
infrastructure and the
potential disruption of
activities
Increase in energy supply
costs due to higher
heat/electricity demand
Inclusion of ESG risks
considering
counterparty scoring
Monitoring of physical
risks both on
counterparties within
portfolio and individual
collaterals
Definition of data
governance
processes and related
IT investments to
integrate ESG risk
into the risk
management
framework
Participation in
international
working groups
and
commitments related
to climate, such as
the Net Zero Banking
Alliance, stakeholder
engagement
initiatives and active
collaboration with
policymakers
Potential fires, driven by
rising temperatures,
affecting areas in
proximity to the
Group’s buildings
Potential impact of sea
level rise on buildings
located near the sea
Reduced productivity
due to higher
temperatures
Risk identification process
and materiality
assessment, including
stress tests, to evaluate
the significance of
climate-related risks in
the short, medium and
long-term horizons
Inclusion of specific KPIs
related to transition and
physical risks within the
Risk Appetite
framework. The risk
appetite is then
cascaded to more
granular levels via risk
strategies and policies
Promoting a sustainable
culture within the
organisation by
developing ESG
training courses and
workshops
Signing (2022) of the
Finance for Biodiversity
Pledge (FfB) and
participation as
member to the working
table on Biodiversity of
the UNEP FI (United
Nations Environment
Programme Finance
Initiative)
667
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Climate Risk Management
UniCredit recognises Climate and Environmental Risk factors as crucial elements in safeguarding its clients’ portfolios and assets from climate-
related risks. To achieve this goal, UniCredit is integrating climate and environmental factors into its risk management processes and procedures.
Climate Risk management encompasses the identification, measurement, and monitoring of these risks as well as the implementation of mitigation
measures. The Group actively engages and supports its corporate clients in transitioning to a lower carbon business model, fully exploiting green
business opportunities. Furthermore, the Group aims to assist its clients in achieving a just transition, ensuring fairness throughout the process.
Risk Identification
As reported in section “Internal Capital Adequacy Assessment Process (ICAAP) and Risk Appetite”, UniCredit’s first step is the identification and
mapping of all the risks embedded in the Group and in the relevant legal entities, with particular focus on the risks not explicitly covered by the
Pillar I framework.
This process, defined as the risk identification process, is a comprehensive framework to proactively identify all potential risks the Group may
encounter and is performed on an annual basis. The primary outcome of this activity is UniCredit’s risk inventory, which comprises a comprehensive
list of the quantitative and qualitative risks to which the Group is or may be exposed. The risk identification process enables UniCredit to assess
which risks are, or are likely to be, material considering their exposures. Material risks are determined annually using a quantitative approach that
involves assessing the risk level against the materiality threshold.
In line with the European Banking Authority’s (EBA) and the European Central Bank’s (ECB) expectations, UniCredit’s risk identification process
covers ESG risks dimensions considering that these could positively or negatively affect the risk types already incorporated in UniCredit’s risk
management framework.
Environmental, Social & Governance (ESG) risks pertain to any adverse financial consequences that may arise for the Group due to the existing or
prospective impacts of ESG factors on its counterparties or invested assets;
Climate and Environmental (C&E) factors are related to the quality and functioning of the natural environment and its systems and include factors
such as climate change, biodiversity, energy consumption, water, pollution, and waste management.
Social and Governance factors, for which the Group assigned an impact on reputational risk, revolve around the rights, well-being and interests of
individuals and communities and include governance arrangements for the environmental and social factors in the policies and procedures of
counterparties.
In coherence with the "Recommendations of the Task Force on Climate-related Financial Disclosures" (2017), climate related risks can be divided
into two major categories: (i) risks related to the transition to a lower-carbon economy and (ii) risks related to the physical impacts of climate change,
described in detail below.
Transition risks refer to the risks arising from the transition to a lower-carbon economy, which may entail extensive policy, legal, technology, and
market changes to address mitigation and adaptation requirements related to climate change. Depending on the nature, pace, and focus of these
changes, transition risks can pose different levels of financial and reputational risk for organisations.
• policy and legal risks stemming from continuously evolving policy actions, attempting to either constrain actions that contribute to the adverse
effects of climate change or seeking to promote adaptation to climate change, and from litigation or legal risks;
• technology risk stemming from technological improvements or innovations that support the transition to a lower-carbon, energy-efficient economic
system and that can have a significant impact on organisations to the extent that new technology replaces old systems and disrupts some parts of
the existing economic system;
• Market risk stemming from the potential shifts in supply and demand for certain commodities, products and services;
• Reputational risks stemming from changing client or community perceptions of the organisation’s contribution to or detraction from the transition to
a lower-carbon economy.
Physical risks refer to the risks related to the physical impact of climate change. These types of risk can be event driven (acute) or long-term shifts
(chronic) in climate patterns and, as such, their effects can be felt both in the short and medium/long-term horizon.
• Acute physical risks are event-driven, including increased severity of extreme weather events (e.g., droughts, floods, etc.);
• Chronic risks refer to longer-term shifts in climate patterns (e.g., sustained higher temperatures).
The connections between climate risk drivers and the risks faced by banks are referred to as transmission channels.
Understanding these transmission channels is crucial for assessing the impact of climate risk drivers in UniCredit’s risk management framework.
The figure below illustrates the climate-related risk drivers, relevant transmission channels and risk types that may be affected.
668
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
IRO-1 - Description of the processes to identify and assess material impacts, risks and opportunities
With particular reference to the identification and monitoring of Climate Change, an annual portfolio materiality assessment, integrated into the
Double Materiality Assessment according to the process described in section “Material impacts, risks and opportunities and their interaction with
strategy and business model”, is performed to identify the climate-related risk drivers which may materially impact the portfolio at single risk category
level, leveraging on common metrics and a unique threshold for risks and time horizons, through scenario analysis. For each risk and under the
short- (12 months), medium- (2030) and long-term (up to 2050), the metrics are defined according to an annualized unexpected loss concept, while
the threshold for a risk driver to be identified as material is set consistently with the internal ICAAP materiality threshold.
The set of climate scenarios considered for the analysis is provided by a qualified external provider and is meant to assess and quantify potential
vulnerabilities for the short and medium/long-term horizons. The main climate assumptions embedded in the scenarios in terms of transition policies
and level of emissions/temperature are consistent with the NGFS/IEA92’s ones to ensure consistency with scientific climate change pathways to
properly assess the impact of physical and transition risk drivers. The scenarios are extended with a more comprehensive set of variables (climate
and macro-economic related) disaggregated at higher level of granularity to better fit the Bank’s risk profile.
In particular, a central scenario (namely, Baseline), which considers the current Transition policies, the central macro-economic outlook and climate
assumptions similar to the International Energy Agency (IEA) STEPS scenario incorporating policies deemed sufficiently credible to materialize into
action, as well as two polarized stressed scenarios with very low probability of occurrence are considered.
To account for the pure climate risk impact, a Baseline Counterfactual scenario is considered, removing from the Baseline scenario any impact
deriving from climate risk.
92 Network for Greening the Financial System/International Energy Agency
CLIMATE-RELATED RISK
DRIVERS
Physical risk drivers
• Acute
• Chronic
Transition to low carbon Economy
risk drivers
• Policy changes
• Technological changes
• Behavioural/consumer
preferences changes
• Client or community perception
changes
TRANSMISSION
CHANNELS
• Carbon price/carbon tax
• New climate-related regulations
• Stranded assets
• Damages to property
• Shifts in prices and asset values
• Increased volatility of asset prices
• Lower asset performance
• Operational disruption
• Productivity changes
• Losses of business opportunity
• Dispute, claims
• Interest rates level
• Changes in individuals’ habits
• Changes in clients’ expectations
• Political decisions
• Energy Performance Certificates
• Insurance availability/affordability/
pricing
RISK TYPES POTENTIALLY
IMPACTED
• Credit Risk
• Market Risk
• Operational Risk
• Reputational Risk
• Business Risk
• Real Estate Risk
• Inter-risk diversification
669
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
The scenarios’ narratives for 2024 climate-risk scenario analysis are described below.
The Baseline scenario and the polarized stressed scenarios are modelled as deviations from the
Baseline Counterfactual scenario’s macroeconomic outlook and, as such, are meant to capture climate risk driven outcomes, with varying mixes of
physical (main driver of Energy Disorder scenario) and transition risk (main driver of Delayed Transition scenario) or both (Baseline).
The outcomes of the 2024 portfolio materiality assessment suggest a limited impact of climate-related risk drivers in the short-term, while they show
material impact of physical risk in the long-term for Credit Risk. Physical risk is hence to be considered a relevant risk driver for UniCredit portfolio.
Credit
Risk
Market
Risk
Operational
Risk
Business
Risk
Real Estate
Risk
Reputational
Risk
Transition Risk
Short
term
Medium
term
Long
term
Credit
Risk
Market
Risk
Operational
Risk
Business
Risk
Real Estate
Risk
Reputational
Risk
Physical Risk
Short
term
Medium
term
Long
term
Medium-term = 2030
Long-term = up to 2050
DELAYED TRANSITION
Transition risk stressed scenario.
Narrative: policies are introduced in 2030,
starting the transition. The delayed start
implies that a more stringent policy is
required to achieve similar climate outcomes
by 2050, resulting in greater economic
impacts. Aggressive and uncertain carbon
taxation policies cause substantial
inflationary pressures, stranded assets and
financial instability. Government carbon tax
revenues are sufficient to cover the fiscal
costs of the transition
ENERGY DISORDER
Physical risk stressed scenario.
Narrative: Increased protectionism in energy,
whose demand primarily met with fossil fuels,
and other strategic sectors on top of no
effective policy actions to address climate
change, resulting in high emissions and
severe temperature increase
The scenario also considers physical damage
estimates attributed to changes in temperature
volatility and the increasing likelihood of acute
events.
BASELINE
Central scenario.
Narrative: Projection of commitment and
measures currently adopted by different
countries. Climate assumptions aligned
with the IEA’s Stated Policies Scenario
Low
Medium Low
Medium
Material
670
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
The outcome on the Baseline scenario, not reported above, shows the low magnitude of transition and physical risks in all the three considered
horizons.
As described above, the portfolio materiality assessment is the starting point allowing to identify the risk drivers which shall be included in the overall
risk management framework to properly manage, monitor and mitigate them.
Within the overall risk management framework, the potential impacts of climate risks have been incorporated in methodology IFRS9 provisioning
(please refer to the Notes to the accounts, part E – information on risks and related hedging policies, “2.3.4 Scenarios and Sensitivity”) and into the
Internal Capital Adequacy Assessment Process to evaluate the capital adequacy of the bank relative to climate-related risks. The latter, performed
through scenario analysis, envisages the full coverage of risk types (e.g., credit risk, market risk, etc) and the integration of forward-looking elements.
The impact on capital need estimates shows that the Bank’s resilience is ensured in the short-, medium- and long-term.
The integration of transition risk and physical risk into RAF and into credit portfolio is described in the sections below. Moreover, additional details are
reported also for Financial and Non-Financial risks, considering their relevance for UniCredit group.
Integration of climate risk into RAF
UniCredit’s Risk Appetite provides an integrated view of business and risk strategy ensuring strategic plan execution within the risk capacity a bank
is willing to assume. It establishes the Group’s desired risk profile, driving short-term and long-term strategic objectives, and is supervised by the
UniCredit Board of Directors.
The Risk Appetite Framework (RAF) is composed of three key elements:
• Risk Appetite Statement (RAS) - provides a strategic view of and guidance on the target risk profile and is expressed via qualitative statements;
• Risk Appetite Dashboard - quantitative KPIs with related targets and risk tolerance thresholds for proactive risk steering;
• Risk Strategies - ensure the cascading of the Risk Appetite to more granular levels via operative indicators, limits and controls.
Since 2020, dedicated Risk Appetite Statements are drawn up regarding Climate & Environmental (C&E) risks, including the definition of UniCredit’s
commitment to assist its clients in a just and fair transition and the continuous integration of C&E risks within the Risk Management framework.
Dedicated quantitative C&E risk related KPIs have been included in the Risk Appetite Dashboard since 2022, addressing both transitional and
physical C&E risks. As of 2024, the following C&E KPIs are included in the Risk Appetite Dashboard and quarterly monitored at Group level and
main Legal Entities High Transition risk exposure KPI - aimed at measuring the Group’s exposure against largest counterparties that appear more
vulnerable along the transition path towards a lower-carbon economy, based on information retrieved through Climate and Environmental
Questionnaire during credit application.
Physical risk KPI - designed to measure potential damages that extreme climate-related acute physical risks events could cause to the Group’s
collateral portfolio. Net Zero KPI has been defined on the following 3 priority sectors with the same metrics used to set 2030 targets (financed
emissions and physical intensity), to steer the portfolio accordingly in 2024:
• Oil & Gas: Financed Emissions (MtCO2e);
• Power generation: Physical intensity (gCO2e/kWh);
• Automotive: Physical intensity (gCO2/vkm).
As of 2025 RAF Dashboard, the KPI Net Zero will also include the following sectors:
• Commercial Real Estate: Physical intensity (KgCO2e/m2);
• Residential Real Estate: Physical intensity (KgCO2e/m2)
Specifically, in 2025, the KPI will be monitored at Group level and cascaded to all relevant Legal Entities for the 3 priority sectors, while for
Commercial Real Estate only to Italy, Germany and Austria (being this the scope of Net Zero commitment) and for Residential Real Estate only for
Monitoring purposes (no RAF target/thresholds), being the 2030 target not externally communicated as for other sectors.
Being an integral part of the Group Risk Appetite monitoring process, C&E KPIs are subject to an escalation process (in the case of risk tolerance
threshold breaches) with related corrective/mitigation actions to be defined, when needed. The Group Board of Directors is informed of the breach
and remedy actions (if any) on a quarterly basis in the periodical information sharing process.
As of today, no breach in any of the defined thresholds happened.
In the following sections, the integration of transition risk and physical risk into credit portfolio will be further described. Additional details are reported
also for Financial and Non-Financial risks, considering their relevance for UniCredit group.
Integration of transition risk into credit portfolio – Credit Risk strategy and counterparty level.
UniCredit has been working on the identification, measurement, monitoring and mitigation of transition risk. The transition risk of the portfolio is
measured with different metrics, also including the distribution of the credit portfolio by industry.
671
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
A comprehensive approach has been developed to assess and manage transition risk; the Risk Management framework defined is fully consistent
with the RAF and is based on 3 pillars:
• specific reputation risk policies set-up (refer to subparagraph “Non-Financial Risks” below);
• dedicated Industry steering signals, based on relevant C&E factors (linked to transition risk) included in the Credit Risk Strategies framework
reviewed at least once a year;
• assessment at customer group or single client level, mainly leveraging a dedicated C&E questionnaire/external provider score.
In particular, the Industry steering signals (i.e. underweight, neutral, overweight) and the related industry limits embed relevant C&E factors, mainly
leveraging a heatmap based on harmonized transition risk scores (integrating C&E questionnaire where available) by economic activity.
Further principles are also integrated within qualitative guidelines (including Net zero indication where relevant) for the business to assess and
mitigate the risks for each specific industry. The cascading to the legal entities of the Group, together with the monitoring and escalation processes
at local and Parent company level, steer different credit portfolios in alignment with the RAF.
To determine the extent to which the Bank’s credit counterparties (subject to the C&E questionnaire perimeter) are exposed to Climate and
Environmental risks, the C&E questionnaire is based on a set of both cross-industry questions (in total 11 considering the different sections) and
industry-specific questions (an additional 2 for specific sectors), measuring qualitative and quantitative current and forward-looking key indicators
across the following three main drivers.
The three main drivers of the C&E questionnaire are:
• C&E exposure - the 5 questions allow an analysis of the current level of exposure of the Economic Group under assessment: (i) level of
Greenhouse Gas (GHG) emission (Scope 1, 2 and 3); (ii) Water consumption, (iii) Energy consumption; (iv) Waste production and recycling;
• C&E vulnerability - the 4 questions allow
• an analysis of the climate change management maturity level on a forward-looking basis, covering: (i) Company’s investment plan to shift to lower
emission level business model, (ii) GHG emissions reduction target;
• Economic Impact - the 2 questions allow an analysis of the potential impacts on corporate clients’ financial and industrial performance in terms of
cost and revenues.
Three steps are applied in order to determine the questionnaire result as shown below:
In detail:
• calculation of question-specific indicators based on the answers provided (a penalty system is in place and applied when information could not be
retrieved);
• conversion of indicators, related to single questions, to standardize the scores of different responses and guarantee comparability of results;
• weighting of question-specific scores according to a pre-defined table (that takes into account the relevance of the questions) and calculation of
the summary score for the different dimensions:
- sum of question-specific scores (and penalties if necessary) for each question in the Exposure cluster; the result is plotted on the vertical axis of
the matrix;
- sum of question-specific scores (and penalties if necessary) for each question in the Vulnerability cluster; the result is plotted on the horizontal
axis of the matrix;
• determination of C&E score ratings (1-Low; 2-Medium; 3-High; 4-Very High Risk), as shown in the matrix below.
1
QUESTIONNAIRE
11 cross-industry and 2 industry-
specific C&E related qualitative-
quantitative questions
2
SCORING & WEIGHTING
Questions and answers converted into
homogeneous scores on a scale from 1
to 5 and weighted by relevance
enabling differentiation
3
RESULTS AND MATRIX
The sum of weighted score positions
each counterpart on the Transition
Risk Assessment matrix
672
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Scoring methodology matrix
• c.1,500 approximate number of counterparties mapped by the C&E Questionnaire;
• 45%-50% approximate corporate portfolio coverage;
• Risk of our clients:
- 90% Medium/Low
- 10% High/Very high
In order to guarantee the robustness of the model and the correctness of the data collected, specific controls have been put in place and a window
dedicated to the uploading of documents used by the relationship manager to collect the data has been set up in order to verify the sources and
correctness of the information The results of the climate and environmental assessment are integrated in the credit application, allowing the decision
maker to effectively take climate and environmental factors into account during the credit decision phase. A specific process, factoring in transition
risk and physical risk evaluation (together with reputational risk and Net Zero whenever relevant), has been designed and cascaded to the Group
Legal entities through a dedicated Group Operational regulation in order to address the inclusion of Climate and Environmental considerations into
the overall evaluation of the client. Leveraging on transition risk score, the process application results in specific strategies (in terms of eligible
products) to steer the corporate portfolio's exposure fostering the clients' green transition and reducing at the same time UniCredit’s exposure to
C&E Risks. More in details, in case the client is subject to high or very high transition risk, the strategy foresees prevalence or exclusivity of ESG
related products, respectively. Outcome of physical risk assessment at counterparty level is meant to complement the strategy with the request of
physical risk mitigation action whenever deemed necessary. The adoption of the foreseen process in the various Group Legal entities rule is
progressing, also according to the availability of ESG Group’s infrastructure in the different Group LEs.
Transition risk at collateral level
With the aim of measuring transition risk associated with assets accepted as collateral to fulfill regulatory obligations (Pillar 3, EU Taxonomy, Stress
Tests) and meet managerial needs, a collection of Energy Performance Certification (EPC) data has been conducted in the various Group Legal
Entities:
• for the stock, where the data could not be punctually retrieved, the Group leveraged on external specialised providers, which developed an
estimation model.
• for the new flows, the following transition risk KPIs are collected and properly taken in consideration during origination phase:
Energy Performance Certification label (EPC) with flag indicating estimated/reported;
Primary Energy Demand (PED) measured as kWh/sqm;
CO2 emissions;
Energy Performance Certification label issuance year.
Such information has been integrated into the ESG Global IT Infrastructure and is available on the local underwriting platforms at the origination
stage.
C&E Exposure
5
Transition Risk
Very High D
D
4
3
Transition Risk
-High C
2
1
Counterparty positioning
Medium- B
T
0
1
2
3
ransition Risk
4
5
C&E Vulnerability
A
High C&E Transition Risk
Risk counterparts
A
Low
Clients with no/limited Climate and
Environmental Transition risk
B
Medium
Clients with moderate Climate and
Environmental Transition risk
C
High
Clients with tangible Climate and
Environmental Transition risk
D
Very High
Clients with important level of
Climate and Environmental
Transition risk
Low Risk
673
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Physical risk in the credit portfolio
Physical risk is carefully monitored for both counterparties within the Group's portfolio and individual collateral assets. This involves the assessment
of a wide range of hazard events, with particular attention given to the following:
• material hazard events related to physical risk at counterparty level; and
• material hazard events related to physical risk at collateral level.
Material hazard events related to physical risk at counterparty level:
TYPE OF PHYSICAL
RISK (ACUTE/
CHRONIC)
Acute
MATERIAL
PHYSICAL RISK
HAZARD EVENT
Landslides
DESCRIPTION OF
THE PHYSICAL RISK
HAZARD EVENT
Risk of landslide events,
long historical data
METRIC/APPROACH
Annual probability of
event with high severity
SPATIAL
RESOLUTION
grid 200
metres/census
cell
SOURCE
Third party Data &
Bundesanstalt für
Geowissenschaften
und Rohstoffe &
Istituto di Ricerca per
la Protezione
Idrogeologica
Acute
Floods
Risk of flood events,
related to waterways and
heavy rain events,
predictive model
Annual probability of
event with high
severity, return period 50y
grid 100
metres/census cell
Third party Data &
Istituto Superiore per
la Protezione e la
Ricerca Ambientale
(ISPRA)
Acute
Wind (Extreme
wind-related
events)
Probability of extreme wind
events based
on storm footprint,
measured on Beaufort
scale, return period 50y
Annual probability of
extreme events (11-12
Beaufort scale)
grid H3
Third party Data
Acute
Wildfire
Risk classes depending
on days with high fire risk
subject to the type of
environment in which the
company is located,
Representative
Concentration Pathways
(RCP) 4.5 scenario
Average days/year with
high fire risk, subject to
type of environment
grid 4 kilometres
Third party Data &
European Space
Agency (ESA)
Data &
Copernicus Data
Acute
Extreme waves
(extreme waves,
storm surges)
Probability of having storm
surges and high energy
waves
Wave height in RCP 8.5
with a return period
of 50y
grid 25 kilometres
Third party Data
Acute
Frost occurrence
Probability of cold events
(frost, even of short
duration), predictive model
Average number of
events by years
grid 10 kilometres
Third party Data
Acute
Heat
occurrence
Probability of hot events
(even of short duration),
predictive model
Average number of
events by years
grid 10 kilometres
Third party Data
674
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
TYPE OF PHYSICAL
RISK (ACUTE/
CHRONIC)
Acute
MATERIAL
PHYSICAL RISK
HAZARD EVENT
Heat waves
DESCRIPTION OF
THE PHYSICAL RISK
HAZARD EVENT
Probability of heat waves
(extreme hot event > 3
days), historical data
METRIC/APPROACH
Number of events (>
3 days) observed in a
60y period
SPATIAL
RESOLUTION
grid 10 kilometres
SOURCE
Third party Data
Acute
Aridity
Probability of aridity
phenomena (ratio
precipitation/
evaporation), predictive
model
Mean annual precipitation
(P)/mean annual
evapotranspiration (ETP)
grid 500 metres
Third party Data
Chronic
Sea level rise
Estimates the sea level
with various
meteorological models
Max wave height in
2050, return period in
50y
grid 25 kilometres
Third party Data
675
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Material hazard events related to physical risk at collateral level:
TYPE OF PHYSICAL
RISK (ACUTE/
CHRONIC)
Chronic
MATERIAL
PHYSICAL RISK
HAZARD EVENT
Sea level rise
DESCRIPTION OF
THE PHYSICAL RISK
HAZARD EVENT
Estimates the sea level
with various
meteorological models
METRIC/APPROACH
Sea level rise
hazard zones defined on
Elevation Index (driven
by coastal topography)
and sea level rise Index
(driven by sea level rise).
The sea level rise hazard
information is available
for different scenarios
SPATIAL
RESOLUTION
30 metres
resolution for
flooding hazard by
sea level rise
globally
SOURCE
Third party data: Sea
level rise zones were
modelled based on
high- resolution
elevation data from
elevation model and
sea level rise
projections from
climate models
Acute
Flood:
• River Floods
• Flash Floods
• River floods: Risk of
river flood events,
related to waterways
and heavy rain events
• Flash floods are short-
term events which can
be produced by
multiple thunderstorms
with heavy rain over
one area
• River floods: global
climate model and global
land surface models
estimate changes in
peak water runoff at
hydrological basin
resolution. These
changes in peak runoff
are then used to scale
current river flood
maps. The projections
are available in different
scenarios
• Flash floods: the flash
flood map is based on
meteorological data, as
well as soil, terrain and
hydrographic data
(slope and flow
accumulation). The
meteorological data
includes the amount,
variability, and extreme
behaviour of rainfall
• River floods: 30
metres
• Flash floods:
approximately
250 metres
Third party data:
• River floods:
Geoweb natural
hazard maps
• Flash floods:
soil-sealing maps
(detected by
looking at
impervious
surfaces),
curvature (from
global multi-
resolution terrain
elevation data),
slope and flow
accumulation (from
conditioned terrain
data)
as modifiers to
generate the final
flash flood map
676
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
TYPE OF PHYSICAL
RISK (ACUTE/
CHRONIC)
Acute
MATERIAL
PHYSICAL RISK
HAZARD EVENT
Storms
DESCRIPTION OF
THE PHYSICAL RISK
HAZARD EVENT
Storms (including
blizzards, dust and
sandstorms):
extratropical storms and
storm surges
METRIC/APPROACH
• Extratropical storms:
The main variables of
the exposure analysis
are forward wind,
maximum wind speed,
minimum central
pressure, radius of
maximum wind speeds,
track of the centre (eye)
in 3 to 6 hourly
intervals
• Storm surges: multiple
wave heights are
simulated for each
coast and the
maximum expansion
calculated. Wind
speeds and bathymetry
data were also taken
into account
SPATIAL
RESOLUTION
• Extratropical
storms:
approximately 5
kilometres
• Storm surges:
approximately
30 metres
SOURCE
Third party data
Acute
WildFire
Risk classes depending
on days with high fire risk
subject to the type of
environment in which the
company is located, RCP
4.5 scenario
Fire Weather Index
(FWI) combining the
probability of
ignition, the speed and
likelihood of fire spread
and the availability of fuel.
Approximately 1
kilometre
Third party data:
modelled according to
daily information on
temperature,
precipitation, humidity
and wind
Acute
Hail
Heavy hailstorms are
usually triggered by wide
cold fronts. Occasionally,
local hot weather
thunderstorms – a result
of intense insolation over
land or mountain slopes –
also lead to severe
localized hailstorms.
Global standardized
records of
meteorological data.
hailstorm map is
based on a number
of atmospheric
conditions with the
potential to create a
hailstorm. The
following parameters
were taken into
account for the
calculation:
• Average annual
evapotranspiration [mm]
• Average annual
temperature gradient
[°C/km]
• Average annual potential
height of fall of hail [m]
Third party data
The Group’s guidelines to integrate physical risk and transition risk KPIs into collateral evaluation, issued through a CRO Letter in 2023, have been
transposed and embedded in a Group Operational Regulation published in January 2024 and properly cascaded to all the Legal Entities.
677
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
According to the guidelines, the appraiser is delegated to evaluate, based on own independent assessment, the extent of transition risk (leveraging
on EPC) and physical risk (through a homogeneous set of hazards to be assessed and evaluated with a dedicated taxonomy provided by the
guidelines) and to embed also these components in the overall assessment and final value assigned to the collateral.
Financial Risk
With regards to financial risks (market risk, liquidity risk and counterparty credit risk), several concrete initiatives have been implemented over the
last years to further integrate C&E risk into the financial risk management framework. The key pillars of the approach followed include:
• an overall methodological approach for incorporating C&E drivers within the Financial Risk framework has been refined, leveraging on a
combination of assessment methodologies already employed by the Group. The methodological framework measures transition and physical risks
within the Financial Risk relevant perimeter. For this purpose, both internal (transition) risk scores as well as externally sourced scores are applied.
For the purpose of transition risk these scores are complemented by industry scores to further increase the data coverage. For the relevant market
risk perimeter (Corporates&Financials) in the trading book for transition risk a very high coverage can be accomplished (almost 100%) and for
physical risk about >60% coverage can be obtained. For the investment portfolio relevant perimeter (Corporates&Financials) for transition risk an
almost full coverage and for physical risk about 50% coverage can be obtained, similarly also for the purpose of counterparty credit risk and
liquidity risk (Counterbalancing Capacity - CBC);
• C&E KPIs are included within market risk \ counterparty credit risk strategy in line with Group ESG strategy; a dedicated limits and warning levels
are applied. Specifically:
- Granular Market Limits (GMLs) for equities and credit exposure vs high transition and physical risk score in the trading-book;
- Granular Market Limits (GMLs) for non-sovereign debt securities exposure vs high transition and physical risk score in the investment portfolio,
i.e., in the banking book;
- Early Warning for sovereign debt securities exposure vs high transition and physical risk score in the investment portfolio, i.e., in the banking
book;
- Stress Test Warning Levels (STWL) on dedicated climate scenarios;
- Early Warnings on Pre-Settlement exposure for counterparties with High Transition and Physical Risk score;
• the assessment of C&E drivers is incorporated into the process for evaluating new financial products within the Group. When assessing new
products, LEs are responsible for verifying whether any C&E risk is embedded in the product’s payoff/structure and for ensuring consistency with
Group’s ESG strategy by involving the local competent function if needed;
• specific inclusion and exclusion criteria for investment process and transaction due diligence in coherence with Coal and Oil & Gas sector policies.
Concerning Monitoring and Reporting, the Financial Risk function monitors and reports monthly to competent corporate governing bodies the
concentration towards climate risk with reference to equity risk and corporate and financial bonds in the trading book, corporate and financial bonds
in the investment portfolio, counterparty credit risk exposures and counterbalancing capacity. The monitoring framework includes physical and
transition risks within the Financial Risk relevant perimeter complemented also by an analysis with respect to physical risk hazards. Additionally, also
a Carbon Foot printing analysis for the corporates and financial bonds in the investment portfolio is included.
In April 2022, the market risk stress testing program was enhanced with a dedicated climate risk scenario which extends the ECB short-term
disorderly transition scenario. Moreover, since October 2022, the monthly reporting and monitoring framework has been enhanced by incorporating
transition and physical risks and in December 2022 the Climate risk stress test scenarios were further increased. In September 2024 the Baseline
Counterfactual scenario, which does not include any impact from Climate risk, was introduced. This scenario is used to identify the climate risk
which may materially impact the portfolio in the Stressed Scenarios, as well as in the Baseline scenario, by neutralizing the pure macro-economic
outlook from the estimates.
Investment Portfolio:
Direct Transition and Physical Risk Scores are available for 100% and 45% respectively of the relevant perimeter of the Investment Portfolio
(Corporates and Financials exposure). The distribution of the investment portfolio is mainly concentrated in Medium-Low category (54%) for
Transition Risk and in Low category (71%) for Physical Risk. Not material exposure with high transition risk score and no high risk score for physical
risk.
678
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Transition Risk:
High – 0%
Medium High – 44%
Medium Low – 54%
Low – 2%
Physical Risk:
High – 0%
Medium High – 14%
Medium Low – 15%
Low – 71%
Trading Portfolio:
The overall materiality of climate-related exposure is very low. The split between equity-related and credit-related risk in the trading book is
illustrated below:
Equity risk in the trading book:
Direct Transition and Physical Risk Scores are available for 99% and 91% respectively of the relevant perimeter of the Portfolio (Corporates and
Financials exposure). Risk distribution is mainly concentrated in the Medium-Low category for both Transition (48%) and Physical (45%) Risk.
Currently there is almost no exposure for a high-risk score for either transition or physical risk.
Transition Risk:
High – 1%
Medium High – 27%
Medium Low – 48%
Low – 23%
Physical Risk:
High – 1%
Medium High – 15%
Medium Low – 45%
Low – 29%
Credit risk in the trading book:
Direct Transition and Physical Risk Scores are available for 99% and 76% respectively of the relevant perimeter of the Portfolio (Corporates and
Financials exposure).
Risk distribution is mainly concentrated in the Medium-High category (67%) for Transition Risk and in the Low category (57%) for Physical Risk.
Currently there is almost no exposure for a high-risk score for either transition or physical risk.
Transition Risk:
High – 0.5%
Medium High – 67%
Medium Low – 29%
Low – 3%
Physical Risk:
High – 0.2%
Medium High – 13%
Medium Low – 30%
Low – 57%
The materiality for financial risk is assessed via the standard ICAAP framework as described earlier and is complemented by further concentration
analyses and stress scenarios. Based on these assessments, combined also with qualitative considerations on UniCredit’s trading business model,
appears to be no materiality of climate & environmental drivers on market risk exposures.
Similarly, the outcome of the liquidity impact of climate risks reveals a limited materiality of the exposures to these risks also in ILAAP.
679
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
Climate risk could cause material net cash outflows or depletion of liquidity buffers, mainly stemming from the financial impact on the held assets of
a changing climate (i.e., physical risk) or the institution’s financial loss that can result, directly or indirectly, from the process of adjustment towards a
lower-carbon and more environmentally sustainable economy (i.e., transition risk). According to the definition of physical and transitional risk, the
transmission of climate risk to liquidity comes through the following channels:
• Counterbalancing Capacity (CBC): risk premia on securities of carbon-intensive issuers (transitional risk) or issuers particularly exposed to
extreme climate events (physical risk) could increase, deteriorating the market value of the liquidity buffer;
• Deposits: withdrawals of deposits mainly due to high liquidity needs and credit losses that could stem from corporate clients with high CO2
emissions, which could have to adapt their technologies and production plants to more carbon-neutral economies (transitional risk) or from
customers hit by severe weather events (physical risk), which reduce profitability and potentially increase credit risk and liquidity needs;
• Undrawn credit and liquidity facilities, whose usage might increase for the same reasons listed for deposits;
• Market valuation changes on derivatives transactions climate related price shocks and increased market volatility may result in increased
derivative exposures and related margin-calls.
Additionally, the transition risk might appear if UniCredit itself fails in adapting its practices to the new climate regulations, thus leading to
reputational impacts. Such a risk is regularly monitored through the name crisis scenario of the liquidity stress test.
In order to assess the materiality of the liquidity risk arising from climate factors related with deposits and committed lines, UniCredit’s customers are
classified according to a climate risk score defined through an internal questionnaire or acquired by external information providers. A stressed
liquidity outflow ratio (from granted committed lines or from outstanding deposits) is applied on those customers labelled with high or medium high
risk: the underlying assumptions of the impact analysis is that these customers will have increased liquidity needs comparable to those simulated in
the severe internal liquidity stress test analysis.
The potential deterioration or the value of the counterbalancing capacity or the change in the value of derivatives (generating margin calls) is
estimated by applying specific climate scenarios to the most relevant market variables (the same scenarios used in the ICAAP analysis).
The above-described effects are applied to the operative maturity ladder and the liquidity coverage ratio to assess the climate risk impact on the
short-term perspective. Similarly, the effects are applied to the net stable funding ratio to simulate the structural liquidity changes produced by the
above-described simulations.
The resulting impact is compared with the internal inherent risk severity thresholds.
In general, longer-term effects (on the balance sheet structure) are low both for transitional and physical risk, as the liquidity structure of the Group
balance sheet is sound and ensures enough time to absorb potential climate related changes. In case physical risk materializes the channel through
which the risk would transmit to liquidity is mostly from the potential deposit outflows.
As far as the short-term effects (direct impacts on liquidity) are concerned, the exposure to physical risk is classified as medium-low: the impact of
deposit outflows has a higher weight on short term metrics.
Also for transitional risks the impacts are negligible on the longer term horizon. Short term metrics are instead more impacted both by the potential
higher usage of deposits from customers with high or medium high exposure to transition risk and from the potential margin calls connected with the
higher volatility of commodity prices. The overall impact for the Group will remain anyway medium low, according to the internal severity scale. Both
for physical and transitional risks the identified impacts (classified as medium-low) can be easily absorbed by the liquidity buffers available in the
Group.
Non-financial risk
Non-financial risks can be influenced by environmental factors in general and by the climate change in two different ways:
• Reputational risk - Risk for the Group of being perceived and criticized for supporting activities and projects through its financial products and
services that harm the environment and contribute to worsening the climate change scenario;
• Operational risk - Risk for the Group of facing temporary disruption or unavailability of key premises (e.g., data centres, operational centres,
headquarters) or for the discontinuity of services suffered by some of its third-party service providers due to adverse extreme climate conditions.
The Group has implemented adequate processes to mitigate the above-mentioned risks.
With regards to reputational risk, the Group defines Reputational Risk as the current or prospective risk to earnings and capital resulting from the
negative perception of the Financial Institution’s image by various stakeholders including clients, shareholders/investors, regulators, employees,
debtholders, market analysts, civil society, NGOs, media and other relevant parties.
680
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
The management of reputational risk relies on:
• setting clear general rules and guidelines for:
- defining the profile of relationships (with clients as well as with other relevant counterparties such as suppliers) and operations (mainly financial
support, but also investments and other financial products and services offered) that the Group is available to manage and develop;
- defining the profile of what the Group does not consider to be in line with its foundation principles and reputational standards. These rules and
guidelines are designed to ensure alignment with laws, internal and external regulations, best practices within the sector and reflect the risk
appetite and the sensitivity of the Group;
• setting additional specific rules and guidelines for sectors considered sensitive (Coal, Oil & Gas, Defence, Nuclear, Mining, Water Infrastructures)
and contributing to the Group commitments for specific topics (Rainforest, Tobacco, Human Rights, Natural Capital/Biodiversity);
• requiring for each relationship the evaluation of the conformity to the rules and guidelines mentioned above;
• ensuring respect of the rules mentioned above for each operation, performing a specific Reputational Risk Assessment involving the dedicated
Reputational Risk function and other specialist/competent functions (e.g., ESG, Compliance, Legal) in cases of potential deviation and rejecting
operations in breach of such rules;
• setting conditions, controls or limitations, where deemed necessary, in order to reduce the material residual Reputational Risk for Group,
regardless of the sector connected to the case;
• independently from the sector, evaluation of the liability/litigation risk that can derive from supporting a deal which could produce a negative
environmental or social impact, when the deal is under the Equator Principles (EP) framework;
• taking the right decisions at the right level of authorization in cases of potential reputational risk, involving the Group Non-Financial Risks
Committee (GNFRC) for the highest risk cases and/or for strategic decisions.
The Group, in its continuous monitoring of the market and stakeholder’s expectations, has identified six «sensitive sectors» for which it has adopted
a dedicated additional set of provisions and rules described in specific internal regulations listed below:
In addition, UniCredit group has signed specific commitments regarding the exit from Tobacco industry and from activities that favor deforestation or
forest degradation and also reinforced its positioning on Human Rights commitment.
The inclusion of a sector among the sensitive ones and the provisions of the existing ones are renewed on a continuous basis, taking into account
the evolution of the market and the sensitivity of the Group towards these sectors.
Global policy on Reputational risk sets minimum requirements for subjects and deals regardless the sector of belonging (e.g. no operation is
UNESCO/protected areas IUCN I-IV,…).
COAL
MINING
OIL & GAS
WATER INFRASTRUCTURE
NUCLEAR
(for energy generation)
Fossil Fuel
Environmental
Sensitive
Group Reputational Risk Framework
DEFENCE
(including nuclear weapons)
ALL THE SECTOR / ALL THE RELATIONSHIPS
681
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
For each sensitive sector, the specific regulation covers the following aspects:
• the scope of the sector (type of subjects and activities);
• the forbidden activities (activities that the Group is not available to support with its financial products and services, e.g., controversial weapons,
nuclear weapons, coal-related activities, oil & gas activities in the Arctic region);
• the classification of clients:
- Class A - clients completely in line with the provisions and for which the Group is available to provide full financial support;
- Class B - clients partially in line with positive transitions and moving in the right direction. The Group is available to support these clients with its
financial products and services, refraining from providing other types of financial products and services that do not align with the transition
towards more sustainable practices;
- Class C - clients not aligned with the provisions of the Group or moving in a different direction and for which the Group is not available to provide
any kind of financial support. In these cases, a phase-out of the relationship may be considered.
UniCredit group has defined a process for assessing Reputational Risk, identifying cases where a dedicated assessment is necessary.
The decision-making bodies responsible for assessing cases of reputational risk can vary according to the relevance of the case and alignment with
the policy provisions.
For UniCredit S.p.A., cases that envisage a potential high relevance with appetite already set are brought to the attention of Head of Group Non
financial risks (with the support of RRO93, if the case).
Cases that envisage a potential high relevance with appetite not set yet are brought to the attention and decision of the Group Non-Financial Risks
Committee (GNFRC) chaired by the Group CEO.
Similar structures have been established at local level within each Legal Entity of the Group. At local level, RRO and GNFRC are collapsed in the
LNFRC (Local Non-Financial Risk Committee), chaired by the local CEO.
Cases where reputational risks are deemed to be of significant relevance within a specific Legal Entity are submitted to the Holding company for
further validation (Non Binding Opinion - NBO).
A Reputational Risk decision taken at local level also requires an NBO by the Parent Company in two specific situations:
• when the case, authorised by the Local NFR Committee, presents a High Reputational Risk and has to be submitted to a Group Credit Committee
(GCC or GTCC);
• when explicitly requested by the policy. e.g., exceptions granting, Green Project Financing in the Oil & Gas or Coal sectors, granted to a B class
client, requires an NBO to double check that the Green project is currently aligned with the EU Taxonomy.
Whenever a further scrutiny of a case is deemed necessary, Legal Entities can ask the Parent Company for an NBO for cases other than the two
mentioned above.
Any unplanned and unforeseen situations related to a specific relationship or deal and not aligned with the standard provisions of the policy are
evaluated case by case. Expert judgement is required for evaluating the alignment of the case with UniCredit general principles on Reputational
Risk. Any decisions must diligently consider the provisions of the applicable policy and the characteristics and context of the case under
examination.
• Decision makers/number of cases evaluated
- Transactions evaluated in 2024: 1,690
• 15 cases discussed in the Group Non-financial Risks Committee (GNFRC)
• 39 cases discussed in Reputational Risk Office (RRO)
• 1,521 cases discussed in Reputational Risk function
• Reputational Risk assessment by geography
- Transactions evaluated at local level in 2024: 1,575
• Central Europe: 521
• Eastern Europe: 308
• Germany: 132
• Italy: 608
• Russia: 6
93 Reputational Risk Office, which includes the representatives of the Group Specialist Functions.
682
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
• Reputational Risk assessment by Sectors
- Transactions evaluated by sectors in 2024: 1,690
• Coal: 135
• Defence: 412
• Mining: 161
• Nuclear: 66
• Oil & Gas: 181
• Water Infrastructures: 41
• Tobacco: 3
• Human Rights: 5
• ESG issues (including legal proceedings): 362
• Sensitive sector locally regulated: 297
• Other sectors: 17
• Liability risk: 10
• Annual clearance released at group level
- Transactions evaluated in 2024: 740
• Central Europe: 341
• Eastern Europe: 216
• Germany: 99
• Italy: 80
• Russia: 4
• Single deal decisions taken at group level
- Transactions evaluated in 2024: 835
• Central Europe: 180
• Eastern Europe: 92
• Germany: 33
• Italy: 528
• Russia: 2
With regard to Operational risk, for all Legal Entities the Group carries out an assessment aimed at identifying critical locations where unavailability
could harm business continuity (e.g., data centres, headquarters, operational centres).
103 buildings were selected for the assessment. Each location has been classified according to current risks from extreme adverse climate
conditions (river floods, flash floods and wildfire) that could affect the location itself.
Among those selected, 10 buildings resulted as potentially exposed to high or medium-high risk; the related business continuity plan was assessed
to check the effectiveness of protection in cases of adverse climate conditions.
Wherever the business continuity plan highlighted the inadequacy of the backup building (e.g., exposed to the same risk as the primary location),
adequate mitigants were identified (e.g. definition of a new backup location, full smart-working implementation, etc). For one building a formal taking
risk has been taken by the Legal Entity Management Board, considering that additional mitigants were not identified.
Moreover, exposure to the perceived risk in a scenario of +4°C in 2030 has been considered. In this case, 7 additional buildings have been identified
currently not exposed to such risks but potentially exposed to them considering this additional scenario. Devoted KPIs have been put in place in
collaboration with Group Real Estate in order to monitor future climate event comparing them with the location history, with the aim to put in place
immediate actions in case of climate risk exposure worsening. The KPI is monitored every six months, and in both the 2024 detections no deviations
from the history of these buildings has been detected.
In order to assess the resilience of third-party service providers with regard to climate change, the Third-Party Assessment (performed during
onboarding of new suppliers, then yearly) has been enhanced by also considering the business continuity plans adopted to manage potential
adverse climate events.
With reference to Group involvement in green financing, it should be noted that the Group, in coherence with Commission Implementing Regulation
(EU) 2022/2453 of 30 November 2022, identifies as environmentally sustainable those exposures that finance activities that contribute or enable the
environmental objective of Climate Change Mitigation (CCM) in accordance with articles 10 and 16 of Regulation (EU) 2020/852 and subsequent
amendments.
683
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part E - Information on risks and related hedging policies
In detail, article 10 of the mentioned Regulation establishes that an economic activity qualifies as contributing substantially to climate change
mitigation where that activity contributes substantially to the stabilisation of greenhouse gas concentrations in the atmosphere at a level which
prevents dangerous anthropogenic interference with the climate system consistent with the long-term temperature goal of the Paris Agreement
through the avoidance or reduction of greenhouse gas emissions or the increase of greenhouse gas removals, including through process
innovations or product innovations, by (a) generating, transmitting, storing, distributing or using renewable energy; (b) improving energy efficiency;
(c) increasing clean or climate-neutral mobility; (d) switching to the use of sustainably sourced renewable materials; (e) increasing the use of
environmentally safe Carbon Capture and Utilisation (CCU) and Carbon Capture and Storage (CCS) technologies that deliver a net reduction in
greenhouse gas emissions; (f) strengthening land carbon sinks, including through avoiding deforestation and forest degradation, restoration of
forests, sustainable management and restoration of croplands, grasslands and wetlands, afforestation, and regenerative agriculture; (g) establishing
energy infrastructure required for enabling the decarbonisation of energy systems; (h) producing clean and efficient fuels from renewable or carbon-
neutral sources; or (i) enabling any of the activities listed in points (a) to (h).
Article 16 establishes that economic activities are contributing substantially to one or more of the environmental objectives indicated at article 9 by
directly enabling other activities to make a substantial contribution to one or more of those objectives, provided that such economic activity: a) does
not lead to a lock-in of assets that undermine long-term environmental goals, considering the economic lifetime of those assets; and has b) has a
substantial positive environmental impact, on the basis of life-cycle considerations.
CCM exposures were identified by collecting the data reported by companies in their non-financial disclosures, considering the % of alignment,
weighted by the Bank's exposure. The collection of non-financial disclosures was done leveraging on the external provider support.
On the basis of the above-mentioned definitions, it should be noted that the gross carrying amount of these exposures is equal to €3.3 billion (€1.7
billion related to UniCredit S.p.A.) with an associated coverage ratio of approx. 1%. The maturity of these exposures is for approx. 80% within 5
years; the remaining part has a maturity over 5 years, mainly between 5 and 10 years.
684
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part F - Consolidated shareholders’ equity
Part F - Consolidated shareholders’ equity
Section 1 - Consolidated Shareholders’ Equity
A. Qualitative information
UniCredit group deems as priority the activities of capital management and capital allocation based on the risks taken, with the aim of expanding the
Group’s operations in a value creation perspective. These activities are structured in the different phases of the Group planning and monitoring
process and, in particular:
• planning and budgeting processes:
- proposals of risks propensity and capitalisation targets;
- analysis of risks associated with value drivers and allocation of capital to the different businesses;
- assignment of risk-adjusted performance objectives;
- analysis of the impact on the Group’s value and the creation of value for shareholders;
- preparation and proposal of the capital plan and dividend policy;
• monitoring processes:
- analysis of performance achieved at Group and business unit level and preparation of managerial reports for internal and external use;
- analysis and monitoring of targets achievements and limits respect;
- analysis and performance monitoring of the capital ratios of the Group and of its main entities.
The Group has committed itself to generate income in excess of cost of equity creating value for its shareholders by allocating capital to the various
business areas and business units on the basis of specific risk profiles. In order to support the planning and monitoring processes, the Group adopts
a methodology based on risk-adjusted performance measurement (RAPM) which provides a number of indicators that combine and summarise the
operating, financial and risk-related variables to be considered.
Therefore, the Group capital and its allocation are of paramount importance in the definition of corporate strategies, as, on the one hand, the Group
Capital represents the shareholders’ investment in the Group, which needs to be adequately remunerated, and on the other hand, it is a scarce
resource subject to the external constraints set by the regulatory requirements.
In the allocation process, the definitions of capital adopted are the following:
• risk or employed capital: this is the equity component provided by shareholders (employed capital) which must be remunerated through an income
generation higher than or equal to expectations (cost of equity);
• capital at risk: this is the portion of capital and reserves that is used (the budgeted amount or allocated capital) or was used to cover (at period-
end, absorbed capital) the risks taken to pursue the objective of creating value.
The capital at risk is measured both in terms of capital requirements (RWEA), and in terms of Economic Capital (EC). Economic Capital is subject to
Group own definitions and criteria, at such a level to cover adverse events with a high level of probability, while capital at risk based on regulatory
requirements is quantified on the basis of a CET1 target ratio and taking into account the supervisory regulations in force. Capital Allocated to
Business Segment is quantified by capital at risk based on regulatory requirements.
The capital management activity aims at defining the target level of capitalisation for the Group and its companies in line with supervisory regulations
and the risk appetite.
UniCredit group has identified a Common Equity Tier 1 Ratio target of 12.5-13 per cent, as announced during the “UniCredit Unlocked” Strategy Day
held on 9 December 2021 (https://www.unicreditgroup.eu/content/dam/unicreditgroup-eu/documents/en/Strategy-day/UniCredit_2021_Strategy-
Day_PR_ENG.pdf).
The capital management activities envisage the development of the capital plan and the monitoring the regulatory capital ratios.
The monitoring activity is focused on the one hand, on capital, according to both accounting and regulatory definition (Own Funds composed by
Common Equity Tier 1, Additional Tier 1, Tier 2 Capital, and liabilities eligible for MREL), and, on the other hand, on the planning and performance
of Risk Weighted Exposure Amounts (RWEA) and of total exposures (the denominator of the Leverage ratio).
The capital management is intended as dynamic activity continuously aiming at identifying the most suitable investment and capital instruments
(ordinary shares and other capital instruments) for achieving the defined targets and strategies. If there is a capital shortfall, the gaps to be filled and
the capital generation measures that can be used are identified, and their cost and efficiency are measured through the RAPM methodology. In this
context, value analysis is enhanced by the aspects regarding, among others, regulatory, accounting, financial, tax-related and risk management
issues; in this way, is possible to perform the necessary assessments and to provide with the necessary instructions to the functions of the Parent
Company or of the Group companies asked to implement the actions identified.
685
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part F - Consolidated shareholders’ equity
B. Quantitative information
B.1 Consolidated Shareholders' Equity: breakdown by type of company
(€ million)
AMOUNT AS AT 31.12.2024
NET EQUITY ITEMS
BANKING GROUP
INSURANCE
COMPANIES
OTHER COMPANIES
CONSOLIDATION
ADJUSTMENTS AND
ELIMINATIONS
TOTAL
1. Share Capital
21,468
-
8
-
21,476
2. Share premium reserve
66
-
-
-
66
3. Reserves
33,470
236
1,519
(1,771)
33,454
4. Equity instruments
4,958
-
-
-
4,958
5. Treasury shares
-
-
-
-
-
6. Revaluation reserves
(5,448)
(11)
58
(46)
(5,447)
- Equity instruments designated at fair value through other
comprehensive income
152
-
-
-
152
- Hedge accounting of equity instruments designated at fair
value through other comprehnsive income
-
-
-
-
-
- Financial assets (different from equity instruments) at fair
value through other comprehnsive income
(463)
-
-
-
(463)
- Property, plant and equipment
1,551
-
7
-
1,558
- Intangible assets
-
-
-
-
-
- Foreign investments hedging
(189)
-
-
-
(189)
- Cash flow hedging
(257)
-
-
-
(257)
- Hedging instruments (non-designated items)
-
-
-
-
-
- Foreign Exchange differences
(3,750)
-
-
-
(3,750)
- Non-current assets and disposal groups classified as held for
sale
32
-
-
-
32
- Financial liabilities designated at fair value through profit or
loss (own creditworthiness changes)
(95)
-
-
-
(95)
- Actuarial gains (losses) on defined benefit plans
(2,752)
-
-
-
(2,752)
- Part of valuation reserves from investments valued at equity
method
46
(11)
51
(46)
40
- Special revaluation laws
277
-
-
-
277
7. Advanced dividends
(1,440)
-
-
-
(1,440)
8. Profit (Loss) of the year (+/-) Minority interests
9,775
137
312
(450)
9,774
Total
62,849
362
1,897
(2,267)
62,841
B.2 Revaluation reserves of financial assets at fair value through other comprehensive income: breakdown
(€ million)
ASSETS/VALUES
AMOUNTS AS AT 31.12.2024
PRUDENTIAL CONSOLIDATED
INSURANCE COMPANIES
OTHER COMPANIES
CONSOLIDATION ADJUSTMENTS
AND ELIMINATIONS
TOTAL
POSITIVE
RESERVE
NEGATIVE
RESERVE
POSITIVE
RESERVE
NEGATIVE
RESERVE
POSITIVE
RESERVE
NEGATIVE
RESERVE
POSITIVE
RESERVE
NEGATIVE
RESERVE
POSITIVE
RESERVE
NEGATIVE
RESERVE
1. Debt securities
320
(783)
-
-
-
-
-
-
320
(783)
2. Equity securities
506
(354)
-
-
-
-
-
-
506
(354)
3. Loans
-
-
-
-
-
-
-
-
-
-
Total 31.12.2024
826
(1,137)
-
-
-
-
-
-
826
(1,137)
Total 31.12.2023
654
(1,083)
-
-
2
-
-
-
656
(1,083)
686
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part F - Consolidated shareholders’ equity
B.3 Revaluation reserves of financial assets at fair value through other comprehensive income: annual change
(€ million)
CHANGES IN 2024
ASSETS/VALUES
DEBT SECURITIES
EQUITY SECURITIES
LOANS
1. Opening balance
(323)
(104)
-
2. Positive changes
913
326
-
2.1 Fair value increases
597
228
-
2.2 Net losses on impairment
13
X
-
2.3 Reclassification through profit or loss of negative reserves: following disposal
290
X
-
2.4 Transfers to other comprehensive shareholders' equity (equity instruments)
-
75
-
2.5 Other changes
13
23
-
3. Negative changes
(1,053)
(70)
-
3.1 Fair value reductions
(734)
(60)
-
3.2 Recoveries on impairment
(5)
-
-
3.3 Reclassification throught profit or loss of positive reserves: following disposal
(299)
X
-
3.4 Transfers to other comprehensive shareholders' equity (equity instruments)
-
(9)
-
3.5 Other changes
(15)
(1)
-
4. Closing balance
(463)
152
-
B.4 Revaluation reserves related to defined benefit plans: annual changes
(€ million)
CHANGES IN 2024
BANKING GROUP
INSURANCE
COMPANIES
OTHER COMPANIES
CONSOLIDATION
ELIMINATIONS AND
ADJUSTMENTS
TOTAL
1. Opening balance
(2,591)
-
-
-
(2,591)
2. Increases
3
-
-
-
3
2.1 Increases in fair value
3
-
-
-
3
2.2 Transfers to other net equity items
-
-
-
-
-
2.3 Other changes
-
-
-
-
-
3. Decreases
(164)
-
-
-
(164)
3.1 Decreases in fair value
(164)
-
-
-
(164)
3.2 Transfers to other net equity items
-
-
-
-
-
3.3 Other changes
-
-
-
-
-
4. Closing balance
(2,752)
-
-
-
(2,752)
687
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part F - Consolidated shareholders’ equity
Section 2 - Own funds and banking regulatory ratios
Group transitional Own Funds and capital ratios
DESCRIPTION
AS AT
31.12.2024
31.12.2023
Common Equity Tier 1 Capital (€ million)
44,221
45,913
Tier 1 Capital (€ million)
49,176
50,756
Total Own Funds (€ million)
56,554
59,472
Total RWEA (€ million)
277,093
284,548
Common Equity Tier 1 Capital ratio
15.96%
16.14%
Tier 1 Capital ratio
17.75%
17.84%
Total Capital ratio
20.41%
20.90%
Notes:
Transitional own funds and capital ratios including all transitional adjustments according to the yearly applicable percentages.
Furthermore, starting from 30 June 2020, UniCredit group has decided to apply the IFRS9 transitional approach as reported in article 473a of the Regulation (UE) 873/2020 that amends the Regulation (EU) 575/2013 and
Regulation (EU) 876/2019. Therefore, the values here reported reflect the impact of the transitional arrangements provisioned in such Regulation.
Regulation (EU) 876/2019. Therefore, the values here reported reflect the impact of the transitional arrangements provisioned in such Regulation.
The minimum capital requirements applicable to the Group as at 31 December 2024 in coherence with CRR article 92 are the following (Pillar 1):
• Common Equity Tier 1 Capital:
4.50%
• Tier 1 Capital:
6.00%
• Total Capital:
8.00%
In addition to such requirements, for 2024 the Group shall also meet the following additional requirements:
• 2.00%, as Pillar 2 Requirements in coherence with SREP results;
• 2.50%, as Capital Conservation buffer (CCB) according to CRD IV article 129;
• 1.50%, as Other Systemically Important Institutions (O-SII) buffer94;
• 0.46%, as Countercyclical Capital buffer95 (CCyB) according to the CRDIV article 130, to be calculated on a quarterly basis;
• 0.20%, as Systemic Risk Capital buffer96 (SyRB) according to the CRDIV article 133, to be calculated on a quarterly basis.
Moreover, the article 104a.4 of CRDV allows banks to partially use capital instruments that do not qualify as CET1 capital (e.g., Additional Tier 1 or
Tier 2 instruments) to meet the Pillar 2 Requirements (P2R). As consequence, in line with Pillar 2 Requirements, required in coherence with 2023
SREP results and equal to 2.00%, UniCredit group shall meet:
• at least the 1.13% of such requirement through Common Equity Tier 1 Capital;
at least the 1.50% of such requirement through Tier 1 Capital.
As at 31 December 2024, the Group shall meet the following overall capital requirements:
• Common Equity Tier 1 Capital:
10.28%
• Tier 1 Capital:
12.16%
• Total Capital:
14.66%
94 According to the Press Release issued by the FSB on 27 November 2023, UniCredit group has been removed from the list of Global Systemically Important Banks (G-SIBs) which is updated annually by the Financial
Stability Board (FSB). Following this decision, which implements the international standards for G SIBs, and of Italian Circular 285 which disciplines the relevant powers, Banca d’Italia stated that UniCredit was still subject to
the G-SIB requirements until 31 December 2023. Following the Press Release issued by Banca d’Italia on 24 November 2023, “Identification for 2024 of other systemically important institutions authorized to operate in Italy”,
the Group is identified as a national systemically important institution and has to apply a Capital O-SII buffer of 1.50% starting from 1 January 2024.
95 Amount rounded to two decimal numbers. With reference to 31 December 2024: (I) the following rates related to countercyclical capital buffer have been applied: Armenia (1.50%); Australia (1.00%); Belgium (1.00%);
Bulgaria (2.00%); Chile (0.50%); Croatia (1.50%); Cyprus (1.00%); Czech Republic (1.25%); Denmark (2.50%); Estonia (1.50%); France (1.00%); Germany (0.75%); Hong Kong (0.50%); Hungary (0.50%); Iceland (2.50%);
Ireland (1.50%); Latvia (0.50%); Lithuania (1.00%); Luxembourg (0.50%); Netherlands (2.00%); Norway (2.50%); Romania (1.00%); Slovakia (1.50%); Slovenia (0.50%); South Korea (1.00%); Sweden (2.00%); United
Kingdom (2.00%) (II) with reference to the exposures towards Italian counterparties, Banca d’Italia has set the rate equal to 0%.
96 As at 31 December 2024 CET1 Systemic Risk buffer (aimed at preventing and mitigating long-term, non-cyclical, systemic or macro-prudential risks that are not provided for by the CRR) has entered into force in
Italy, more over Banca d’Italia reciprocated the CET1 Systemic risk buffer measure defined by the German Federal Financial Supervisory Authority (BaFin), making it applicable starting from the 1 of February 2023 to all the
Italian institutions.
688
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part F - Consolidated shareholders’ equity
Here below a scheme of the UniCredit group capital requirements and buffers which also provides evidence of the “Total SREP Capital
Requirement” (TSCR) and the “Overall Capital Requirement” (OCR) related to the outcome of the SREP process held in 2023 and applicable for
2024.
Capital requirements and buffers for UniCredit group
REQUIREMENT
CET1
T1
TOTAL
CAPITAL
A) Pillar 1 requirements
4.50%
6.00%
8.00%
B) Pillar 2 requirements
1.13%
1.50%
2.00%
C) TSCR (A+B)
5.63%
7.50%
10.00%
D) Combined capital buffer requirement:
4.66%
4.66%
4.66%
of which:
1. Capital Conservation Buffer (CCB)
2.50%
2.50%
2.50%
2. Other Systemically Important Institution buffer (O-SII)
1.50%
1.50%
1.50%
3. Institution-specific Countercyclical Capital buffer (CCyB)
0.46%
0.46%
0.46%
4. Systemic risk buffer for UniCredit (SyRB)
0.20%
0.20%
0.20%
E) OCR (C+D)
10.28%
12.16%
14.66%
The above-mentioned requirements are the ones which are relevant for MDA purposes for UniCredit group as at 31 December 2024.
As at 31 December 2024, UniCredit group’s ratios are compliant with all the above requirements.
• The Group consolidated net profit as at 31 December 2024 is equal to €9,719 million.
• As at 31 December 2024, the amount of the Group consolidated net profit to be included in the Own Funds is equal to €3,824 million; the reduction
for €5,895 million is related to the approval by the UniCredit S.p.A. Board of Directors of the following items:
(i) cash dividend for €2,286 million that, summed up with €1,440 million interim dividend previously approved by the Board of Directors and paid in
November 2024, stands at 40% of Net Profit97, as per 2024 Dividend Policy;
(ii) ordinary share buy-back for €3,574 million (additional to the €1,700 million Share Buy-back already executed), classified as foreseeable charge
as of 31 December 2024, in line with the EBA Q&A #6887;
(iii) allocation for €35 million to support social, cultural and charity initiatives.
For further details refer to the publication of the own funds disclosure and capital adequacy reported into the UniCredit group disclosure (Pillar III) as
at 31 December 2024.
97 Defined as accounting net profit rectified for tax-losses carried forward sustainability test results, potentially adjusted for one-offs related to strategic items.
689
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part G - Business combinations
Part G - Business combinatios
Section 1 - Business combinations completed in the year
1.1 Business combinations
External Business Combination
Business combinations with counterparties outside the Group are carried out using the “purchase method” prescribed by the accounting standard
IFRS3 “Business Combinations”, cited in the disclosure of “A.2 - Main items of the accounts”, Notes to the consolidated accounts, Part A -
Accounting policies.
In 2024 the Group has performed no relevant business combinations outside the Group, except for the purchase of 90.1% of Alpha Bank Romania
S.A (“Alpha Bank”) detail below.
For further details refer to the paragraph “Section 3 - Consolidation scope and methods”, Notes to the consolidated accounts, Part A - Accounting
policies, A.1 - General.
Acquisition of Alpha Bank Romania S.A.
(€ million)
NAME
ACQUISITION
DATE
ACQUISITION
COST
VOTING
EQUITY
INTERESTS
ACQUIRED %
OPERATIVE
INCOME
PROFIT (LOSS)
OF THE
YEAR/PERIOD
OPERATING
INCOME FROM
ACQUISITION
DATE
PROFIT (LOSS)
FROM
ACQUISITION
DATE
Alpha Bank Romania S.A.
04.11.2024
434
90.10
196
(22)
39
(37)
On the 4 November 2024, UniCredit S.p.A. has finalised the purchase of 90.1% of Alpha Bank from Alpha International Holdings S.M.S.A. (“Alpha
Holding”), which is part of the group held by Alpha Services and Holdings S.A., acquiring the control.
The integration process foresees the subsequent merger through absorption of Alpha Bank within UniCredit Bank S.A. (banking institution controlled
by UniCredit S.p.A. and operating in Romania; “UniCredit Romania”), currently estimated to take place in the second part of 2025. The merger will
bring together two complementary banks, both with long-standing relationships and expertise in the Romanian market, both in the corporate and
retail segments.
The transaction is part of the strategic partnership between UniCredit and Alpha Services and Holdings announced on 23 October 2023 and further
strengthens the position of UniCredit in the country, which sees now on the third place in the market and with a combined market share of around
12% in terms of total assets. Romania represents strategic importance within the growing Region of Eastern Europe.
The transaction is qualified as an external business combination, booked according to the accounting standard IFRS3 which stated the need to
account the operation applying the purchase method, that involves the following steps:
i) identifying an acquirer;
ii) measuring the cost of the business combination;
iii) allocating, at the acquisition date, the cost of the business combination to the assets acquired and liabilities and contingent liabilities assumed
(Purchase Price Allocation - PPA).
Particularly, related to the business combination cost:
• it is the aggregate of the fair value of assets given, liabilities incurred or assumed and equity instruments issued by the acquirer, in exchange for
control of the acquiree, recorded at the date of exchange, (the acquisition date is the date on which the acquirer effectively obtains control of the
acquiree);
• it is allocated by recognising the assets, the liabilities and the identifiable contingent liabilities of the acquired company at their acquisition-date fair
value.
Exceptions to this principle are deferred income tax assets and liabilities, employee benefits, indemnification assets, reacquired rights, non-current
assets held for sale, and share-based payment transactions that are subject to review in accordance with the principle applicable to them.
Positive difference between the cost of the business combination and the acquirer’s interest in the net fair value of the identifiable assets, liabilities
and contingent liabilities so recognised is accounted for as goodwill.
690
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part G - Business combinations
With reference to the above bullet i) (identifying an acquirer) UniCredit S.p.A. was identified as the acquirer of Alpha Bank having acquired 90.1% of
voting rights and, then, obtaining the control of the company.
Related to the above bullet ii) (measuring the cost of the business combination), Alpha Bank acquisition was made through the payment, to the
counterpart Alpha Holding, of an overall amount equal approximately to €434 million composed of: (a) cash for €254 million; (b) 9.9% of the share
capital of UniCredit Romania which has been assigned a fair value equal to €180 million determined, residually, on the basis of the fair value of
100% Alpha Bank, defined using: (a) trading multiples of similar companies; (b) similar transactions taken place on the market, (c) internal valuation
models.
The contract signed with the counterparty does not foresee clauses providing for adjustment of the purchase price. As of market practice, warranty
clauses are included in the contract, with the possibility to receive a refund from Alpha Holding in case of violation. It should be noted that no activity
representing the right of refund has been detected.
Related to the above bullet iii) (Purchase Price Allocation - PPA) assets and liabilities of Alpha Bank98 were identified on acquisition date fair value
according to IFRS3 principle. The acquisition date was identified on monthly balance as of 31 October 2024, considering that the acquisition of
control occurred on Monday 4 November 2024 and no relevant transactions were made by the acquired company on 1 November.
Following tables show Alpha Bank’s assets and liabilities at individual level, the adjustments to define the first time booking of Alpha Bank’s assets
and liabilities in the Consolidated Financial Statement and the mentioned value of the first time booking.
(€ million)
AMOUNTS AS AT ACQUISITION DATE
ASSETS
BALANCE SHEET VALUE
OF THE ACQUIREE
PPA ADJUSTMENTS
CONSOLIDATED
BALANCE SHEET VALUE
10. Cash and cash balances
520
-
520
20. Financial assets at fair value through profit or loss
7
-
7
a) financial assets held for trading
-
-
-
b) financial assets designated at fair value
-
-
-
c) other financial assets mandatorily at fair value
7
-
7
30. Financial assets at fair value through other comprehensive income
341
4
345
40. Financial assets at amortised cost:
3,403
(82)
3,321
a) loans and advances to banks
285
-
285
b) loans and advances to customers
3,118
(82)
3,036
50. Hedging derivatives
-
-
-
60. Changes in fair value of portfolio hedged items (+/-)
-
-
-
70. Equity investments
-
-
-
80. Insurance assets
-
-
-
a) insurance contracts issued that are assets
-
-
-
b) reinsurance contracts held that are assets
-
-
-
90. Property, plant and equipment
54
6
60
100. Intangible assets
15
7
22
110. Tax assets
4
9
13
a) current
-
-
-
b) deferred
4
9
13
120. Non-current assets and disposal groups classified as held for sale
-
-
-
130. Other assets
18
-
18
Total assets
4,362
(56)
4,306
98 For the determination of this value, an external independent advisor (EY) support the Group.
691
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part G - Business combinations
(€ million)
AMOUNTS AS AT ACQUISITION DATE
LIABILITIES AND SHAREHOLDERS' EQUITY
BALANCE SHEET VALUE
OF THE ACQUIREE
PPA ADJUSTMENTS
CONSOLIDATED
BALANCE SHEET VALUE
10. Financial liabilities at amortised cost:
3,800
-
3,800
a) deposits from banks
351
-
351
b) deposits from customers
3,449
-
3,449
c) debt securities in issue
-
-
-
20. Financial liabilities held for trading
-
-
-
30. Financial liabilities designated at fair value
-
-
-
40. Hedging derivatives
-
-
-
50. Value adjustment of hedged financial liabilities (+/-)
-
-
-
60. Tax liabilities
3
-
3
a) current
3
-
3
b) deferred
-
-
-
70. Liabilities associated with assets classified as held for sale
-
-
-
80. Other liabilities
58
-
58
90. Provision for employee severance pay
-
-
-
100. Provisions for risks and charges:
13
(7)
6
a) commitments and guarantees given
11
(7)
4
b) post-retirement benefit obligations
-
-
-
c) other provisions for risks and charges
2
-
2
110. Insurance liabilities
-
-
-
a) insurance contracts issued that are liabilities
-
-
-
b) reinsurance contracts held that are liabilities
-
-
-
Shareholders' equity
488
(49)
439
Group shareholders‘ equity
488
(49)
439
Minority shareholders‘ equity
-
-
-
Total liabilities and shareholders' equity
4,362
(56)
4,306
Contingent liability recognized on acquisition date
-
-
Related to the main PPA adjustments the following is specified:
• Loans and advances to customers: the assets were valuated at fair value throw “discounted cash flow analysis” which provides the discounting
cash flow, contractual or estimated, based on the technical form of the instrument, at discount rate considering current rates observed on the local
market for similar instruments. After this valuation process, the PPA adjustment was equal to €82 million with the consequently booking of total
Financial assets at amortised cost for €3,321 million.
• Intangible assets: the process led to the booking of new intangible assets made by “Customer Relationship” for €7 million, valuated with the “with
or without” method that identify the fair value throw the comparison between (i) expected cash flow of a company with a stable basis of relationship
with the costumers, and (ii) expected cash flow of a company without this kind of relationship.
• Provisions for risks and charges: the process led to the cancellation of the provisions related to off balance items. After this valuation, an
adjustment of €7 million has been recognized, with booking of Provisions for risks and charges for €6 million.
• Tax assets: considering the adjustments mentioned above, an adjustment of €9 million for temporary deferred tax assets was booked.
The overall evaluation process led to the recognition, in the Consolidated Financial Statement of UniCredit, of net assets related to Alpha Bank
equal to €439 million. The goodwill was defined as the difference between the price (€434 million) and the 90.1% of these net assets (€396 million),
corresponding to the share of UniCredit group, with the consequent recognition of goodwill for €38 million. To be notice that this goodwill, recognised
in the consolidated financial statement, is not tax deductible. The minority related to Alpha Bank are equal to €43 million.
Finally, the below table, related to Alpha Bank’s loans, shows the fair value (at first time booking in consolidated balance sheet) the gross book value
and loans loss provisions booked by Alpha Bank.
692
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part G - Business combinations
(€ million)
LOANS - RECEIVABLES
AMOUNTS AS AT ACQUISITION DATE
FAIR VALUE
GROSS BOOK VALUE
LOAN LOSS PROVISION
20c.
Mandatorily at fair value
-
-
-
1. Reverse Repos
-
-
-
2. Other
-
-
-
30.
Fair value through other comprehensive income
-
-
-
1. Reverse Repos
-
-
-
2. Other
-
-
-
40.
Amortized Cost
3,321
3,472
69
A. Loans and advances to Central Banks
257
257
-
1. Time deposits
-
-
-
2. Compulsory reserves
257
257
-
3. Reverse Repos
-
-
-
4. Other
-
-
-
B. Loans and advances to banks
28
28
-
1.1 Current accounts
-
-
-
1.2 Time deposits
28
28
-
1.3 Other loans
-
-
-
C. Loans and advances to customers
3,036
3,187
69
1.1 Current accounts
86
92
5
1.2 Reverse repos
-
-
-
1.3 Mortgages
1,628
1,721
23
1.4 Credit cards and personal loans, including wage assignment
240
266
24
1.5 Lease loans
-
-
-
1.6 Factoring
14
14
-
1.7 Other loans
1,068
1,094
17
Internal Business Combination
Under its reorganization process, in 2024 the Group carried out business combinations involving companies or businesses which were already
directly or indirectly controlled by UniCredit S.p.A. These transactions have no economic substance and are accounted for in the acquirer’s and
acquired entity’s accounts in accordance with the continuity principle. These transactions have no effect on consolidated level.
Specifically, it should be noted that the following transactions have been carried out:
• on July 2024 the transfer of the securities and financial derivatives portfolio on interest rates was completed through the sale by UniCredit Bank
GmbH to UniCredit S.p.A.; in November 2024 the transfer of the brokerage business followed;
• on 1 November 2024, the sale by UniCredit Services GmbH to UniCredit S.p.A. of the business unit representing the management and supply of
information systems and technical infrastructures became effective.
Reference is made to the paragraph “1.1 Business combinations” of the Company financial statements of UniCredit S.p.A., Notes to the accounts,
Part G Business combinations, Section 1 Business combinations completed in the year which is herewith quoted entirely.
693
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part G - Business combinations
Section 2 - Business combinations completed after year-end
No business combinations were complited after year-end.
Section 3 - Retrospective adjustments
No retrospective adjustments have been applied in 2024 on business combinations competed in previous years.
694
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part H - Related-party transactions
Part H - Related-party transactions
Introduction
For the purposes of financial disclosure, in accordance with the Commission Regulation (EU) No.632/2010 of 19 July 2010, the text of IAS24
applies, which defines the concept of related party and identifies the relations between that party and the entity producing the financial statements; in
addition, it is clarified that the disclosure should include, among others, transactions entered into with subsidiaries of associates and subsidiaries of
joint ventures.
Pursuant to IAS24, UniCredit S.p.A.’s related parties include:
• companies belonging to UniCredit group and companies controlled by UniCredit but not consolidated;
• associates and joint ventures, as well as their subsidiaries;
• UniCredit’s “Key management personnel”;
• close family members of “key management personnel” and companies controlled, or jointly controlled, by key management personnel or their
close family members;
• UniCredit group employee post-employment benefit plans.
Also for the management of related-party transactions refer to the discipline established by Consob Regulation No.17221/2010 as subsequently
amended by Resolution No.21624 of 10 December 2020 (deriving from the provisions of Art.2391-bis of the Italian Civil Code) and by Banca d’Italia
Circular No.285/2013 (Part III, Chapter 11, Section I) as well as the provisions pursuant to Art.136 of Legislative Decree No.385/1993, under which
corporate officers may assume obligations towards the bank they manage, direct or control, only upon unanimous approval of the board of the bank
and positive opinion of the Audit Committee.
In this regard, UniCredit, as a listed issuer and subject to Banca d’Italia regulations, has adopted the Global Policy “Transactions with related parties,
associated persons and Corporate Officers ex Art.136 CBA99 (Consolidated Banking Act)”, approved by UniCredit’s Board of Directors with the
positive opinion of the Related Parties Committee and of the Audit Committee, which is published on UniCredit website (www.unicreditgroup.eu),
designed to define preliminary and conclusive rules with respect to transactions executed by UniCredit, including those conducted through
subsidiaries, with related parties, considering the specificities of the provisions mentioned above, and the manner in which information is disclosed
to corporate bodies, the supervisory authorities and the market.
Specific guidelines contained in the Global Policy have been distributed to the company’s functions and Group Legal Entities in order to
systematically abide to the above-mentioned reporting requirements.
The Board of Directors set up the Related Parties Committee, in compliance with CONSOB regulatory provisions and the Banca d’Italia’s
supervisory regulations, consisting only of independent Directors pursuant to the Italian Corporate Governance Code.
In addition, UniCredit applies specific procedures regarding internal controls on risk activities with subjects in conflict of interests regulated in the
Global Policy “Transactions with related parties, associated persons and Corporate Officers ex Art.136 CBA99”.
During 2024, transactions carried out with related parties reported in the data streams provided by the reference standards, were executed and
carried out based on assessments of the economic convenience and interests of the Group.
99 Corresponding to Italian Testo Unico Bancario.
695
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part H - Related-party transactions
1. Details of Key management personnels’ compensation
Details of key management personnel’s 2024 remuneration are given below pursuant to IAS24 and to the Circular 262 of 22 December 2005 of
Banca d’Italia (and subsequent amendments) requiring that also the Statutory Auditors’ compensation be included.
Key management personnel are persons having authority and responsibility for planning, directing, and controlling UniCredit’s activities, directly or
indirectly. This category includes the Chief Executive Officer and the other members of the Board of Directors, the Statutory Auditors, the Chief Audit
Executive and the Group Executive Committee (GEC) members, body that reports directly to the Chief Executive Officer, excluding the Heads of
Group Strategy & ESG, Group Stakeholder Engagement and, starting from April 2024, Group Legal.
Remuneration paid to key management personnel (including directors)
(€ million)
YEAR 2024
YEAR 2023
a) short-term employee benefits
22
22
b) post-retirement benefits
1
1
of which: under defined benefit plans
-
-
of which: under defined contribution plans
1
1
c) other long-term benefits
-
-
d) termination benefits
3
-
e) share-based payments
11
12
Total
37
35
The information reported above include the compensation paid to Directors (€9 million), Statutory Auditors (€0.3 million) and other Managers with
strategic responsibilities (€12 million), as shown in the document "Information Tables Pursuant Art.84 -quarter (Annual Report - Section II) of the
Regulation 11971 Issued by Consob" attached to the “2024 Group Remuneration Policy”, and about €15 million relating to other costs (the company
share of social security contributions, accruals to severance pay funds and share-based payments using UniCredit and its subsidiaries’ equity
instruments).
The compensation paid shows an increase compared to fiscal year 2023, mainly in relation to the payment of benefits related to the termination of
employment relations during the year.
696
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part H - Related-party transactions
2. Related-party transactions
The following table sets out the assets, liabilities, guarantees and commitments, for each group of related parties, pursuant to IAS24.
Related-party transactions: balance sheet items
(€ million)
AMOUNTS AS AT 31.12.2024
CONTROLLED
NOT
CONSOLIDATED
ENTITIES
JOINT
VENTURES
ASSOCIATED
COMPANIES
KEY
MANAGEMENT
PERSONNEL
OTHER
RELATED
PARTIES
TOTAL
% ON
ACCOUNTS
ITEM SHAREHOLDERS
% ON
ACCOUNTS
ITEM
Cash and cash balances
-
-
17
-
-
17
0.04%
-
-
Financial assets at fair value through profit
or loss
-
-
84
-
9
93
0.15%
253
0.41%
a) Financial assets held for trading
-
-
21
-
-
21
0.04%
253
0.46%
c) Other financial assets mandatorily at
fair value
-
-
63
-
9
72
1.13%
-
-
Financial assets at fair value through other
comprehensive income
-
-
76
-
-
76
0.10%
-
-
Financial assets at amortised cost
6
14
926
-
-
946
0.17%
-
-
a) Loans and advances to banks
-
-
216
-
-
216
0.32%
-
-
b) Loans and advances to customers
6
14
710
-
-
730
0.15%
-
-
Non-current assets and disposal groups
classified as held for sale
-
-
6
-
-
6
1.52%
-
-
Other assets
2
-
66
-
-
68
0.49%
-
-
Total assets
8
14
1,175
-
9
1,206
0.16%
253
0.03%
Financial liabilities at amortised cost
36
1
6,106
13
11
6,167
0.93%
-
-
a) Deposits from banks
-
-
5,383
-
-
5,383
7.93%
-
-
b) Deposits from customers
36
1
723
13
11
784
0.16%
-
-
Financial liabilities held for trading and
designated at fair value
-
-
39
-
-
39
0.09%
-
-
Other liabilities
15
-
15
-
-
30
0.20%
4
0.03%
Total liabilities
51
1
6,160
13
11
6,236
0.87%
4
-
Guarantees given and commitments
1
-
2,715
-
86
2,802
0.77%
-
-
Notes:
Shareholders and related companies holding more than 3% of voting shares in UniCredit.
The "Total assets" and "Total liabilities" values refer only to the items shown in this table.
It should be noted that the item “Commitments and guarantees given” includes revocable commitments.
The value of the percentage on accounts Item, with reference to “Commitments and guarantees given”, has been calculated on the total of the
tables “1. Commitments and financial guarantees given (different from those designated at fair value)” and “2. Others commitments and others
guarantees given” in Notes to the consolidated accounts, Part B - Consolidated balance sheet, Liabilities, Other information.
697
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part H - Related-party transactions
The following table sets out the impact of transactions, for each group of related parties, on Income statements, pursuant to IAS24.
Related-party transactions: profit and loss items
(€ million)
AMOUNTS AS AT 31.12.2024
CONTROLLED
NOT
CONSOLIDATED
ENTITIES
JOINT
VENTURES
ASSOCIATED
COMPANIES
KEY
MANAGEMENT
PERSONNEL
OTHER
RELATED
PARTIES
TOTAL
% ON
ACCOUNTS
ITEM SHAREHOLDERS
% ON
ACCOUNTS
ITEM
10. Interest income and similar revenues
8
1
34
-
-
43
0.12%
1
0.00%
20. Interest expenses and similar charges
(1)
-
(172)
-
-
(173)
0.86%
(27)
0.13%
30. Net interest margin
7
1
(138)
-
-
(130)
0.89%
(26)
0.18%
40. Fees and commissions income
3
-
793
-
-
796
9.04%
19
0.22%
50. Fees and commissions expenses
(1)
-
(1)
-
-
(2)
0.11%
(3)
0.17%
60. Net fees and commissions
2
-
792
-
-
794
11.28%
16
0.23%
70. Dividend income and similar revenues
8
-
-
-
-
8
1.71%
33
7.05%
190. Administrative expenses
(9)
-
(355)
(1)
(4)
(369)
3.55%
(4)
0.04%
a) Staff costs
(3)
-
3
(1)
-
(1)
0.01%
-
-
b) Other administrative expenses
(6)
-
(358)
-
(4)
(368)
9.88%
(4)
0.11%
230. Other operating expenses/income
2
-
(36)
-
-
(34)
3.99%
(3)
0.35%
Note:
Shareholders and related companies holding more than 3% of voting shares in UniCredit.
Administrative expenses - Staff costs: positive amount indicates the prevalence of costs’ recoveries.
For additional information regarding gains and losses of equity investments in associated companies, reference is made to the item “17.1 Gains
(Losses) of equity investments: breakdown”, Notes to the consolidated accounts, Part C - Consolidated income statement, Section 17 - Gains
(Losses) of equity investments - Item 250.
The “Other related-parties IAS” category includes:
• close family members of key management personnel (i.e. those family members who, as is expected, may influence, or be influenced by, the
person in question);
• companies controlled (or jointly controlled) by key management personnel or their close family members;
• Group employee post-employment benefit plans.
698
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part H - Related-party transactions
With reference to the main related-party transactions, it is worth to note the following considerations:
• starting from 2012 the subsidiary UniCredit Services S.C.p.A. (UCS) formerly UniCredit Business Integrated Solutions S.C.p.A. (UBIS), assumed
the role of operating sub-holding to provide the Group’s support services both in Italy and abroad.
On 19 April 2013, the Board of Directors of UCS approved the executive plan of the project aimed at establishing a joint venture with another major
player in the industry, IBM Italia S.p.A. (IBM), for the provision of technological infrastructure services (hardware, data center, etc.) to Commercial
Banking. The transaction was completed when UCS transferred, with effect from 1 September 2013, of “Information Technology" business unit to
the company "Value Transformation Services S.p.A.” (V-TServices), formed and controlled by IBM Italia S.p.A. Following the transaction, UCS
holds 49% of V-TServices’s share capital; the remaining 51% is held by IBM (which is therefore the controlling shareholder).
On 23 December 2016, the “Restatement and Amendment Agreement” was signed between UniCredit Services and V-TS with the aim of
increasing value creation and ability to catch new opportunities from technological evolution, with the extention of the term until 2026.
The “Second Restatement and Amendment Agreement” between UniCredit Services and V-TS was signed on 22 December 2019, with
effectiveness from 1 January 2020, with the extension of the term of the 3-year contract until 2029. It should be noted that starting from 1 October
2022 with effectiveness starting from 1 January 2022, UniCredit Services S.C.p.A. (UCS) has been merged in UniCredit S.p.A. and the latter has
become entitled to the contracts mentioned above.
• in 2018, through a competitive auction process, UniCredit S.p.A. has signed long-term partnership with Allianz100 for the exclusive distribution of
Life and Non-Life bancassurance products (excluding Credit Protection products) in Bulgaria, Croatia, Hungary, Romania, Slovenia, Czech
Republic and Slovakia.
• in 2022, UniCredit and Allianz101 have signed a multi-country framework agreement setting the basis for enhanced collaboration. With specific
focus on Italy, the agreement mainly involves: (i) the renewal of the arrangements both in the life and non-life businesses; (ii) full access to
Allianz's products, (iii) support in developing an integrated platform and service model and (iv) enhancement of training and increased marketing
support. In Germany, the agreement includes further initiatives to strengthen digital bancassurance and marketing.
• It should be noted that distribution agreements concerning insurance products were signed with the following associates:
- CNP UniCredit Vita S.p.A.;
- UniCredit Allianz Assicurazioni S.p.A.;
- UniCredit Allianz Vita S.p.A.
It should be noted that as at 31 December 2024, the Group started the process to internalize its life bancassurance business in Italy through the
termination of (i) the shareholders' agreement with CNP Assurances S.A. and the consequent commitment to acquire the entire stake (51%) in
CNP UniCredit Vita S.p.A. held by CNP Assurances S.A.; and (ii) the shareholders' agreement with Allianz S.p.A. and consequent commitment to
acquire the entire stake (50%) held by Allianz S.p.A. in UniCredit Allianz Vita S.p.A.
The closing of each transactions is expected in 2025, following the standard authorizations by the competent authorities; upon the closing, the
Group will hold 100% in CNP UniCredit Vita S.p.A. and UniCredit Allianz Vita S.p.A.
• The relationships with other related parties include the relationships with external pension funds (for UniCredit S.p.A. employees), since they have
separate legal personality. These transactions were conducted on the same terms and conditions as those applied to transactions with
independent third parties. The relationships with these pension funds are almost entirely represented by the relationships included in Deposits
from customers (and related interests).
100 It is worth to note that starting from the 1 of July 2024 Allianz Group ceased to be a Related Party of UniCredit S.p.A.
101 See the previous note.
699
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part I - Share-based payments
Part I - Share-based payments
Qualitative information
1. Description of payment agreements based on own equity instruments
1.1 Outstanding instruments
Group Medium & Long Term Incentive Plans for selected employees of Group subsidiaries include the following categories:
• Equity-Settled Share Based Payments (Equity-Settled SBP), which provide for the delivery of shares;
• Cash-Settled Share Based Payments (Cash-Settled SBP), which provide for the delivery of monetary settlement linked to the economic value of
UniCredit share (so-called “phantom share”).
The first category, Equity-Settled SBP, includes the following grants of:
• Group Executive Incentive System (Bonus Pool) that offer to eligible Group executives and relevant employees identified following regulatory
rules, a bonus structure composed by upfront (following the moment of performance evaluation) and deferred payments in cash and in UniCredit
ordinary shares, to be paid over a period of ranging from 1 to 7 years. This payment structure will guarantee the alignment to shareholder interest
and will be subjected to corporate malus conditions (which applies in case specific profitability, capital and liquidity thresholds are not met at both
Group and country/division level), individual malus and claw-back conditions (as legally enforceable) according to the plan rules (both non-market
vesting conditions);
• Long Term Incentive 2017-2019 that offers to eligible executives and key players of the Group an incentive 100% based on ordinary UniCredit
shares, subject to 3-years deferral and to malus and claw-back conditions, as legally enforceable, according to the plan rules. The plan is
structured on 3-years performance period, aligned to the UniCredit strategic plan and provides for the allocation of an award based on gateway
conditions on profitability, liquidity, capital and risk position and a set of performance conditions focused on Group targets, aligned with Transform
2019;
• Long Term Incentive 2020-2023 that provides for the allocation of incentives based on free ordinary shares, subject to the achievement of
specific performance conditions to the Strategic Plan Team 23. The Plan is structured over a four-year performance period, consistent with
UniCredit's Strategic Plan, and provides for the granting of the possible award in 2024. The award is subject to a 4-year deferral period, after the
performance period, and to the respect during the performance period of the minimum conditions of profitability, capital requirements and liquidity
as well as positive assessment of Risk Appetite Framework. According to Banca d’Italia and EBA requirements and to further strengthen the
governance framework, the Plan includes rules of compliance breaches management, as well as their related impact on remuneration
components, through the application of malus and claw-back clauses.
The second category, Cash-Settled SBP, includes the following grant of:
• Group Executive Incentive System (Bonus Pool) that offer to eligible Group executives and relevant employees of the subsidiary AO UniCredit
Bank identified following regulatory rules, a bonus structure composed by upfront (determined on the basis of the performance evaluation) and
deferred payments in cash and phantom share (i.e., “Share Appreciation Rights” linked to the share-value of UniCredit), to be paid over a period of
time ranging from 1 to 6 years. This payment structure will guarantee the alignment to shareholder interest and will be subjected to corporate
malus conditions (which applies in case specific profitability, capital and liquidity thresholds are not met at both Group and country/division level),
individual malus and claw back conditions (as legally enforceable) according to the plan rules (both non-market vesting conditions).
It is also noted that, according to Banca d’Italia Circular 285 (as at 17 December 2013 and subsequent updates concerning “Remuneration and
incentive policies and practices”), the equity-settled share based payments, represented by deferred payments in UniCredit ordinary shares not
subject to vesting conditions, are used for the settlement of the so-called golden parachute (e.g. severance) for the relevant employees.
1.2 Measurement model
1.2.1 Group Executive Incentive System (Bonus Pool)
The economic value of performance shares, for the category Equity-Settled SBP, is measured considering the share market price at the grant date
less the present value of the future dividends during the vesting period.
For Cash-Settled SBP the amount delivered to beneficiaries is based on the economic value of the phantom shares, which is measured considering
the arithmetic mean of the official market price of UniCredit ordinary shares during the month preceding each Board resolution executing the payment
of each shares’ installment after the end of the mandatory retention period. In financial statements, during the vesting period, the cash-settled SBP is
measured considering the share market price at each reporting date less the present value of the future dividends.
For both categories, the economic effect and the respective reserve/liability will be accrued on a basis of instruments’ vesting period.
700
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part I - Share-based payments
Group Executive Incentive System “Bonus Pool 2024” - Shares and Phantom Share
The new Group Incentive System 2024 is based on a bonus pool approach, aligned with regulatory requirements and market practices, which defines:
• the connection among profitability, risk and reward by linking directly the bonus pool with company results, cost of capital and risk profiles relevant
for the Group as stated in the Group Risk Appetite Framework;
• the definition of the bonus pool based on Group performance, with following cascading to Divisions according to risk-adjusted performance indicators
and distributed to employees according to individual performance;
• bonuses allocated to Group Material Risk Takers, identified on a basis of regulatory provisions, embedded in CRD V and in Commission Delegated
Regulation (EU) 923/2021 and to other specific roles identified according to local regulations;
• payment structure has been defined in accordance with regulatory provisions qualified by Directive 2013/36/EU (CRD IV) and further updates and
will be distributed in a period of maximum seven years by using a mix of shares, phantom shares and cash.
All profit and loss and net equity/liabilities effects related to the plan will be booked during the vesting period.
The plan is divided into clusters, each of which can have three or six installments of share-based payments spread over a period defined according to
plan rules.
1.2.2 Long Term Incentive Plan 2017-2019
The economic value of performance shares is measured considering the share market price at the grant date less the present value of the future
dividends during the vesting period.
The plan is divided into clusters, based on the beneficiary position, each of which can have from one to four installments of share-based payments
spread over a period defined according to plan rules.
1.2.3 Long Term Incentive Plan 2020-2023
The economic value of performance shares is measured considering the share market price at the grant date less the present value of the future
dividends during the vesting period.
The plan is divided into clusters, based on the beneficiary position, each of which can have from one to five installments of share-based payments
spread over a period defined according to plan rules.
Quantitative information
1. Annual changes
Other UniCredit equity instruments: Performance Shares
ITEMS/NUMBER OF OTHER EQUITY
INSTRUMENTS AND EXERCISE
PRICE
YEAR 2024
YEAR 2023
NUMBER OF OTHER
EQUITY
INSTRUMENTS
AVERAGE EXERCISE
PRICE [€]
AVERAGE
MATURITY
NUMBER OF OTHER
EQUITY
INSTRUMENTS
AVERAGE EXERCISE
PRICE [€]
AVERAGE
MATURITY
A.
Outstanding at beginning
of period
24,368,363
-
set-24
24,700,199
-
nov-23
B.
Increases
715,378
-
8,659,946
-
B.1
New issues
715,378
-
8,659,946
-
B.2
Other
-
-
-
-
C.
Decreases
8,087,383
-
8,991,782
-
C.1
Forfeited
545,209
-
3,483,615
-
C.2
Exercised
7,227,514
-
5,508,167
-
C.3
Expired
314,660
-
-
C.4
Other
-
-
-
D.
Outstanding
at end of period
16,996,358
-
jul-25
24,368,363
-
set-24
E.
Vested instruments
at end of period
6,321,058
-
7,282,469
Notes:
As far as the 2024 movement is concerned, the average market price at the exercise date is equal to €28.825 (€19.43 was the price observed at exercise date for 2023 dynamic).
UniCredit undertakes to grant, conditional upon achieving performance targets set in the strategic plan 16,996,358 ordinary shares at the end of 2024 (24,368,363 ordinary shares at the end of 2023).
701
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part I - Share-based payments
2. Other Information
Effects on Profit and Loss
All Share-Based Payment granted after 7 November 2002 whose vesting period ends after 1 January 2005 are included within the scope of the
IFRS2.
Financial statement presentation related to share based payments
(€ million)
2024
2023
TOTAL
VESTED PLANS
TOTAL
VESTED PLANS
(Costs)/Revenues
(74)
(76)
- connected to equity-settled plans
(69)
(72)
- connected to cash-settled plans
(5)
(4)
Debts for cash-settled plans
8
-
6
-
Note:
The sub-item "connected to equity-settled plans" includes costs for €4.7 million related to golden parachute.
702
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part L - Segment reporting
Part L - Segment reporting
Organisational structure
The organizational structure of the Group is divided into geographical areas as follows:
• Italy;
• Germany;
• Central Europe (including Austria, Czech Republic and Slovakia, Hungary, Slovenia);
• Eastern Europe (including Bosnia and Herzegovina, Bulgaria, Croatia, Romania, Serbia);
• Russia.
Starting from the first quarter of 2022, the Group's organizational structure has been updated by isolating activities in Russia and cross-border
exposure booked in UniCredit S.p.A. towards this country in a specific segment of Segment Reporting.
In addition to Russia, also Central Europe and Eastern Europe includes cross-border exposure booked in UniCredit S.p.A.
This organization ensures Country and local Banks autonomy on specific activities granting proximity to the customers (for all client segment, Retail
and Corporate) and efficient decisional processes.
All standalone geographies of the Group have dedicated support and control functions such as: People and Culture, Finance, Digital & Information
Office, Operations, Compliance, Legal and Risk.
Alongside the new five geographical areas there is Group Corporate Centre with the objective to lead, control and support the management of the
assets and related risks of the Group as a whole and of the single Group companies in their respective areas of competence; it also includes the
Group’s Legal Entities that are going to be dismissed.
The Segment Reporting is shaped according to the described Group organization.
703
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part L - Segment reporting
A - Primary segment
A.1 - Breakdown by business segment: income statement
ITALY
GERMANY
CENTRAL
EUROPE
EASTERN
EUROPE
RUSSIA
GROUP
CORPORATE
CENTRE
CONSOLIDATED
GROUP TOTAL
31.12.2024
Net interest
6,668
2,594
2,720
2,027
818
(468)
14,358
Dividends
142
3
286
7
0
32
470
Fees
4,374
1,574
1,255
746
249
(59)
8,139
Trading income
129
1,197
6
57
224
126
1,739
Other expenses/income
42
95
53
36
1
(87)
139
Revenue
11,354
5,462
4,320
2,872
1,292
(456)
24,844
HR costs
(2,384)
(1,226)
(872)
(473)
(113)
(785)
(5,853)
Non HR costs
(1,313)
(926)
(616)
(329)
(76)
665
(2,596)
Recovery of expenses
38
8
2
2
-
57
106
Amortisations and depreciations
(256)
(75)
(117)
(105)
(36)
(473)
(1,062)
Operating Costs
(3,914)
(2,220)
(1,604)
(905)
(226)
(537)
(9,405)
GROSS OPERATING PROFIT (LOSS)
7,440
3,242
2,716
1,967
1,067
(993)
15,439
Loan loss provisions (LLPs)
(501)
(273)
(33)
22
144
0
(641)
OPERATING NET PROFIT
6,939
2,969
2,683
1,989
1,211
(993)
14,798
Other charges and provisions
(255)
(9)
(207)
(95)
(499)
(3)
(1,069)
Integration costs
(384)
(140)
(103)
(63)
(44)
(107)
(841)
Net income from investments
(127)
(33)
76
3
52
0
(29)
PROFIT (LOSS) BEFORE TAX
6,173
2,787
2,449
1,834
719
(1,102)
12,860
The figures refer to the Reclassified income statement.
A.2 - Breakdown by business segment: balance sheet amounts and RWEA
BALANCE SHEET AMOUNTS
ITALY
GERMANY
CENTRAL
EUROPE
EASTERN
EUROPE
RUSSIA
GROUP
CORPORATE
CENTRE
CONSOLIDATED
GROUP TOTAL
31.12.2024
CUSTOMERS LOANS (NET REPOS AND IC)
144,590
125,773
91,988
40,614
1,192
162
404,319
CUSTOMERS DEPOS (NET REPOS AND IC)
183,922
138,266
96,899
53,338
3,480
(5)
475,900
TOTAL RISK WEIGHTED EXPOSURE AMOUNTS (BASEL 3)
101,083
64,989
58,559
34,710
10,819
6,933
277,093
A.3 - Staff
ITALY
GERMANY
CENTRAL
EUROPE
EASTERN
EUROPE
RUSSIA
GROUP
CORPORATE
CENTRE
CONSOLIDATED
GROUP TOTAL
31.12.2024
STAFF
Employees (FTE)
26,902
8,983
9,844
14,641
2,590
6,762
69,722
704
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the consolidated accounts
Part L - Segment reporting
A.1 - Breakdown by business segment: income statement
ITALY
GERMANY
CENTRAL
EUROPE
EASTERN
EUROPE
RUSSIA
GROUP
CORPORATE
CENTRE
CONSOLIDATED
GROUP TOTAL
31.12.2023
Net interest
6,373
2,689
2,742
1,855
799
(453)
14,005
Dividends
125
3
304
6
2
18
459
Fees
4,077
1,527
1,159
664
198
(60)
7,565
Trading income
382
1,164
10
60
42
85
1,743
Other expenses/income
(53)
34
47
6
143
(123)
54
Revenue
10,904
5,417
4,261
2,591
1,185
(532)
23,826
HR costs
(2,353)
(1,341)
(876)
(438)
(120)
(734)
(5,861)
Non HR costs
(1,324)
(971)
(626)
(306)
(68)
692
(2,603)
Recovery of expenses
19
7
1
0
-
55
81
Amortisations and depreciations
(258)
(95)
(121)
(106)
(38)
(459)
(1,078)
Operating Costs
(3,917)
(2,400)
(1,622)
(850)
(226)
(446)
(9,460)
GROSS OPERATING PROFIT (LOSS)
6,987
3,017
2,639
1,741
959
(978)
14,366
Loan loss provisions (LLPs)
(403)
(183)
(41)
72
(8)
3
(560)
OPERATING NET PROFIT
6,584
2,835
2,598
1,813
952
(975)
13,806
Other charges and provisions
(471)
(192)
(244)
(80)
(23)
(13)
(1,023)
Integration costs
(354)
(335)
(211)
(28)
(10)
(122)
(1,060)
Net income from investments
(148)
(188)
87
9
(31)
(1)
(272)
PROFIT (LOSS) BEFORE TAX
5,612
2,119
2,230
1,713
888
(1,110)
11,451
The figures refer to the Reclassified income statement.
A.2 - Breakdown by business segment: balance sheet amounts and RWEA
(€ million)
BALANCE SHEET AMOUNTS
ITALY
GERMANY
CENTRAL
EUROPE
EASTERN
EUROPE
RUSSIA
GROUP
CORPORATE
CENTRE
CONSOLIDATED
GROUP TOTAL
31.12.2023
CUSTOMERS LOANS (NET REPOS AND IC)
152,120
125,107
95,367
33,570
3,152
162
409,478
CUSTOMERS DEPOS (NET REPOS AND IC)
188,434
138,192
93,450
47,104
7,208
(5)
474,383
TOTAL RISK WEIGHTED EXPOSURE AMOUNTS (BASEL 3)
108,073
69,473
60,492
28,743
14,283
3,484
284,548
A.3 - Staff
ITALY
GERMANY
CENTRAL
EUROPE
EASTERN
EUROPE
RUSSIA
GROUP
CORPORATE
CENTRE
CONSOLIDATED
GROUP TOTAL
31.12.2023
STAFF
Employees (FTE)
27,528
9,819
10,191
13,019
3,153
7,041
70,752
705
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the consolidated accounts
Part L - Segment reporting
B - Secondary segment
The Secondary segment Reporting is presented by client segment (Retail and Corporate).
(€ million)
AMOUNTS AS AT 31.12.2024
REVENUE
CUSTOMERS
LOANS(*)
TOTAL
RWEA Eop
Retail
12,159
139,305
65,262
Corporates
12,557
259,486
160,062
Central Functions
128
5,528
51,769
Total
24,844
404,319
277,093
Note:
(*) The “customers loans” are net of repos and intercompany transactions.
(€ million)
AMOUNT AS AT 31.12.2023
REVENUE
CUSTOMERS
LOANS(*)
TOTAL
RWEA Eop
Retail
11,664
140,606
65,932
Corporates
12,487
265,978
168,609
Central Functions
(325)
2,893
50,006
Total
23,826
409,478
284,548
Note:
(*) The “customers loans” are net of repos and intercompany transactions.
The figures refer to the Reclassified income statement.
Figures as of 2023 were recast, where necessary, on a like-to-like basis to consider changes in scope of business segment and methodological
reporting.
706
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the accounts
Part M - Information on leases
Part M - Information on leases
Section 1 - Lessee
Qualitative information
The Group in conducting its business, signs lease contracts for which accounts for rights of use that mainly relate to the following type of tangible
assets:
• lands;
• buildings;
• others (e.g., cars).
These contracts are accounted for in accordance with rules set in accounting standard IFRS16 further detailed in Part A - Accounting policies, A.2 -
Main items of the accounts (refer to this section).
The rights of use deriving from these lease contracts are mainly used to provide for services or for administrative purposes and accounted for
according to the cost method. If these rights of use are sub-leased to third parties, a financial or operating lease contract is booked based on their
characteristics.
As allowed by the accounting standard, the Group has decided not to account for rights of use or lease liabilities in case of:
• short-term leases, lower than 12 months; and
• lease of low value assets. In this regard, an asset is considered as low value if its fair value when new is equal to or lower than €5 thousand. This
category mainly includes office machines (PCs, monitors, tablets, etc.) as well as fixed and mobile telephony devices.
The lease payments deriving from this type of activity are booked in item “190. Administrative expenses” on an accrual basis.
Quantitative information
The book value of the rights of use arising from lease contracts are exposed in the paragraph “Section 9 - Property, plant and equipment - Item 90”,
Notes to the consolidated accounts, Part B - Consolidated balance sheet - Assets.
During the year, these rights of use resulted in the recognition of depreciations for €274.4 million of which:
• €0.7 million relating to lands;
• €259.9 million relating to buildings;
• €13.8 million relating to the category other (e.g., electronic systems, cars).
In addition, impairment (net of reversal) for approx. €13 million has been booked.
With reference to lease liabilities, the related book value is shown in the paragraph “Section 1 - Financial liabilities at amortised cost - Item 10”,
Notes to the consolidated accounts, Part B - Consolidated balance sheet, Liabilities.
During the year, these lease liabilities led to the recognition of interest expenses shown in the paragraph “Section 1 - Interests - Items 10 and 20”,
Notes to the consolidated accounts, Part C - Consolidated income statement.
With reference to short-term leases and leases of low value assets, it should be noted that during the year, rentals were accounted for €86 million. It
should be note that such amount also includes VAT on rentals which is not included in the lease liability calculation.
Finally, with reference to the sublease contracts, it should be noted that these contracts determined interest income for €3.1 million during the year if
classified as financial leases and other operating income for €4.2 million if classified as operating leases.
For the purposes of determining the lease term, the Group considers the non-cancellable period established by the contract, during which the lessee
has the right to use the underlying asset as well as any renewal options where the lessee has reasonable expectation to proceed with the renewal.
In particular, with reference to contracts that provide the lessee with the option to automatically renew the lease at the end of a first period, the lease
term is determined considering elements such as the duration of the first period, the existence of any plan leading to the disposal of the asset leased
as well as any other circumstance indicating the reasonable certainty of renewal.
Therefore, the amount of cash flows, not reflected in the calculation of the lease liability, to which the Group is potentially exposed, is essentially due
to the possible renewal of lease contracts and the subsequent extension of the lease term not included in the original calculation of the lease
liabilities taking into account the information available and expectations existing as at 1 January 2019 (date of initial application of IFRS16) or on the
starting date of the lease.
707
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the accounts
Part M - Information on leases
Section 2 - Lessor
Qualitative information
Financial leasing activities are exposed through the recognition of a credit for financial leases recognised in item “40. Financial assets at amortised
cost”, of the related income on an accrual basis in item "10. Interest income and similar revenues" and of the impairment for the expected credit loss
in item “130. Net losses/recoveries on credit impairment”.
Operating leasing activities, on the other hand, are essentially attributable to the leasing to parties external to the Group of owned properties and
other tangible assets (mainly cars).
These contracts are represented through the recognition, on an accrual basis, of the rentals received in item “230. Other operating
expenses/income”.
Quantitative information
1. Balance sheet and Income statement information
With reference to financial lease contracts, the book value of credit for financial leases is shown in the paragraph “Section 4 - Financial assets at
amortised cost - Item 40”, Notes to the consolidated accounts, Part B - Consolidated balance sheet - Assets.
Such loans determined, during the year, interest income shown in the paragraph “Section 1 - Interests - Items 10 and 20”, Notes to the consolidated
accounts, Part C - Consolidated income statement.
With reference to operating lease contracts, it should be noted that the book value of the owned assets granted under operating lease is composed
as follows:
• lands: €133.7 million;
• buildings: €278.5 million;
• other: €600.3 million.
Rentals recognised on an accrual basis during the year for leasing of these activities are shown in the paragraph “Section 16 - Other operating
expenses/income“, Notes to the consolidated accounts, Part C - Consolidated income statement.
2. Financial leases
2.1 Classification for time bucket of Payments to be received and Reconciliation with Lease Loans booked in the Assets
(€ million)
TIME BUCKET
31.12.2024
31.12.2023
PAYMENTS TO BE RECEIVED FOR
LEASE
PAYMENTS TO BE RECEIVED FOR
LEASE
Up to 1 year
3,248
3,422
1 year to 2 years
2,633
2,762
2 year to 3 years
2,169
2,340
3 year to 4 years
1,672
1,813
4 year to 5 years
1,359
1,376
Over 5 years
2,260
3,100
Total Payments to be received for lease
13,341
14,813
RECONCILIATION WITH LOANS
Unpaid Financial Profits (-)
1,396
1,633
Not guaranteed Residual Amount (-)
-
-
Lease Loans
11,945
13,180
The value shown in the table represents the gross exposure, this value is decreased by impairment, equal to €453 million on a cumulated basis,
leading to the amount of €11,492 million shown in the paragraph “Section 4 - Financial assets at amortised cost - Item 40”, Notes to the consolidated
accounts, Part B - Consolidated balance sheet - Assets.
708
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Notes to the accounts
Part M - Information on leases
2.2 Other information
With regard to financial leases, the credit risk associated with the contract is managed according to what is stated in the paragraph “2.1 Credit risk”,
Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated, refer
to this section.
The classification of the contract as a financial lease is determined by the fact that the risks and rewards of ownership of the asset are transferred to
the lessee for the whole lease term and the contract contains an option to purchase the asset at conditions that determines non-economic the non-
exercise of the option, or the contract has a duration substantially aligned with the useful life of the asset leased. Such condition is also satisfied in
case of contracts that do not contain an option to purchase the asset or have a lease term significantly lower than useful life of the asset leased, but
are complemented by agreements with third parties that guarantee the purchase of the asset at the end of the lease contract.
3. Operating leases
3.1 Classification for time bucket of Payments to be received
(€ million)
TIME BUCKET
31.12.2024
31.12.2023
PAYMENTS TO BE RECEIVED FOR
LEASE
PAYMENTS TO BE RECEIVED FOR
LEASE
Up to 1 year
136
138
1 year to 2 years
92
96
2 year to 3 years
68
72
3 year to 4 years
45
49
4 year to 5 years
31
28
Over 5 years
53
64
Total
425
447
3.2 Other information
There is no further significant information to report compared to the above.
709
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Notes to the accounts
Part M - Information on leases
710
UniCredit 2024 Annual Reports and Accounts
710
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Certifications
Consolidated Financial Statements Certification pursuant to Art.81-ter of Consob
Regulation No.11971/99, as amended
Certification
1. The undersigned Andrea Orcel (as Chief Executive Officer) and Bonifacio Di Francescantonio (as the Manager charged with preparing the
financial reports) of UniCredit S.p.A., also in compliance with Art.154-bis, (paragraphs 3 and 4) of Italian Legislative Decree No.58 of 24 February
1998, hereby certify:
• the adequacy in relation to the Legal Entity’s features and
• the actual application of the administrative and accounting procedures employed to draw up the 2024 Consolidated Financial Statements.
2. The adequacy of administrative and accounting procedures employed to draw up the 2024 Consolidated Financial Statements has been
evaluated by applying a model developed by UniCredit S.p.A., in accordance with the “Internal Control - Integrated Framework (CoSO)” and the
“Control Objective for IT and Related Technologies (Cobit)”, which represent generally accepted international standards for internal control
system and for financial reporting in particular.
3. The undersigned also certify that:
3.1 the 2024 Consolidated Financial Statements:
a) were prepared in compliance with applicable international accounting standards recognised by the European Community pursuant to
European Parliament and Council Regulation No.1606/2002 of 19 July 2002;
b) correspond to the results of the accounting books and records;
c) are suitable to provide a fair and correct representation of the economic and financial situation of the issuer and of the group of
companies included in the scope of consolidation;
3.2 the Report on Operations includes a reliable analysis of the operating trend and results, as well as of the situation of the issuer and of the
Legal Entities included in the scope of consolidation, together with a description of the main risks and uncertainties they are exposed to.
Milan, 20 February 2025
Andrea ORCEL
Bonifacio DI FRANCESCANTONIO
Certifications
Consolidated Financial Statements Certification
711
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Certifications
Consolidated Financial Statements Certification pursuant to Art.81-ter of Consob
Regulation No.11971/99, as amended
712
UniCredit 2024 Annual Reports and Accounts
712
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Certifications
Sustainability Statements Certification
The undersigned Andrea Orcel, as Chief Executive Officer of UniCredit S.p.A., and Giuseppe Zammarchi, as the Sustainability Reporting Manager
of UniCredit S.p.A., attest(*), pursuant to Art.154-bis, paragraph 5-ter, of the Italian Legislative Decree No.58 of 24 February 1998, that the
Sustainability Statements included in the Consolidated Report on Operations were drawn up:
• in accordance with the reporting standards applied pursuant to Directive 2013/34/EU of the European Parliament and of the Council of 26 June
2013, and of Legislative Decree 6 September 2024, No.125;
• with the specifications adopted pursuant to Article 8.4 of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June
2020.
Milan, 20 February 2025
Andrea ORCEL
Giuseppe ZAMMARCHI
(*) Certification issued according to the form defined in the Consob document for the consultation of 13 December 2024.
Sustainability Statements Certification
Sustainability Statements Certification
713
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
714
UniCredit 2024 Annual Reports and Accounts
714
UniCredit 2024 Annual Reports and Accounts
KPMG S.p.A.
Revisione e organizzazione contabile
Via Vittor Pisani, 25
20124 MILANO MI
Telefono +39 02 6763.1
Email it-fmauditaly@kpmg.it
PEC kpmgspa@pec.kpmg.it
(This independent auditors’ report has been translated into English solely for the convenience of
international readers. Accordingly, only the original Italian version is authoritative.)
Independent auditors’ report pursuant to article 14 of Legislative
decree no. 39 of 27 January 2010 and article 10 of Regulation (EU) no.
537 of 16 April 2014
To the shareholders of
UniCredit S.p.A.
Report on the audit of the consolidated financial statements
Opinion
We have audited the consolidated financial statements of the UniCredit Group (the “group”), which
comprise the balance sheet as at 31 December 2024, the income statement and the statements of
comprehensive income, changes in equity and cash flows for the year then ended and notes thereto,
which include material information on the accounting policies.
In our opinion, the consolidated financial statements give a true and fair view of the financial position of
the UniCredit Group as at 31 December 2024 and of its financial performance and cash flows for the year
then ended in accordance with the International Financial Reporting Standards issued by the
International Accounting Standards Board and endorsed by the European Union, as well as the Italian
regulations implementing article 9 of Legislative decree no. 38/05 and article 43 of Legislative decree no.
136/15.
Basis for opinion
We conducted our audit in accordance with the International Standards on Auditing (ISA Italia). Our
responsibilities under those standards are further described in the “Auditors’ responsibilities for the audit
of the consolidated financial statements” section of our report. We are independent of UniCredit S.p.A.
(the “parent”) in accordance with the ethics and independence rules and standards applicable in Italy to
audits of financial statements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Ancona Bari Bergamo
Bologna Bolzano Brescia
Catania Como Firenze Genova
Lecce Milano Napoli Novara
Padova Palermo Parma Perugia
Pescara Roma Torino Treviso
Trieste Varese Verona
Società per azioni
Capitale sociale
Euro 10.415.500,00 i.v.
Registro Imprese Milano Monza Brianza Lodi
e Codice Fiscale N. 00709600159
R.E.A. Milano N. 512867
Partita IVA 00709600159
VAT number IT00709600159
Sede legale: Via Vittor Pisani, 25
20124 Milano MI ITALIA
KPMG S.p.A. è una società per azioni di diritto italiano e fa parte del
network KPMG di entità indipendenti affiliate a KPMG International
Limited, società di diritto inglese.
715
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
UniCredit Group
Independent auditors’ report
31 December 2024
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in the
audit of the consolidated financial statements of the current year. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
Measurement of loans and receivables with customers recognised under financial assets at
amortised cost
Notes to the consolidated accounts “Part A - Accounting policies”: paragraph A.2.3 “Financial assets at
amortised cost”
Notes to the consolidated accounts “Part B - Consolidated balance sheet - Assets”: section 4 “Financial
assets at amortised cost”
Notes to the consolidated accounts “Part C - Consolidated income statement”: section 8 “Net
losses/recoveries on credit impairment”
Notes to the consolidated accounts “Part E - Information on risks and related hedging policies”:
paragraph 2.1 “Credit risk”
Key audit matter
Audit procedures addressing the key audit matter
Lending to customers is one of the group’s core
activities. Loans and receivables with customers
recognised under financial assets at amortised cost
totalled €496,626 million at 31 December 2024,
accounting for 63% of total assets.
Net impairment losses on loans and receivables with
customers recognised in profit or loss during the year
totalled €746 million.
For classification purposes, the directors make
analyses that are sometimes complex in order to
identify those positions that show evidence of both a
significant increase in credit risk and impairment after
disbursement. To this end, they consider both internal
information about the performance of exposures and
external information about the reference sector or the
borrowers’ overall exposure to banks.
Measuring loans and receivables with customers is a
complex activity, with a high degree of uncertainty and
subjectivity, with respect to which the directors apply
internal valuation models that consider many
quantitative and qualitative factors, including historical
collection flows, expected cash flows and related
estimated collection dates, the existence of any
indicators of impairment, an assessment of any
guarantees, the impact of macroeconomic variables,
future scenarios and risks of the sectors in which the
parent’s and the group companies’ customers operate.
The complexity of the directors’ estimation process is
affected by the heightened geopolitical uncertainties,
which have worsened current economic conditions and
the outlook for future macroeconomic scenarios and
have had a strong impact on the energy market, supply
Our audit procedures included:
•
gaining an understanding of the parent’s and group
companies’ processes and IT environments in
relation to the disbursement, monitoring,
classification and measurement of loans and
receivables with customers;
•
assessing the design and implementation of
controls and performing procedures to assess the
operating effectiveness of material controls,
especially in relation to the identification of
exposures with indicators of impairment and the
calculation of impairment losses;
•
analysing the classification criteria used for
allocating loans and receivables with customers to
the IFRS 9 categories (staging);
•
analysing the individual and collective impairment
assessment policies and models used and
checking the reasonableness of the main
assumptions and variables included therein, as
well as the adjustments made as a result of the
financial effects of the geopolitical situation. We
carried out these procedures with the assistance of
experts of the KPMG network;
•
selecting a sample of exposures tested collectively,
checking the application of the measurement
models applied and checking that the impairment
rates applied complied with those provided for in
such models;
•
selecting a sample of exposures tested individually
and checking the reasonableness of the indicators
716
UniCredit 2024 Annual Reports and Accounts
UniCredit Group
Independent auditors’ report
31 December 2024
Key audit matter
Audit procedures addressing the key audit matter
chains, inflationary pressure and its effect on monetary
policies, leading central banks to raise interest rates in
the main economies, and the property market’s trends
and indicators. This required the directors to revisit the
valuation processes and methods.
For the above reasons, we believe that the
measurement of loans and receivables with customers
recognised under financial assets at amortised cost is a
key audit matter.
of impairment identified and of the assumptions
about their recoverability, including considering the
guarantees received;
•
analysing the significant changes in the loan and
receivable categories and in the related impairment
rates compared to the previous years’ figures and
discussing the results with the relevant internal
departments;
•
assessing the appropriateness of the disclosures
about loans and receivables with customers
recognised under financial assets measured at
amortised cost.
Measurement of financial assets and liabilities at fair value levels 2 and 3
Notes to the consolidated accounts “Part A – Accounting policies”: paragraphs A.2.1 “Financial assets at
fair value through profit or loss”, A.2.2 “Financial assets at fair value through other comprehensive
income”, A.2.4 “Hedge accounting”, A.2.12 “Financial liabilities held for trading”, A.2.13 “Financial
liabilities designated at fair value” and A.4 “Information on fair value”
Notes to the consolidated accounts “Part B - Consolidated balance sheet - Assets”: sections 2 “Financial
assets at fair value through profit or loss”, 3 “Financial assets at fair value through other comprehensive
income” and 5 “Hedging derivatives”
Notes to the consolidated accounts “Part B - Consolidated balance sheet - Liabilities”: sections 2
“Financial liabilities held for trading”, 3 “Financial liabilities designated at fair value” and 4 “Hedging
derivatives”
Notes to the consolidated accounts “Part C - Consolidated income statement”: sections 4 “Gains
(Losses) on financial assets and liabilities held for trading”, 5 “Fair value adjustments in hedge
accounting” and 7 “Net gains (losses) on other financial assets/liabilities at fair value through profit or
loss”
Notes to the consolidated accounts “Part E - Information on risks and related hedging policies”:
paragraphs 2.2 “Market risks” and 2.3 “Derivative instruments and hedging policies”
Key audit matter
Audit procedures addressing the key audit matter
Trading and holding financial instruments are two of the
parent’s and group companies’ core activities. The
consolidated financial statements at 31 December 2024
include financial assets measured at fair value of
€141,047 million and financial liabilities measured at
fair value of €46,207 million.
A portion thereof, equal to €47,932 million and €40,281
million, respectively, is made up of financial assets and
liabilities at fair value without a quoted price on an
active market. The parent’s and group companies’
directors have classified them in levels 2 and 3 of the
fair value hierarchy.
Measuring fair value levels 2 and 3 financial
instruments requires a high level of judgement given
the complexity of the models and parameters used.
Our audit procedures included:
•
gaining an understanding of the parent’s and group
companies’ processes and IT environments in
relation to the trading, classification and
measurement of financial instruments;
•
assessing the design and implementation of
controls and performing procedures to assess the
operating effectiveness of material controls,
especially in relation to the measurement of
financial instruments with fair value levels 2 and 3,
also in the light of the financial effects of the
geopolitical situation;
•
for a sample of financial instruments with fair value
levels 2 and 3, assessing the reasonableness of
717
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
UniCredit Group
Independent auditors’ report
31 December 2024
Key audit matter
Audit procedures addressing the key audit matter
Such complexity is affected by the heightened
geopolitical uncertainties and their impact on the main
economic and financial variables.
For the above reasons, we believe that the
measurement of financial assets and liabilities at fair
value levels 2 and 3 is a key audit matter.
the parameters used by the directors for their
measurement, also in the light of the financial
effects of the geopolitical situation; we carried out
these procedures with the assistance of experts of
the KPMG network;
•
analysing the changes in the composition of the
financial instrument portfolios compared to the
previous year end and discussing the results with
the relevant internal departments;
•
assessing the appropriateness of the disclosures
about financial instruments and related fair value
levels.
Trading centralisation project
Notes to the consolidated accounts “Part G - Business combinations”: section 1 “Business combinations
completed in the year”
Key audit matter
Audit procedures addressing the key audit matter
During the accounting period ended as at 31 December
2024, the group launched the TEC (trading engine
centralisation) project.
The project aims to transfer the entire business unit
related to the trading of financial instruments from
UniCredit Bank GmbH to UniCredit S.p.A., thereby
centralising the management of trading business and
the related risks with UniCredit S.p.A. and revising the
Client Risk Management department’s business model.
The project envisages the transfer of both financial
assets and liabilities and business units from UniCredit
Bank GmbH to UniCredit S.p.A. in waves from 2024 to
2026.
Accordingly, the securities and interest rate derivatives
portfolio and the brokerage business were transferred
on 15 July 2024 and 1 November 2024, respectively.
The project involves the transfer of additional portfolios
in 2025 and 2026.
During our audit, we paid particular attention to the
legal and accounting aspects of the transaction, as well
as the 2024 asset and liability transfer process. This
was necessary given the operating complexity of the
process and the possible impact on the financial
statements of the potential risk of incomplete and
inaccurate migration of the assets and liabilities
transferred in 2024.
Our audit procedures included:
•
gaining an understanding of the transaction and
assessing compliance with applicable regulations
and the correct application of the relevant
standards;
•
analysing the contract documents relating to the
transaction;
•
assessing the effects of the transaction on the
parent’s processes and internal controls; we
carried out these procedures with the assistance of
experts of the KPMG network;
•
assessing the design and implementation of
controls and testing the operating effectiveness of
material controls, especially checking whether the
transferred financial instruments had been correctly
and accurately recognised in the accounting and
management records;
•
checking the completeness and accuracy of the
accounting records prepared by the parent at the
date of the transfer, including the reconciliation with
the closing balances prepared by UniCredit Bank
GmbH and UniCredit Bank GmbH - Milan branch
and with management accounts;
•
assessing the appropriateness of the disclosures
about the transaction.
718
UniCredit 2024 Annual Reports and Accounts
UniCredit Group
Independent auditors’ report
31 December 2024
Responsibilities of the parent’s directors and audit committee for the consolidated
financial statements
The directors are responsible for the preparation of consolidated financial statements that give a true and
fair view in accordance with the International Financial Reporting Standards issued by the International
Accounting Standards Board and endorsed by the European Union, as well as the Italian regulations
implementing article 9 of Legislative decree no. 38/05 and article 43 of Legislative decree no. 136/15
and, within the terms established by the Italian law, for such internal control as they determine is
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
The directors are responsible for assessing the group’s ability to continue as a going concern and for the
appropriate use of the going concern basis in the preparation of the consolidated financial statements
and for the adequacy of the related disclosures. The use of this basis of accounting is appropriate unless
the directors believe that the conditions for liquidating the parent or ceasing operations exist, or have no
realistic alternative but to do so.
The audit committee is responsible for overseeing, within the terms established by the Italian law, the
group’s financial reporting process.
Auditors’ responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISA Italia will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISA Italia, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
•
identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control;
•
obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the group’s internal control;
•
evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors;
•
conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to
the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditors’ report. However, future events or conditions may cause the group to cease
to continue as a going concern;
719
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
UniCredit Group
Independent auditors’ report
31 December 2024
•
evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation;
•
obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance, identified at the appropriate level required by ISA
Italia, regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with the ethics
and independence rules and standards applicable in Italy and communicate with them all relationships
and other matters that may reasonably be thought to bear on our independence, and where applicable,
the measures taken to eliminate those threats or the safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current year and are,
therefore, the key audit matters. We describe these matters in our auditors’ report.
Other information required by article 10 of Regulation (EU) no. 537/14
On 9 April 2020, the parent’s shareholders appointed us to perform the statutory audit of its separate and
consolidated financial statements as at and for the years ending from 31 December 2022 to 31
December 2030.
We declare that we did not provide the prohibited non-audit services referred to in article 5.1 of
Regulation (EU) no. 537/14 and that we remained independent of the parent in conducting the statutory
audit.
We confirm that the opinion on the consolidated financial statements expressed herein is consistent with
the additional report to the audit committee prepared in accordance with article 11 of the Regulation
mentioned above.
Report on other legal and regulatory requirements
Opinion on the compliance with the provisions of Commission Delegated Regulation
(EU) 2019/815
The parent’s directors are responsible for the application of the provisions of Commission Delegated
Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single
electronic reporting format (ESEF) to the consolidated financial statements at 31 December 2024 to be
included in the annual financial report.
We have performed the procedures required by Standard on Auditing (SA Italia) 700B in order to express
an opinion on the compliance of the consolidated financial statements with Commission Delegated
Regulation (EU) 2019/815.
In our opinion, the consolidated financial statements at 31 December 2024 have been prepared in
XHTML format and have been marked up, in all material respects, in compliance with the provisions of
Commission Delegated Regulation (EU) 2019/815.
720
UniCredit 2024 Annual Reports and Accounts
UniCredit Group
Independent auditors’ report
31 December 2024
Opinion and statement pursuant to article 14.2.e)/e-bis)/e-ter) of Legislative decree no.
39/10 and article 123-bis.4 of Legislative decree no. 58/98
The parent’s directors are responsible for the preparation of the group’s reports on operations and on
corporate governance and ownership structure at 31 December 2024 and for the consistency of such
reports with the related consolidated financial statements and their compliance with the applicable law.
We have performed the procedures required by Standard on Auditing (SA Italia) 720B in order to:
• express an opinion on the consistency of the report on operations and certain specific information
presented in the report on corporate governance and ownership structure required by article 123-bis.4
of Legislative decree no. 58/98 with the consolidated financial statements;
• express an opinion on the consistency of the report on operations, excluding the section that includes
the sustainability statement, and certain specific information presented in the report on corporate
governance and ownership structure required by article 123-bis.4 of Legislative decree no. 58/98 with
the applicable law;
• issue a statement of any material misstatements in the report on operations and certain specific
information presented in the report on corporate governance and ownership structure required by
article 123-bis.4 of Legislative decree no. 58/98.
In our opinion, the report on operations and the specific information presented in the report on corporate
governance and ownership structure required by article 123-bis.4 of Legislative decree no. 58/98 are
consistent with the group’s consolidated financial statements at 31 December 2024.
Moreover, in our opinion, except for the section which includes the sustainability statement, the report on
operations and the specific information presented in the report on corporate governance and ownership
structure required by article 123-bis.4 of Legislative decree no. 58/98 have been prepared in compliance
with the applicable law.
With reference to the above statement required by article 14.2.e-ter) of Legislative decree no. 39/10,
based on our knowledge and understanding of the entity and its environment obtained through our audit,
we have nothing to report.
Our opinion on compliance with the applicable law does not extend to the report on operations’ section
which includes the sustainability statement. Our conclusion on the compliance of this section with the
legislation governing its preparation and with the disclosure requirements of article 8 of Regulation (EU)
2020/852 is included in the assurance report prepared in accordance with article 14-bis of Legislative
decree no. 39/10.
Milan, 24 February 2025
KPMG S.p.A.
Bruno Verona
Director of Audit
721
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
722
UniCredit 2024 Annual Reports and Accounts
722
UniCredit 2024 Annual Reports and Accounts
UniCredit 2024 Annual Reports and Accounts
723
723
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
724
UniCredit 2024 Annual Reports and Accounts
724
UniCredit 2024 Annual Reports and Accounts
KPMG S.p.A.
Revisione e organizzazione contabile
Via Vittor Pisani, 25
20124 MILANO MI
Telefono +39 02 6763.1
Email it-fmauditaly@kpmg.it
PEC kpmgspa@pec.kpmg.it
(This independent auditors’ report has been translated into English solely for the convenience of
international readers. Accordingly, only the original Italian version is authoritative.)
Independent auditors’ limited assurance report on the consolidated
sustainability statement pursuant to article 14-bis of Legislative
decree no. 39 of 27 January 2010
To the shareholders of
UniCredit S.p.A.
Conclusion
Pursuant to articles 8 and 18.1 of Legislative decree no. 125 of 6 September 2024 (the “decree”), we
have been engaged to perform a limited assurance engagement on the 2024 consolidated sustainability
statement of the UniCredit Group (the “group”) prepared in accordance with article 4 of the decree,
presented in the specific section of the report on operations (the “sustainability statement”).
Based on the procedures performed, nothing has come to our attention that causes us to believe that:
•
the group’s 2024 consolidated sustainability statement has not been prepared, in all material
respects, in accordance with the reporting standards endorsed by the European Commission
pursuant to Directive 2013/34/EU (the European Sustainability Reporting Standards, “ESRS”);
•
the information presented in the “Disclosure pursuant to Article 8 of Regulation 2020/852 (EU
Taxonomy Regulation)” section required by article 8 of Regulation (EU) 2020/852 of 18 June 2020
(the “taxonomy regulation”) of the consolidated sustainability statement has not been prepared, in all
material respects, in accordance with article 8 of the taxonomy regulation.
Basis for conclusion
We have performed the limited assurance engagement in accordance with the Standard on Sustainability
Assurance Engagements - SSAE (Italia). The procedures performed in a limited assurance engagement
vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement.
Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower
than the assurance that would have been obtained had a reasonable assurance engagement been
performed. Our responsibilities under that standard are further described in the “Auditors’ responsibilities
for the consolidated sustainability assurance engagement” section of our report.
We are independent in accordance with the ethics and independence rules and standards applicable in
Italy to sustainability assurance engagements.
Ancona Bari Bergamo
Bologna Bolzano Brescia
Catania Como Firenze Genova
Lecce Milano Napoli Novara
Padova Palermo Parma Perugia
Pescara Roma Torino Treviso
Trieste Varese Verona
Società per azioni
Capitale sociale
Euro 10.415.500,00 i.v.
Registro Imprese Milano Monza Brianza Lodi
e Codice Fiscale N. 00709600159
R.E.A. Milano N. 512867
Partita IVA 00709600159
VAT number IT00709600159
Sede legale: Via Vittor Pisani, 25
20124 Milano MI ITALIA
KPMG S.p.A. è una società per azioni di diritto italiano e fa parte del
network KPMG di entità indipendenti affiliate a KPMG International
Limited, società di diritto inglese.
725
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
UniCredit Group
Independent auditors’ report
31 December 2024
Our company applies International Standard on Quality Management 1 (ISQM Italia 1) and, accordingly,
is required to design, implement and operate a system of quality management including policies or
procedures regarding compliance with ethical requirements, professional standards and applicable legal
and regulatory requirements.
We believe that the evidence we have acquired is sufficient and appropriate to provide a basis for our
conclusion.
Other matters
In the specific section “Disclosure pursuant to Article 8 of Regulation 2020/852 (EU Taxonomy
Regulation)” in accordance with article 8 of the taxonomy regulation, the 2024 consolidated sustainability
statement presents the 2023 comparative information required by article 8 of the taxonomy regulation,
which has not been subjected to an assurance engagement.
Responsibilities of the directors and audit committee of UniCredit S.p.A. (the “parent”)
for the consolidated sustainability statement
The directors are responsible for designing and implementing the procedures to identify the information
included in the consolidated sustainability statement in accordance with the ESRS (the “materiality
assessment process”) and for the description of these procedures in the “Impact, risk and opportunity
management – IRO-1 – Description of the processes to identify and assess material impacts, risks and
opportunities” section of the consolidated sustainability statement.
The directors are also responsible for the preparation of a consolidated sustainability statement in
accordance with article 4 of the decree, which contains the information identified through the materiality
assessment process, including:
•
compliance with the ESRS;
•
compliance of the information presented in the “Disclosure pursuant to Article 8 of Regulation
2020/852 (EU Taxonomy Regulation)” section with article 8 of the taxonomy regulation.
Moreover, the directors are responsible, within the terms established by the Italian law, for designing,
implementing and maintaining such internal controls as they determine is necessary to enable the
preparation of a consolidated sustainability statement in accordance with article 4 of the decree that is
free from material misstatement, whether due to fraud or error. They are also responsible for selecting
and applying appropriate methods to produce disclosures and formulating assumptions and estimates
about specific information on sustainability matters that are reasonable in the circumstances.
The audit committee is responsible for overseeing, within the terms established by the Italian law,
compliance with the decree’s provisions.
Inherent limitations in preparing the consolidated sustainability statement
As discussed in section “ESRS 2 – General information - BP-2 – Disclosures in relation to specific
circumstances”, for the purpose of disclosing forward-looking information in accordance with the ESRS,
the directors are required to prepare such information based on assumptions, described in the
consolidated sustainability statement, regarding future events and the group’s actions that are not
necessarily expected to occur. Actual results are likely to be different from the forecast sustainability
information since anticipated events frequently do not occur as expected and the variation could be
material.
726
UniCredit 2024 Annual Reports and Accounts
UniCredit Group
Independent auditors’ report
31 December 2024
As discussed in section “E1 – Climate changes – Metrics and targets”, disclosures about greenhouse gas
Scope 3 emissions are subject to more inherent limitations than those on Scope 1 and Scope 2
emissions, given the lack of availability and relative precision of information used for determining both
qualitative and quantitative Scope 3 information from value chain.
Auditors’ responsibilities for the consolidated sustainability assurance engagement
Our objectives are to plan and perform procedures in order to obtain limited assurance about whether the
consolidated sustainability statement is free from material misstatement, whether due to fraud or error,
and to issue an assurance report that includes our conclusion. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence decisions of intended users taken on the basis of the consolidated sustainability statement.
As part of a limited assurance engagement in accordance with SSAE (Italia), we exercise professional
judgement and maintain professional scepticism throughout the engagement.
Our responsibilities include:
•
considering risks to identify disclosures where a material misstatement is likely to occur, whether due
to fraud or error;
•
designing and performing procedures to address disclosures where a material misstatement is likely
to occur. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control;
•
directing, supervising and performing the consolidated sustainability limited assurance engagement
and assuming full responsibility for the conclusion on the consolidated sustainability statement.
Summary of the work performed
A limited assurance engagement involves carrying out procedures to obtain evidence as a basis for our
conclusion.
The procedures performed are based on our professional judgement and include inquiries, primarily of
the parent’s personnel responsible for the preparation of the information presented in the consolidated
sustainability statement, documental analyses, recalculations and other evidence gathering procedures,
as appropriate.
We have performed the following main procedures:
•
we gained an understanding of the group’s business model, strategies and operating environment
with regard to sustainability matters;
•
we gained an understanding of the processes underlying the generation, recording and management
of the qualitative and quantitative information disclosed in the consolidated sustainability statement,
including the reporting boundary;
•
we gained an understanding of the process adopted by the group to identify and assess material
sustainability-related impacts, risks and opportunities, based on the double materiality principle, and
checking the related disclosures presented in the consolidated sustainability statement;
•
we identified disclosures where a material misstatement was likely to occur, whether due to fraud or
error;
727
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
UniCredit Group
Independent auditors’ report
31 December 2024
•
we designed and performed procedures, based on our professional judgement, to respond to
identified risks of material misstatement;
•
we gained an understanding of the process adopted by the group to determine taxonomy-eligible
exposures and whether they were aligned under the taxonomy regulation and checked the related
disclosures presented in the consolidated sustainability statement;
•
we checked the consistency of the disclosures contained in the consolidated sustainability statement
with the those included in the group’s consolidated financial statements pursuant to the applicable
financial reporting framework, the underlying accounting records or the accounting management
figures;
•
we checked the structure and presentation of disclosures included in consolidated sustainability
statement in accordance with the ESRS;
•
we obtained the representation letter.
Milan, 25 February 2025
KPMG S.p.A.
Domenico Donato
Director of Audit
728
UniCredit 2024 Annual Reports and Accounts
UniCredit 2024 Annual Reports and Accounts
729
729
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
730
UniCredit 2024 Annual Reports and Accounts
730
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 1 - Reconciliation between reclassified balance sheet and
income statement accounts and mandatory reporting schedules
Annexes
A reconciliation of the reclassified balance sheet and profit and loss account to the mandatory reporting schedules, is provided below.
Further details about the restatement of comparative figures are provided in the previous sections.
Consolidated balance sheet
(€ million)
AMOUNTS AS AT
ASSETS
31.12.2024
31.12.2023
Cash and cash balances
41,442
61,000
Item 10. Cash and cash balances
41,442
61,000
Financial assets held for trading
55,083
57,274
Item 20. Financial assets at fair value through profit or loss: a) Financial assets held for trading
55,083
57,274
Loans to banks
50,678
39,434
Item 40. Financial assets at amortised cost: a) Loans and advances to banks
66,540
53,389
less: Debt securities
(15,903)
(14,004)
less: Leasing assets IFRS16
(1)
(1)
+ Loans (from Item 20 c)
41
50
Loans to customers
418,378
429,452
Item 40. Financial assets at amortised cost: b) Loans and advances to customers
496,626
503,589
less: Debt securities
(79,730)
(75,746)
less: Leasing assets IFRS16
(111)
(85)
+ Loans (from Item 20 c)
1,593
1,696
Other financial assets
183,118
162,953
Item 20. Financial assets at fair value through profit or loss: b) Financial assets designated at fair value
247
220
Item 20. Financial assets at fair value through profit or loss: c) Other financial assets mandatorily at fair
value
6,347
7,520
less: Loans (to Loans to banks)
(41)
(50)
less: Loans (to Loans to customers)
(1,593)
(1,696)
Item 30. Financial assets at fair value through other comprehensive income
78,019
63,097
Item 70. Equity investments
4,393
4,025
+ Debt securities (from Item 40 a)
15,903
14,004
+ Debt securities (from Item 40 b)
79,730
75,746
+ Leasing assets IFRS16 (from Item 40 a)
1
1
+ Leasing assets IFRS16 (from Item 40 b)
111
85
Hedging instruments
(351)
(1,340)
Item 50. Hedging derivatives
1,351
1,925
Item 60. Changes in fair value of portfolio hedged items (+/-)
(1,702)
(3,264)
Property, plant and equipment
8,794
8,628
Item 90. Property, plant and equipment
8,794
8,628
Goodwill
38
-
Item 100. Intangible assets of which: goodwill
38
-
Other intangible assets
2,191
2,272
Item 100. Intangible assets net of goodwill
2,191
2,272
Tax assets
10,273
11,818
Item 110. Tax assets
10,273
11,818
Non-current assets and disposal groups classified as held for sale
394
370
Item 120. Non-current assets and disposal groups classified as held for sale
394
370
Other assets
13,966
13,112
Item 130. Other assets
13,968
13,111
Total assets
784,004
784,974
Annex 1 - Reconciliation between reclassified balance sheet and income statement accounts and mandatory reporting schedules
731
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 1 - Reconciliation between reclassified balance sheet and
income statement accounts and mandatory reporting schedules
continued: Consolidated balance sheet
(€ million)
AMOUNTS AS AT
LIABILITIES AND SHAREHOLDERS' EQUITY
31.12.2024
31.12.2023
Deposits from banks
67,903
71,042
Item 10. Financial liabilities at amortised cost: a) Deposits from banks
67,919
71,069
less: Leasing liabilities IFRS16
(16)
(27)
Deposits from customers
499,505
495,716
Item 10. Financial liabilities at amortised cost: b) Deposits from customers
500,970
497,394
less: Leasing liabilities IFRS16
(1,466)
(1,677)
Debt securities issued
90,709
89,845
Item 10. Financial liabilities at amortised cost: c) Debt securities in issue
90,709
89,845
Financial liabilities held for trading
31,349
38,022
Item 20. Financial liabilities held for trading
31,349
38,022
Other financial liabilities
15,228
13,751
Item 30. Financial liabilities designated at fair value
13,746
12,047
+ Leasing liabilities IFRS16 (from Item 10 a)
16
27
+ Leasing liabilities IFRS16 (from Item 10 b)
1,466
1,677
Hedging instruments
(8,134)
(10,573)
Item 40. Hedging derivatives
1,112
2,359
Item 50. Value adjustment of hedged financial liabilities (+/-)
(9,247)
(12,932)
Tax liabilities
1,708
1,483
Item 60. Tax liabilities
1,708
1,483
Liabilities included in disposal groups classified as held for sale
0
(0)
Item 70. Liabilities associated with assets classified as held for sale
-
-
Other liabilities
22,895
21,445
Item 80. Other liabilities
14,687
13,566
Item 90. Provision for employee severance pay
294
335
Item 100. Provisions for risks and charges
7,916
7,543
Minorities
400
164
Item 190. Minority shareholders' equity (+/-)
400
164
Group shareholders' equity:
62,441
64,079
- Capital and reserves
52,722
54,572
Item 120. Valuation reserves
(5,422)
(4,928)
Item 140. Equity instruments
4,958
4,863
Item 150. Reserves
33,235
35,063
Item 155. Advanced dividends (-)
(1,440)
-
Item 160. Share premium
23
23
Item 170. Share capital
21,368
21,278
Item 180. Treasury shares (-)
-
(1,727)
- Group stated net profit (loss)
9,719
9,507
Item 200. Profit (Loss) of the year (+/-)
9,719
9,507
Total liabilities and shareholders' equity
784,004
784,974
732
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 1 - Reconciliation between reclassified balance sheet and
income statement accounts and mandatory reporting schedules
Consolidated income statement
(€ million)
YEAR
2024
2023
Net interest
14,358
14,005
Item 30. Net interest margin
14,671
14,348
less: Reclassification net Interest contribution deriving from Trading Book instruments
(107)
(188)
+ Interest on DBO/TFR/Jubilee (from Item 190)
(115)
(119)
+ Derivatives instruments - Economic Hedges - Others - Interest component
(67)
(36)
+ Costs for issued Credit Linked notes guaranteeing a credit portfolio (from item 60)
(25)
-
Dividends
470
459
Item 70. Dividend income and similar revenues
468
305
less: Dividends from held for trading equity instruments included in Item 70
(345)
(221)
less: Dividends on equity investments, shares and equity instruments mandatorily at fair value
(66)
(45)
less: Recovery of expenses
(1)
(0)
Item 250. Gains (Losses) of equity investments - of which: Profit (Loss) of equity investments valued at equity
414
421
Fees
8,139
7,565
Item 60. Net fees and commissions
7,042
6,604
less: Settlement of specific accruals referred to previous years operations
12
1
less: Amounts related to credit card distribution agreements
7
-
less: Discount associated with services on agreements for credit card distribution and payment services
(11)
-
less: Costs for issued Credit Linked notes guaranteeing a credit portfolio
25
-
+ Non-recoverable expenses incurred for customers financial transactions taxes (from Item 190 b)
(19)
(15)
+ Structuring and mandate fees on issued or placed certificates by the Group (from Item 110)
111
52
+ Structuring and mandate fees on issued or placed certificates by the Group and connected derivatives (from Item 80)
87
104
+ Mark-up fees on client hedging activities (from Item 80)
883
820
Trading income
1,739
1,743
Item 80. Net gains (losses) on trading
2,888
2,264
less: Derivatives instruments - Economic Hedges - Others - Interest component
67
36
less: Structuring and mandate fees on issued or placed certificates by the Group and connected derivatives
(87)
(104)
less: Mark-up fees on client hedging activities
(883)
(820)
Item 90. Net gains (losses) on hedge accounting
(530)
(201)
Item 100. Gains (Losses) on disposal and repurchase of: c) financial liabilities
5
66
Item 100. Gains (Losses) on disposal and repurchase of: b) financial assets at fair value through other comprehensive income
74
145
Item 110. Net gains (losses) on other financial assets/liabilities at fair value through profit or loss
(286)
(502)
less: Structuring and mandate fees on issued or placed certificates by the Group
(111)
(52)
less: Net Result on Financial Assets mandatorily at fair value - Debt securities related to non-performing loans, included securitizations
50
-
+ Gains (Losses) on disposal and repurchase of financial assets at amortised cost - debt securities (from Item 100 a)
20
28
+ Dividends from held for trading equity instruments (from Item 70)
345
221
+ Dividends on equity investments, shares and equity instruments mandatorily at fair value (from Item 70)
66
45
+ Gain/losses on commodities held with a trading intent (from Item 230)
14
428
+ Reclassification net Interest contribution deriving from Trading Book instruments
107
188
Other expenses/income
139
54
Item 230. Other operating expenses/income
853
972
less: Integration costs
6
8
less: Recovery of expenses excluded amounts related to credit card distribution agreements
(629)
(542)
less: Net value adjustments/write-backs on leasehold improvements (on non-separable assets)
45
47
less: Gain (losses) on commodities held with a trading intent and on precious stones
(4)
(422)
less: Other operating income other - reversal of invoices to be received related to tangible asset
(0)
(7)
+ Settlement of specific accruals referred to previous years operations
(12)
(1)
+ Result of industrial companies
(0)
(1)
+ Gains (Losses) on disposal and repurchase of financial assets at amortised cost - performing loans (from Item 100 a)
(5)
119
+ Net value adjustments/write-backs of tangible in operating lease assets (from Item 210)
(110)
(106)
+ Gains (Losses) on disposals of investments in operating lease assets (from Item 280)
2
4
+ Amounts related to credit card distribution agreements (from item 60)
(7)
-
+ Amounts related to credit card distribution agreements (from item 190)
(27)
-
+ Amounts related to asset management distribution agreements (from Item 200 b)
26
(17)
Revenue
24,844
23,826
733
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 1 - Reconciliation between reclassified balance sheet and
income statement accounts and mandatory reporting schedules
continued: Consolidated income statement
(€ million)
YEAR
2024
2023
Revenue
24,844
23,826
HR costs
(5,853)
(5,861)
Item 190. Administrative expenses: a) staff costs
(6,684)
(6,877)
less: Integration costs
717
897
less: Interest on DBO/TFR/Jubilee
115
119
Non HR costs
(2,596)
(2,603)
Item 190. Administrative expenses: b) other administrative expenses
(3,724)
(4,025)
less: Administrative expenses: b) other administrative expenses of industrial companies
0
1
less: Contributions to Resolution Funds (SRF), Deposit Guarantee Schemes (DGS), Bank Levy, Life Insurance Guarantee Fund and
Guarantee fees for DTA
515
949
less: Integration costs
39
32
less: Other administration costs - Withholding tax on intercompany/IMREL issuances
1
1
less: Non-recoverable expenses incurred for customers financial transactions taxes
19
15
less: Variable portion of the outsourced NPE recovery costs not recovered from the clients
38
11
less: Amounts related to credit card distribution agreements
27
-
+ Discount associated with services on agreements for credit card distribution and payment services (from item 60)
11
-
+ Tax recovery (from Item 230)
524
460
+ Net value adjustments/write-backs on leasehold improvements on non-separable assets (from Item 230)
(45)
(47)
Recovery of expenses
106
81
+ Recovery of expenses excluded amounts related to credit card distribution agreements and Tax recovery (from Item 230)
106
81
Amortisations and depreciations
(1,062)
(1,078)
Item 210. Net value adjustments/write-backs on property, plant and equipment
(695)
(842)
less: Impairment/writebacks of inventories assets (IAS2) obtained from recovery procedures of NPE
35
124
less: Revaluation arising from IFRS5 non-current assets and disposal groups related to equity investment consolidated line by line and at
net equity method
5
-
less: Net value adjustments/write-backs of tangible in operating lease assets
110
106
less: Impairment/write backs of right of use of land and buildings used in the business
11
36
less: Integration costs
11
17
Item 220. Net value adjustments/write-backs on intangible assets
(589)
(626)
less: Integration costs
50
100
+ Other operating income other - reversal of invoices to be received related to tangible asset (from Item 230)
0
7
Operating costs
(9,405)
(9,460)
GROSS OPERATING PROFIT (LOSS)
15,439
14,366
Loan Loss Provisions (LLPs)
(641)
(560)
Item 100. Gains (Losses) on disposal and repurchase of: a) financial assets at amortised cost
(62)
199
less: Gains (Losses) on disposal and repurchase of financial assets at amortised cost - performing loans
5
(119)
less: Gains (Losses) on disposal and repurchase of financial assets at amortised cost - debt securities
(20)
(28)
Item 130. Net losses/recoveries on credit impairment relating to: a) financial assets at amortised cost
(750)
(661)
less: Net losses/recoveries on impairment relating to: a) financial assets at amortised cost - debt securities
(48)
(1)
Item 130. Net losses/recoveries on credit impairment relating to: b) Financial assets at fair value through other comprehensive income
(13)
(2)
less: Net losses/recoveries on impairment relating to: b) Financial assets at fair value through other comprehensive income - debt
securities
13
2
Item 140. Gains/Losses from contractual changes with no cancellations
6
(13)
Item 200. Net provisions for risks and charges: a) commitments and financial guarantees given
267
74
+ Variable portion of the outsourced NPE recovery costs not recovered from the clients (from item 190)
(38)
(11)
NET OPERATING PROFIT (LOSS)
14,798
13,806
734
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 1 - Reconciliation between reclassified balance sheet and
income statement accounts and mandatory reporting schedules
continued: Consolidated income statement
(€ million)
YEAR
2024
2023
NET OPERATING PROFIT (LOSS)
14,798
13,806
Other charges and provisions
(1,069)
(1,023)
Item 200. Net provisions for risks and charges: b) other net provisions
(545)
(91)
less: Tax disputes relating to income tax (interests and sanctions excluded)
(1)
-
less: Integration costs
18
5
less: Amounts related to asset management distribution agreements
(26)
17
+ Contributions to Resolution Funds (SRF), Deposit Guarantee Schemes (DGS), Bank Levy, Life Insurance Guarantee Fund and Guarantee
fees for DTA (from Item 190 b)
(515)
(949)
+ Windfall tax - Bank Levy
-
(6)
Integration costs
(841)
(1,060)
+ Payroll costs - Administrative expenses - of which a) staff costs - integration costs (from Item 190)
(717)
(897)
+ Other administrative expenses - Administrative expenses - of which b) other administrative expenses - integration costs (from Item 190)
(39)
(32)
+ Amortisation, depreciation and impairment losses on intangible and tangible assets - Net value adjustments/write-backs on property, plant
and equipment - integration costs (from Item 210)
(11)
(17)
+ Amortisation, depreciation and impairment losses on intangible and tangible assets - Net value adjustments/write-backs on intangible
assets - integration costs (from Item 220)
(50)
(100)
+ Other charges and provisions - Net provisions for risks and charges - integration costs (from Item 200)
(18)
(5)
+ Net other expenses/income - Other operating expenses/income - integration costs (from Item 230)
(6)
(8)
Net income from investments
(29)
(272)
Item 250. Gains (Losses) of equity investments - of which: write-backs/impairment losses and gains/losses on disposal of associates valued
at equity
69
39
Item 260. Net gains (losses) on property, plant and equipment and intangible assets measured at fair value
(22)
(157)
Item 280. Gains (Losses) on disposals on investments
3
11
less: Gains (Losses) on disposals on investments in operating lease assets
(2)
(4)
+ Net losses/recoveries on impairment relating to: of which: a) financial assets at amortised cost - debt securities (from Item 130)
48
1
+ Net losses/recoveries on impairment relating to: of which: b) financial assets at fair value through other comprehensive income - debt
securities (from Item 130)
(13)
(2)
+ Impairment/writebacks of inventories assets (IAS2) obtained from recovery procedures of NPE
(35)
(124)
+ Revaluation arising from IFRS5 non-current assets and disposal groups related to equity investment consolidated line by line
(5)
-
+ Gain/losses on precious stones (from Item 230)
(10)
(6)
+ Impairment/write backs of right of use of land and buildings used in the business (from Item 210)
(11)
(36)
+ Net Result on Financial Assets mandatorily at fair value - Debt securities related to non-performing loans, included securitizations (from
item 110)
(50)
-
less: Purchase Price Allocation effect
-
5
PROFIT (LOSS) BEFORE TAX
12,860
11,451
Income taxes
(3,085)
(1,914)
Item 300. Tax expenses (income) of the year from continuing operations
(3,086)
(1,917)
less: Windfall tax - Bank Levy
-
6
+ Other administration costs - Withholding tax on intercompany/IMREL issuances
(1)
(1)
+ Other changes and provisions - Tax disputes relating to income tax (interests and sanctions excluded) - (from Item 200 b)
1
-
less: Purchase Price Allocation effect
-
(2)
Profit (Loss) of discontinued operations
-
-
Item 320. Profit (Loss) after tax from discontinued operations
-
-
NET PROFIT (LOSS) FOR THE PERIOD
9,775
9,537
Minorities
(55)
(27)
Item 340. Minority profit (loss) of the year
(55)
(27)
NET PROFIT (LOSS) ATTRIBUTABLE TO THE GROUP BEFORE PPA
9,719
9,510
Purchase Price Allocation (PPA)
-
(4)
Goodwill impairment
-
-
Item 270. Goodwill Impairment
-
-
GROUP STATED NET PROFIT (LOSS)
9,719
9,507
735
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 2 - Audit fees and other non-audit services
UniCredit group 2024 - KPMG Network
As prescribed by Art.149-duodecies of the Consob Issuers Regulation, the following table gives fees paid in 2024 for services rendered by KPMG
S.p.A. and firms in its network.
(€ million)
SERVICE TYPE
SERVICE PROVIDER
USER
FEES
Audit
KPMG S.p.A.
Parent Company - UniCredit S.p.A.
3.8
KPMG S.p.A.
Subsidiaries
0.7
KPMG Network
Subsidiaries
13.7
Attestation services
KPMG S.p.A.
Parent Company - UniCredit S.p.A.
3.3
KPMG S.p.A.
Subsidiaries
0.1
KPMG Network
Parent Company - UniCredit S.p.A.
0.1
KPMG Network
Subsidiaries
6.4
Other services
KPMG S.p.A.
Parent Company - UniCredit S.p.A.
0.1
KPMG S.p.A.
Subsidiaries
0.0
KPMG Network
Parent Company - UniCredit S.p.A.
0.0
KPMG Network
Subsidiaries
0.2
Total
28.4
Notes:
The fees are calculated excluding VAT and expenses.
The item "Audit" does not include fees for audits of investment funds.
The "Attestation services" are mainly verification services provided to UniCredit S.p.A. (e.g Limited Assurance on sustainability statement 2024 according to CSRD, Limited review on Q1 2024 and Q3 2024 Company and
Consolidated Reports, Comfort Letter for the inclusion of year-end net profit in Common Equity Tier 1 Capital, Assurance Engagement ISAE 3402, Issuing Comfort Letters concerning bond issues, Supervisory Fees ECB
ISA 805, ISAE 3000R Reasonable Assurance on Mifid II, Statutory audit of foreign branches financial statements according to local regulations), other verification services required by regulations/local Supervisory
Authorities in Germany, Austria and other Central and Eastern Europe Countries.
The "Other services" are mainly other services provided to UniCredit S.p.A. (e.g. AUP on quarterly calculation foreign exchange risk of CIUs, AUP on contributions to the Single Resolution Fund) and to other subsidiaries of
the Group.
Annex 2 - Audit fees and other non-audit service s
736
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
Annex 3 - Securitisations - qualitative tables
ORIGINATOR: UniCredit S.p.A.
Traditional securitisations of Performing
STRATEGIES,
PROCESSES AND
GOALS:
The initiatives are a part of the Group's strategies, one of the objectives of which is to finance, at competitive rates (and in large amounts), the
development of medium and long-term through the disposal of existing "Performing" loan portfolios and also creating eligible securities for
refinancing operations with the ECB and/or with third parties (counterbalancing capacity).
The main advantages of the transactions can be summarised as follows:
- risk weighted assets optimitation and ROAC improving
- improvement in the matching of asset maturities;
- diversification of sources of financing;
- broadening of investor base and resulting optimisation of funding cost;
- creating counterbalancing capacity.
Moreover, securitisation transactions can also be implemented for purposes related to business projects (for better management of assets),
corporate restructuring or deleveraging projects.
INTERNAL
MEASUREMENT AND
RISK MONITORING
SYSTEMS:
UniCredit S.p.A. acts as "Servicer" for almost all transactions concerned for which is Originator. As per the agreements entered into with issuing
companies (special purpose vehicles - SPV), servicing consists of performing, on behalf of these companies, administrative, collection and
securitised loan collection activities as well as the management of any recovery procedures for impaired loans. Thus, as Servicer, UniCredit S.p.A. is
charged with continually tracking cash flows from securitised loans and constantly monitoring their collection, with the assistance of third party
companies (especially for the recovery of impaired loans; the company involved is DoValue S.p.A., which operates as an assistant to the Servicer,
governed by a special agreement).
The Servicer provides the Special Purpose Vehicle (and other counterparties indicated in the servicing agreements) information on the activity
performed by, periodically reports that indicate, among other things, the collection and transfer of the income stream sold, the amount of default
positions and recoveries completed, overdue installments, etc., with all information broken down in relation to specific transactions. These reports
(which are usually quarterly) are periodically checked (if contractually required) by an auditing firm.
ORGANISATIONAL
STRUCTURE AND
SYSTEM FOR
REPORTING TO
SENIOR MANAGEMENT:
From a strategic point of view, Capital & Portfolio Management is responsible for central coordination. In this context, the above structure plays:
a) in the launch phase of the operation the role of proposer and provides support to the other Bank’s Divisions and to the individual Legal Entities in
conducting transactions, cooperating with all the other departments (Planning & Control Italy, Group Risk Management, Group M&A and Corporate
Development , ecc..) in identifying the characteristics and the distinctive features of "true sale" securitisations loans in order to achieve the targets set
in the Group’s Funding Plan and in the Contingency Funding Plan, approved by the Board of Directors, in the ordinary plan of creating
counterbalancing capacity, as well as in organisational strategy and business of Top Management. Specific transactions are subject to prior approval
by the competent departments of the Holding and of the Originator Bank (during approval, among other things, the structure, costs and impacts in
terms of liquidity, counterbalancing capacity, organisational, business and/or any capital relief are discussed and analysed), and to final approval by
the Board of Directors of the Originator Bank;
b) in the management phase of the operation, the monitoring role of the securitised portfolios performances and any rating action published by
Ratings Agencies, the interactions with the Ratings Agencies in order to submit regular information on portfolios and, more generally, the role of
coordination of the Originator Bank to facilitate the solution of events relating to the securitised portfolios (management of actions of payments
holidays, downgrading, restructurings, etc.).
The Bank has established a special coordination unit (Individual Financial Statements Italy ) within the Financial & Regulatory Disclosure
Department. This unit has been tasked with administrative activities connected to the Servicer and Account Bank related-duties, and to carry out
these duties, it works in close cooperation with specific, qualified areas of the Bank (Group Risk Management, Finance Italy , ecc.) and the Group. It
also provides a technical and operational support to network units.
HEDGING POLICIES:
By agreement, securitised portfolios can be protected from interest rate risk by means of the Special Purpose Vehicle entering into Interest Rate
Swap (IRS) agreements to hedge a fixed-rate portfolio, and Basis Swaps to hedge an indexed rate portfolio. In connection with these swaps, always
if required by agreements, related back-to-back swap contracts are entered into between the Swap counterparty and UniCredit S.p.A. as Originator,
interfaced in some cases by UniCredit Bank GMBH (ex UniCredit Bank AG).
OPERATING RESULTS: At the end of December 2024, the operating results related to existing securitisation transactions essentially reflected the performance of underlying
portfolios and the resulting cash flows, and obviously are affected by the amount of defaults and prepayments during the period, which, moreover,
are in line with the performance seen in other assets of this kind that are not securitised. The exercise of the option to repurchase the securitized
portfolios underlying operation "Consumer 3" did not result in significant additional economic impacts.
737
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
ORIGINATOR: UniCredit S.p.A.
Transaction from previous years
NAME:
ARTS CONSUMER 2023
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A.
Issuer:
Arts Consumer 2023 S.r.l.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit Bank GMBH (ex UniCredit Bank AG)
Target transaction :
Funding/Counterbalancing capacity
Type of asset:
Personal loans
Quality of Asset:
Performing
Closing date:
11.10.2023
Nominal Value of disposal portfolio :
847
Net amount of preexinting writedown/writebacks :
-
Disposal Profit & Loss realized :
-
Portfolio disposal price:
847
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties :
-
Bank Lines of Credit :
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
0 €
Other relevant information :
UniCredit S.p.A. has granted SPV a cash reserve subordinated loan of €12 million. At the end of
accounting period €2 million of the principal amount has been repaid.
Rating Agencies:
Moody's/DBRS
Amount of CDS or other supersenior risk transferred :
-
Amount and Condition of tranching:
. ISIN
IT0005562530
IT0005562548
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
Aa3/AAA
A1/AAA
. Reference Position
670
15
. Reference Position at the end of accounting period
497
15
. ISIN
IT0005562555
IT0005562563
. Type of security
Mezzanine
Mezzanine
. Class
C
D
. Rating
A3/AA
Ba1/AH
. Reference Position
49
28
. Reference Position at the end of accounting period
49
28
. ISIN
IT0005562571
IT0005562589
. Type of security
Junior
Junior
. Class
E
F
. Rating
-
-
. Reference Position
86
0.1
. Reference Position at the end of accounting period
86
0.1
The "Closing date" is the date when the securitisation transaction was completed, i.e. the date when all contractual documents were signed.
738
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
ORIGINATOR: UniCredit S.p.A.
Transaction from previous years
NAME:
ARTS CONSUMER
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A.
Issuer:
Arts Consumer S.r.l.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit Bank GMBH (ex UniCredit Bank AG)
Target transaction :
Funding/Counterbalancing capacity
Type of asset:
Personal loans
Quality of Asset:
Performing
Closing date:
24.11.2022
Nominal Value of disposal portfolio :
846
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties :
-
Bank Lines of Credit :
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
0 €
Other relevant information :
UniCredit S.p.A. subscribed the Class Z security for an amount of 12 million euro in order to create a
liquidity reserve in favor of the SPV
Rating Agencies:
Moody's/DBRS
Amount of CDS or other supersenior risk transferred :
-
Amount and Condition of tranching:
. ISIN
IT0005514481
IT0005514499
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
Aa3/AAA
A1/AAA
. Nominal value issued (€ million):
668
15
. Nominal value at the end of accounting period (€ million):
217
15
. ISIN
IT0005514507
IT0005514515
. Type of security
Mezzanine
Mezzanine
. Class
C
D
. Rating
A1/AA
Baa2/AAL
. Nominal value issued (€ million):
49
27
. Nominal value at the end of accounting period (€ million):
49
27
. ISIN
IT0005514523
IT0005514531
. Type of security
Mezzanine
Junior
. Class
E*
F
. Rating
-
-
. Nominal value issued (€ million):
86
0.1
. Nominal value at the end of accounting period (€ million):
86
0.1
. ISIN
IT0005514549
. Type of security
Junior (Cash Reserve funding)
. Class
Z
. Rating
-
. Nominal value issued (€ million):
12
. Nominal value at the end of accounting period (€ million):
12
Note:
* In Offering Circular is definited as Junior title.
The "Closing date" is the date when the securitisation transaction was completed, i.e. the date when all contractual documents were signed.
739
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
ORIGINATOR: UniCredit S.p.A.
Transaction from previous years
NAME:
CAPITAL MORTGAGE 2007 - 1
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A. (ex Banca di Roma S.p.A.)
Issuer:
Capital Mortgage S.r.l.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit Bank GMBH (ex UniCredit Bank AG)
Target transaction:
Funding/Counterbalancing capacity
Type of asset:
Residential Mortgage Loans
Quality of Asset:
Performing
Closing date:
14.05.2007
Nominal Value of disposal portfolio (€ million):
2,183
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
UniCredit S.p.A. has granted SPV a subordinated loan of €37 million (as
equity). At the end of accounting period €8 million of the principal amount
has been repaid.
Other relevant information:
Tranching based on an original assets portfolio €2,479 million, reduced to
€2,183 million due to checks after closing date. Following its downgrade by
debt-rating agencies, UniCredit S.p.A. paid funds into an eligible entity
(amounting to €156 million at 31 December 2016) to maintain its role as
Account Bank; during the 2017, as a result of the contractual amendment
and the contextual outsourcing of the role of the Account Bank, the fund
was fully repaid.
Rating Agencies:
S & P/Moody's/Fitch
Amount of CDS or other supersenior risk transferred (€ million):
-
Amount and Conditions of tranching:
. ISIN
IT0004222532
IT0004222540
. Type of security
Senior
Senior
. Class
A1
A2
. Rating
AA/Aa3/A+
AA/Aa3/A+
. Nominal value issued (€ million):
1,736
644
. Nominal value at the end of accounting period (€ million):
52
79
. ISIN
IT0004222557
IT0004222565
. Type of security
Mezzanine
Junior
. Class
B
C
. Rating
AA/Aa3/A+
AA-/A1/BBB
. Nominal value issued (€ million):
74
25
. Nominal value at the end of accounting period (€ million):
74
25
The "Closing date" is the date when the securitisation transaction was completed, i.e. the date when all contractual documents were signed.
740
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
ORIGINATOR: UniCredit S.p.A.
Transaction from previous years
NAME:
F-E MORTGAGES 2005
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A. (ex FinecoBank S.p.A.)
Issuer:
F-E Mortgages S.r.l.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A. (ex MCC S.p.A. - Capitalia Gruppo Bancario)
Target transaction:
Funding/Counterbalancing capacity
Type of asset:
Residential Mortgage Loans
Quality of Asset:
Performing
Closing date:
06.04.2005
Nominal Value of disposal portfolio (€ million):
1,029
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
UniCredit S.p.A. has granted SPV a subordinated loan of €15 million (as
Equity). At the end of accounting period the amount of capital tranche is
fully reimboursed
Other relevant information:
-
Rating Agencies:
S & P/Moody's/Fitch
Amount of CDS or other supersenior risk transferred (€ million):
-
Amount and Conditions of tranching:
. ISIN
IT0003830418
IT0003830426
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
-
AA/Aa3/AA
. Nominal value issued (€ million):
952
41
. Nominal value at the end of accounting period (€ million):
-
16
. ISIN
IT0003830434
. Type of security
Junior
. Class
C
. Rating
AA/Aa3/AA
. Nominal value issued (€ million):
36
. Nominal value at the end of accounting period (€ million):
32
The "Closing date" is the date when the securitisation transaction was completed, i.e. the date when all contractual documents were signed.
741
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
ORIGINATOR: UniCredit S.p.A.
Transaction from previous years
STRATEGIES, PROCESSES AND
GOALS:
The following initiatives, called Pillarstone Italy, were undertaken to allow the Group to improve the management of loan
restructuring, also through the innovative use (for this purpose) of securitisation. The goal is to facilitate and increase
recoveries of the exposures under securitisation thanks to:
- restructuring with long-term industrial logic, focusing on introducing new finance (by third parties) in favour of the
debtors sold, with focus on concrete needs and opportunities for the companies involved;
- efficient and targeted restructuring and turnaround processes.
Shared acceptance of the economic principles that guide the transactions in question and a strong alignment of the
interests between the parties involved, ensures the asset manager 's commitment to maximize the value of the said
assets, optimising therefore the expected recovery on the junior notes bought by UniCredit S.p.A., through the
transferred management of the securitised portfolio.
INTERNAL MEASUREMENT AND RISK
MONITORING SYSTEMS:
UniCredit S.p.A. does not act as Servicer. The business of servicing is carried out by third parties outside the Group, as
per the contracts stipulated with the Special Purpose Vehicle issuing the ABS securities, and involves the administration,
encashment, restructuring and collection of securitised loans, on behalf thereof, as well as managing any recovery
proceedings on Non-Performing loans. The Servicer of the assets, therefore, has the task, on an ongoing basis, of
following the financial flows arising from the securitised loans, constantly monitoring the encashment, also where
appropriate making use of third party companies.
For each specific transaction, the Servicer provides the Special Purpose Vehicle (in addition to other counterparties as
defined in the servicing contracts, including UniCredit S.p.A.) with information on the activities carried out via periodic
reports which show, inter alia, the collection and realization of the assigned receivables, the number of defaulted
positions and the successfully completed recoveries, the instalments in arrears, restructuring activities, etc. Where
contractually provided for, these reports are periodically checked by an independent auditors' firm.
ORGANIZATIONAL STRUCTURE:
The Servicer provides UniCredit S.p.A. with a series of reports that enable the evaluation and monitoring of the
underlying portfolios. On a quarterly basis the performances are also presented in the reference internal Credit
Committees.
HEDGING POLICIES:
There are no risk hedging derivatives.
OPERATING RESULTS:
We implemented a set of monitoring initiatives, focused on one side on the single company performances and, on the
other side, on the evolution of the Pillartsone project as a whole.
742
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
ORIGINATOR: UniCredit S.p.A.
Transaction from previous years
NAME:
PILLARSTONE ITALY - PREMUDA
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A.
Issuer:
Pillarstone Italy SPV S.r.l.
Servicer:
Securitisation Services S.p.A.
Arranger:
-
Target transaction:
Innovative structure of securitisation to manage and overcome the temporary difficulties of
the debtor sold, in order to optimise the reimbursement of the securitised portfolio
Type of asset:
Corporate loans
Quality of Asset:
Unlikely to pay
Closing date:
14.07.2016
04.04.2017
Nominal Value of disposal portfolio (million):
$78 + €31
$3
Net amount of pre-existing write-down/write-backs:
-
Disposal Profit & Loss realised (million):
-
Portfolio disposal price (million):
$78 + €31
$3
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
-
Bank Lines of Credit :
-
Third Parties Lines of Credit (€ million):
2
Other Credit Enhancements (€ million):
-
Other relevant information:
-
Rating Agencies:
-
Amount of CDS or other supersenior risk transferred:
-
Amount and Condition of tranching:
. ISIN
IT0005203937
IT0005203952
. Type of security
Senior(*)
Mezzanine(*)
. Class
A
B
. Rating
-
-
. Quotation
-
-
. Issue date
14.07.2016
14.07.2016
. Legal maturity
20.10.2030
20.10.2030
. Call option
-
. Expected duration (years)
5.0
5.0
. Rate
8.50%
2.67%
. Subordinated level
-
Sub A
. Nominal value issued (million)
€3
$58
. Nominal value at the end of accounting period (million)
0
$56
. Security subscribers
. ISIN
IT0005246712
IT0005246761
. Type of security
Mezzanine(*)
Junior(*)
. Class
B
C
. Rating
-
-
. Quotation
-
-
. Issue date
04.04.2017
04.04.2017
. Legal maturity
20.10.2030
20.10.2030
. Call option
-
. Expected duration (years)
3.4
3.4
. Rate
3.43%
EUR6M(360) +1000pb
. Subordinated level
Sub A
Sub A,B
. Nominal value issued (million)
€0,3
€3
. Nominal value at the end of accounting period (million)
€0,3
€3
. Security subscribers
. ISIN
IT0005204125
IT0005204133
. Type of security
Junior(*)
Junior(*)
. Class
C
C
. Rating
-
-
. Quotation
-
-
. Issue date
14.07.2016
14.07.2016
. Legal maturity
20.10.2030
20.10.2030
. Call option
-
. Expected duration (years)
5.0
5.0
. Rate
EUR6M(360) +1000pb
LIBOR6M(360) +1000pb
. Subordinated level
Sub A,B
Sub A,B
. Nominal value issued (million)
€25
$21
. Nominal value at the end of accounting period (million)
€25
$21
. Security subscribers
Note:
(*) The classification of the field "Type of security" refers to Banca d’Italia Circular 262 dated 22 December 2005 (and subsequent amendments) "The Bank's Financial Statements" - Chapter 1 General principles - Section 5
Definitions - 5.23 - Securitisations: senior, mezzanine and junior exposures.
743
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
Pillarstone is a multioriginator securitisation, with claims transferred by UniCredit and other banks. For representation purposes, securities reported
in the table are those issued in light of the portfolio transferred by UniCredit.
The "Closing date" is the date when the securitisation vehicle has issued the securities of the transaction.
ORIGINATOR: UniCredit S.p.A.
Transaction from previous years
NAME:
PILLARSTONE ITALY - RAINBOW
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A.
Issuer:
Pillarstone Italy SPV S.r.l.
Servicer:
Securitisation Services S.p.A.
Arranger:
-
Target transaction:
Innovative structure of securitisation to manage and overcome the temporary difficulties of the debtor
sold, in order to optimise the reimbursement of the securitised portfolio
Type of asset:
Corporate loans
Quality of Asset:
Unlikely to pay
Closing date:
10.12.2015
22.01.2019
Nominal Value of disposal portfolio (€ million):
74
17
Net amount of pre-existing write-down/write-backs (€ million):
-
-
Disposal Profit & Loss realised (€ million):
-
-
Portfolio disposal price (€ million):
74
17
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit (€ million):
4
2
Other Credit Enhancements:
-
Other relevant information:
-
The new issue of securities, occurred on 22
January 2019, resulted in an increase of
mezzanine notes for €2 million and junior notes for
€15 million
Rating Agencies:
-
Amount of CDS or other supersenior risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
IT0005154833
IT0005155103
. Type of security
Senior(*)
Mezzanine(*)
. Class
A
B
. Rating
-
-
. Quotation
-
-
. Issue date
10.12.2015
10.12.2015 - 22.01.2019 (size increase)
. Legal maturity
20.10.2030
20.10.2030
. Call option
-
. Expected duration (years)
5.0
5.0
. Rate
8.50%
EUR6M(360) + 144pb
. Subordinated level
-
SUB A
. Nominal value issued (€ million)
1
19
. Nominal value at the end of accounting period (€ million)
-
19
. ISIN
IT0005155111
. Type of security
Junior(*)
. Class
C
. Rating
-
. Quotation
-
. Issue date
10.12.2015 - 22.01.2019 (size increase)
. Legal maturity
10.20.2030
. Call option
-
. Expected duration (years)
5.0
. Rate
EUR6M(360)+1000pb
. Subordinated level
SUB A-B
. Nominal value issued (€ million)
71
. Nominal value at the end of accounting period (€ million)
71
Nota:
(*) The classification of the field "Type of security" refers to Banca d’Italia Circular 262 dated 22 December 2005 (and subsequent amendments) "The Bank's Financial Statements" - Chapter 1 General principles - Section 5
Definitions - 5.23 - Securitisations: senior, mezzanine and junior exposures.
Pillarstone is a multioriginator securitisation, with claims transferred by UniCredit and other banks. For representation purposes, securities reported
in the table are those issued considering the portfolio transferred by UniCredit.
The "Closing date" is the date when the securitisation vehicle has issued the securities of the transaction.
744
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
ORIGINATOR: UniCredit S.p.A.
Traditional securitisations of non-performing loans
STRATEGIES, PROCESSES AND GOALS:
UniCredit S.p.A., through the transfer of its non-performing exposures to SPV pursuant to 130 Law on
securitization, has set itself the objective of reducing the stock of Non Performing Exposures, in line
with the Group's strategy of a complete rundown of this perimeter.
INTERNAL MEASUREMENT AND RISK MONITORING SYSTEMS:
The performance of securitisations is subject to continuous monitoring by the bank, with specific focus
on the recovery performance and the evolution of the Gross Book Value (GBV) of the underlying
portfolio and on the progressive repayment of the principal and payment of interest of the ABS
securities issued by the SPV, based on the information provided by the servicer (also through specific
periodic reports foreseen in the transaction documentation).
ORGANISATIONAL STRUCTURE AND SYSTEM FOR REPORTING TO SENIOR
MANAGEMENT:
The execution of the securitization transactions of non performing exposures is approved by the Board
or delegated internal commitees. Credit reviews of the transactions are scheduled on an annual basis
and discussed in specific committees with the participation of top management, during which updates
are given on the progress of transactions as a whole.
HEDGING POLICIES:
None
OPERATING RESULTS:
Every six months, or more frequently if necessary, information relating to the performance of
securitisations (with specific focus on the evolution of the Gross Book Value of the transferred
portfolio, the recovery performances and the redemption of ABS securities) is made available to the
various functions of the bank for the performance of their respective roles on monitoring and
representation in the financial statements.
745
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
New transactions 2024
NAME:
Leopard
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A.
Issuer:
Kreos SPV S.r.l.
Servicer:
Prelios Credit Servicing S.p.A.
Arranger:
-
Target transaction:
UniCredit S.p.A. non performing exposure stock reduction
Type of asset:
Secured and unsecured loans granted to small and medium enterprises
Quality of Asset:
Bad Loans, Unlikely To Pay
Closing date:
26.11.2024
Nominal Value of reference portfolio (€ million):
296
Net amount of preexisting write-down/write-backs (€ million):
130
Disposal Profit & Loss realised (€ million)(*):
-59
Portfolio disposal price (€ million):
107
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
UniCredit S.p.A. has underwritten 100% of the senior notes and 5% of the mezzanine and
junior notes. The remaining 95% of mezzanine and junior nots has been subscribed by a
third-party investor.
Rating Agencies:
-
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
IT0005623324
IT0005623332
. Type of security
Senior
Mezzanine
. Class
A
M1
. Rating
-
-
. Quotation
-
-
. Issue date
26.11.2024
26.11.2024
. Legal maturity
30/12/2039
30/12/2039
. Call option
-
-
. Expected duration (years)
2.07
3.03
. Rate
4.20%
10.00%
. Subordination level
-
SUB A
. Nominal Value Issued (€ million)
85
25
. Nominal value at the end of accounting period (€ million)
85
25
. Security subscribers
UniCredit S.p.A.
UniCredit S.p.A.,
Christofferson, Robb & Company, LLC
. ISIN
IT0005623340
. Type of security
Junior
. Class
J
. Rating
-
. Quotation
-
. Issue date
26.11.2024
. Legal maturity
30/12/2039
. Call option
-
. Expected duration (years)
7.71
. Rate
Variable return
. Subordination level
SUB A-M1
. Nominal Value Issued (€ million)
3
. Nominal value at the end of accounting period (€ million)
3
. Security subscribers
UniCredit S.p.A.,
Christofferson, Robb & Company, LLC
Note:
(*) Amount gross of initial transaction's costs.
746
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
Continued: Leopard
NAME:
Leopard
Distribution of securitised assets by area (€ million):
Italy - Northwest
93
Italy - Northeast
80
Italy - Central
102
Italy - South and Islands
21
Other European Countries - E.U. countries
-
Other European Countries - non-E.U. countries
-
America
-
Rest of the World
-
Total
296
Distribution of securitised assets by business sector of the borrower (€ million):
Governments
-
Other public-sector entities
-
Banks
-
Financial Companies
23
Insurance Companies
-
Non-financial Companies
257
Other entities
16
Total
296
747
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
Transactions from previous years
NAME:
TAHITI
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A.
Issuer:
Tahiti SPV S.r.l.
Servicer:
Bayview Italia 106 S.p.A.
Arranger:
-
Target transaction:
UniCredit S.p.A. Non performing exposure stock reduction
Type of asset:
Secured loans granted to individuals
Quality of Asset:
Bad Loans, Unlikely To Pay
Closing date:
16.05.2023
Nominal Value of reference portfolio (€ million):
52
Net amount of preexisting write-down/write-backs (€ million):
37
Disposal Profit & Loss realised (€ million)(*):
-11
Portfolio disposal price (€ million):
27
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
On 22 May 2023 UniCredit S.p.A. has initially underwritten the whole set of notes issued
by the SPV, simultaneously the 95% of junior and mezzanine notes was sold on the
market.
Rating Agencies:
-
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
IT0005546640
IT0005546657
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
-
-
. Quotation
-
-
. Issue date
22.05.2023
22.05.2023
. Legal maturity
30.04.2043
30.04.2043
. Call option
-
-
. Expected duration (years)
5.99
5.99
. Rate
3.50%
9.50%
. Subordination level
-
Sub A
. Nominal Value Issued (€ million)
20
5
. Nominal value at the end of accounting period (€ million)
19
5
. ISIN
IT0005546665
. Type of security
Junior
. Class
J
. Rating
-
. Quotation
-
. Issue date
22.05.2023
. Legal maturity
30.04.2043
. Call option
-
. Expected duration (years)
13.68
. Rate
Variable
. Subordination level
Sub A-B
. Nominal Value Issued (€ million)
1
. Nominal value at the end of accounting period (€ million)
1
Note:
(*) Amount gross of initial transaction's costs.
748
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
ITACA
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A.
Issuer:
Itaca SPV S.r.l.
Servicer:
doNext S.p.A. (Master Servicer), doValue S.p.A. (Special Servicer)
Arranger:
UniCredit Bank GmbH
Target transaction:
UniCredit S.p.A. NPL stock reduction
Type of asset:
Secured and unsecured loans granted to small and medium enterprises and individuals
Quality of Asset:
Bad loans
Closing date:
03.05.2022
Nominal Value of reference portfolio (€ million):
1,100
Net amount of preexisting write-down/write-backs (€ million):
193
Disposal Profit & Loss realised (€ million)(*):
-38
Portfolio disposal price (€ million):
155
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
On 7 May 2022 a request was submitted to the MEF and Consap for the issuing of the state
guarantee on the senior notes (so-called GACS). The GACS was issued on 10 June 2022
Bank Lines of Credit:
-
Third Parties Lines of Credit:
UniCredit Bank GmbH has granted a credit facility of €21,75 million to the SPV, super-senior
in the priority of payment.
Other Credit Enhancements:
-
Other relevant information:
UniCredit S.p.A. has initially underwritten the whole set of notes issued by the SPV. On 8
June 2022, 95% of junior and mezzanine notes was sold on the market.
Rating Agencies:
Scope Ratings GmbH (Scope), Moody's Italia S.r.l.
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
IT0005494221
IT0005494247
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
BBB, Baa2
-
. Quotation
-
-
. Issue date
06.05.2022
06.05.2022
. Legal maturity
01.07.2045
31.07.2045
. Call option
-
-
. Expected duration (years)
4.85
9.71
. Rate
6M Eur +1,50%
6M Eur +9,50%
. Subordination level
-
SUB A
. Nominal Value Issued (€ million)
125
24
. Nominal value at the end of accounting period (€ million)
30
24
. ISIN
IT0005494254
. Type of security
Junior
. Class
C
. Rating
-
. Quotation
-
. Issue date
06.05.2022
. Legal maturity
31.07.2045
. Call option
-
. Expected duration (years)
14.52
. Rate
Variable
. Subordination level
SUB A-B
. Nominal Value Issued (€ million)
6
. Nominal value at the end of accounting period (€ million)
6
Note:
(*) Amount gross of initial transaction's costs.
749
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
Project Panthers
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A.
Issuer:
Altea SPV S.r.l.
Servicer:
Prelios Credit Servicing S.p.A.
Arranger:
UniCredit Bank GmbH
Target transaction:
UniCredit S.p.A. Non performing exposure stock reduction
Type of asset:
Secured and unsecured loans granted to small and medium enterprises and individuals
Quality of Asset:
Bad Loans, Unlikely To Pay
Closing date:
20.06.2022
Nominal Value of reference portfolio (€ million):
1,895
Net amount of preexisting write-down/write-backs (€ million):
756
Disposal Profit & Loss realised (€ million)(1):
-46
Portfolio disposal price (€ million)(2):
710
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
78 €mln (limited recourse Loan)
Other Credit Enhancements:
-
Other relevant information:
UniCredit S.p.A. has initially underwritten 100% of notes issued by the SPV. On 30 June 2022, 95%
of junior and mezzanine notes was sold on the market.
Rating Agencies:
-
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
IT0005499030
IT0005499048
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
-
-
. Quotation
-
-
. Issue date
21.06.2022
21.06.2022
. Legal maturity
30.06.2037
30.06.2037
. Call option
-
-
. Expected duration (years)
6.11
5.78
. Rate
2%
10%
. Subordination level
-
SUB A
. Nominal Value Issued (€ million)
552
162
. Nominal value at the end of accounting period (€ million)
249
86
. ISIN
IT0005499055
. Type of security
Junior
. Class
C
. Rating
-
. Quotation
-
. Issue date
21.06.2022
. Legal maturity
30.06.2037
. Call option
-
. Expected duration (years)
10.17
. Rate
Variable
. Subordination level
SUB A-B
. Nominal Value Issued (€ million)
22
. Nominal value at the end of accounting period (€ million)
22
Note:
(1) Amount gross of initial transaction's costs and loss of €4 million on off-balance exposures.
(2) The overall amount issued is equal to the disposal price plus €26 million related to securitisation reserves directly credited by UniCredit S.p.A. to the SPV.
750
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
OLYMPIA
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A.
Issuer:
Olympia SPV S.r.l.
Servicer:
Italfondiario S.p.A. (Master Servicer), doValue S.p.A. (Special Servicer)
Arranger:
UniCredit Bank GmbH
Target transaction:
UniCredit S.p.A. NPL stock reduction
Type of asset:
Secured and unsecured loans granted to small and medium enterprises and individuals
Quality of Asset:
Bad loans
Closing date:
25.11.2021
Nominal Value of reference portfolio (€ million):
2,136
Net amount of preexisting write-down/write-backs (€ million):
312
Disposal Profit & Loss realised (€ million)(*):
-22
Portfolio disposal price (€ million):
290
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
On 24 December 2021 a request was submitted to the MEF and Consap for the issuing of the state
guarantee on the senior notes (so-called GACS).
Bank Lines of Credit:
-
Third Parties Lines of Credit:
UniCredit Bank GmbH has granted a credit facility of €26 million to the SPV, super-senior in the
priority of payment.
Other Credit Enhancements:
-
Other relevant information:
UniCredit S.p.A. has initially underwritten the whole set of notes issued by the SPV. On 9 December
2021, 95% of junior and mezzanine notes was sold on the market.
Rating Agencies:
Moody's Italia S.r.l.,Scope Ratings GmbH and S&P Global Ratings Europe Limited
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
IT0005468365
IT0005468373
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
(Moody's) Baa2 - (Scope) BBB - (S&P) BBB
-
. Quotation
-
-
. Issue date
25.11.2021
25.11.2021
. Legal maturity
01.07.2044
01.07.2044
. Call option
-
-
. Expected duration (years)
4.7
7.7
. Rate
6M Eur +1,50%
6M Eur +9,50%
. Subordination level
-
SUB A
. Nominal Value Issued (€ million)
261
26
. Nominal value at the end of accounting period (€ million)
109
26
. ISIN
IT0005468381
. Type of security
Junior
. Class
J
. Rating
-
. Quotation
-
. Issue date
25.11.2021
. Legal maturity
01.07.2044
. Call option
-
. Expected duration (years)
8.2
. Rate
variabile
. Subordination level
SUB A-B
. Nominal Value Issued (€ million)
3
. Nominal value at the end of accounting period (€ million)
3
Note:
(*) Amount gross of initial transaction's costs.
751
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
PRISMA
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A.
Issuer:
Prisma SPV S.r.l.
Servicer:
Italfondiario S.p.A. (Master Servicer), doValue S.p.A. (Special Servicer)
Arranger:
UniCredit Bank GmbH
Target transaction:
Decrease of exposure to non-performing residential mortgages (bad-loans)
Type of asset:
Residential mortgages granted to retail customers
Quality of Asset:
Bad loans
Closing date:
18.10.2019
Nominal Value of reference portfolio (€ million):
6,101
Net amount of preexisting write-down/write-backs (€ million):
1,357
Disposal Profit & Loss realised (€ million)(*):
-37
Portfolio disposal price (€ million):
1,320
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
Government guarantee is effective on senior notes (i.e. GACS)
Bank Lines of Credit:
-
Third Parties Lines of Credit:
UniCredit Bank GmbH has granted a credit facility of €66 million to the SPV, super-senior in the
priority of payment.
Other Credit Enhancements:
-
Other relevant information:
UniCredit S.p.A. has originally underwritten the whole of notes issued by the SPV. On 12 November
2019, 95% of junior and mezzanine notes was sold on the market.
Rating Agencies:
Moody's and Scope
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
IT0005387904
IT0005387912
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
(Moody's) Baa1 - (Scope) BBB+
(Moody's) B3 - (Scope) B-
. Quotation
-
-
. Issue date
18.10.2019
18.10.2019
. Legal maturity
01.11.2039
01.11.2039
. Call option
-
-
. Expected duration (years)
3.4
8.1
. Rate
6M Eur +1,50%
6M Eur +9%
. Subordination level
-
SUB A
. Nominal Value Issued (€ million)
1,210
80
. Nominal value at the end of accounting period (€ million)
475
80
. ISIN
IT0005387920
. Type of security
Junior
. Class
J
. Rating
-
. Quotation
-
. Issue date
18.10.2019
. Legal maturity
01.11.2039
. Call option
-
. Expected duration (years)
9.1
. Rate
variable
. Subordination level
SUB A-B
. Nominal Value Issued (€ million)
30
. Nominal value at the end of accounting period (€ million)
30
Note:
(*) Amount gross of initial transaction's costs.
752
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
FINO 1
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A/Arena Npl ONE S.r.l.
Issuer:
FINO 1 Securitisation S.r.l.
Servicer:
Italfondiario S.p.A. (Master Servicer), doValue S.p.A. (Special Servicer)
Arranger:
Morgan Stanley International Plc - UniCredit Bank GmbH
Target transaction:
UniCredit S.p.A. bad loans stock reduction
Type of asset:
Secured and unsecured loans granted to small and medium enterprises and individuals
Quality of Asset:
Bad loans
Closing date:
31.07.2017
Nominal Value of disposal portfolio (€ million):
5,376
Net amount of pre-existing write-down/write-backs (€ million):
890
Disposal Profit & Loss realised (€ million)(*):
-96
Portfolio disposal price (€ million):
794
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Government guarantee is effective on senior notes (i.e. GACS)
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
Moody's - DBRS
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
IT0005277311
IT0005277337
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
(Moody's) A2/BBB+ - (DBRS) A2/BBB+
(Moody's) Ba3/BB+ - (DBRS) Ba3 /BB+
. Quotation
-
-
. Issue date
31.07.2017
31.07.2017
. Legal maturity
01.10.2045
01.10.2045
. Call option
-
. Expected duration (years)
2.2
4.1
. Rate
3M Eur + 1.5%
3M Eur + 4%
. Subordinated level
-
SUB A
. Nominal value issued (€ million)
650
30
. Nominal value at the end of accounting period (€ million)
-
-
. ISIN
IT0005277345
IT0005277352
. Type of security
Mezzanine
Junior
. Class
C
D
. Rating
(Moody's) B1/BB - (DBRS) B1/BB
-
. Quotation
-
-
. Issue date
31.07.2017
31.07.2017
. Legal maturity
01.10.2045
01.10.2045
. Call option
-
. Expected duration (years)
4.2
6.8
. Rate
3M Eur + 6%
12.00%
. Subordinated level
SUB A-B
SUB A-B-C
. Nominal value issued (€ million)
40
50
. Nominal value at the end of accounting period (€ million)
-
1
Note:
(*) Amount gross of initial transaction's costs.
753
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
FINO 2
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A/Arena Npl ONE S.r.l.
Issuer:
FINO 2 Securitisation S.r.l.
Servicer:
Italfondiario S.p.A. (Master Servicer), doValue S.p.A. (Special Servicer)
Arranger:
Morgan Stanley International Plc - UniCredit Bank GmbH
Target transaction:
UniCredit S.p.A. Bad loans stock reduction
Type of asset:
Secured and unsecured loans granted to small and medium enterprises and individuals
Quality of Asset:
Bad loans
Closing date:
31.07.2017
Nominal Value of disposal portfolio (€ million):
7,841
Net amount of pre-existing write-down/write-backs (€ million):
822
Disposal Profit & Loss realised (€ million)(*):
-181
Portfolio disposal price (€ million):
640
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
-
Bank Lines of Credit :
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
-
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
IT0005277378
IT0005277394
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
-
-
. Quotation
-
-
. Issue date
31.07.2017
31.07.2017
. Legal maturity
01.10.2045
01.10.2045
. Call option
-
-
. Expected duration (years)
1.6
3.6
. Rate
3M Eur + 2%
3M Eur + 6%
. Subordinated level
-
SUB A
. Nominal value issued (€ million)
400
125
. Nominal value at the end of accounting period (€ million)
180
125
. ISIN
IT0005277402
IT0005277410
. Type of security
Mezzanine
Junior
. Class
C
D
. Rating
-
-
. Quotation
-
-
. Issue date
31.07.2017
31.07.2017
. Legal maturity
01.10.2045
01.10.2045
. Call option
-
-
. Expected duration (years)
4.3
6.2
. Rate
3M Eur + 8%
3M Eur + 12%
. Subordinated level
SUB A-B
SUB A-B-C
. Nominal value issued (€ million)
76
40
. Nominal value at the end of accounting period (€ million)
76
40
Note:
(*) Amount gross of initial transaction's costs.
754
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
ONIF
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A.
Issuer:
Onif Finance S.r.l.
Servicer:
Zenith Service S.p.A. (Master Servicer) - Phoenix Asset Management S.p.A. (Special Servicer)
Arranger:
Morgan Stanley International Plc - UniCredit Bank GmbH
Target transaction:
UniCredit S.p.A. bad loans stock reduction
Type of asset:
Secured and unsecured loans granted to large enterprises
Quality of Asset:
Bad loans
Closing date:
26.07.2017
Nominal Value of disposal portfolio (€ million):
2,994
Net amount of pre-existing write-down/write-backs (€ million):
402
Disposal Profit & Loss realised (€ million)(*):
-84
Portfolio disposal price net of Lock Box Cash (€ million):
318
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
-
Bank Lines of Credit:
2
Third Parties Lines of Credit :
-
Other Credit Enhancements :
Cash reserve for €0,7 million
Other relevant information:
-
Rating Agencies:
-
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
IT0005277014
IT0005277022
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
-
-
. Quotation
-
-
. Issue date
26.07.2017
26.07.2017
. Legal maturity
31.10.2042
31.10.2042
. Call option
-
-
. Expected duration (years)
2.0
4.5
. Rate
2.00%
5.00%
. Subordinated level
-
SUB A
. Nominal value issued (€ million)
150
100
. Nominal value at the end of accounting period (€ million)
-
-
. ISIN
IT0005277030
. Type of security
Junior
. Class
C
. Rating
-
. Quotation
-
. Issue date
26.07.2017
. Legal maturity
31.10.2042
. Call option
-
. Expected duration (years)
6.7
. Rate
10.00%
. Subordinated level
SUB A-B
. Nominal value issued (€ million)
80
. Nominal value at the end of accounting period (€ million)
80
Note:
(*) Amount gross of initial transaction's costs.
755
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
ORIGINATOR: UniCredit S.p.A.
Traditional securitisations of performing exposures
Transactions from previous years
STRATEGIES, PROCESSES AND GOALS:
These initiatives are part of the Group strategic guidelines, which has, among its objectives, the
optimization of risk-weighted average assets and improving ROAC also through the accounting
derecognition of the assets securitized
INTERNAL MEASUREMENT AND RISK MONITORING SYSTEMS:
The portfolio of the securitization transaction is subject to continuous monitoring by third parties with
respect to the bank and quarterly reports are prepared as envisaged by the contractual
documentation of the transaction, with evidence of the status of the receivables and the trend of the
collections. Furthermore UniCredit S.p.A. performs the role of "Sub Servicer" in charge of the
administration and collections activities of securitized loans, as well as the management of any
procedures for the recovery of non-performing loans. Finally UniCredit S.p.A. underwrites and
maintains, in accordance with the retention rule, at least 5% of each securitized loan, thus directly
monitoring their performance.
ORGANISATIONAL STRUCTURE AND SYSTEM FOR REPORTING TO SENIOR MANAGEMENT: Although the securitized portfolio has been derecognised from the balance sheet, UniCredit
constantly monitors the securitized portfolio and therefore its own investment in the senior note
through the management of securitized portfolio collections through the same structures that
manage the own portfolio and continuing to directly manage the portfolio not sold in order to
maintain the net economic interest required by law. In this context, it ensures adequate overall
monitoring of the portfolio also in favor of Top Management.
HEDGING POLICIES:
There is no interest rate swap agreement in charge since this was not requested by the investor.
OPERATING RESULTS:
The economic results achieved by the transaction are substantially in line with the expectations
subject to the relative initial approvals
756
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
ARTS PEVA
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A.
Issuer:
ARTS Large Corporate Srl
Servicer:
Banca Finint
Arranger:
UniCredit Bank GmbH
Target transaction:
Capital Relief
Type of asset:
Large Corporate
Quality of Asset:
Performing
Closing date:
07.04.2022
Nominal Value of reference portfolio (€ million):
1,315
Net amount of preexisting write-down/write-backs (€ million):
1,315
Disposal Profit & Loss realised (€ million)(*):
-24
Portfolio disposal price (€ million):
1,291
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
-
Rating Agencies:
-
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
IT0005491045
IT0005491052
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Quotation
-
-
. Issue date
07.04.2022
07.04.2022
. Legal maturity
25.01.2041
25.01.2041
. Call option
Clean-up call
. Expected duration (years)
1.98
4.68
. Rate
EUR3M+0,90%
Variable return
. Subordination level
A
sub A
. Nominal Value Issued (€ million)
1,187
103
. Nominal value at the end of accounting period (€ million)
267
29
Note:
(*) Amount gross of initial transaction's costs.
757
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
STRATEGIES, PROCESSES AND GOALS:
The securitizations aim at facilitating the access to long term financing opportunities for the small and
medium enterprises (“SMEs”), through minibonds subscription by SMEs and purchase of it by SPV, in
addition to the traditional bank credit lines, thus supporting the real economy and achieving a significant
transfer risk on institutional qualified investors.
INTERNAL MEASUREMENT AND RISK MONITORING SYSTEMS:
Each portfolio is monitored on an ongoing basis by external third counterparty and is described in
biannual reports (required by the agreements) with a breakdown of loans by status and the trend of
repayments. Moreover compliant to the retention rule UniCredit S.p.A. maintained at least a 5% of
minibonds issued by SMES, so is able to monitor directly performance of the portfolio.
ORGANISATIONAL STRUCTURE AND SYSTEM FOR REPORTING TO SENIOR
MANAGEMENT:
The BoD approved a plafond for similar transactions and each new securitization is submitted to the top
management and internal of UniCredit S.p.A. deputated committes approval. The bank's annual/interim
report contains details information on the specific ABS transactions achieved.
HEDGING POLICIES:
There is no swap on interest rates in force since the interest rates of the assets are matched with
interest rates of the liabilities.
OPERATING RESULTS:
The results achieved up to the present are broadly in line with expectations and approved at inception.
NAME:
BASKET BOND PUGLIA
Type of securitisation:
Traditional
Originator:
UniCredit S.p.A.
Issuer:
Garibaldi Tower Basket Bond S.r.l.
Servicer:
Banca Finint S.p.A.
Arranger:
UniCredit S.p.A./UniCredit Bank GmbH London Branch
Target transaction:
Funding to SMEs
Type of asset:
Minibonds
Quality of Asset:
Performing
Closing date:
18.06.2020
Nominal Value of reference portfolio (€ million):
140
Net amount of preexisting write-down/write-backs (€ million):
-
Disposal Profit & Loss realised (€ million)(*):
-
Portfolio disposal price (€ million):
140
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
35
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
-
Rating Agencies:
-
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
IT0005414120
. Type of security
Senior
. Class
A
. Rating
-
. Quotation
-
. Issue date
18.06.2020
. Legal maturity
17.06.2030
. Call option
-
. Expected duration (years)
4.2
. Rate
0.5% + Variable
. Subordination level
-
. Nominal Value Issued (€ million)
140
. Nominal value at the end of accounting period (€ million)
95
Note:
(*) Amount gross of initial transaction's costs.
758
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
ORIGINATOR: UniCredit S.p.A.
Synthetic securitisations of performing loans
STRATEGIES, PROCESSES AND GOALS:
The main purpose of structuring synthetic securitizations is the relief of Regulatory Capital.
INTERNAL MEASUREMENT AND RISK MONITORING SYSTEMS:
Each securitised portfolio is monitored by the Servicing Department on an ongoing basis and disclosed
in the form of quarterly reports (Investor Report), providing a breakdown of the status of underlying
loans.
ORGANISATIONAL STRUCTURE AND SYSTEM FOR REPORTING TO SENIOR
MANAGEMENT:
A first-level Committee approves each new transaction and any other related decisions and is informed
about expected and actual performances of already existing transactions. The bank's annual report
features information about all originated synthetic securitizations.
HEDGING POLICIES:
None
OPERATING RESULTS:
The performances of synthetic securitizations are monitored on a semi-annual basis with dedicated
reports addressed to the competent first-level Committee.
759
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
New Transactions 2024
NAME:
TC Mini-Bond
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A.
Target transaction:
Credit risk hedging
Type of asset:
Bonds - maturity not higher than 120 months - issued by small and medium enterprises
Quality of Asset:
Performing
Closing date (§):
31.12.2024
Nominal Value of disposal portfolio (€ million):
17
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Financial guarantee to partially hedge the junior risk in the form of personal guarantee
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date (§)
31.12.2024
31.12.2024
. Legal maturity
31.08.2031
31.08.2031
. Call option
-
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
13
3
. Reference Position at the end of accounting period (€ million)
13
3
. Risk holder
UniCredit S.p.A.
Fondo di Garanzia per le Piccole e Medie Imprese
Distribution of securitised assets by area (€ million):
Italy - Northwest
9
Italy - Northeast
4
Italy - Central
2
Italy - South and Islands
2
Other European Countries - E.U. countries
-
Other European Countries - non-E.U. countries
-
America
-
Rest of the World
-
Total
17
Distribution of securitised assets by business sector of the borrower (€ million):
Governments
-
Other public-sector entities
-
Banks
-
Financial Companies
-
Insurance Companies
-
Non-financial Companies
17
Other entities
-
Total
17
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Artt.258-259 of Regulation (EU) 2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No 575/2013 on prudential requirements for credit institutions and investment firms.
(§) Date of first reporting for regulatory purposes.
760
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
TC Italia 2
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A.
Target transaction:
Credit risk hedging
Type of asset:
Unsecured loans - maturity between 18 and 84 months - to small and medium enterprises
Quality of Asset:
Performing
Closing date (§):
31.12.2024
Nominal Value of disposal portfolio (€ million):
210
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Financial guarantee to partially hedge the junior risk in the form of personal guarantee
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date (§)
31.12.2024
31.12.2024
. Legal maturity
30.09.2032
30.09.2032
. Call option
-
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
192
18
. Reference Position at the end of accounting period (€ million)
192
18
. Risk holder
UniCredit S.p.A.
Fondo di Garanzia per le Piccole e Medie Imprese
Distribution of securitised assets by area (€ million):
Italy - Northwest
54
Italy - Northeast
67
Italy - Central
46
Italy - South and Islands
43
Other European Countries - E.U. countries
-
Other European Countries - non-E.U. countries
-
America
-
Rest of the World
-
Total
210
Distribution of securitised assets by business sector of the borrower (€ million):
Governments
-
Other public-sector entities
-
Banks
-
Financial Companies
-
Insurance Companies
-
Non-financial Companies
147
Other entities
63
Total
210
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Artt.258-259 of Regulation (EU) 2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No 575/2013 on prudential requirements for credit institutions and investment firms.
(§) Date of first reporting for regulatory purposes.
761
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
TC Italia
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A.
Target transaction:
Credit risk hedging
Type of asset:
Unsecured loans - maturity between 18 and 84 months - to small and medium enterprises
Quality of Asset:
Performing
Closing date:
21.10.2024
Nominal Value of disposal portfolio (€ million):
155
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Financial guarantee to partially hedge the junior risk in the form of personal guarantee
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
21.10.2024
21.10.2024
. Legal maturity
31.03.2030
31.03.2030
. Call option
-
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
141
14
. Reference Position at the end of accounting period (€ million)
139
14
. Risk holder
UniCredit S.p.A.
Fondo di Garanzia per le Piccole e Medie Imprese
Distribution of securitised assets by area (€ million):
Italy - Northwest
45
Italy - Northeast
42
Italy - Central
38
Italy - South and Islands
30
Other European Countries - E.U. countries
-
Other European Countries - non-E.U. countries
-
America
-
Rest of the World
-
Total
155
Distribution of securitised assets by business sector of the borrower (€ million):
Governments
-
Other public-sector entities
-
Banks
-
Financial Companies
-
Insurance Companies
-
Non-financial Companies
105
Other entities
50
Total
155
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Artt.258-259 of Regulation (EU) 2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No 575/2013 on prudential requirements for credit institutions and investment firms.
762
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
A.R.T.S. ReMo 2024
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A.
Target transaction:
Credit risk hedging
Type of asset:
Residential mortgages
Quality of Asset:
Performing
Closing date:
11.12.2024
Nominal Value of disposal portfolio (€ million):
1,505
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Insurance policy to hedge the mezzanine and upper junior risk
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
-
-
. Issue date
11.12.2024
11.12.2024
. Legal maturity
11.12.2032
11.12.2032
. Call option
Clean-up call, Regulatory call, SRT call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
1,354
68
. Reference Position at the end of accounting period (€ million)
1,332
68
. Risk holder
UniCredit S.p.A.
Insurance Companies
. ISIN
-
-
. Type of security
Upper Junior
Lower Junior
. Class
C
D
. Rating
-
-
. Issue date
11.12.2024
11.12.2024
. Legal maturity
11.12.2032
11.12.2032
. Call option
Clean-up call, Regulatory call, SRT call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
SUB A-B
SUB A-B-C
. Reference Position (€ million)
75
8
. Reference Position at the end of accounting period (€ million)
75
8
. Risk holder
Insurance Companies
UniCredit S.p.A.
Distribution of securitised assets by area (€ million):
Italy - Northwest
497
Italy - Northeast
290
Italy - Central
361
Italy - South and Islands
357
Other European Countries - E.U. countries
-
Other European Countries - non-E.U. countries
-
America
-
Rest of the World
-
Total
1,505
Distribution of securitised assets by business sector of the borrower (€ million):
Governments
-
Other public-sector entities
-
Banks
-
Financial Companies
-
Insurance Companies
-
Non-financial Companies
-
Other entities
1,505
Total
1,505
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Artt.258-259 of Regulation (EU) 2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No 575/2013 on prudential requirements for credit institutions and investment firms.
763
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
ARTS Large Corporate 2024
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit Bank G.m.b.H.
Target transaction:
Credit risk hedging
Type of asset:
Loans to Large Corporates
Quality of Asset:
Performing
Closing date:
19.09.2024
Nominal Value of disposal portfolio (€ million):
2,301
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Junior risk cash collateralised
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
19.09.2024
19.09.2024
. Legal maturity
30.06.2031
30.06.2031
. Call option
Clean-up call, Regulatory call, SRT call, Time call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
2,163
138
. Reference Position at the end of accounting period (€ million)
1,999
138
. Risk holder
UniCredit S.p.A.
Private Investor
Distribution of securitised assets by area (€ million):
Italy - Northwest
1,149
Italy - Northeast
506
Italy - Central
422
Italy - South and Islands
7
Other European Countries - E.U. countries
217
Other European Countries - non-E.U. countries
-
America
-
Rest of the World
-
Total
2,301
Distribution of securitised assets by business sector of the borrower (€ million):
Governments
-
Other public-sector entities
-
Banks
-
Financial Companies
-
Insurance Companies
-
Non-financial Companies
1,955
Other entities
346
Total
2,301
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Artt.258-259 of Regulation (EU) 2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No 575/2013 on prudential requirements for credit institutions and investment firms.
764
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
ARTS Corporate 2024
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit Bank G.m.b.H.
Target transaction:
Credit risk hedging
Type of asset:
Loans to Small and Mid Corporates
Quality of Asset:
Performing
Closing date:
06.06.2024
Nominal Value of disposal portfolio (€ million):
2,150
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Mezzanine risk cash collateralised
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
06.06.2024
06.06.2024
. Legal maturity
31.08.2044
31.08.2044
. Call option
Clean-up call, Regulatory call, SRT call, Time call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
2,031
113
. Reference Position at the end of accounting period (€ million)
1,819
113
. Risk holder
UniCredit S.p.A.
Private Investors
. ISIN
-
. Type of security
Junior
. Class
C
. Rating
-
. Issue date
06.06.2024
. Legal maturity
31.08.2044
. Call option
Clean-up call, Regulatory call, SRT call, Time call
. Expected duration (years)
-
. Rate
-
. Subordinated level
SUB A-B
. Reference Position (€ million)
6
. Reference Position at the end of accounting period (€ million)
6
. Risk holder
UniCredit S.p.A.
Distribution of securitised assets by area (€ million):
Italy - Northwest
735
Italy - Northeast
672
Italy - Central
466
Italy - South and Islands
277
Other European Countries - E.U. countries
-
Other European Countries - non-E.U. countries
-
America
-
Rest of the World
-
Total
2,150
Distribution of securitised assets by business sector of the borrower (€ million):
Governments
-
Other public-sector entities
-
Banks
-
Financial Companies
-
Insurance Companies
-
Non-financial Companies
2,150
Other entities
-
Total
2,150
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Artt.258-259 of Regulation (EU) 2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No 575/2013 on prudential requirements for credit institutions and investment firms.
765
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
Transactions from previous years
NAME:
ARTS Large Corporate 2023
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit Bank A.G.
Target transaction:
Credit risk hedging
Type of asset:
Loans to Large Corporates
Quality of Asset:
Performing
Closing date:
06.06.2023
Nominal Value of disposal portfolio (€ million):
3,073
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Junior risk cash collateralised
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
06.06.2023
06.06.2023
. Legal maturity
31.01.2033
31.01.2033
. Call option
Clean-up call, Regulatory call, SRT call, Time call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
2,888
184
. Reference Position at the end of accounting period (€ million)
1,984
184
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Artt.258-259 of Regulation (EU) 2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No 575/2013 on prudential requirements for credit institutions and investment firms.
766
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
A.R.T.S. ReMo 2023
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A.
Target transaction:
Credit risk hedging
Type of asset:
Residential mortgages
Quality of Asset:
Performing
Closing date:
28.07.2023
Nominal Value of disposal portfolio (€ million):
1,448
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Financial guarantee to hedge the mezzanine risk in the form of personal guarantee and insurance
policy to hedge the junior risk
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
-
-
. Issue date
28.07.2023
28.07.2023
. Legal maturity
28.07.2031
28.07.2031
. Call option
Clean-up call, Regulatory call, SRT call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
1,304
65
. Reference Position at the end of accounting period (€ million)
1,134
65
. ISIN
-
-
. Type of security
Junior
Equity
. Class
C
D
. Rating
-
-
. Issue date
28.07.2023
28.07.2023
. Legal maturity
28.07.2031
28.07.2031
. Call option
Clean-up call, Regulatory call, SRT call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
SUB A-B
SUB A-B-C
. Reference Position (€ million)
72
7
. Reference Position at the end of accounting period (€ million)
72
7
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Artt.258-259 of Regulation (EU) 2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No 575/2013 on prudential requirements for credit institutions and investment firms.
767
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
ARTS Large Corporate 2022
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit Bank GmbH
Target transaction:
Credit risk hedging
Type of asset:
Loans to Large Corporates
Quality of Asset:
Performing
Closing date:
14.12.2022
Nominal Value of disposal portfolio (€ million):
2,943
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Cash collateral for junior risk
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
14.12.2022
14.12.2022
. Legal maturity
31.12.2033
31.12.2033
. Call option
Clean-up call, Regulatory call, SRT call, Time call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
2,744
199
. Reference Position at the end of accounting period (€ million)
1,236
125
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Artt.258-259 of Regulation (EU) 2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No 575/2013 on prudential requirements for credit institutions and investment firms.
768
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
MidCap 2022
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit Bank GmbH
Target transaction:
Credit risk hedging
Type of asset:
Loans to Small and Mid Corporates
Quality of Asset:
Performing
Closing date:
09.06.2022
Nominal Value of disposal portfolio (€ million):
1,662
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Financial guarantee to hedge the junior risk in the form of personal guarantee
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
09.06.2022
09.06.2022
. Legal maturity
31.12.2035
31.12.2035
. Call option
Clean-up call, Regulatory call, SRT call, Time call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
1,534
128
. Reference Position at the end of accounting period (€ million)
482
71
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Artt.258-259 of Regulation (EU) 2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No 575/2013 on prudential requirements for credit institutions and investment firms.
769
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
A.R.T.S. Remo 2022
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A.
Target transaction:
Credit risk hedging
Type of asset:
Residential mortgages
Quality of Asset:
Performing
Closing date:
13.07.2022
Nominal Value of disposal portfolio (€ million):
1,605
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Insurance policy to hedge the mezzanine and upper junior risk
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
-
-
. Issue date
13.07.2022
13.07.2022
. Legal maturity
14.07.2030
14.07.2030
. Call option
Clean-up call, Regulatory call, SRT call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
1,404
88
. Reference Position at the end of accounting period (€ million)
1,013
88
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Upper Junior
Lower Junior
. Class
C
D
. Rating
-
-
. Issue date
13.07.2022
13.07.2022
. Legal maturity
14.07.2030
14.07.2030
. Call option
Clean-up call, Regulatory call, SRT call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
SUB A-B
SUB A-B-C
. Reference Position (€ million)
96
16
. Reference Position at the end of accounting period (€ million)
96
13
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Artt.258-259 of Regulation (EU) 2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No 575/2013 on prudential requirements for credit institutions and investment firms.
770
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
A.R.T.S. Remo 2022/2
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A.
Target transaction:
Credit risk hedging
Type of asset:
Residential mortgages
Quality of Asset:
Performing
Closing date:
15.12.2022
Nominal Value of disposal portfolio (€ million):
1,272
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Insurance policy to hedge the mezzanine and upper junior risk
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
-
-
. Issue date
15.12.2022
15.12.2022
. Legal maturity
15.12.2030
15.12.2030
. Call option
Clean-up call, Regulatory call, SRT call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
1,145
51
. Reference Position at the end of accounting period (€ million)
927
51
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Upper Junior
Lower Junior
. Class
C
D
. Rating
-
-
. Issue date
15.12.2022
15.12.2022
. Legal maturity
15.12.2030
15.12.2030
. Call option
Clean-up call, Regulatory call, SRT call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
SUB A-B
SUB A-B-C
. Reference Position (€ million)
64
13
. Reference Position at the end of accounting period (€ million)
64
13
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Artt.258-259 of Regulation (EU) 2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No 575/2013 on prudential requirements for credit institutions and investment firms.
771
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
A.R.T.S. Re.Mo. 2021
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A.
Target transaction:
Credit risk hedging
Type of asset:
Residential mortgages
Quality of Asset:
Performing
Closing date:
20.12.2021
Nominal Value of disposal portfolio (€ million):
586
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Insurance policy to hedge the junior risk
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
20.12.2021
20.12.2021
. Legal maturity
20.12.2029
20.12.2029
. Call option
Clean-up call, Regulatory call, SRT call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
539
47
. Reference Position at the end of accounting period (€ million)
397
46
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Art.258-259 of Regulation (EU) No.2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No.575/2013 (Capital Requirements Regulation – CRR) on prudential requirements for credit institutions and investment firms.
772
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
A.R.T.S. MidCap 2021
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit Bank GmbH
Target transaction:
Credit risk hedging
Type of asset:
Loans to Small and Mid Corporates
Quality of Asset:
Performing
Closing date:
26.11.2021
Nominal Value of disposal portfolio (€ million):
1,998
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Financial guarantee to hedge the mezzanine risk in the form of personal guarantee
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
-
-
. Issue date
26.11.2021
26.11.2021
. Legal maturity
31.12.2035
31.12.2035
. Call option
Clean-up call, Regulatory call, SRT call, Time call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
1,844
120
. Reference Position at the end of accounting period (€ million)
551
62
. ISIN
-
. Type of security
Junior
. Class
C
. Rating
-
. Issue date
26.11.2021
. Legal maturity
31.12.2035
. Call option
Clean-up call, regulatory call, SRT call, Time call
. Expected duration (years)
-
. Rate
-
. Subordinated level
SUB A-B
. Reference Position (€ million)
34
. Reference Position at the end of accounting period (€ million)
34
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Art.258-259 of Regulation (EU) No.2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No.575/2013 on prudential requirements for credit institutions and investment firms.
773
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
Bond Italia 8 Investimenti
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A.
Target transaction:
Credit risk hedging
Type of asset:
Unsecured loans - maturity between 24 and 60 months - to small and medium enterprises
Quality of Asset:
Performing
Closing date:
16.12.2020
Nominal Value of disposal portfolio (€ million):
76
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Financial guarantee to partially hedge the junior risk in the form of personal guarantee
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
16.12.2020
16.12.2020
. Legal maturity
31.07.2026
31.07.2026
. Call option
-
-
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
68
8
. Reference Position at the end of accounting period (€ million)
2
8
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Art.258-259 of Regulation (EU) No.2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No.575/2013 on prudential requirements for credit institutions and investment firms.
774
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
ArtgianCredito Toscano
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A.
Target transaction:
Credit risk hedging
Type of asset:
Unsecured loans - maturity up to 54 months - to small and medium enterprises mainly located in
Tuscany
Quality of Asset:
Performing
Closing date:
14.07.2020
Nominal Value of disposal portfolio (€ million):
21
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Junior risk partially cash collateralised
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
14.07.2020
14.07.2020
. Legal maturity
31.12.2028
31.12.2028
. Call option
-
-
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
19
2
. Reference Position at the end of accounting period (€ million)
2
2
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Art.258-259 of Regulation (EU) No.2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No.575/2013 on prudential requirements for credit institutions and investment firms.
775
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
EaSi MicroCredito 2
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A.
Target transaction:
Credit risk hedging
Type of asset:
Unsecured loans - maturity up to 60 months - to micro enterprises
Quality of Asset:
Performing
Closing date:
31.03.2020
Nominal Value of disposal portfolio (€ million):
27
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Financial guarantee to hedge the junior risk in the form of personal guarantee
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
31.03.2020
31.03.2020
. Legal maturity
01.01.2030
01.01.2030
. Call option
-
-
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
23
4
. Reference Position at the end of accounting period (€ million)
9
7
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Art.258-259 of Regulation (EU) No.2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No.575/2013 on prudential requirements for credit institutions and investment firms.
776
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
TC EaSI Micro Credito
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A.
Target transaction:
Credit risk hedging
Type of asset:
Unsecured loans - maturity between 6 and 55 months - to micro enterprises
Quality of Asset:
Performing
Closing date:
25.11.2019
Nominal Value of disposal portfolio (€ million):
27
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Financial guarantee to hedge the junior risk in the form of personal guarantee
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
25.11.2019
25.11.2019
. Legal maturity
10.12.2025
10.12.2025
. Call option
-
-
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
24
3
. Reference Position at the end of accounting period (€ million)
-
3
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Art.258-259 of Regulation (EU) No.2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No.575/2013 on prudential requirements for credit institutions and investment firms.
777
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
Bond Italia 6 Investimenti
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A.
Target transaction:
Credit risk hedging
Type of asset:
Unsecured loans - maturity between 24 and 60 months - to small and medium enterprises
Quality of Asset:
Performing
Closing date:
21.11.2019
Nominal Value of disposal portfolio (€ million):
88
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Financial guarantee to partially hedge the junior risk in the form of personal guarantee
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
21.11.2019
21.11.2019
. Legal maturity
31.05.2026
31.05.2026
. Call option
-
-
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
79
9
. Reference Position at the end of accounting period (€ million)
3
8
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Art.258-259 of Regulation (EU) No.2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No.575/2013 on prudential requirements for credit institutions and investment firms.
778
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
Bond Italia 5-bis
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A.
Target transaction:
Credit risk hedging
Type of asset:
Unsecured loans - maturity between 18 and 60 months - to small and medium enterprises located in
Southern Italy
Quality of Asset:
Performing
Closing date:
19.10.2018
Nominal Value of disposal portfolio (€ million):
34
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Financial guarantee to partially hedge the junior risk in the form of personal guarantee
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
19.10.2018
19.10.2018
. Legal maturity
31.08.2025
31.08.2025
. Call option
-
-
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
32
2
. Reference Position at the end of accounting period (€ million)
-
1
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Art.258-259 of Regulation (EU) 2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No 575/2013 on prudential requirements for credit institutions and investment firms.
779
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
Agribond 2
Type of securitisation:
Tranched Cover
Originator:
UniCredit S.p.A.
Issuer:
UniCredit S.p.A.
Servicer:
UniCredit S.p.A.
Arranger:
UniCredit S.p.A.
Target transaction:
Credit risk hedging
Type of asset:
Unsecured loans - maturity 72 months - to small and medium enterprises pertaining to the agricolture
sector
Quality of Asset:
Performing
Closing date:
05.09.2018
Nominal Value of disposal portfolio (€ million):
166
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Financial guarantee to partially hedge the junior risk in the form of personal guarantee
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
05.09.2018
05.09.2018
. Legal maturity
31.12.2026
31.12.2026
. Call option
Clean-up call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
154
12
. Reference Position at the end of accounting period (€ million)
-
11
Note:
(*) Synthetic securitisations carried out using the SEC-IRBA approach as required by Art.258-259 of Regulation (EU) 2017/2401 of the European Parliament and of the Council of 12 December 2017 amending Regulation
(EU) No 575/2013 on prudential requirements for credit institutions and investment firms.
780
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
ORIGINATOR: UniCredit Leasing S.p.A.
Synthetic securitisations of performing loans
STRATEGIES, PROCESSES AND GOALS:
The main purpose of structuring synthetic securitizations is the relief of Regulatory Capital.
INTERNAL MEASUREMENT AND RISK MONITORING SYSTEMS:
Each securitised portfolio is monitored on an ongoing basis and disclosed in the form of quarterly
reports (Investor Report), providing a breakdown of the status of underlying loans.
ORGANISATIONAL STRUCTURE AND SYSTEM FOR REPORTING TO SENIOR
MANAGEMENT:
The company Board approves each new transaction and any other related decisions related. The
competent corporate body is informed about expected and actual performances of already existing
transactions. The bank's annual report features information about all originated synthetic
securitizations.
HEDGING POLICIES:
None
OPERATING RESULTS:
The performances of synthetic securitizations are monitored on a semi-annual basis with dedicated
reports addressed to the competent corporate body.
781
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
New transactions 2024
NAME:
A.R.T.S. Leasing 2024
Type of securitisation:
Synthetic securitisation
Originator:
UniCredit Leasing S.p.A.
Issuer:
UniCredit Leasing S.p.A.
Servicer:
UniCredit Leasing S.p.A. - UCI S.p.A.
Arranger:
Marsh S.p.A.
Target transaction:
Relief of Regulatory Capital.
Type of asset:
Real estate leasing contracts
Quality of Asset:
Bonis
Closing date:
26.06.2024
Nominal Value of disposal portfolio (€ million):
2,471
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Insurance policy to hedge the mezzanine and the upper junior risk
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agencies, used SEC-SA approach for capital framework Standardised Approach)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
-
-
. Issue date
26.06.2024
26.06.2024
. Legal maturity
31.12.2038
31.12.2038
. Call option
Clean-up call, Regulatory call, SRT call, Time call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
2,187
136
. Reference Position at the end of accounting period (€ million)
1,978
123
. Risk holder
UniCredit Leasing S.p.A.
Investors
. ISIN
-
-
. Type of security
Upper Junior
Lower Junior
. Class
C
D
. Rating
-
-
. Issue date
26.06.2024
26.06.2024
. Legal maturity
31.12.2038
31.12.2038
. Call option
Clean-up call, Regulatory call, SRT call, Time call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
SUB A - B
SUB A -B -C
. Reference Position (€ million)
124
25
. Reference Position at the end of accounting period (€ million)
112
25
. Risk holder
Investors
UniCredit Leasing S.p.A.
Distribution of securitised assets by area (€ million):
Italy
2,471
Other European Countries - E.U. countries
-
Other European Countries - non-E.U. countries
-
America
-
Rest of the World
-
Total
2,471
Distribution of securitised assets by business sector of the borrower (€ million):
Governments
-
Other public-sector entities
-
Banks
1
Financial Companies
-
Insurance Companies
-
Non-financial Companies
2,470
Other entities
-
Total
2,471
782
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
Transactions from previous years
NAME:
A.R.T.S. Leasing 2023
Type of securitisation:
Synthetic securitisation
Originator:
UniCredit Leasing S.p.A.
Issuer:
UniCredit Leasing S.p.A.
Servicer:
UniCredit Leasing S.p.A.
Arranger:
Unicredit Bank GmbH
Target transaction:
Relief of Regulatory Capital.
Type of asset:
Mainly leasing contracts related photovoltaic plants
Quality of Asset:
Bonis
Closing date:
06.12.2023
Nominal Value of disposal portfolio (€ million):
396
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Financial Guarantee of the Junior Tranche
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agencies, used SEC-SA approach for capital framework Standardised Approach)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
06.12.2023
06.12.2023
. Legal maturity
12.06.2035
12.06.2035
. Call option
Clean-up call, Regulatory call, SRT call, Time call
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
SUB A
. Reference Position (€ million)
339
57
. Reference Position at the end of accounting period (€ million)
263
44
. Risk holder
UniCredit Leasing S.p.A.
Investor
783
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
Traditional securitisations of non-performing loans
STRATEGIES, PROCESSES AND GOALS:
UniCredit Leasing S.p.A., through the transfer of its credit exposures to an SPV pursuant to 130
Law on securitization, has set itself the objective of reducing the stock of Non Performing Exposures
of the Non Core perimeter, in line with the Group's strategy of a complete rundown of this perimeter.
INTERNAL MEASUREMENT AND RISK MONITORING SYSTEMS:
The performance of securitisations is subject to continuous monitoring by the company, with specific
focus on the recovery performance and the evolution of the Gross Book Value (GBV) of the
underlying portfolio and on the progressive repayment of the principal and payment of interest of the
ABS securities issued by the SPV, based on the information provided by the servicer (also through
specific periodic reports foreseen in the transaction documentation).
ORGANISATIONAL STRUCTURE AND SYSTEM FOR REPORTING TO SENIOR MANAGEMENT:
The execution of the securitization transactions of non performing exposures is approved by the
Board, based on the prior positive opinion of the proper committees within the company. Credit
reviews of the transactions are scheduled on an annual basis and discussed in specific committees
with the participation of top management, during which updates are given on the progress of
transactions as a whole.
HEDGING POLICIES:
None
OPERATING RESULTS:
Every six months, or more frequently if necessary, information relating to the performance of
securitisations (with specific focus on the evolution of the Gross Book Value of the transferred
portfolio, the recovery performances and the redemption of ABS securities) is made available to the
various company functions for the performance of their respective roles on monitoring and
representation in the financial statements.
784
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
Transactions from previous years
NAME:
RELAIS 2020
Type of securitisation:
Traditional
Originator:
UniCredit Leasing S.p.A.
Issuer:
Relais Spv S.r.l.
Servicer:
Do Value S.p.A.
Arranger:
UniCredit Bank GmbH (UniCredit Markets & Investment Banking)
Target transaction:
Run down of non-core portfolio
Type of asset:
Mainly real estate contracts
Quality of Asset:
Bad exposures
Closing date:
01.12.2020
Nominal Value of reference portfolio (€ million):
1,533
Net amount of preexisting write-down/write-backs (€ million):
574
Disposal Profit & Loss realised (€ million)(*):
-7
Portfolio disposal price (€ million):
567
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
€51.85 millions - grant by UniCredit Bank GmbH
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
UniCredit Leasing S.p.A. has originally underwritten the whole of notes issued by Relais
Spv. Subsequently 95% of junior and mezzanine notes was sold to Do Value S.p.A.
Rating Agencies:
Moody's/Scope
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
IT0005429128
IT0005429144
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
Baa2 | Baa2
-
. Quotation
-
-
. Issue date
11.12.2020
11.12.2020
. Legal maturity
31.07.2040
31.07.2040
. Call option
-
. Expected duration (years)
3.0
6.4
. Rate
Euribor 6M + Spread 1.50%
Euribor 6M + Spread 9.50%
. Subordination level
-
sub A
. Nominal Value Issued (€ million)
466
91
. Nominal value at the end of accounting period (€ million)
218
91
. ISIN
IT0005429151
. Type of security
Junior
. Class
J
. Rating
-
. Quotation
-
. Issue date
11.12.2020
. Legal maturity
31.07.2040
. Call option
-
. Expected duration (years)
7.4
. Rate
variable
. Subordination level
sub A-B
. Nominal Value Issued (€ million)
10
. Nominal value at the end of accounting period (€ million)
10
Note:
(*) Amount gross of initial transaction’s costs.
785
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
ORIGINATOR: UniCredit Bank GmbH
New transactions 2024
STRATEGIES, PROCESSES AND GOALS:
The main reason for the Bank's securitisation program "Arabellapark 2024" is the reduction of RWA.
INTERNAL MEASUREMENT AND RISK MONITORING SYSTEMS:
The portfolio is monitored by the servicing department on an ongoing basis and it is illustrated in the
form of quarterly report (investor report), which provides a breakdown of the status of loans.
ORGANISATIONAL STRUCTURE AND SYSTEM FOR REPORTING TO SENIOR MANAGEMENT:
The BoD of the Bank approves the synthetic transaction and any other related decision and they are
informed on the expected performances and on those in the final balance.
HEDGING POLICIES:
No hedging activities
OPERATING RESULTS:
The results achieved up to the present are broadly in line with expectations.
NAME:
Arabellapark 2024
Type of securitisation:
Synthetic
Originator:
UniCredit Bank GmbH
Issuer:
-
Servicer:
UniCredit Bank GmbH
Arranger:
UniCredit Bank GmbH (UniCredit Markets & Investment Banking)
Target transaction:
RWEA relief
Type of asset:
Large Corporate and SME corporate loans
Quality of Asset:
Performing
Closing date:
20.08.2024
Nominal Value of disposal portfolio (€ million):
3,420
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
100% of junior tranche
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
Rating Agencies:
-
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
DE000A383TR4
. Type of security
Senior
Junior
. Class
-
-
. Rating
-
-
. Issue date
20.08.2024
20.08.2024
. Legal maturity
30.11.2032
30.11.2032
. Call option
Time Call & Clean-Up Call
. Expected duration (years)
8
8
. Rate
-
11,50% + 1 month EURIBOR
. Subordinated level
-
sub A
. Reference Position (€ million)
3,180
239
. Reference Position at the end of accounting period (€ million)
3,180
239
. Risk holder
UniCredit Bank GmbH
EIF
786
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
Transactions from previous years
STRATEGIES, PROCESSES AND GOALS:
The main reason for the Bank's securitisation program "Arabellapark 2023" is the reduction of RWA.
INTERNAL MEASUREMENT AND RISK MONITORING SYSTEMS:
The portfolio is monitored by the servicing department on an ongoing basis and it is illustrated in the
form of quarterly report (investor report), which provides a breakdown of the status of loans.
ORGANISATIONAL STRUCTURE AND SYSTEM FOR REPORTING TO SENIOR MANAGEMENT:
The BoD of the Bank approves the synthetic transaction and any other related decision and they are
informed on the expected performances and on those in the final balance.
HEDGING POLICIES:
No hedging activities
OPERATING RESULTS:
The results achieved up to the present are broadly in line with expectations.
NAME:
Arabellapark 2023
Type of securitisation:
Synthetic
Originator:
UniCredit Bank GmbH
Issuer:
-
Servicer:
UniCredit Bank GmbH
Arranger:
UniCredit Bank GmbH (UniCredit Markets & Investment Banking)
Target transaction:
RWEA relief
Type of asset:
Large Corporate and SME corporate loans
Quality of Asset:
Performing
Closing date:
15.12.2023
Nominal Value of disposal portfolio (€ million):
1,875
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
100% of Junior Tranche
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
Rating Agencies:
-
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
DE000A352EV3
. Type of security
Senior
Junior
. Class
-
-
. Rating
-
-
. Issue date
15.12.2023
15.12.2023
. Legal maturity
31.12.2030
31.12.2030
. Call option
Time Call & Clean-Up Call
. Expected duration (years)
7
7
. Rate
-
10.00% + 1 month EURIBOR
. Subordinated level
-
sub A
. Reference Position (€ million)
1,725
150
. Reference Position at the end of accounting period (€ million)
1,697
148
. Risk holder
UniCredit Bank GmbH
EIF
787
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
STRATEGIES, PROCESSES AND GOALS:
The main reason for the Bank's securitisation program "Tucherpark 2022" is the reduction of RWA.
INTERNAL MEASUREMENT AND RISK MONITORING SYSTEMS:
The portfolio is monitored by the servicing department on an ongoing basis and it is illustrated in the
form of quarterly report (investor report), which provides a breakdown of the status of loans.
ORGANISATIONAL STRUCTURE AND SYSTEM FOR REPORTING TO SENIOR MANAGEMENT:
The BoD of the Bank approves the synthetic transaction and any other related decision and they are
informed on the expected performances and on those in the final balance.
HEDGING POLICIES:
No hedging activities
OPERATING RESULTS:
The results achieved up to the present are broadly in line with expectations.
NAME:
Tucherpark 2022
Type of securitisation:
Synthetic
Originator:
UniCredit Bank GmbH
Issuer:
-
Servicer:
UniCredit Bank GmbH
Arranger:
UniCredit Bank GmbH (UniCredit Markets & Investment Banking)
Target transaction:
RWEA relief
Type of asset:
Large Corporate and SME corporate loans
Quality of Asset:
Performing
Closing date:
14.12.2022
Nominal Value of disposal portfolio (€ million):
1,949
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
100% of junior tranche
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
Tucherpark 2022 has been established under the programme of EIF and EIB under the Pan-European
Guarantee Fund in response to Covid-19 for support of and providing new finance for SME’s. The
financial guarantee providing credit protection will be fronted by EIF and backed by a back-to-back
arrangement by EIB in favour of EIF, supported by EGF resources.
Rating Agencies:
-
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
-
-
. Rating
-
-
. Issue date
14.12.2022
14.12.2022
. Legal maturity
30.06.2035
30.06.2035
. Call option
Time Call & Clean-Up Call
. Expected duration (years)
5
5
. Rate
-
8.00%
. Subordinated level
-
sub A
. Reference Position (€ million)
1,803
146
. Reference Position at the end of accounting period (€ million)
811
85
788
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
STRATEGIES, PROCESSES AND GOALS:
The main reason for the Bank's securitisation programs is the Funding for True Sale Transactions.
INTERNAL MEASUREMENT AND RISK MONITORING SYSTEMS:
Each portfolio is monitored by the servicing department on an ongoing basis and it is illustrated in
the form of quarterly report (investor report), which provides a breakdown of the status of loans.
ORGANISATIONAL STRUCTURE AND SYSTEM FOR REPORTING TO SENIOR MANAGEMENT:
The BoD of the Bank approves each new transaction and any other related decision and is informed
on the expected performances and on those in the final balance. The bank's annual report contains
information on the bank's own ABS transactions.
HEDGING POLICIES:
No hedging activities
OPERATING RESULTS:
The results achieved up to the present are broadly in line with expectations; payments received
from the portfolio ensured punctual and full payment to security holders and other parties to the
transaction.
NAME:
ROSENKAVALIER 2022
Type of securitisation:
Traditional
Originator:
UniCredit Bank GmbH
Issuer:
Rosenkavalier 2022 UG
Servicer:
UniCredit Bank GmbH
Arranger:
UniCredit Bank GmbH (UniCredit Markets & Investment Banking)
Target transaction:
Liquidity
Type of asset:
Large Corporate and SME corporate loans
Quality of Asset:
Performing
Closing date:
18.11.2022
Nominal Value of reference portfolio (€ million):
3,000
Net amount of preexisting write-down/write-backs (€ million):
-
Disposal Profit & Loss realised (€ million)(*):
-
Portfolio disposal price (€ million):
3,000
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
Transaction executed to create ECB collateral
Rating Agencies:
Moodys/DBRS
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
DE000A30V2F3
DE000A30V2G1
. Type of security
Senior
Junior
. Class
A
B
. Rating
A(high)/A2
-
. Quotation
Munich
Munich
. Issue date
18.11.2022
18.11.2022
. Legal maturity
30.05.2028
30.05.2028
. Call option
Any Payment Date
. Expected duration (years)
30.05.2028
30.05.2028
. Rate
Fixed Coupon 0.25%
Fixed Coupon 1.00%
. Subordination level
-
sub A
. Nominal Value Issued (€ million)
2,505
495
. Nominal value at the end of accounting period (€ million)
2,505
495
Note:
(*) Amount gross of initial transaction's costs.
789
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
ROSENKAVALIER 2020
Type of securitisation:
Traditional
Originator:
UniCredit Bank GmbH
Issuer:
Rosenkavalier 2020 UG
Servicer:
UniCredit Bank GmbH
Arranger:
UniCredit Bank GmbH (UniCredit Markets & Investment Banking)
Target transaction:
Liquidity
Type of asset:
Consumer Loans
Quality of Asset:
Performing
Closing date:
30.09.2020
Nominal Value of reference portfolio (€ million):
800
Net amount of preexisting write-down/write-backs (€ million):
-
Disposal Profit & Loss realised (€ million)(*):
-
Portfolio disposal price (€ million):
800
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
Transaction executed to create ECB collateral
Rating Agencies:
Moodys/DBRS
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
DE000A289ES3
DE000A289ET1
. Type of security
Senior
Junior
. Class
A
B
. Rating
Aa1/A
-
. Quotation
Munich
Munich
. Issue date
30.09.2020
30.09.2020
. Legal maturity
30.09.2035
30.09.2035
. Call option
Any Payment Date
. Expected duration (years)
30.09.2035
30.09.2035
. Rate
Fixed Coupon 0.2%
Fixed Coupon 1.25%
. Subordination level
-
sub A
. Nominal Value Issued (€ million)
632
168
. Nominal value at the end of accounting period (€ million)
420
80
Note:
(*) Amount gross of initial transaction's costs.
790
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
ROSENKAVALIER 2015
Type of securitisation:
Traditional
Originator:
UniCredit Bank GmbH
Issuer:
Rosenkavalier 2015 UG
Servicer:
UniCredit Bank GmbH
Arranger:
UniCredit Bank GmbH (UniCredit Markets & Investment Banking)
Target transaction:
Liquidity
Type of asset:
Large Corporate and SME corporate loans
Quality of Asset:
Performing
Closing date:
18.12.2015 (restructured on 30.11.2021)
Nominal Value of disposal portfolio (€ million):
3,800
Net amount of preexinting write-down/write-backs (€ million):
-
Disposal Profit & Loss realised (€ million):
-
Portfolio disposal price (€ million):
3,800
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
Transaction executed to create ECB collateral
Rating Agencies:
Moody's/DBRS
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
DE000A1687E2
DE000A1687F9
. Type of security
Senior
Junior
. Class
A
B
. Rating
Aa2/A
-
. Quotation
Munich
Munich
. Issue date
18.12.2015
18.12.2015
. Legal maturity
31.08.2045
31.08.2045
. Call option
Any payment date
. Rate
Fixed Coupon 0.35%
Fixed Coupon 3.25%
. Subordinated level
-
sub A
. Nominal value issued (€ million)
2,375
1,425
. Nominal value at the end of accounting period (€ million)
1,875
1,125
791
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
ROSENKAVALIER 2008
Type of securitisation:
Traditional
Originator:
UniCredit Bank GmbH
Issuer:
Rosenkavalier 2008 GmbH
Servicer:
UniCredit Bank GmbH
Arranger:
UniCredit Bank GmbH (UniCredit Markets & Investment Banking)
Target transaction:
Liquidity
Type of asset:
Mortgage loans
Quality of Asset:
Performing
Closing date:
12.12.2008
Nominal Value of disposal portfolio at the end of the accounting period (€ million):
3,140
Net amount of preexinting write-down/write-backs :
11,946
Disposal Profit & Loss realized :
-
Portfolio disposal price:
11,946
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
Transaction executed to create ECB collateral
Rating Agencies:
FITCH/Moody's
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
DE000A0AEDB2
DE000A0AEDC0
. Type of security
Senior
Junior
. Class
A
B
. Rating
A+/A2
-
. Quotation
Munich
Munich
. Issue date
12.12.2058
12.12.2058
. Legal maturity
31.10.2058
31.10.2058
. Call option
Any Payment Date
. Rate
Fixed Coupon 0.55%
Fixed Coupon 3.5%
. Subordinated level
-
SUB A
. Nominal value issued (€ million)
9,653
2,293
. Nominal value at the end of accounting period (€ million)
2,624
576
792
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
ORIGINATOR: UniCredit Bulbank AD
Transactions from previous periods
STRATEGIES, PROCESSES AND GOALS:
The main purpose of structuring synthetic securitizations is the relief of Regulatory Capital.
INTERNAL MEASUREMENT AND RISK MONITORING SYSTEMS:
Each securitised portfolio is monitored by the Strategic Risk Department on an ongoing basis and
disclosed in the form of quarterly reports (Investor Report), providing a breakdown of the status of the
underlying loans.
ORGANISATIONAL STRUCTURE AND SYSTEM FOR REPORTING TO SENIOR
MANAGEMENT:
Management Board approves each new transaction and any other related decisions and is informed
about expected and actual performances of already existing transactions. The bank's annual report
features information about all originated synthetic securitizations.
HEDGING POLICIES:
None
OPERATING RESULTS:
The performances of synthetic securitizations are monitored on a semi-annual basis with dedicated
reports addressed to Bank’s management.
NAME:
Bulbank Synthetic 2022
Type of securitisation:
Synthetic
Originator:
UniCredit Bulbank AD
Issuer:
UniCredit Bulbank AD
Servicer:
UniCredit Bulbank AD
Arranger:
UniCredit Bank GmbH
Target transaction:
Risk transfer and capital relief
Type of asset:
SME and corporate loans
Quality of Asset:
Performing
Closing date:
30.11.2022
Nominal Value of disposal portfolio (€ million):
999
Guarantees issued by the Bank:
-
Guarantees issued by Third Parties:
Financial guarantee issued by EIF
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
The structure of the transaction encompasses a senior and a junior tranche, the latter being fully
covered by an unfunded Financial Guarantee provided by the EIF (being a 0% risk-weighted entity, no
cash or collateral is required under the Financial Guarantee). As of closing date Junior tranche is 35%
and Senior is 65% of the underlying portfolio.
For the purposes of the Regulatory Requirements, the Bank is the Originator of the Reference Portfolio.
As such, the Bank will retain, on an unhedged and unguaranteed basis, an exposure to each loan in the
Reference Portfolio which will be at all times at least 5% of the notional amount of the Initial portfolio
and which will not benefit from any of the Guarantee (the “Retained Exposure Amount”) in compliance
with Art. 6(3)(a) of Regulation (EU) 2017/2402.
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach(*)
Amount of CDS or other risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
-
. Type of security
Senior
Junior
. Class
A
B
. Rating
-
-
. Issue date
30.11.2022
30.11.2022
. Legal maturity
25.09.2032
25.09.2032
. Call option
Clean-Up Call; Time Call; Regulatory Change; Significant Risk Transfer Failure; Tax Event.
. Expected duration (years)
-
-
. Rate
-
-
. Subordinated level
-
Sub A
. Reference Position (€ million)
909
90
. Reference Position at the end of accounting period (€ million)
94
52
Note:
(*) Synthetic securitization carried out using the SEC-IRBA approach as required by Artt.258-259 of Regulation (EU) No.575/2013 of the European Parliament and of the Council on prudential requirements for credit
institutions and investment firms.
793
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
ORIGINATOR: UniCredit Bank Czech Republic and Slovakia A.S.
New transactions 2024
STRATEGIES, PROCESSES AND GOALS:
The deal is part of UniCredit Bank Czech Republic and Slovakia A.S. plan for capital and RWEA
optimization.
INTERNAL MEASUREMENT AND RISK MONITORING SYSTEMS:
The portfolio is monitored by the servicing department on an ongoing basis and it is illustrated in the
form of quarterly report (investor report), which provides a breakdown of the status of loans.
ORGANISATIONAL STRUCTURE AND SYSTEM FOR REPORTING TO SENIOR
MANAGEMENT:
UniCredit Bank Czech Republic and Slovakia A.S. BoD approved the synthetic transaction and any
other related decision and they are informed on the expected performances and on those in the final
balance.
HEDGING POLICIES:
Not in place.
OPERATING RESULTS:
The results achieved up to the present are broadly in line with the deal's business case.
794
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 3 - Securitisations - qualitative tables
NAME:
ARTS Morava
Type of securitisation:
Synthetic
Originator:
UniCredit Bank Czech Republic and Slovakia A.S.
Issuer:
UniCredit Bank Czech Republic and Slovakia A.S.
Servicer:
UniCredit Bank Czech Republic and Slovakia A.S.
Arranger:
UniCredit Bank GmbH
Target transaction:
capital optimization
Type of asset:
MID corporate and SME loans
Quality of Asset:
performing
Closing date:
27.11.2024
Nominal Value of disposal portfolio (€ million):
1,670
Guarantees issued by the Bank:
CLN direct issuance by the Bank
Guarantees issued by Third Parties:
no
Bank Lines of Credit:
-
Third Parties Lines of Credit :
-
Other Credit Enhancements :
-
Other relevant information:
-
Rating Agencies:
No rating agency, use of Supervisory SEC-IRBA Approach (*)
Amount of CDS or other supersenior risk transferred (€ million):
-
Amount and Condition of tranching:
. ISIN
-
XS2940446557
. Type of security
Senior
Mezzanine
. Class
A
B
. Rating
-
-
. Issue date
27.11.2024
27.11.2024
. Legal maturity
30.06.2053
30.06.2053
. Call option
Yes
. Expected duration (years)
4.8
4.8
. Rate
-
9.75%
. Subordinated level
-
sub A
. Reference Position (€ million)
1,558
100
. Reference Position at the end of accounting period (€ million)
1,406
90
. Risk holder
UniCredit Bank Czech Republic and Slovakia A.S.
PGGM
. ISIN
-
. Type of security
Junior
. Class
C
. Rating
-
. Issue date
27.11.2024
. Legal maturity
30.06.2053
. Call option
Yes
. Expected duration (years)
4.8
. Rate
-
. Subordinated level
sub A, B
. Reference Position (€ million)
12
. Reference Position at the end of accounting period (€ million)
12
. Risk holder
UniCredit Bank Czech Republic and Slovakia A.S.
Distribution of securitised assets by area (€ million):
Italy - Northwest
-
Italy - Northeast
-
Italy - Central
-
Italy - South and Islands
-
Other European Countries - E.U. countries
1,670
Other European Countries - non-E.U. countries
-
America
-
Rest of the World
-
Total
1,670
Distribution of securitised assets by business sector of the borrower (€ million):
Governments
-
Other public-sector entities
-
Banks
-
Financial Companies
-
Insurance Companies
-
Non-financial Companies
1,670
Other entities
-
Total
1,670
Note:
(*) Synthetic securitization carried out using the SEC-IRBA approach as required by Artt.258-259 of Regulation (EU) No.575/2013 of the European Parliament and of the Council on prudential requirements for credit
institutions and investment firms.
795
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
Annex 4 - Sales of financial assets to investment funds, receiving as consideration units issued by the same funds – qualitative tables
ORIGINATOR: UniCredit S.p.A.
New transactions 2024
GOALS - STRATEGIES - PROCESSES:
UniCredit S.p.A., by selling its loans to the fund, aims to facilitate borrowers classified as
"unlikely to pay" to improve access to the capital market.
ROLE:
Once the loans have been sold to the fund and UniCredit S.p.A. become a holder of Fund's
units, the bank no longer has a role in managing the debtor, remaining a financial investor
with no possibility of governance and management interference.
RISKS RELATED TO THE TRANSACTION:
UniCredit S.p.A. has all the risks arising from the performance of the fund's units and
therefore from the management of the assets performed by the asset manager.
MONITORING SYSTEMS:
UniCredit S.p.A. monitors the manager's performance through quarterly management
reports and participation in supervisory committees (Advisory Board) without voting
mechanisms and therefore without the possibility of management or administrative
interference in the fund.
796
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
NAME OF THE TRANSACTION
ELEUTERIA
Type of transaction:
Sale of financial assets to Investment Fund with underwriting of units issued by the same Fund
Originator:
UniCredit S.p.A.
Investment Fund underwritten:
Eleuteria
Target transaction:
The objective of the transaction is to optimize access to the capital market for borrowers (private individuals in
financial difficulties) sold from UniCredit to the fund, leveraging on an industrial and strategic partner as Prelios.
Type of asset:
Mortage loans
Quality of Asset:
Unlikely to Pay
Closing date:
24.05.2024
Nominal Value of reference portfolio (million):
61
Net amount of preexisting write-down/write-backs (€ million):
44
Disposal Profit & Loss realised (€ million):
(7)
Portfolio disposal price (million):
37
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
The assets sold have been derecognised from the balance sheet.
Units of Investment Fund underwritten
. Units subscriber
UniCredit S.p.A.
. ISIN
IT0005625204
. No. of units at the subscription
86
. Book Value at the subscription (million)
37
. No. of units at the end of accounting period
86
. Book value at the end of accounting period (million)
37
Distribution of financial assets sold by area (€ million):
Italy - Northwest
18
Italy - Northeast
9
Italy - Central
11
Italy - South and Islands
23
Other European Countries - E.U. countries
-
Other European Countries - non-E.U. countries
-
America
-
Rest of the World
-
Total
61
Distribution of financial assets sold by business sector of the borrower (€ million):
Governments
-
Other public-sector entities
-
Banks
-
Financial Companies
-
Insurance Companies
-
Non-financial Companies
-
Other entities
61
Total
61
797
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
NAME OF THE TRANSACTION
PERSEFONE
Type of transaction:
Sale of financial assets to Investment Fund with underwriting of units issued by the same Fund
Originator:
UniCredit S.p.A.
Investment Fund underwritten:
Persefone
Target transaction:
The objective of the transaction is to optimize access to the capital market for borrowers (private individuals in
financial difficulties) sold from UniCredit to the fund, leveraging on an industrial and strategic partner as Prelios.
Type of asset:
Mortage loans
Quality of Asset:
Unlikely to Pay
Closing date:
18.03.2024
Nominal Value of reference portfolio (million):
83
Net amount of preexisting write-down/write-backs (€ million):
64
Disposal Profit & Loss realised (€ million):
(3)
Portfolio disposal price (million):
61
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
The assets sold have been derecognised from the balance sheet.
Units of Investment Fund underwritten
. Units subscriber
UniCredit S.p.A.
. ISIN
IT0005561862
. No. of units at the subscription
61,105,138
. Book Value at the subscription (million)
61
. No. of units at the end of accounting period
61,105,138
. Book value at the end of accounting period (million)
61
Distribution of financial assets sold by area (€ million):
Italy - Northwest
23
Italy - Northeast
10
Italy - Central
20
Italy - South and Islands
30
Other European Countries - E.U. countries
-
Other European Countries - non-E.U. countries
-
America
-
Rest of the World
-
Total
83
Distribution of financial assets sold by business sector of the borrower (€ million):
Governments
-
Other public-sector entities
-
Banks
-
Financial Companies
-
Insurance Companies
-
Non-financial Companies
-
Other entities
83
Total
83
798
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
GOALS - STRATEGIES - PROCESSES:
UniCredit S.p.A., thanks to the contribution to the Backtobonis Fund managed by Prelios
SGR of the loans, contracts and units held in a Real Estate Fund has achieved the
following goals: (i) being quota-holder of a larger and more granular platform, reducing the
idiosyncratic risk; (ii) derecognize the credit exposures sold; (iii) reduce operational and
managerial complexity.
ROLE:
Once the loans have been sold to the fund and UniCredit S.p.A. become a holder of Fund's
units, the bank no longer has a role in managing the debtor, remaining a financial investor
with no possibility of governance and management interference.
RISKS RELATED TO THE TRANSACTION:
UniCredit S.p.A. has all the risks arising from the performance of the fund's units and
therefore from the management of the assets performed by Prelios.
MONITORING SYSTEMS:
UniCredit S.p.A. monitors the manager's performance through quarterly management
reports and participation in supervisory committees (Advisory Board) without voting
mechanisms and therefore without the possibility of management or administrative
interference in the fund.
799
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
NAME OF THE TRANSACTION
RENAISSANCE
Type of transaction:
Disposal of receivables, contracts and units held in a Real Estate Fund to another Investment Fund with
underwriting of units issued by the same Fund
Originator:
UniCredit S.p.A.
Investment Fund underwritten:
BACK2BONIS
Target transaction:
The objective of the transaction is to optimize the access to the capital market for the UniCredit’s borrower (a Real
Estate Fund), leveraging on an industrial and strategic partner as Prelios.
Type of asset:
Loans, contracts, and Fund units towards a single name represented by a Real Estate Fund.
Quality of Asset:
Unlikely to pay
Closing date:
04.09.2024
Nominal Value of reference portfolio (million):
23
Net amount of preexisting write-down/write-backs (€ million):
4
Disposal Profit & Loss realised (€ million):
4
Portfolio disposal price (million):
9
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
The assets sold have been derecognised from the balance sheet.
Units of Investment Fund underwritten
. Units subscriber
UniCredit S.p.A.
. ISIN
IT0005396327
. No. of units at the subscription
21
. Book Value at the subscription (million)
9
. No. of units at the end of accounting period
21
. Book value at the end of accounting period (million)
9
Distribution of financial assets sold by area (€ million):
Italy - Northwest
-
Italy - Northeast
-
Italy - Central
-
Italy - South and Islands
23
Other European Countries - E.U. countries
-
Other European Countries - non-E.U. countries
-
America
-
Rest of the World
-
Total
23
Distribution of financial assets sold by business sector of the borrower (€ million):
Governments
-
Other public-sector entities
-
Banks
-
Financial Companies
23
Insurance Companies
-
Non-financial Companies
-
Other entities
-
Total
23
800
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
GOALS - STRATEGIES - PROCESSES:
UniCredit S.p.A., thanks to the contribution to the CCR II Fund managed by Dea Capital SGR
of the loans and contracts held in a corporate single name has achieved the following goals:
(i) being quota-holder of a larger and more granular platform, reducing the idiosyncratic risk;
(ii) derecognize the credit exposures sold; (iii) reduce operational and managerial complexity.
ROLE:
Once the loans have been sold to the fund and UniCredit S.p.A. become a holder of Fund's
units, the bank no longer has a role in managing the debtor, remaining a financial investor
with no possibility of governance and management interference.
RISKS RELATED TO THE TRANSACTION:
UniCredit S.p.A. has all the risks arising from the performance of the fund's units and
therefore from the management of the assets performed by Dea Capital.
MONITORING SYSTEMS:
UniCredit S.p.A. monitors the manager's performance through quarterly management reports
and participation in supervisory committees (Advisory Board) without voting mechanisms and
therefore without the possibility of management or administrative interference in the fund.
NAME OF THE TRANSACTION
TABASCO
Type of transaction:
Sale of financial assets to Investment Fund with underwriting of units issued by the same Fund
Originator:
UniCredit S.p.A.
Investment Fund underwritten:
iDEA CCR II
Target transaction:
The objective of the transaction is to optimize the access to the capital market for the UniCredit’s borrower (a
Corporate single name), leveraging on an industrial and strategic partner as Dea Capital.
Type of asset:
Loans and legal relationships towards a corporate single name
Quality of Asset:
Unlikely to pay
Closing date:
20.12.2024
Nominal Value of reference portfolio (million):
73
Net amount of preexisting write-down/write-backs (€ million):
36
Disposal Profit & Loss realised (€ million):
31
Portfolio disposal price (million):
68
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
The assets sold have been derecognised from the balance sheet.
Units of Investment Fund underwritten
. Units subscriber
UniCredit S.p.A.
. ISIN
IT0005276065
. No. of units at the subscription
3,745
. Book Value at the subscription (million)
68
. No. of units at the end of accounting period
3,745
. Book value at the end of accounting period (million)
68
Distribution of financial assets sold by area (€ million):
Italy - Northwest
73
Italy - Northeast
-
Italy - Central
-
Italy - South and Islands
-
Other European Countries - E.U. countries
-
Other European Countries - non-E.U. countries
-
America
-
Rest of the World
-
Total
73
Distribution of financial assets sold by business sector of the borrower (€ million):
Governments
-
Other public-sector entities
-
Banks
-
Financial Companies
-
Insurance Companies
-
Non-financial Companies
73
Other entities
-
Total
73
801
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
Transactions from previous years
GOALS - STRATEGIES - PROCESSES:
UniCredit S.p.A., thanks to the contribution to the Olympus funds of the Yanez SPV notes
held in the context of the Sandokan 1 and Sandokan 2 projects (with no accounting
derecognition and therefore maintening of the assets sold to the SPV in the bank's
balance-sheet), has achieved the following goals: (i) being quota-holder of a larger and
more granular platform, reducing the idiosyncratic risk; (ii) derecognize the credit
exposures sold and avoid impacts on the NPE ratio due to the BPs review by the Servicer
(with no control by UniCredit); (iii) reduce operational complexity.
ROLE:
UniCredit S.p.A., as fund quota-holder, has no role in managing the debtor, remaining a
financial investor with no possibility of governance and management interference.
RISKS RELATED TO THE TRANSACTION:
UniCredit S.p.A. has all the risks arising from the performance of the fund's units and
therefore from the management of the assets performed by the asset manager FININT and
by the servicer Arec Neprix.
MONITORING SYSTEMS:
UniCredit S.p.A. monitors the manager's performance through quarterly management
reports and participation in supervisory committees (Advisory Board) without voting
mechanisms and therefore without the possibility of management or administrative
interference in the fund.
NAME OF THE TRANSACTION
OLYMPUS FUND 1
Type of transaction:
Sale of financial assets to Investment Fund with underwriting of units issued by the same Fund
Originator:
UniCredit S.p.A.
Investment Fund underwritten:
Olympus 1
Target transaction:
The transaction goals are: (i) being quota-holder of a larger and more granular platform, reducing the idiosyncratic
risk; (ii) derecognize the credit exposures sold and avoid impacts on the NPE ratio due to the BPs review by the
Servicer (with no control by UniCredit); (iii) reduce operational complexity.
Type of asset:
SPV notes
Quality of Asset:
Mainly unlikely to pay. Also some performing and bad loans are included
Closing date:
10.10.2023
Nominal Value of reference portfolio (million):
297
Net amount of preexisting write-down/write-backs (€ million):
157
Disposal Profit & Loss realised (€ million):
12
Portfolio disposal price (million):
210
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
The assets sold have been derecognised from the balance sheet.
Units of Investment Fund underwritten
. Units subscriber
UniCredit S.p.A.
. ISIN
IT0005567034
. No. of units at the subscription
210,072,216
. Book Value at the subscription (million)
210
. No. of units at the end of accounting period
210,072,216
. Book value at the end of accounting period (million)
172
802
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
NAME OF THE TRANSACTION
OLYMPUS FUND 2
Type of transaction:
Sale of financial assets to Investment Fund with underwriting of units issued by the same Fund
Originator:
UniCredit S.p.A.
Investment Fund underwritten:
Olympus 2
Target transaction:
The transaction goals are: (i) being quota-holder of a larger and more granular platform, reducing the idiosyncratic risk;
(ii) derecognize the credit exposures sold and avoid impacts on the NPE ratio due to the BPs review by the Servicer
(with no control by UniCredit); (iii) reduce operational complexity.
Type of asset:
SPV notes
Quality of Asset:
Mainly unlikely to pay. Also some performing and bad loans are included
Closing date:
10.10.2023
Nominal Value of reference portfolio (million):
440
Net amount of preexisting write-down/write-backs (€ million):
170
Disposal Profit & Loss realised (€ million):
(56)
Portfolio disposal price (million):
193
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
The assets sold have been derecognised from the balance sheet.
Units of Investment Fund underwritten
. Units subscriber
UniCredit S.p.A.
. ISIN
IT0005566952
. No. of units at the subscription
192,834,193
. Book Value at the subscription (million)
193
. No. of units at the end of accounting period
192,834,193
. Book value at the end of accounting period (million)
190
803
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
GOALS - STRATEGIES - PROCESSES:
UniCredit S.p.A., by selling its loans to the fund, aims to facilitate companies classified as
"unlikely to pay" to improve their strategic positioning in their relevant industrial sector.
ROLE:
Once the loans have been sold to the fund and UniCredit S.p.A. become a holder of Fund's
units, the bank no longer has a role in managing the debtor, remaining a financial investor
with no possibility of governance and management interference.
RISKS RELATED TO THE TRANSACTION:
UniCredit S.p.A. has all the risks arising from the performance of the fund's units and
therefore from the management of the assets performed by Prelios.
MONITORING SYSTEMS:
UniCredit S.p.A. monitors the manager's performance through quarterly management reports
and participation in supervisory committees (Advisory Board) without voting mechanisms and
therefore without the possibility of management or administrative interference in the fund.
NAME OF THE TRANSACTION
BACK2BONIS
Type of transaction:
Sale of financial assets to an Investment Fund with underwriting of units issued by the same Fund + purchase of units
held by UCL
Originator:
UniCredit S.p.A.+ UniCredit Leasing
Investment Fund underwritten:
BACK2BONIS
Target transaction:
The objective of the transaction is to optimize access to the capital market for borrowers (medium-sised companies, in
financial difficulties, but with solid industrial fundamentals) sold from UniCredit group to the Fund, leveraging on an
industrial and strategic partner as Prelios and improving their strategic positioning in their respective industrial sectors.
Type of asset:
Corporate loans
Corporate loans
Quality of Asset:
Unlikely to pay
Unlikely to pay
Closing date:
17.03.2023
24.07.2023
Nominal Value of reference portfolio (million):
74
263
Net amount of preexisting writedown/writebacks (€ million):
17
142
Disposal Profit & Loss realised (€ million):
0
-2
Portfolio disposal price (million):
17
144
Issued guarantees by the Bank:
-
-
Issued guarantees by third parties:
-
-
Bank Lines of Credit:
-
-
Third Parties Lines of Credit:
-
-
Other Credit Enhancements:
-
-
Other relevant information:
The assets sold have been derecognised from the balance
sheet.
The assets sold have been derecognised from the balance
sheet.
Units of Investment Fund underwritten
. Units subscriber
UniCredit S.p.A.
UniCredit S.p.A. (initially UniCredit Leasing S.p.A.)
. ISIN
IT0005396327
IT0005396327
. N°. of units at the subscription
39
347
. Book Value at the subscription (million)
17
144
. N°. of units at the end of accounting period
39
347
. Book value at the end of accounting period (million)
17
148
804
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
GOALS - STRATEGIES - PROCESSES:
UniCredit S.p.A., through the sale of its receivables from Private Individuals to the fund,
aims to diversify and therefore reduce the risk of its assets.
ROLE:
Once the loans have been sold to the fund and UniCredit S.p.A. become a holder of Fund's
units, the bank no longer has a role in managing the debtor, remaining a financial investor
with no possibility of governance and management interference.
RISKS RELATED TO THE TRANSACTION:
UniCredit S.p.A. has all the risks arising from the performance of the fund's units and
therefore from the management of the assets performed by the asset manager Sagitta and
by the Advisor Intrum.
MONITORING SYSTEMS:
UniCredit S.p.A. monitors the manager's performance through quarterly management
reports and participation in supervisory committees (Advisory Board) without voting
mechanisms and therefore without the possibility of management or administrative
interference in the fund.
NAME OF THE TRANSACTION
UTP ITALIA
Type of transaction:
Sale of financial assets to Investment Fund with underwriting of units issued by the same Fund
Originator:
UniCredit S.p.A.
Investment Fund underwritten:
UTP ITALIA
Target transaction:
The objective of the transaction is to diversify and therefore reduce the risk of the assets, improving their returns.
Type of asset:
Loans to Private Individuals
Quality of Asset:
Unlikely to pay and Bad loans
Closing date:
19.06.2023
Nominal Value of reference portfolio (million):
74
Net amount of preexisting write-down/write-backs (€ million):
49
Disposal Profit & Loss realised (€ million):
(1)
Portfolio disposal price (million):
47
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
-
Units of Investment Fund underwritten
. Units subscriber
UniCredit S.p.A.
. ISIN
IT0005480519
. No. of units at the subscription
47,733,199
. Book Value at the subscription (million)
47
. No. of units at the end of accounting period
47,733,199
. Book value at the end of accounting period (million)
40
805
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
GOALS - STRATEGIES - PROCESSES:
UniCredit S.p.A., by selling its loans to the fund, aims to facilitate companies classified as
"unlikely to pay" to improve their strategic positioning in their relevant industrial sector.
ROLE:
Once the loans have been sold to the fund and UniCredit S.p.A. become a holder of Fund's
units, the bank no longer has a role in managing the debtor, remaining a financial investor
with no possibility of governance and management interference.
RISKS RELATED TO THE TRANSACTION:
UniCredit S.p.A. has all the risks arising from the performance of the fund's units and
therefore from the management of the assets performed by the asset manager.
MONITORING SYSTEMS:
UniCredit S.p.A. monitors the manager's performance through quarterly management reports
and participation in supervisory committees (Advisory Board) without voting mechanisms and
therefore without the possibility of management or administrative interference in the fund.
806
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
NAME OF THE TRANSACTION
EFESTO
Type of transaction:
Sale of financial assets to Investment Fund with underwriting of units issued by the same Fund
Originator:
UniCredit S.p.A.
Investment Fund underwritten:
EFESTO
Target transaction:
The objective of the transaction is to optimize access to the capital market for borrowers (medium-sised companies, in financial difficulties,
but with solid industrial fundamentals) sold from UniCredit to the fund, leveraging on an industrial and strategic partner as Italfondiario
(now DoNext).
Type of asset:
Corporate loans
Corporate loans
Corporate loans
Corporate loans
Corporate loans
Corporate and private
individual loans
Quality of Asset:
Unlikely to pay
Unlikely to pay
Unlikely to pay
Revoked unlikely to
pay and bad loans
Revoked unlikely to
pay and bad loans
Revoked unlikely to
pay and bad loans
Closing date:
27.10.2020
27.03.2021
09.12.2021
14.03.2023
24.07.2023
22.10.2024
Nominal Value of reference portfolio (million):
188
25
6
138
212
173
Net amount of preexisting write-down/write-backs (€ million):
92
6
4
48
85
86
Disposal Profit & Loss realised (€ million):
(1)
3
-
-
-0.5
2
Portfolio disposal price (million):
91
9
4
48
87
88
Issued guarantees by the Bank:
-
-
-
-
-
-
Issued guarantees by third parties:
-
-
-
-
-
-
Bank Lines of Credit:
-
-
-
-
-
-
Third Parties Lines of Credit:
-
-
-
-
-
-
Other Credit Enhancements:
-
-
-
-
-
-
Other relevant information:
The assets sold have
been derecognised
from the balance
sheet.
The assets sold have
been derecognised
from the balance
sheet.
The assets sold have
been derecognised
from the balance
sheet.
The assets sold have
been derecognised
from the balance
sheet.
The assets sold have
been derecognised
from the balance
sheet.
The assets sold have
been derecognised
from the balance
sheet.
Units of Investment Fund underwritten
. Units subscriber
UniCredit S.p.A.
UniCredit S.p.A.
UniCredit S.p.A.
UniCredit S.p.A.
UniCredit S.p.A.
(formerly UniCredit
Leasing S.p.A.)
UniCredit S.p.A.
. ISIN
IT0005419509
IT0005419509
IT0005419509
IT0005419509
IT0005419509
IT0005419509
. No. of units at the subscription
90,561,794
9,305,715
4,962,649
58,095,964
108,635,928
149,132,507
. Book Value at the subscription (million)
91
9
4
48
87
88
. No. of units at the end of accounting period
90,561,794
9,305,715
4,962,649
58,095,964
108,635,928
149,132,507
. Book value at the end of accounting period (million)
52
5
3
33
62
86
Distribution of financial assets sold by area (€ million):
Italy - Northwest
38
Italy - Northeast
37
Italy - Central
44
Italy - South and Islands
54
Other European Countries - E.U. countries
-
Other European Countries - non-E.U. countries
-
America
-
Rest of the World
-
Total
173
Distribution of financial assets sold by business sector of the borrower (€
million):
Governments
-
Other public-sector entities
-
Banks
-
Financial Companies
-
Insurance Companies
-
Non-financial Companies
173
Other entities
-
Total
173
807
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
NAME OF THE TRANSACTION
RSCT
Type of transaction:
Sale of financial assets to Investment Fund with underwriting of units issued by the same Fund
Originator:
UniCredit S.p.A.
Investment Fund underwritten:
RSCT
Target transaction:
The objective of the transaction is to optimize access to the capital market for borrowers (medium-sised companies, in
financial difficulties, but with solid industrial fundamentals) sold from UniCredit to the fund, leveraging on an industrial and
strategic partner as Pillarstone.
Type of asset:
Corporate loans
Corporate loans
Corporate loans
Corporate loans
Quality of Asset:
Unlikely to pay
Unlikely to pay
Unlikely to pay
Unlikely to pay
Closing date:
13.05.2020
09.06.2020
21.01.2021
29.06.2021
Nominal Value of reference portfolio (million):
110
105
12
1
Net amount of preexisting write-down/write-backs (€ million):
49
2
5
-
Disposal Profit & Loss realised (€ million):
(3)
13
-
-
Portfolio disposal price (million):
47
15
5
0
Issued guarantees by the Bank:
-
-
-
-
Issued guarantees by third parties:
-
-
-
-
Bank Lines of Credit:
-
-
-
-
Third Parties Lines of Credit:
-
-
-
-
Other Credit Enhancements:
-
-
-
-
Other relevant information:
The assets sold have been
derecognised from the
balance sheet.
The assets sold have been
derecognised from the
balance sheet.
The assets sold have been
derecognised from the
balance sheet.
The assets sold have been
derecognised from the
balance sheet.
Units of Investment Fund underwritten
. Units subscriber
UniCredit S.p.A.
UniCredit S.p.A.
UniCredit S.p.A.
UniCredit S.p.A.
. ISIN
IT0005407975
IT0005407975
IT0005407975
IT0005407975
. No. of units at the subscription
46,870,925
14,500,000
4,992,704
181,268
. Book Value at the subscription (million)
47
15
5
0
. No. of units at the end of accounting period
46,870,925
14,500,000
4,992,704
181,268
. Book value at the end of accounting period (million)
45
14
5
0.2
808
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
NAME OF THE TRANSACTION
DEA CAPITAL CORPORATE CREDIT RECOVERY II
Type of transaction:
Sale of financial assets to Investment Fund with underwriting of units issued by the same Fund
Originator:
UniCredit S.p.A.
Investment Fund underwritten:
Dea Capital Corporate Credit Recovery II
Target transaction:
The objective of the transaction is to optimize access to the capital market for borrowers (medium-sized companies, in financial difficulties,
but with solid industrial fundamentals) sold from UniCredit to the fund, leveraging on an industrial and strategic partner as Dea Capital.
Type of asset:
Corporate loans
Corporate loans
Corporate loans
Corporate loans
Corporate loans
Corporate loans
Quality of Asset:
Unlikely to pay
Unlikely to pay
Unlikely to pay
Unlikely to pay
Unlikely to pay
Unlikely to pay
Closing date:
31.01.2018
19.12.2019
07.08.2020
23.03.2021
12.04.2021
22.12.2023
Nominal Value of reference portfolio (€ million):
88
66
66
30
7
61
Net amount of preexisting writedown/writebacks (€ million):
49
22
22
20
2
53
Disposal Profit & Loss realised (€ million):
6
11
11
-
3
1
Portfolio disposal price (€ million):
55
33
27
20
5
54
Issued guarantees by the Bank:
-
-
-
-
-
-
Issued guarantees by third parties:
-
-
-
-
-
-
Bank Lines of Credit:
-
-
-
-
-
-
Third Parties Lines of Credit:
-
-
-
-
-
-
Other Credit Enhancements:
-
-
-
-
-
-
Other relevant information:
The assets sold have
been derecognised
from the balance
sheet.
The assets sold have
been derecognised
from the balance
sheet.
The assets sold have
been derecognised
from the balance
sheet.
The assets sold have
been derecognised
from the balance
sheet.
The assets sold have
been derecognised
from the balance
sheet.
The assets sold have
been derecognised
from the balance
sheet.
Units of Investment Fund underwritten
. Units subscriber
UniCredit S.p.A.
UniCredit S.p.A.
UniCredit S.p.A.
UniCredit S.p.A.
UniCredit S.p.A.
UniCredit S.p.A.
. ISIN
IT0005276065
IT0005276065
IT0005276065
IT0005276065
IT0005276065
IT0005276065
. N°. of units at the subscription
1,122
816
816
575
155
2,687
. Book Value at the subscription (€ million)
55
33
27
20
5
54
. N°. of units at the end of accounting period
1,122
816
699
575
155
2,687
. Book value at the end of accounting period (€ million)
20
15
13
10
3
49
809
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
NAME OF THE TRANSACTION
DEA CAPITAL CORPORATE CREDIT RECOVERY I
Type of transaction:
Sale of financial assets to Investment Fund with underwriting of units issued by the same Fund
Originator:
UniCredit S.p.A.
Investment Fund underwritten:
Dea Capital Corporate Credit Recovery I
Target transaction:
The objective of the transaction is to optimize access to the capital market for borrowers (medium-sized companies, in
financial difficulties, but with solid industrial fundamentals) sold from UniCredit to the fund, leveraging on an industrial
and strategic partner as Dea Capital.
Type of asset:
Corporate loans
Corporate loans
Quality of Asset:
Unlikely to pay
Unlikely to pay
Closing date:
31.05.2016
04.07.2019
Nominal Value of reference portfolio (€ million):
90
4
Net amount of preexisting writedown/writebacks (€ million):
52
2
Disposal Profit & Loss realised (€ million):
23
2
Portfolio disposal price (€ million):
76
4
Issued guarantees by the Bank:
-
-
Issued guarantees by third parties:
-
-
Bank Lines of Credit:
-
-
Third Parties Lines of Credit:
-
-
Other Credit Enhancements:
-
-
Other relevant information:
The assets sold have been derecognised from the balance
sheet.
The disposal price also includes the portion of equity
instruments transferred (18%).
The assets sold have been derecognised from the balance
sheet.
Units of Investment Fund underwritten
. Units subscriber
UniCredit S.p.A.
UniCredit S.p.A.
. ISIN
IT0005126062
IT0005126062
. N°. of units at the subscription
1,593.698
144.672
. Book Value at the subscription (€ million)
76
4
. N°. of units at the end of accounting period
1,593.698
144.672
. Book value at the end of accounting period (€ million)
17
2
810
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
NAME OF THE TRANSACTION
F.I.NAV
Type of transaction:
Sale of financial assets to Investment Fund with underwriting of units issued by the same Fund
Originator:
UniCredit S.p.A.
Investment Fund underwritten:
F.I.NAV
Target transaction:
The objective of the transaction is to optimize access to the capital market for debtors sold by UniCredit to the fund,
leveraging on an industrial and strategic partner such as FINAV and on the sector expertise of Pillarstone and the Private
Equity Fund KKR.
Type of asset:
Shipping loans
Shipping loans
Shipping loans
Shipping loans
Quality of Asset:
Unlikely to pay
Unlikely to pay
Unlikely to pay
Unlikely to pay
Closing date:
19.02.2019
11.07.2019
02.08.2019
18.02.2020
Nominal Value of reference portfolio (million):
183$; 3€
15$; 6€
36€
42$
Net amount of preexisting writedown/writebacks (€ million):
114
8
12
31
Disposal Profit & Loss realised (€ million):
(1)
7
1
3
Portfolio disposal price (million):
131$
17$
14$
38$
Issued guarantees by the Bank:
-
-
-
-
Issued guarantees by third parties:
-
-
-
-
Bank Lines of Credit:
-
-
-
-
Third Parties Lines of Credit:
-
-
-
-
Other Credit Enhancements:
-
-
-
-
Other relevant information:
The assets sold have been
derecognised from the
balance sheet.
The assets sold have been
derecognised from the
balance sheet.
The assets sold have been
derecognised from the
balance sheet.
The assets sold have been
derecognised from the
balance sheet.
Units of Investment Fund underwritten
. Units subscriber
UniCredit S.p.A.
UniCredit S.p.A.
UniCredit S.p.A.
UniCredit S.p.A.
. ISIN
IT0005359754
IT0005359754
IT0005359754
IT0005359754
. N°. of units at the subscription
130,932,648
17,367,908
14,150,677
38,277,000
. Book Value at the subscription (million)
131$
17$
14$
38$
. N°. of units at the end of accounting period
130,932,648
17,367,908
14,150,677
38,277,623
. Book value at the end of accounting period (million)
27
4
3
8
811
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
ORIGINATOR: UniCredit Leasing S.p.A.
GOALS - STRATEGIES - PROCESSES:
UniCredit Leasing S.p.A., through the sale of debtors to the fund, aims to reduce the
stock of non-performing exposures of the Non Core perimeter, consistently with the
Group's strategy of full rundown of this perimeter.
ROLE:
UniCredit Leasing S.p.A., once the loans have been sold to the fund and UniCredit
Leasing S.p.A. become a holder of Fund's units, has no longer a role in managing the
debtor, remaining a financial investor with no possibility of governance and management
interference.
RISKS RELATED TO THE TRANSACTION:
UniCredit Leasing S.p.A. has all the risks arising from the units of the fund and therefore
from the performances of the Asset Manager.
MONITORING SYSTEMS:
UniCredit Leasing S.p.A. monitors the manager's performance through quarterly
management reports and participation in supervisory committees (Advisory Board)
without voting mechanisms and therefore without the possibility of management or
administrative interference in the fund.
812
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
Transactions from previous years
NAME OF THE TRANSACTION
RSCT FUND COMPARTO CREDITI - IQ EQ FUND MANAGEMENT
Type of transaction:
Sale of financial assets to Investment Fund with underwriting of units issued by the same Fund
Originator:
UniCredit Leasing S.p.A.
Investment Fund underwritten:
RSCT FUND COMPARTO CREDITI - IQ EQ FUND MANAGEMENT
Target transaction:
NPL Reduction
Type of asset:
Nr. 1 leasing transaction
Quality of Asset:
Unlikely to pay
Closing date:
13.07.2022
Nominal Value of reference portfolio (million):
25
Net amount of preexisting writedown/writebacks (€ million):
4
Disposal Profit & Loss realised (€ million):
-
Portfolio disposal price (million):
4
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
-
Units of Investment Fund underwritten
. Units subscriber
UniCredit Leasing S.p.A.
. ISIN
IT0005407975
. N°. of units at the subscription
4,106,776
. Book Value at the subscription (million)
4
. N°. of units at the end of accounting period
4,106,776
. Book value at the end of accounting period (million)
4
813
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 4 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds – qualitative tables
NAME OF THE TRANSACTION
BACK2BONIS - PRELIOS
Type of transaction:
Sale of financial assets to Investment Fund with underwriting of units issued by the same Fund
Originator:
UniCredit Leasing S.p.A.
Investment Fund underwritten:
BACK2BONIS - PRELIOS SGR S.p.A.
Target transaction:
NPL Reduction
Type of asset:
No. 1 real estate leasing contract
Quality of Asset:
Unlikely to pay
Closing date:
04.12.2020
Nominal Value of reference portfolio (million):
20
Net amount of preexisting write-down/write-backs (€ million):
5
Disposal Profit & Loss realised (€ million):
-
Portfolio disposal price (million):
8
Issued guarantees by the Bank:
-
Issued guarantees by third parties:
-
Bank Lines of Credit:
-
Third Parties Lines of Credit:
-
Other Credit Enhancements:
-
Other relevant information:
-
Units of Investment Fund underwritten
. Units subscriber
UniCredit Leasing S.p.A.
. ISIN
IT0005396327
. No. of units at the subscription
16.764
. Book Value at the subscription (million)
5
. No. of units at the end of accounting period
16.764
. Book value at the end of accounting period (million)
4
814
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 5 - Country by Country
Annex 5 - Country by Country
UniCredit Group
Financial Institutions, Insurance Institutions, Banks, Other Non Financial Institutions
(€ million)
b
c
d
e
f
INFORMATION/COUNTRY
TURNOVER
NUMBER OF
EMPLOYEES ON A
FULL TIME
EQUIVALENT BASIS
(UNIT)
PROFIT OR LOSS
BEFORE TAX(*)
TAX ON
PROFIT OR LOSS(**)
PUBLIC
SUBSIDIES
RECEIVED(***)
ITALY
11,991
34,086
5,948
(1,563)
-
GERMANY
3,593
8,740
2,007
(648)
-
AUSTRIA
2,633
4,478
1,490
(293)
-
CZECH REPUBLIC
952
2,971
525
(111)
-
RUSSIA
1,187
2,607
687
(126)
-
CROATIA
765
3,143
553
(100)
-
ROMANIA
807
5,169
356
(65)
-
BULGARIA
735
3,691
503
(75)
-
HUNGARY
543
1,749
241
(37)
-
SERBIA
335
1,310
237
(30)
-
BOSNIA AND HERCEGOVINA
229
1,470
133
(12)
-
IRELAND
172
-
(1)
-
-
SLOVENIA
136
476
53
(11)
-
LUXEMBOURG
108
87
29
(7)
-
SLOVAKIA
41
127
16
(3)
-
U.S.A.
22
2
20
-
-
UNITED KINGDOM
24
-
64
(3)
-
JERSEY
-
-
-
-
-
BERMUDA
(3)
-
-
-
-
NETHERLANDS
-
-
-
-
-
LATVIA
-
-
-
-
-
TOTAL
24,271
70,106
12,861
(3,086)
-
Notes:
(*) Item d) includes the sum of P&L items 290 and 320;
(**) Item e) includes P&L item 300;
(***) With regard to item f), no new guarantees/contributions have been received or utilization of pre-existing guarantees in 2024. There is a pre-existing guarantee for a total value of 3,423,863 € thousand for 2024. It is a
guarantee by the City of Vienna in favor of UniCredit Bank Austria AG (UCBA AG) on certain exposures (the main ones relate to "pension funds" and "subordinated securities issued"). This guarantee can only be exercised
following insolvency proceedings concerning UCBA AG.
Data reported by individual country have the following criteria:
• they refer to UniCredit's Consolidated Financial Statements as of December 31, 2024; they have been audited by KPMG S.p.A., so no further
review has been expressly requested from the aforementioned auditing firm regarding this report;
• they are derived from the reporting package contributed by each company for the purpose of preparing UniCredit's Consolidated Financial
Statements as of December 31, 2024;
• due to the number of consolidated companies, the data have been aggregated by company typology;
• they are net of intercompany transactions and consolidation entries;
• they have been aggregated by registered office of the company's country;
• for some countries, the "Number of Employees" equal to zero results from the following circumstances: i) companies accounted according to the
equity method; ii) companies liquidated or sold during the period; iii) Foreign Branches, whose personnel are conventionally allocated to the parent
country of reference; iv) in some special purpose vehicles, the related activities are carried out by the personnel of other Group companies.
Please also note that the data stated in the Report have been presented using different criteria than other officially approved financial documents
published by UniCredit and do not reflect the managerial view for commercial purposes.
The notes above are valid for the same quantities as those given in the tables below.
815
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
Consolidated financial statements | Annexes
Annex 5 - Country by Country
Banks
(€ million)
b
c
d
e
f
INFORMATION/COUNTRY
TURNOVER
NUMBER OF
EMPLOYEES ON A
FULL TIME
EQUIVALENT BASIS
(UNIT)
PROFIT OR LOSS
BEFORE TAX
TAX ON
PROFIT OR LOSS
PUBLIC
SUBSIDIES
RECEIVED
ITALY
10,937
33,472
5,530
(1,711)
-
GERMANY
3,573
8,333
2,041
(656)
-
AUSTRIA
2,348
4,015
1,314
(282)
-
RUSSIA
1,175
2,572
680
(125)
-
CZECH REPUBLIC
843
2,776
492
(101)
-
CROATIA
733
3,017
533
(97)
-
ROMANIA
633
4,855
307
(56)
-
BULGARIA
580
3,187
426
(65)
-
HUNGARY
524
1,670
245
(36)
-
SERBIA
326
1,277
229
(29)
-
BOSNIA AND HERCEGOVINA
229
1,470
133
(12)
-
SLOVENIA
136
476
53
(11)
-
LUXEMBOURG
32
72
1
-
-
UNITED KINGDOM
24
-
64
(3)
-
TOTAL
22,094
67,191
12,049
(3,186)
-
Financial Institutions
(€ million)
b
c
d
e
f
INFORMATION/COUNTRY
TURNOVER
NUMBER OF
EMPLOYEES ON A
FULL TIME
EQUIVALENT BASIS
(UNIT)
PROFIT OR LOSS
BEFORE TAX
TAX ON
PROFIT OR LOSS
PUBLIC
SUBSIDIES
RECEIVED
ITALY
1,054
529
340
133
-
AUSTRIA
288
447
157
(18)
-
IRELAND
172
-
(1)
-
-
ROMANIA
174
315
50
(9)
-
BULGARIA
155
497
76
(10)
-
CZECH REPUBLIC
109
195
31
(9)
-
GERMANY
32
215
(28)
4
-
LUXEMBOURG
76
15
28
(7)
-
SLOVAKIA
41
127
15
(3)
-
RUSSIA
12
34
6
(1)
-
U.S.A.
22
2
20
-
-
HUNGARY
20
80
(5)
(1)
-
CROATIA
33
126
19
(2)
-
SERBIA
9
33
5
(1)
-
UNITED KINGDOM
-
-
-
-
-
NETHERLANDS
(3)
-
-
-
-
BERMUDA
-
-
-
-
-
TOTAL
2,194
2,615
714
76
-
816
UniCredit 2024 Annual Reports and Accounts
Consolidated financial statements | Annexes
Annex 5 - Country by Country
Insurance Companies
(€ million)
b
c
d
e
f
INFORMATION/COUNTRY
TURNOVER
NUMBER OF
EMPLOYEES ON A
FULL TIME
EQUIVALENT BASIS
(UNIT)
PROFIT OR LOSS
BEFORE TAX(****)
TAX ON
PROFIT OR LOSS
PUBLIC
SUBSIDIES
RECEIVED
ITALY
-
-
137
-
-
TOTAL
-
-
137
-
-
Note:
(****) It refers to the contribution from Insurance Associated Companies accounted for equity method.
Non Financial Institutions
(€ million)
b
c
d
e
f
INFORMATION/COUNTRY
TURNOVER
NUMBER OF
EMPLOYEES ON A
FULL TIME
EQUIVALENT BASIS
(UNIT)
PROFIT OR LOSS
BEFORE TAX
TAX ON
PROFIT OR LOSS
PUBLIC
SUBSIDIES
RECEIVED
HUNGARY
(1)
-
1
-
-
CZECH REPUBLIC
-
-
1
(1)
-
SERBIA
-
-
3
-
-
RUSSIA
-
-
1
-
-
BULGARIA
-
7
1
-
-
CROATIA
-
-
1
(1)
-
SLOVAKIA
-
-
1
-
-
ITALY
-
85
(59)
15
-
ROMANIA
-
-
(1)
-
-
AUSTRIA
(3)
16
19
7
-
GERMANY
(12)
193
(6)
4
-
TOTAL
(16)
301
(38)
25
-
817
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Consolidated Report
818
UniCredit 2024 Annual Reports and Accounts
818
UniCredit 2024 Annual Reports and Accounts
UniCredit 2024 Annual Reports and Accounts
819
COPERTINA SPA
Setting
the benchmark
for excellence
Compan
y Report and Accounts 2024 of UniCredit S.p.A.
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
UniCredit 2024 Annual Reports and Accounts
819
Company Report
820
UniCredit 2024 Annual Reports and Accounts
820
UniCredit 2024 Annual Reports and Accounts
Company report and accounts 2024 of UniCredit S.p.A.
COMPANY REPORT AND ACCOUNTS 2024 OF UNICREDIT S.P.A.
Report on operations
827
Introduction and highlights
827
Introduction to Report on operations of UniCredit S.p.A.
827
Highlights, alternative performance indicators and other measures
828
Reclassified company account
831
Results of the year
836
Macroeconomic situation, banking and financial markets
836
Main results and performance for the period
836
The income statement
836
The balance sheet
840
Capital and Value Management
843
Principles of value creation and disciplined capital allocation
843
Capital ratios
843
Capital strengthening
843
Shareholders’ equity
844
Shareholders
845
Treasury shares
846
Company activities
847
Share information
850
Report on corporate governance and ownership structure
850
Report on remuneration
850
Research and development projects
850
Other information
850
Group activities development operations and other corporate transactions
851
Organisational model
851
Conversion of Deferred tax assets (DTAs) into tax credits
851
Certifications and other communications
851
Information on risks
851
Subsequent events and outlook
852
Subsequent events
852
Outlook
853
Proposals to the Shareholders’ Meeting
855
Company financial statements
857
Company accounts
857
Balance sheet
857
Income statement
859
Statement of comprehensive income
860
Statement of changes in shareholders’e equity
861
Cash flow statement
863
Notes to the accounts
867
Part A - Accounting policies
867
A.1 - General
867
Section 1 - Statement of compliance with IFRS
867
Section 2 - General Preparation Criteria
868
Section 3 - Subsequent events
873
Section 4 - Other matters
874
A.2 - Main items of the accounts
877
A.3 - Information on transfers between portfolios of financial assets
882
A.4 - Information on fair value
882
A.5 - Information on “day one profit/loss”
888
Part B - Balance sheet
889
Assets
889
Section 1 - Cash and cash balances - Item 10
889
821
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company report and Accounts 2024 of UniCredit S.p.A.
Section 2 - Financial assets at fair value through profit or loss - Item 20
889
Information about the units of Atlante Fund and Italian Recovery Fund (former
Atlante II)
892
Information about the investment in the Schema Volontario
892
Section 3 - Financial assets at fair value through other comprehensive income - Item
30
895
Information about the shareholding in Banca d'Italia
895
Section 4 - Financial assets at amortised cost - Item 40
897
Section 5 - Hedging derivatives - Item 50
900
Section 6 - Changes in fair value of portfolio hedged items - Item 60
901
Section 7 - Equity investments - Item 70
902
Section 8 - Property, plant and equipment - Item 80
907
Section 9 - Intangible assets - Item 90
910
Section 10 - Tax assets and tax liabilities - Item 100 (Assets) and Item 60 (Liabilities)
912
Section 11 - Non current assets and disposal groups classified as held for sale and
Liabilities associated with assets classified as held for sale - Item 110 (Assets) and
Item 70 (Liabilities)
919
Section 12 - Other assets - Item 120
920
Liabilities
922
Section 1 - Financial liabilities at amortised cost - Item 10
922
Section 2 - Financial liabilities held for trading - Item 20
925
Section 3 - Financial liabilities designated at fair value - Item 30
926
Section 4 - Hedging derivatives - Item 40
927
Section 5 - Value adjustment of hedged financial liabilities - Item 50
928
Section 6 - Tax liabilities - Item 60
928
Section 7 - Liabilities associated with assets classified as held for sale - Item 70
928
Section 8 - Other liabilities - Item 80
929
Section 9 - Provision for employee severance pay - Item 90
930
Section 10 - Provisions for risks and charges - Item 100
931
Section 11 - Redeemable shares - Item 120
934
Section 12 - Shareholders’ equity - Item 110, 130, 140, 150, 160, 170 and 180
935
Other information
940
Part C - Income statement
943
Section 1 - Interests - Items 10 and 20
943
Section 2 - Fees and commissions - Items 40 and 50
945
Section 3 - Dividend income and similar revenue - Item 70
947
Section 4 - Gains (Losses) on financial assets and liabilities held for trading - Item 80
948
Section 5 - Fair value adjustments in hedge accounting - Item 90
949
Section 6 - Gains (Losses) on disposals/repurchases - Item 100
950
Section 7 - Net gains (losses) on other financial assets/liabilities at fair value through
profit or loss - Item 110
951
Section 8 - Net losses/recoveries on credit impairment - Item 130
952
Section 9 - Gains/Losses from contractual changes with no cancellations - Item 140
953
Section 10 - Administrative expenses - Item 160
953
Contributions to Resolution and Guarantee funds
955
Guarantee fees for DTA conversion
955
Section 11 - Net provisions for risks and charges - Item 170
956
Section 12 - Net value adjustments/write-backs on property, plant and equipment -
Item 180
957
Section 13 - Net value adjustments/write-backs on intangible assets - Item 190
957
Section 14 - Other operating expenses/income - Item 200
958
Section 15 - Gains (Losses) of equity investments - Item 220
959
822
UniCredit 2024 Annual Reports and Accounts
Company report and accounts 2024 of UniCredit S.p.A.
Section 16 - Net gains (losses) on property, plant and equipment and intangible assets
measured at fair value - Item 230
960
Section 17 - Goodwill impairment - Item 240
960
Section 18 - Gains (Losses) on disposals on investments - Item 250
960
Section 19 - Tax expenses (income) for the period from continuing operations - Item
270
961
Section 20 - Profit (Loss) after tax from discontinued operations - Item 290
964
Section 21 - Other information
964
Section 22 - Earnings per share
965
Part D - Comprehensive income
966
Part E - Information on risks and related hedging policies
967
Introduction
967
Section 1 - Credit risk
967
Qualitative information
967
1. General aspects
967
2. Credit risk management policies
968
3. Non-performing credit exposures
971
4. Financial assets subject to commercial renegotiations and forborne exposures
973
Quantitative information
974
A. Credit quality
974
B. Distribution and concentration of credit exposures
988
C. Securitisation transactions
991
D. Information on structured entities not consolidated for accounting purposes
(other than vehicles for securitisation transactions)
994
E. Sales transaction
994
Information on Sovereign exposures
997
F. Credit risk measurement models
1001
Section 2 - Market risks
1001
2.1 Interest rate risk and price risk - Regulatory trading book
1002
Qualitative information
1002
Quantitative information
1002
2.2 Interest rate and price risk - Banking book
1003
Qualitative information
1003
Quantitative information
1004
2.3 Exchange rate risk
1007
Qualitative information
1007
Quantitative information
1008
Credit spread risk and Stress test
1008
Section 3 - Derivative instruments and hedging policies
1009
3.1 Trading financial derivatives
1009
A. Financial derivatives
1009
B. Credit derivatives
1012
3.2 Hedging policies
1012
Qualitative information
1012
Quantitative information
1014
3.3 Other information on derivatives instruments (trading and hedging)
1018
A. Financial and credit derivatives
1018
Section 4 - Liquidity risk
1019
Qualitative information
1019
Quantitative information
1019
Section 5 - Operational risk
1022
823
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company report and Accounts 2024 of UniCredit S.p.A.
Qualitative information
1022
A. General aspects, operational processes and methods for measuring
operational risk
1022
B. Risks arising from legal disputes
1022
C. Risks arising from employment law cases
1022
D. Risks arising from tax disputes
1022
E. Other claims by customers
1022
Quantitative information
1024
Section 6 - Other risks
1025
Other risks included in Economic capital
1025
Reputational risk
1025
Top and emerging risks
1025
The climate-related and environmental risks
1025
Part F - Shareholders’ equity
1026
Section 1 - Shareholders’ equity
1026
A. Qualitative information
1026
B. Quantitative information
1026
Section 2 - Own funds and regulatory ratios
1028
Part G - Business combinations
1029
Section 1 - Business combinations completed in the year
1029
Section 2 - Business Combinations completed after year-end
1029
Section 3 - Retrospective adjustments
1029
Part H - Related-party transactions
1030
Introduction
1030
1. Details of Key management personnels’ compensation
1030
2. Related-party transactions
1031
Part I - Share-based payments
1033
A. Qualitative information
1033
1. Description of payment agreements based on own equity instruments
1033
B. Quantitative information
1033
1. Annual changes
1033
2. Other information
1033
Part L - Segment reporting
1034
Part M - Information on leases
1035
Section 1 - Lessee
1035
Qualitative information
1035
Quantitative information
1035
Section 2 - Lessor
1036
Qualitative information
1036
Quantitative information
1036
Certification
1039
Report and resolutions
1041
Report of the Audit Committee
1041
Auditor’s Report on the Separate financial statements
1059
Ordinary Shareholders’ Meeting resolution
1069
Annexes
1073
Annex 1 - Reconciliation between reclassified balance sheet and income statement
accounts and mandatory reporting schedules
1073
Annex 2 - Audit fees and other non-audit services
1077
Annex 3 - Internal pension funds: statement of changes in the year and final accounts
1078
Annex 4 - Securitisations - qualitative tables
1079
Annex 5 - Sales of financial assets to investment funds, receiving as consideration units
issued by the same funds - qualitative tables
1080
824
UniCredit 2024 Annual Reports and Accounts
Company report and accounts 2024 of UniCredit S.p.A.
UniCredit 2024 Annual Reports and Accounts
825
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
UniCredit 2024 Annual Reports and Accounts
825
Company Report
Company report and Accounts 2024 of UniCredit S.p.A.
826
UniCredit 2024 Annual Reports and Accounts
Setting
the benchmark
for excellence
See our microsite for more
information on how we have
progressed against our
UniCredit Unlocked plan
across our key focus areas
826
UniCredit 2024 Annual Reports and Accounts
Report on operations
Introduction and highlights
Report on operations
Introduction and highlights
Introduction to Report on operations of UniCredit S.p.A.
This Report on operations illustrates the performance of UniCredit S.p.A. (“Company” or “Bank”) and the related amounts and results. It includes
financial information such as Highlights, Reclassified accounts and their quarterly figures as well as a comment on the Results of the year.
The information in this report is supported, in order to provide further information about the performance achieved by the Company, by some
Alternative Performance Indicators (API) such as: Cost/Income ratio, Net bad loans to customers/Loans to customers, Net Non-Performing loans to
customers/Loans to customers, Return On Assets (ROA), Cost of risk.
Although some of this information, including certain APIs, is neither extracted nor directly referred to with Company financial statements, the Report
on operations, the Annexes and the Glossary provide explanatory descriptions of the contents and, in case, the calculation methods used, in
accordance with European Securities and Markets Authority Guidelines (ESMA/2015/1415) of 5 October 2015.
In particular in Annex 1 is included the reconciliation between the reclassified accounts and the mandatory reporting schedule, as required by
Consob Notice No.6064293 of 28 July 2006.
The amounts related to year 2023 Reclassified income statement differ from the ones published at that time. For further details about the reasons of
these restatement, refer to following paragraphs relating to the reconciliation principles followed for the Reclassified income statement and Balance
sheet.
For information relating to related-party relations and transactions refer to the Notes to the accounts, Part H - Related party transactions.
For a complete description of risks and uncertainties that the Bank has to face in the current market situation refer the Notes to the accounts,
Part E - Information on risks and related hedging policies.
827
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Report on operations
Introduction and highlights
Highlights, alternative performance indicators and other measures
Income statement figures
(€ million)
YEAR
2024
2023
% CHANGE
Revenue
16,769
14,477
+ 15.8%
of which:
- Net interest
6,052
5,822
+ 4.0%
- Dividends
5,054
3,069
+ 64.7%
- Fees
4,371
4,045
+ 8.1%
Operating costs
(5,229)
(5,192)
+ 0.7%
Gross operating profit (loss)
11,539
9,285
+ 24.3%
Loan Loss Provisions (LLPs)
(486)
(181)
n.m.
Net operating profit (loss)
11,054
9,104
+ 21.4%
Profit (Loss) before tax
9,607
11,900
- 19.3%
Stated net profit (loss)
8,106
11,264
- 28.0%
The figures in this table refer to the Reclassified income statement. The amounts related to year 2023 differ from the ones published at that time.
For further details refer to “Reconciliation principles followed for the Reclassified income statement”. The Annex 1 includes the reconciliation
between the reclassified accounts and the mandatory reporting schedule.
Balance sheet figures
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
% CHANGE
Total assets
397,510
382,110
+ 4.0%
Financial assets held for trading
46,265
15,384
n.m.
Loans and receivables with customers
159,558
172,661
- 7.6%
Financial liabilities held for trading
38,052
14,311
n.m.
Deposits from customers and debt securities issued
248,068
253,217
- 2.0%
of which:
-
- deposits from customers
201,008
206,660
- 2.7%
- debt securities issued
47,061
46,557
+ 1.1%
Shareholders' equity
57,729
60,303
- 4.3%
Profitability ratios
YEAR
2024
2023
CHANGE
EPS (€)
4.847
6.067
-1.220
Cost/Income ratio
31.2%
35.9%
- 4.7%
ROA
2.0%
2.9%
- 0.9%
Notes:
Earnings per share. For further details refer to Part C - Section 22.
Ratio between operating expenses and operating income.
Return on assets calculated as the ratio between Net profit (loss) and Total assets pursuant to Art.90 of CRD IV.
828
UniCredit 2024 Annual Reports and Accounts
Report on operations
Introduction and highlights
Risk ratios
AS AT
31.12.2024
31.12.2023
% CHANGE
Net bad loans to customers/Loans to customers
0.23%
0.20%
0.04%
Net non-performing loans to customers/Loans to customers
1.40%
1.28%
0.12%
For further details refer to table “Loans to customers - Credit quality” reported in paragraph “Credit quality” in this Report on operations.
Staff and branches
AS AT
31.12.2024
31.12.2023
CHANGE
Number of employees
33,346
34,041
- 694
Number of branches
2,266
2,281
- 15
of which:
- Italy
2,256
2,270
- 14
- Abroad
10
11
- 1
Notes:
Number of employees counted for the rate of presence (FTEs - Full Time Equivalent).
Number of branches includes only Retail branches.
Transitional capital ratios
DESCRIPTION
AS AT
31.12.2024
31.12.2023
CHANGE
Total Own Funds (€ million)
52,356
55,330
- 2,974
Total RWEA (€ million)
166,114
164,162
1,952
Common Equity Tier 1 Capital ratio
24.66%
26.02%
-1.36%
Total Capital ratio
31.52%
33.70%
-2.19%
Notes:
• Transitional own funds and capital ratios including all transitional adjustments according to the yearly applicable percentages.
• It should be noted that UniCredit S.p.A. decided to not apply the IFRS9 transitional approach as reported in article 473a of the Regulation 575/2013/EU (CRR).
For more details refer to paragraph "Capital and value management - Capital ratios" of this Report on operations.
829
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Report on operations
Reclassified company accounts
Reconciliation principles followed for the reclassified balance sheet
The main reclassifications, whose amounts are provided analytically in the tables enclosed with this report, involve:
• the inclusion in “Loans to banks” of item “Financial assets at amortised cost: a) loans and advances to banks”, net of debt securities and lease
assets in accordance with IFRS16 accounting standard reclassified in “Other financial assets”, and of loans related to item “Financial assets at fair
value through profit or loss: c) other financial assets mandatorily at fair value”;
• the inclusion in “Loans to customers” of item “Financial assets at amortised cost: b) Loans and advances to customers”, net of debt securities and
of IFRS16 leasing assets reclassified in “Other financial assets”, and of loans related to item “Financial assets at fair value through profit or loss: c)
other financial assets mandatorily at fair value”;
• the aggregation as “Other financial assets” of items (i) “Financial assets at fair value through profit or loss: b) financial assets designated at fair
value and c) other financial assets mandatorily at fair value”, net of loans reclassified in “Loans to banks and to customers”, of (ii) “Financial assets
at fair value through other comprehensive income”, of (iii) “Equity investments”, besides reclassifications of (iv) debt securities from item “Financial
assets at amortised cost: a) loans and advances to banks and b) loans and advances to customers” and of (v) IFRS16 leasing assets from item
“Financial assets at amortised cost: a) loans and advances to banks and b) loans and advances to customers”;
• the inclusion in “Other financial liabilities” of leasing liabilities pursuant to accounting standard IFRS16 relating to item “Financial liabilities at
amortised cost: a) deposits from banks and b) deposits from customers”;
• grouping under “Hedging instruments”, both assets and liabilities, of items “Hedging derivatives” and “Changes in fair value of portfolio hedged
items” in the assets and “Value adjustment of hedged financial liabilities” in the liabilities;
• the inclusion of items “Provision for employee severance pay” and “Provisions for risks and charges” under “Other liabilities”.
830
UniCredit 2024 Annual Reports and Accounts
Report on operations
Reclassified company accounts
Reclassified company account
Reclassified balance sheet
(€ million)
AMOUNTS AS AT
CHANGE
ASSETS
31.12.2024
31.12.2023
AMOUNT
%
Cash and cash balances
13,223
12,301
+ 922
+ 7.5%
Financial assets held for trading
46,265
15,384
+ 30,881
n.m.
Loans to banks
19,843
17,908
+ 1,935
+ 10.8%
Loans to customers
159,558
172,661
- 13,103
- 7.6%
Other financial assets
137,322
131,294
+ 6,028
+ 4.6%
Hedging instruments
(351)
8,887
- 9,238
n.m.
Property, plant and equipment
3,632
3,730
- 98
- 2.6%
Goodwill
-
-
-
-
Other intangible assets
1,707
1,580
+ 127
+ 8.1%
Tax assets
8,502
9,714
- 1,212
- 12.5%
Non-current assets and disposal groups classified as held for
sale
39
299
- 260
- 87.0%
Other assets
7,771
8,352
- 581
- 7.0%
Total assets
397,510
382,110
+ 15,400
+ 4.0%
(€ million)
AMOUNTS AS AT
CHANGE
LIABILITIES AND SHAREHOLDERS' EQUITY
31.12.2024
31.12.2023
AMOUNT
%
Deposits from banks
36,909
32,584
+ 4,325
+ 13.3%
Deposits from customers
201,008
206,660
- 5,652
- 2.7%
Debt securities issued
47,061
46,557
+ 504
+ 1.1%
Financial liabilities held for trading
38,052
14,311
+ 23,741
n.m.
Other financial liabilities
11,034
8,182
+ 2,852
+ 34.9%
Hedging instruments
(4,341)
4,547
- 8,888
n.m.
Tax liabilities
9
2
+ 7
n.m.
Liabilities included in disposal groups classified as held for sale
-
-
-
-
Other liabilities
10,050
8,964
+ 1,086
+ 12.1%
Shareholders' equity
57,729
60,303
- 2,574
- 4.3%
of which:
- capital and reserves
49,622
49,039
+ 583
+ 1.2%
- stated net profit (loss)
8,106
11,264
- 3,158
- 28.0%
Total liabilities and shareholders' equity
397,510
382,110
+ 15,400
+ 4.0%
831
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Report on operations
Reclassified company accounts
Reclassified balance sheet - Quarterly figures
(€ million)
AMOUNTS AS AT
AMOUNTS AS AT
ASSETS
31.12.2024
30.09.2024
30.06.2024
31.03.2024
31.12.2023
30.09.2023
30.06.2023
31.03.2023
Cash and cash balances
13,223
10,305
8,814
14,307
12,301
21,439
23,643
62,435
Financial assets held for trading
46,265
50,442
10,077
11,616
15,384
16,703
20,523
19,328
Loans to banks
19,843
24,639
20,897
20,424
17,908
23,785
21,375
17,923
Loans to customers
159,558
171,189
175,305
176,422
172,661
176,134
189,655
189,328
Other financial assets
137,322
137,310
133,639
131,267
131,294
123,004
121,876
121,902
Hedging instruments
(351)
(760)
9,158
9,172
8,887
9,544
8,926
8,789
Property, plant and equipment
3,632
3,590
3,626
3,709
3,730
3,743
3,802
3,877
Goodwill
-
-
-
-
-
-
-
-
Other intangible assets
1,707
1,490
1,517
1,532
1,580
1,581
1,588
1,618
Tax assets
8,502
8,340
8,759
9,204
9,714
9,295
9,616
10,160
Non-current assets and disposal groups
classified as held for sale
39
256
327
202
299
460
443
174
Other assets
7,771
7,883
8,471
9,848
8,352
8,399
7,532
7,670
Total assets
397,510
414,686
380,591
387,703
382,110
394,087
408,979
443,204
(€ million)
AMOUNTS AS AT
AMOUNTS AS AT
LIABILITIES AND SHAREHOLDERS' EQUITY
31.12.2024
30.09.2024
30.06.2024
31.03.2024
31.12.2023
30.09.2023
30.06.2023
31.03.2023
Deposits from banks
36,909
43,624
29,618
34,913
32,584
37,885
37,219
72,602
Deposits from customers
201,008
206,802
209,865
207,567
206,660
213,559
219,134
222,834
Debt securities issued
47,061
45,933
48,694
48,475
46,557
49,893
48,684
46,128
Financial liabilities held for trading
38,052
40,290
10,347
11,673
14,311
16,696
20,813
21,065
Other financial liabilities
11,034
11,073
10,011
8,995
8,182
7,543
7,359
7,009
Hedging instruments
(4,341)
(4,610)
3,425
4,026
4,547
3,094
3,364
3,239
Tax liabilities
9
52
23
3
2
5
5
19
Liabilities included in disposal groups
classified as held for sale
-
-
-
-
-
-
-
-
Other liabilities
10,050
11,954
9,583
9,664
8,964
9,033
15,996
11,703
Shareholders' equity
57,729
59,567
59,026
62,386
60,303
56,379
56,405
58,605
of which:
- capital and reserves
49,622
52,399
52,933
59,197
49,039
50,548
51,706
55,498
- stated net profit (loss)
8,106
7,168
6,093
3,189
11,264
5,831
4,699
3,107
Total liabilities and shareholders' equity
397,510
414,686
380,591
387,703
382,110
394,087
408,979
443,204
832
UniCredit 2024 Annual Reports and Accounts
Report on operations
Reclassified company accounts
Reconciliation principles followed for the reclassified income statement
The main reclassifications, whose amounts are provided analytically in the tables enclosed with this report, involve:
• the inclusion in the “Net interest” of (i) the interest component of the DBO (Defined Benefit Obligation), TFR (Trattamento di Fine Rapporto) from
“Staff costs”, (ii) interest component on derivatives related to the economical hedging on banking book positions from item “Net gains (losses) on
trading”;
• the inclusion in “Dividends” of “Profit (Loss) of equity investments valued at equity”;
• the inclusion in the “Fees” (i) of the structuring and mandate fees on certificates and the connected derivatives, issued or placed by the Group and
(ii) of Mark-up fees on client hedging activities;
• the inclusion among “Trading income” (i) of the net gains (losses) on trading, (ii) of the net gains (losses) on hedge accounting, (iii) of the net
gains/losses on other financial assets/liabilities at fair value through profit or loss, (iv) of the gains/losses on disposal or repurchase of financial
assets at fair value through other comprehensive income, (v) of gains/losses on disposal and repurchase of financial assets at amortised cost
represented by debt securities, (vi) of gains/losses on disposal and repurchase of financial liabilities at amortised cost, (vii) of the interest income
and expenses deriving from Trading Book instruments,”, (viii) dividends from held for trading equity instruments and (ix) dividends on equity
investments, shares and equity instruments mandatorily at fair value;
• the inclusion in the “Other expenses/income” of (i) “Other operating expenses/income”, excluding recovery of expenses not related to credit card
distribution agreement, (ii) gains/losses on disposal and repurchase of financial assets at amortised cost represented by performing loans;
• the inclusion in the “Non HR costs” (i) of tax recovery reclassified from “Other operating expenses/income” (ii) the costs for net value adjustments
on leasehold improvements from “Other operating expenses/income” and (iii) the component of discount associated with the accrual of the right to
require specific services recognized in the context of agreements for credit card distribution and payment services from “Net fees and
commissions”;
• the presentation under its own item of “Recovery of expenses” different than the tax recovery and not related to credit card distribution agreement
from “Other operating expenses/income”;
• in “Loan Loss Provisions”, the inclusion (i) of net losses/recoveries on financial assets at amortised cost and at fair value through other
comprehensive income net of debt securities, (ii) of the gains (losses) on disposal and repurchase of financial assets at amortised cost net of debt
securities and of performing loans, (iii) of the net provisions for risks and charges related to commitments and financial guarantees given, (iv) of
credit recovery expenses for the variable portion of the outsourced NPE recovery costs not recovered from the clients and charged to the bank
based on the recovered volumes, reclassified from item “Other administrative expenses”;
• the inclusion in the “Other charges and provisions” of contributions to the resolution funds (SRF), the deposit guarantee schemes (DGS), the Bank
Levy, the life insurance Guarantee Fund and the Guarantee fees for DTA reclassified from item “Other administrative expenses”;
• the inclusion in the “Integration costs” of impact relating to the reorganization operations of “Other expenses/income”, “HR costs”, “Non HR costs”,
“Amortisations and depreciations” and “Other charges and provisions”;
• the inclusion in “Net income from investments” of (i) net losses/recoveries on financial assets at amortised cost and at fair value through other
comprehensive income - debt securities, (ii) gains (losses) on tangible and intangible assets measured at fair value, (iii) gains (losses) of equity
investments and on disposal on investments, (iv) net Result on Financial Assets mandatorily at fair value related to debt securities referred to non-
performing loans (included securitizations), and (v) impairment/write backs of rights of use of land and buildings used in the business.
Figures of Reclassified income statement relating to 2023 have been restated, starting from March 2024, with the effects of the:
• extension of shift from Trading Income to Fees of the client hedging mark-up for some additional derivatives non-linear product: Equity derivatives,
FX derivatives and prepaid forward carbon trades;
• shift from Non HR Costs to Loan Loss Provisions of Credit recovery expenses for the variable portion of the outsourced NPE recovery costs not
recovered from the clients and charged to the bank based on the recovered volumes;
• shift from Other charges and provision to Other expenses/income of amounts related to asset management distribution agreements.
Figures of Reclassified income statement have been restated starting from June 2024, with reference to 2023 and first quarter 2024, for the
reclassification of “Tax Recovery” from Recovery of expenses to Non HR Costs.
833
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Report on operations
Reclassified company accounts
Reclassified income statement
(€ million)
YEAR
CHANGE
2024
2023
P&L
%
Net interest
6,052
5,822
+ 230
+ 4.0%
Dividends
5,054
3,069
+ 1,985
+ 64.7%
Fees
4,371
4,045
+ 326
+ 8.1%
Trading income
502
648
- 146
- 22.6%
Other expenses/income
789
893
- 104
- 11.6%
Revenue
16,769
14,477
+ 2,292
+ 15.8%
HR costs
(3,136)
(3,052)
- 84
+ 2.8%
Non HR costs
(1,500)
(1,539)
+ 39
- 2.5%
Recovery of expenses
97
84
+ 13
+ 15.6%
Amortisations and depreciations
(691)
(685)
- 6
+ 0.8%
Operating costs
(5,229)
(5,192)
- 37
+ 0.7%
GROSS OPERATING PROFIT (LOSS)
11,539
9,285
+ 2,254
+ 24.3%
Loan Loss Provisions (LLPs)
(486)
(181)
- 305
n.m.
NET OPERATING PROFIT (LOSS)
11,054
9,104
+ 1,950
+ 21.4%
Other charges and provisions
(243)
(478)
+ 235
- 49.1%
of which: systemic charges
(255)
(457)
+ 202
- 44.2%
Integration costs
(534)
(541)
+ 7
- 1.2%
Net income from investments
(669)
3,815
- 4,484
n.m.
PROFIT (LOSS) BEFORE TAX
9,607
11,900
- 2,293
- 19.3%
Income taxes
(1,500)
(636)
- 864
n.m.
Profit (Loss) of discontinued operations
-
-
-
-
NET PROFIT (LOSS) FOR THE PERIOD
8,106
11,264
- 3,158
- 28.0%
Goodwill impairment
-
-
-
-
STATED NET PROFIT (LOSS)
8,106
11,264
- 3,158
- 28.0%
834
UniCredit 2024 Annual Reports and Accounts
Report on operations
Reclassified company accounts
Reclassified income statement - Quarterly figures
(€ million)
2024
2023
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Net interest
1,634
1,414
1,517
1,487
1,621
1,475
1,434
1,292
Dividends
382
193
2,218
2,261
34
131
592
2,312
Fees
1,033
1,048
1,156
1,135
971
951
1,023
1,100
Trading income
5
148
90
259
229
102
319
(2)
Other expenses/income
192
186
226
186
359
155
200
179
Revenue
3,246
2,989
5,206
5,327
3,214
2,814
3,568
4,881
HR costs
(859)
(760)
(757)
(760)
(850)
(744)
(731)
(727)
Non HR costs
(412)
(346)
(380)
(361)
(451)
(359)
(382)
(347)
Recovery of expenses
24
17
35
21
26
21
20
17
Amortisations and depreciations
(178)
(171)
(167)
(175)
(144)
(175)
(184)
(182)
Operating costs
(1,426)
(1,260)
(1,269)
(1,274)
(1,419)
(1,257)
(1,277)
(1,239)
GROSS OPERATING PROFIT (LOSS)
1,819
1,729
3,938
4,053
1,795
1,557
2,291
3,642
Loan Loss Provisions (LLPs)
(182)
(114)
(20)
(170)
43
(53)
(54)
(117)
NET OPERATING PROFIT (LOSS)
1,638
1,615
3,918
3,883
1,838
1,504
2,237
3,525
Other charges and provisions
(18)
(35)
(11)
(179)
(3)
(229)
(19)
(227)
of which: systemic charges
(25)
(20)
(17)
(193)
(14)
(209)
(24)
(210)
Integration costs
(485)
(18)
(20)
(11)
(320)
(18)
(197)
(6)
Net income from investments
(234)
(53)
(353)
(29)
3,348
246
85
136
PROFIT (LOSS) BEFORE TAX
901
1,509
3,533
3,664
4,863
1,503
2,106
3,428
Income taxes
38
(434)
(630)
(475)
570
(371)
(514)
(321)
Profit (Loss) of discontinued operations
-
-
-
-
-
-
-
-
NET PROFIT (LOSS) FOR THE PERIOD
938
1,075
2,904
3,189
5,433
1,132
1,592
3,107
Goodwill impairment
-
-
-
-
-
-
-
-
STATED NET PROFIT (LOSS)
938
1,075
2,904
3,189
5,433
1,132
1,592
3,107
Reclassified income statement – Quarterly figures
835
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Report on operations
Results of the year
Results of the year
Macroeconomic situation, banking and financial markets
Reference is made to the paragraph “Macroeconomic situation, banking and financial markets” of the Consolidated financial statements of UniCredit
group, Consolidated report on operations, Group results, which is herewith quoted entirely.
Main results and performance for the period
The income statement
Breakdown of Net operating profit (loss)
Net operating profit (loss) on 31 December 2024 totaled €11,054 million with a high increase (+€1,950 million) compared to the previous year.
Gross operating profit (loss) totaled €11,539 million (+€2,254 million year on year, +24.3%) and Net write-downs of loans amounted to -€486 million
(-305 million versus December 2023).
The annual increase in the Gross operating profit (loss) compared to December 2023 is mainly attributable to the increase of Revenues (+€2,292
million) mainly linked to Dividends (+1,985 million).
In 2023 UniCredit group decided to simplify the structure of its trading activities bundled previously in UniCredit Bank GmbH and to centralize them
at UniCredit S.p.A. To ensure an orderly and smooth transfer during the centralisation process, trading activities in UniCredit Bank HVB were divided
into five tranches starting from 3 quarter 2024 and until 2026. In the initial tranche, occurred in July 2024, bond and interest rate derivative
transactions were transferred while in the second tranche, occurred in November 2024 the brokerage business with non-German customers was
transferred.
Net operating profit (loss)
(€ million)
YEAR
CHANGE
2024
2023
P&L
%
REVENUE
16,769
14,477
+ 2,292
+ 15.8%
Operating costs
(5,229)
(5,192)
- 37
+ 0.7%
GROSS OPERATING PROFIT (LOSS)
11,539
9,285
+ 2,254
+ 24.3%
Net write-downs of loans and provisions for guarantees and
commitments
(486)
(181)
- 305
n.m.
NET OPERATING PROFIT (LOSS)
11,054
9,104
+ 1,950
+ 21.4%
Revenue
At 31 December 2024 Revenues totaled €16,769 million, up €2,292 million (+15.8%) on the previous year. The increase was mainly attributable to the
increase of Net Interest (+€230 million), Fees (+€326 million) and Dividends (+€1,985 million). Compared to the previous year there has been a
reduction in the Trading profit (-€146 million) and Other expenses/income (-€104 million).
Net interest at December 2024 amounted to €6,052 million, up +4% (€230 million) compared to the previous year. This growth was supported by the
favorable interest rate environment combined with prudent deposit beta management.
The average customer loans interest rates recorded overall an increase versus 2023. The growth was mainly attributable to short term loans and loans
to enterprises, for which increase was also influenced by the maturity of state guarantees loans provided by Covid-19 measures. At the same time
there was a decrease in the stock of loans, mainly linked to the general reduction in the demand for credit by customers resulting from the increase in
interest rates together and from the progressive maturity of mortgages granted under Covid-19 guarantee schemes, partially offset by the commercial
development actions on the positive sEva clients.
Average interest rates on deposits show an increase, in particular for corporate customers. During the 2024, there was also a reduction in the volumes
of customer deposits: the decline reflects the Bank's attention to pricing, a greater diversification of savings by customers with a rotation towards other
forms of asset under custody as well as a reduction in Individuals influenced by higher placements in government bonds (BTPs).
During the year, the Bank executed its medium/long term Financial Plan adopting the usual approach of using a variety structures/currencies/maturities
to avoid concentration risk and to benefit a large degree of name recognition with Investors.
For additional details reference is made to the paragraph “Other information on Group activities” of Consolidated annual report.
836
UniCredit 2024 Annual Reports and Accounts
Report on operations
Results of the year
Dividends recorded in 2024 totaled €5,054 million, up €1,985 million compared to previous year. This trend is mainly explained by the growth of
dividends of the banks in the CEE area (+658 million) mainly AO UniCredit Bank (+278 million), UniCredit Bank Czech Republic and Slovakia A.S.
(+228 million) and UniCredit Bank S.A. (+128 million) and of UniCredit Bank Austria AG (+598 million) and UniCredit Bank GmbH (+565 million).
Fees at 31 December 2024 amounted to €4,371 million, up to €326 million (+8.1%) compared to the previous year. The increase is attributable for
€276 million to commissions on investment products, mainly sustained by higher investment funds placements that benefited from the greater
commercial push and a more favorable macroeconomic scenario, for €40 million to increase in commissions on loans, for €55 million to the growth
recorded on payment services and cards, which more than offset the higher costs related to securitization transactions for -€21 million and the lower
contribution of commissions on current accounts, penalized in the year-on-year comparison by the repricing maneuvers resulting from the changed
market interest rate scenario, for -€51 million. Commissions on insurance products recorded an increase of €42 million compared last year, mainly
supported by the casualty insurance component as well as the positive result of credit protection insurance.
Trading income at December 2024 (+€502 million) was essentially attributable to the unrealized effects related to equity instruments mandatorily at
fair value (€132 million), to the effects of the revaluation of the issuance of Additional Tier1 of UniCredit Bank GmbH (+€121 million), to the gains from
investment portfolio (+€97 million) and to the effects of the revaluation of the issuance of Additional Tier 1 of UniCredit Bank Austria AG (+€75 million).
In addition, realized effects related to equity investments in Visa Inc (+€20 million) and Webuild S.p.A. (+€19 million) were recorded.
Finally, losses related to XVA - Credit, Funding and Debt Value Adjustment and relative hedging activity amounting to -€19 million.
Overall, Trading income decreased by -€146 million compared to the previous year. The main changes in comparison with 2023 are mainly
attributable to the losses from investment portfolio (-€101 million) and to effects of the evaluation of OICR quotes mandatorily at fair value (-€50
million).
Other expenses/income at December 2024 amounted to €789 million, decreasing by -€104 million compared to the previous year. The main impacts
in 2024 are attributable to income for services, ICT projects and software provided to other Group companies. The figure for the year 2024 includes,
among other things, the positive effects deriving from the signing of the Global Partnership Agreement with Nexi in the second quarter of 2024,
which updates the previous agreement, as well as those deriving from the renegotiation of the contract with Amundi and the new business
agreement with Mastercard.
Operating costs
Operating costs at December 2024 amounted to -€5,229 million, increasing of €37 million (+0.7%) compared to the previous year. HR costs,
amounted to -€3,136 million, increased compared to 2023 (-84 million, +2.8%) mainly due to the effect of CCNL renewal and higher accrual on
variable for improved results balanced by lower FTEs.
Full Time Equivalent (FTE) evolution stands at 33,361 at 31 December 2024 and showed a decrease of about 680 FTE year-on-year thanks to
multiyear personnel exit plan linked with “UniCredit Unlocked”.
Non HR costs in 2024 amounted to -€1,500 million, down by €39 million (-2.5%) compared to 2023. The decrease was concentrated on ICT
efficiencies.
Recovery of expenses, amounting to €97 million, are increasing compared to the previous year (+€13 million, +15.6%) mainly for credit recovery
activity.
Amortization and depreciation amounted to -€691 million, decreasing (-€6 million, +0.8%) compared to the previous year connected to initiatives of
rationalization of real estate assets and to the modification of the useful life of the properties.
837
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Report on operations
Results of the year
Loan Loss Provisions (LLPs)
At December 2024 Loan Loss Provisions (LLPs) sum up to -€486 million, growing for €305 million (+168%) in respect of previous year.
Net of the Russian, which showed recoveries of €35 million, LLPs amounted to -€521 million, higher than the -257 million in 2023.
With reference to the activities of Russia perimeter, the result recorded in the 2024 is essentially attributable to the contraction of receivables in the
Russia perimeter as a result of repayments as per the amortization schedule.
With regard to the other segments, the amount of LLPs in December 2024 amounted to -€521 million and were mainly determined by the combined
effect of the following events: (i) mainly due to: -66 million LLPs increase for maintaining of the “overlay”; €20 millions of LLPs decrease connected
to IFRS9 macro-economic scenario update, write back for 49 million main Rating Model credit risk parameters calibration (PD, LGD and EAD), (ii)
-€173 million of LLPs write down due to Non Performing Portfolio disposals and € 20 million decrease LLPs for update of the selling scenario (iii)
-€370 million of LLPs increase mainly connected to credit portfolio dynamics like recoveries, Inflows and Outflows to NPE.
Cost of Risk in 2024 was 28 basis points. Excluding Russia, Cost of Risk was 30 basis point, slightly increasing versus 14 basis points versus
previous year.
For more details on the actions taken to address the current macroeconomic scenario both with reference to direct risks to Russian exposures and
indirect risks, please refer to Section 4- Other aspects, Notes to the Accounts, Part A- Accounting policies, A.1 General.
For more details on measurement methods for expected losses reference is made to the paragraph 2.3 Measurement methods for expected losses,
Notes to the consolidated account, Part E - Information on risks and on hedging policies, Section 2 - Risks on the prudential consolidate perimeter,
2.1 Credit Risk - Qualitative information.
Net profit (loss)
In the table below, the data showing the transition to Stated Net profit (loss) for illustrative purposes.
Net Profit of the current year amounted to €8,106 million compared to €11,264 million of the previous year, down -€3,158 million. The figure includes
a positive result of €34 million attributable to the activities of Russia perimeter which in the year 2023 had recorded a net profit of €173 million.
Net profit (loss)
(€ million)
YEAR
CHANGE
2024
2023
P&L
%
NET OPERATING PROFIT (LOSS)
11,054
9,104
+ 1,950
+ 21.4%
Other charges and provisions
(243)
(478)
+ 235
- 49.1%
Integration costs
(534)
(541)
+ 7
- 1.2%
Net income from investments
(669)
3,815
- 4,484
n.m.
PROFIT (LOSS) BEFORE TAX
9,607
11,900
- 2,293
- 19.3%
Income taxes
(1,500)
(636)
- 864
n.m.
Profit (Loss) of discontinued operations
-
-
-
-
NET PROFIT (LOSS) FOR THE PERIOD
8,106
11,264
- 3,158
- 28.0%
Goodwill impairment
-
-
-
-
STATED NET PROFIT (LOSS)
8,106
11,264
- 3,158
- 28.0%
838
UniCredit 2024 Annual Reports and Accounts
Report on operations
Results of the year
Other charges and provisions
Other charges and provisions, amounting to -€243 million, down compared to -€478 million in 2023, include the Deposit Guarantee Scheme (DGS)
ordinary and additional contribution to Fondo Interbancario di Tutela dei Depositi - FITD (-€171 million), the contribution to the new Fondo di Garanzia
per l’Assicurazione Vita (-€5 million) and other provisions and release for litigations, lawsuits, disputes, incidents and claims in which the Bank is
passive subject.
Integration costs
Integration costs amounted to -€534 million, decrease by 7 million (-1.2%) compared to 2023, related to ICT write off in 2023 partially balanced also
by severance accrual in 2024.
Net income from investments
Net income from investments was -€669 million, down compared to €3,815 million in 2023.
In particular, in 2024 write-downs on equity regarding AO UniCredit Bank (-483 million), UniCredit Leasing S.p.A. (-92 million), in UniCredit International
Bank Luxembourg S.A. (-41 million) and in Pioneer Alternative Investment Management LTD (-33 million) were recorded, partially offset by write-backs
on equity regarding UniCredit Bank S.A. Romania (+95 million).
For further information on the methodology, results and base assumptions used in the impairment test of investments in subsidiaries refer to “Section
7 - Equity investments - Item 70”, Notes to the accounts, Part B - Balance sheet - Assets.
Taxes on income
Taxes on income for 2024 report a negative amount of €1,500 million, with respect to the negative amount of €636 million in 2023, this amount is
mainly composed by:
• IRES (current and deferred taxes) negative value of €1,057 million. The amount of the current IRES is negative for €174 million. The handling of
deferred tax assets and liabilities of the period is negative for €883 million, mainly determined by write-up of TLCF DTA, the recovery of temporary
convertible DTA, provisions for risks and charges DTA and from previous tax losses carried forward reimbursed by the provisional liquidation of the
italian Tax Group;
• IRAP negative (current and deferred taxes) of €416 million. The amount of the current IRAP is negative for €281 million (negative €273 million
produced by tax cases from Income statement and negative €8 million produced by tax cases from Net equity) while IRAP deferred taxes negative
for €143 million (mainly determined by the recovery of temporary convertible DTA and provisions for personnel fund DTA);
• a provision for a negative amount of €1 million related to the taxation on a transparent basis of controlled foreign companies (CFC);
• non-deductible withholding tax for a negative amount of €76 million suffered in Italy and abroad;
• net amount of previous years current and deferred taxes positive of €39 million;
• tax accrual referred to foreign branches and permanent establishment for a negative amount equal to €5.5 million;
• tax credits positive amount of € 0,5 million related to Art bonus (D.L. 34/2014);
• tax credit deriving from the conversion of the “ACE” benefit into IRAP tax credit for a positive amount €21 million (related to previous years);
• a provision for a negative amount of €5 million related to Pillar Two regulation.
For further details refer to the Notes to the accounts, Part B - Balance Sheet - Assets, Section 10 - Tax assets and Tax liabilities and Part C -
Income Statement, Section 19 - Tax expense (income) related to profit or loss from continuing operations.
839
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Report on operations
Results of the year
The balance sheet
Loans to Customers
As at 31 December 2024, loans to customers totalled €159,558 million, a decrease of -€13,103 million (-7.6%) compared to 31 December 2023.
Loans to customers
(€ million)
AMOUNT AS AT
CHANGE
31.12.2024
31.12.2023
AMOUNT
%
Performing loans
145,018
151,480
- 6,463
- 4.3%
Repos
12,308
18,965
- 6,657
- 35.1%
Non-performing exposures
2,232
2,216
+ 16
+ 0.7%
Total loans to customers
159,558
172,661
- 13,103
- 7.6%
More specifically:
• performing loans recorded a decrease of -€-6,463 million (-4.3%);
• reverse repos recorded a decrease of -€6,657 million (-35.1%);
• impaired assets recorded a slight increase of €16 million (0.7%).
The reduction of performing loans is mainly due to the prevalence of reimbursements over new disbursements.
Performing loans (€145,018 million at 31 December 2024) included €110 million due to Special Purpose Vehicles (SPVs), attributable mainly to
liquidity which UniCredit S.p.A., following the downgrading from 2012 by the rating agencies involved in the transactions, had to transfer (based on
the contractual documentation signed) to other banks, still considered “eligible”, in favor of the SPVs granting loans as part of the transactions
originated by UniCredit S.p.A. in relation to securitisations and covered bond issue programmes.
During 2024 the aforementioned receivables from Special Purpose Vehicle (S.P.V.) decreased by €252 million compared to 31 December 2023,
partly attributable to the closure of the Consumer Three transaction, partly to the partial repurchase of receivables from UniCredit BPC Mortgage Srl
and partly related to the normal management of securitization transactions.
Reverse repos, whose performance are strictly linked to liquidity management, amounted to €12,308 million at 31 December 2024 (€18,965 million
at the end of 2023), and consisted almost entirely of transactions with Cassa di Compensazione e Garanzia, with Cassa Depositi e Prestiti.
Impaired loans at the end of December 2024 amounted to €2,232 million and came to 1.4% of the total amount of loans to customers.They mainly
referred to the business segment.
The increase of €16 million (0.7% in comparison to €2,216 million at the end of December 2023) is mainly attributable to the normal default flows,
offset by the Bank's intense activity aimed at reducing impaired credit exposures, carried out mainly through disposal operations.
Credit quality
As at 31 December 2024, the gross book value (GBV) of the Non-Performing Exposures (NPE) amounts to €4,090 million, representing 2.5% of total
GBV loans to customers, a slight decreased, compared to 2023. The decrease is mainly due to sales operations carried out during the year both on
loans classified as bad exposures and on loans classified as unlikely to pay.
The ratio of bad exposures loans (GBV) amounted to 0.7% of total loans to customers (0.65% at 31 December 2023) loans classified as unlikely to
pay amounted to 1.55% of total loans (1.54% at 31 December 2023), while impaired past due exposures amounted to 0.26% of total loans (0.27% at
31 December 2023).
The coverage ratio of impaired loans (specific write-downs to face value) came to around 45.4%, a decrease compared to the 48.9% recorded on 31
December 2023, in detail the coverage ratio is equal to 67.2% for bad exposures loans, 38.3% for loans classified as unlikely to pay and 29.9% for
impaired past due exposures.
Performing loans, which amounted to €159,009 million at GBV (€172,287 million at 31 December 2023), were written down, at 31 December 2024,
by a total of €1,683 million, with a coverage ratio of 1.06%, including written down in the Russian segment net of which the coverage ratio stands at
1.00% (1.07% at 31 December 2023).
840
UniCredit 2024 Annual Reports and Accounts
Report on operations
Results of the year
For additional information on the methodological developments that impacted the determination of write-downs, refer to the paragraph “2.3 Methods
for measuring expected losses” of the Consolidated financial statements of UniCredit group, Notes to the consolidated account, Part E - Information
on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.1 Credit risk, Qualitative information.
Therefore, overall, total Loans to customers on 31 December 2024 stood at €163,099 million, with value adjustments of €3,541 million taking the
general level of coverage for Loans to Customers to 2.2% (2.2% at 31 December 2023).
For the management and recovery of problematic loans, the Bank uses also the services offered by doValue S.p.A., a bank specialised in loan
recovery (bad exposures loans and unlikely-to-pay loans) and Prelios Credit Servicing S.p.A., a company specializing in the management of unlikely
to pay loans.
The summary table below provides additional details:
Loans to customers - Asset quality
(€ million)
BAD
EXPOSURES
UNLIKELY
TO PAY
NON-
PERFORMING
PAST-DUE
TOTAL
NON-
PERFORMING
PERFORMING
TOTAL
LOANS
As at 31.12.2024
Gross exposure
1,135
2,529
426
4,090
159,009
163,099
as a percentage of total loans
0.70%
1.55%
0.26%
2.51%
97.49%
Writedowns
763
968
127
1,858
1,683
3,541
as a percentage of gross value
67.20%
38.27%
29.86%
45.42%
1.06%
Carrying value
372
1,561
298
2,232
157,326
159,558
as a percentage of total loans
0.23%
0.98%
0.19%
1.40%
98.60%
As at 31.12.2023
Gross exposure
1,141
2,728
470
4,340
172,287
176,627
as a percentage of total loans
0.65%
1.54%
0.27%
2.46%
97.54%
Writedowns
802
1,171
151
2,124
1,842
3,966
as a percentage of gross value
70.28%
42.93%
32.05%
48.94%
1.07%
Carrying value
339
1,557
320
2,216
170,445
172,661
as a percentage of total loans
0.20%
0.90%
0.19%
1.28%
98.72%
Note:
Total loans to customers exclude the receivables arising from subleases recognised due to the application of IFRS16.
Deposits from customers and debt securities in issue
Deposits from customers and debt securities in issue decrease in respect of 2023 for the combined effect of decrease attributable to operating units
in Italy (-€4,999 million) and decrease due to operating units abroad (€150 million).
Deposits from customers and debt securities in issue
(€ million)
AMOUNTS AS AT
CHANGE
31.12.2024
31.12.2023
AMOUNT
%
Deposits from customers
201,008
206,660
- 5,652
- 2.7%
Debt securities in issue
47,061
46,557
+ 504
+ 1.1%
Total deposits from customers and debt securities in issue
248,068
253,217
- 5,149
- 2.0%
Deposits from customers change due to:
• current accounts and demand deposits, decreased by €1,724 million;
• time deposits, decreased by €387 million;
• repurchase agreements with customers, decreased by €1,106 million;
• other types of deposits, decreased by €2,435 million, mainly driven by operativity in hot money transactions.
Debt securities in issue, only managed by operating units in Italy, increase mainly driven by bond issues (€627 million), repos on own issued bonds
(-€117 million), certificates of deposit (-€5 million) and to “buoni fruttiferi” (-€2 million).
841
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Report on operations
Results of the year
Other financial assets
In 2024 financial investments showed an increase mainly attributable to bonds and equity investments.
Other financial assets
(€ million)
AMOUNT AS AT
CHANGE
31.12.2024
31.12.2023
AMOUNT
%
Financial assets at fair value through profit or loss - Other
financial assets designated at fair value
132
132
+ 0
+ 0.1%
Financial assets at fair value through profit or loss - Other
financial assets mandatorily at fair value
6,029
5,548
+ 480
+ 8.7%
Financial assets at fair value through other comprehensive
income
39,813
31,636
+ 8,177
+ 25.8%
Debt securities and loans at amortised cost
49,007
51,460
- 2,453
- 4.8%
Equity investments
42,341
42,517
- 176
- 0.4%
Total other financial assets
137,322
131,294
+ 6,028
+ 4.6%
More specifically:
• financial assets designated at fair value are composed by few government bonds;
• financial assets mandatory at fair value are mainly composed by units in investment funds (€3,097 million) and bonds (€2,540 million), whose
changes in respect of December 2023 are mainly originated by the combination of buy/sell and maturities dynamic and fair value evaluation.
Equity investments decrease by €223 million mainly due to some sales realized during the year;
• financial assets at fair value through other comprehensive income included €36,182 million in debt (increased by €5,901 million primarily due to
government and bank bonds) and €3,631 million in equity interests that have undergone an annual increase of €2,276 million, mainly attributable
to:
- new purchase of quotes in bank and insurance companies, including Commerzbank Ag for €1.749;
- fair value changes, of which ABH Holding (-€31 million) and Alpha Services and Holding SA (+€10 million);
• debt securities and loans at amortised cost mainly include (i) government and bank securities, increased due to combination of buy/sell and
maturities dynamic in the year and (ii) receivables for subleases deriving from the application of the IFRS16 standard;
• the value of equity investments increased mainly driven by the combined effects arising from:
- the write-downs of the investment, of which: AO UniCredit Bank (-€483 million), UniCredit Leasing S.p.A. (-€92 million), UniCredit International
Luxembourg S.A. (-€41 million), Pioneer Alternative Investment Management Ltd (-€33 million), UniCredit Services Gmbh (-€7 million);
- the write-up of the investment, of which: UniCredit RE Services S.p.A. (€2 million), Unicredit Turn Around Management Cee Gmbh (€1 million),
Nuova Compagnia di Partecipazioni S.p.A. (€1 million).
Interbank position
The Bank recorded, under its financial activities, a net interbank position at the end of 2024 of assets (€19,843 million) and liabilities (€36,909
million) equal to -€17,065 million. Compared with the corresponding figures at the end of 2023 (net equal to -€14,676 million), the balance showed a
slight increase in the net liabilities of €2,389 million due to the small increase of Deposits from banks (+€4,325 million) not totally balanced by the
increase of Loans and receivables with banks (+€1,935 million).
As regards the slight increase in Debts to banks, this trend is mainly due to the increase in the REPO activity increased also to replace the last
tranche of the ECB TLTRO for a total of 5,129 million expired in March 2024.
Interbank position
(€ million)
AMOUNTS AS AT
CHANGE
31.12.2024
31.12.2023
AMOUNT
%
Loans and receivables with banks
19,843
17,908
+ 1,935
+ 10.8%
Deposits from banks
36,909
32,584
+ 4,325
+ 13.3%
NET INTERBANK POSITION
(17,065)
(14,676)
- 2,389
+ 16.3%
842
UniCredit 2024 Annual Reports and Accounts
Report on operations
Results of the year
Capital and Value Management
Principles of value creation and disciplined capital allocation
Reference is made to the paragraph “Principles of value creation and disciplined capital allocation” of the Consolidated financial statements of
UniCredit group, Consolidated report on operations, Results of the year, Capital and Value Management, which is herewith quoted entirely.
Capital ratios
Transitional Own Funds and capital ratios
DESCRIPTION
AS AT
31.12.2024
31.12.2023
Common Equity Tier 1 Capital (€ million)
40,971
42,721
Tier 1 Capital (€ million)
45,899
47,553
Total Own Funds (€ million)
52,356
55,330
Total RWEA (€ million)
166,114
164,162
Common Equity Tier 1 Capital ratio
24.66%
26.02%
Tier 1 Capital ratio
27.63%
28.97%
Total Capital ratio
31.52%
33.70%
Notes:
Transitional own funds and capital ratios including all transitional adjustments according to the yearly applicable percentages.
UniCredit S.p.A. has decided to not apply the IFRS9 transitional approach as reported in article 473a of the Regulation 575/2013/EU (CRR).
For further information refer to the Notes to the accounts, Part F - Shareholders’ equity, Section 2 - Own funds and regulatory ratios.
Capital strengthening
Reference is made to the paragraph “Capital strengthening”, of the Consolidated financial statements of UniCredit group, Consolidated report on
operations, Results of the year, Capital and Value Management, which is herewith quoted entirely.
843
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Report on operations
Results of the year
Shareholders’ equity
Shareholders' equity
(€ million)
AMOUNT AS AT
CHANGE
31.12.2024
31.12.2023
AMOUNT
%
Share capital
21,368
21,278
+ 90
+ 0.4%
Share premium
23
23
- 0
- 1.8%
Equity instruments
4,958
4,863
+ 95
+ 2.0%
Reserves
23,899
23,944
- 45
- 0.2%
Advanced dividends
(1,440)
-
- 1,440
-
Revaluation reserves
815
658
+ 157
+ 23.9%
Treasury shares
-
(1,727)
+ 1,727
- 100.0%
Total capital and reserves
49,623
49,039
+ 584
+ 1.2%
Net profit (loss)
8,106
11,264
- 3,158
- 28.0%
Total shareholders' equity
57,729
60,303
- 2,574
- 4.3%
Shareholders' equity as at 31 December 2024 amounted to €57,729 million, with an decrease of €2,574 million compared to previous year
attributable to:
• -€3,015 million for distribution of cash dividend from allocation of 2023 net profit as approved by Shareholders' Meeting of 12 April 2024;
• -€1,440 million for distribution of the 2024 interim dividend based on the results of the 2024 Financial Year approved by the Board of Directors on
5 November 2024;
• -€30 million in favor of UniCredit Foundation for social, charity and cultural initiatives as approved by Shareholders' Meeting of 12 April 2024;
• +€12 million to the statutory reserve for shares repurchased after November 4 and held in the portfolio at the record date for which the interim
dividends are not due;
• -€452 million consisting of the allocation to the reserves of the coupon paid to subscribers of Additional Tier 1 notes, net of related tax effects and
transaction costs on redeemed issues (-204 million) and the exchange rate difference (-248 million);
• -€247 million from the allocation to the reserves of the cash-out related to the usufruct contract connected to the “Cashes” financial instruments;
• +€69 million from the adjustment to the reserve dedicated to Equity Settled Share Based Payments;
• +€95 million from the issue in September of Additional Tier 1 (AT1) instruments net of the related placement costs (+993 million) and from the
early termination of the Additional Tier 1 (AT1) instruments issued in 2014, net of the related placement costs, by exercising the repayment option
provided for by the terms and conditions of the securities (-898 million);
• -€76 million for allocation to equity of realized net gains and losses from disposal of financial assets and liabilities at fair value through other
comprehensive income;
• -€4 million to the allocation of costs connected to the execution of buyback operations on own shares;
• +€122 million for IRES impairment on tax losses;
• -€1,086 million for the purchase of the additional 37,815,422 shares to complete the First Tranche of the 2023 Buy-Back Program started on 30
October 2023 and concluded on 7 March 2024;
• -€1,585 million for the purchase of 44,859,171 shares in execution of the "Second Tranche of the 2023 Buy-Back Program" started on 9 May 2024
and concluded on 20 June 2024;
• -€1,500 million for the purchase of 42,242,975 shares in execution of the Third Tranche of the 2023 Buy-Back Program started on 24 June 2024
and concluded on 19 August 2024;
• -€1,700 million for the purchase of 43,313,675 shares in execution of the advance of the 2024 Buy-Back Program, started on 16 September 2024
and concluded on 14 November 2024;
• +€8,106 million to the net result for the period;
• +€158 million to the net effect deriving from revaluation reserves, of which: +€119 million from financial assets at fair value through other
comprehensive income; +€10 million from financial liabilities designated at fair value through profit or loss, due to changes in their
creditworthiness; +€49 million from cash flow hedges; -€16 million from revaluation of real estate properties following the tax realignment of the
properties used in business under IAS16 with impact on equity and -€4 million from defined benefit plans.
844
UniCredit 2024 Annual Reports and Accounts
Report on operations
Results of the year
Note also the following significant changes occurred in 2024 within the components of shareholders' equity which did not lead to a change in the overall
amount of the same:
• the Share Capital increased by 90 million, with withdrawal from the specifically established reserve, for the issue of shares connected to the medium-
term incentive plan for Group personnel, as per the resolution of the Board of Directors of 4 February 2024;
• following the resolutions of the Shareholders' Meeting of 12 April 2024 occurred: (i) the allocation of the net profit of the year 2023 to the establishing of
a specific Reserve for windfall tax (€1,125 million), for social, charity and cultural initiatives (€5 million), to the Reserve for the issue of the shares
connected to the medium term incentive plan for Group personnel (€100 million) and to the Statutory reserve (€6,989 million); ii) coverage of the
negative reserves totaling €445 million, partly buy use of the IFRS3 Business Combination Reserve (270 million) to cover the reserve relating to the
payment of AT1 coupons (263 million) and the reserve relating to payments of the Equity Settled Share Based Payments plans settled in cash (7
million), partly through the use of the Statutory Reserve to cover the reserve deriving from payments connected to the usufruct contract related to
the “Cashes” financial instruments (175 million); iii) the establishment of the specific unavailable reserve of 3,085 million for the execution of the
2023 Buy-Back Program and of 1,700 million for the execution of the first part of the 2024 Buy-Back Program, with withdrawal from the statutory
reserve;
• with the cancellation operations of the shares purchased in execution of the buyback programs (completion of Buyback 2022, Buyback 2023 and
Buyback 2024 first tranche) carried out on 16 January 2024, 26 March 2024, 26 June 2024 and 18 December 2024, the constrained reserve for
the buyback was used to eliminate the item Treasury shares for a total of 7,598 million.
Shareholders
The share capital, subscribed and paid up, amounts to €21,367,680,521.48 divided into No.1,551,419,850 ordinary shares with no face value.
As at 31 December 2024, according to the analyses performed using data from the content of the Register of Shareholders:
• shareholders were approximately 189,000;
• resident shareholders held around 13.44% of the capital and foreign shareholders 86.56%;
• 94.60% of the share capital is held by legal entities, the remaining 5.40% by natural persons.
At the same date, on the basis of the communications pursuant to Art.120 of the Consolidated Law on Finance (TUF), the relevant direct or indirect
investments in the share capital are listed below. The shareholders listed below hold more than 3% and they are not exempted from the reporting
provided for by Art.119-bis of the CONSOB Regulation 11971/99.
Principal UniCredit shareholders
SHAREHOLDER
ORDINARY
SHARES
%
OWNED
BlackRock Group
114,907,383
7.407%(*)
FMR LLC
48,134,003
3.102%(*)
Notes:
(*) Non-discretional asset management.
The table shows the information notified by the shareholders pursuant to Art.120 of the Consolidated Law on Finance (TUF) following the update
disclosed on the Consob website on 27 December 2024. The percentages here indicated are calculated on the number of shares representing the
share capital as at 31 December 2024, which takes into account the cancellation of treasury shares carried out on 18 December 2024. It should be
noted that, in the cases provided for by the Issuers' Regulations, management companies and qualified entities that have acquired, as part of their
management activities, shareholdings less than 5% are not required to make disclosures.
845
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Report on operations
Results of the year
Treasury shares
The 2022-2024 Strategic Plan “UniCredit Unlocked” presented to the market on 9 December 2021 set among the objectives a shareholders’
distribution to be implemented in part through treasury share buyback programs with the with the aim to ensure higher and progressively growing
remuneration over the course of the plan.
In this context, during the year 2022, in force of the authorization granted by the Shareholders' Meeting on 8 April 2022, a program for the purchase
of UniCredit ordinary shares was implemented as part of the distribution to the shareholders for the year 2021 for a total expenditure of €2,580 million
and which involved the purchase in two distinct tranches (“First and Second Tranche of the 2021 Buy-Back Programme”) of a total of No.249,134,870
treasury shares. The treasury shares purchased were entirely canceled during the same year at the completion of the two tranches with no reduction
of share capital but exclusively through a reduction in the number of existing shares and with a consequent increase in their accounting par value of
the shares issued by the Company.
On 31 March 2023 the Shareholders’ Meeting, in line with the targets envisaged by the Strategic Plan in terms of shareholder remuneration, for the
year 2022 authorized a share buyback program for a total expenditure of €3,343 million, entirely carried out during 2023 in two distinct tranches
("First and Second Tranche of the 2022 Buy-Back Programme"). The first tranche of purchases of treasury shares was launched on 3 April 2023 and
concluded on 29 June 2023 with the purchase of a total of No.125,036,173 shares for a total expenditure equal to the maximum amount authorised
(€2,343 million); the second tranche of purchases of treasury shares was started on 30 June 2023 and completed on 29 September 2023 with the
purchase of a total of No.45,138,320 UniCredit ordinary shares for a total expenditure equal to the residual authorized amount available (€1,000
million).
On 12 September 2023, with the aim of submitting to the approval of the Shareholders’ Meeting the launch already in 2023 of a first tranche of a
share buyback program from distribution for the year 2023, the treasury shares purchased up to date under the 2022 Buy-Back Programme
(No.156,114,828 for a total amount of €3,031 million) were cancelled without reduction of the share capital.
On 27 October 2023 the Shareholders’ Meeting of the Company approved a fist tranche of purchase of treasury shares for a maximum amount of
€2.5 billion and not exceeding No.160 million of UniCredit shares to be entirely carried out during 2024 (the “First Tranche of the Buy-Back
Programme 2023"). The initiative, previously authorized by the ECB on 26 October 2023, is part of the overall distribution expected for the year
2023, equal to or greater than 6.5 billion announced in the context of the presentation of the results for the first half of 2023 which highlighted a
significant organic generation of capital. On 7 March 2024, the “First Tranche of the 2023 Buy-Back Program” launched on 30 October 2023 was
completed with the total purchase of No.95,995,258 treasury shares for a total value of €2,500 million equal to the total authorised disbursement. On
26 March 2024, the cancellation of the additional No.37,815,422 treasury shares purchased in the current financial year to complete the program
was ordered.
On 16 January 2024, the cancellation of 72,239,501 treasury shares was carried out without reducing the share capital pursuant to the resolutions
adopted by the Shareholders' Meeting on 31 March and 27 October 2023. The cancellation refers to the total number of treasury shares held in the
portfolio at the end of the 2023 financial year resulting from the purchases made to complete the 2022 Buy-Back Program (No.14,059,665) and from
the purchases made under the "First Tranche of the 2023 Buy-Back Program" from the start date of the program (30 October 2023) to the end of the
financial year (No.58,179,836).
On 12 April 2024, the Company's Shareholders' Meeting authorised the share buyback programme as part of the distributions to shareholders: a first
distribution for a maximum disbursement of €3,085 million made in several tranches during the 2024 financial year relating to the residual part of the
overall payout for the 2023 financial year (the "2023 SBB Residual") and a second distribution for a maximum disbursement of €1,700 million as an
advance on the expected distributions for the 2024 financial year ("2024 SBB Advance") defined on the basis of the Company's results in the first
half of 2024.
On 9 May 2024, the execution of the "Second Tranche of the 2023 Buy-Back Program" was started and concluded on 20 June 2024 with the
purchase of a total of No.44,859,171 treasury shares for a total value equal to the maximum authorized disbursement (€1,585 million). The
purchased shares were cancelled without reduction of the share capital on 26 June 2024.
On 24 June 2024, the third and final tranche of the share buy-back program (the Third Tranche of the 2023 Buy-Back Program) was launched and
concluded on 19 August 2024 with the purchase of a total of No.42,242,975 treasury shares for a total value equal to the maximum authorised
disbursement (€1,500 million).
On 16 September 2024, the execution of the first part of the advance of the Buy-Back Program 2024 (the SBB 2024 advance) was started and was
completed on 14 November 2024 with the total purchase of No.43,313,675 treasury shares for a total value equal to the maximum authorized
disbursement (€1,700 million).
On 18 December 2024, the cancellation of No.85,556,650 treasury shares was carried out without reduction of the share capital in execution of the
resolution adopted by the Shareholders' Meeting on 12 April 2024. The number of cancelled shares is equal to the sum of the shares purchased in
execution of the "Third Tranche of the 2023 Buy-Back Programme" (No.42,242,975) and the shares purchased in execution of the "SBB Advance
2024" (No.43,313,675).
The treasury shares outstanding at end of the year 2024 were entirely cancelled.
846
UniCredit 2024 Annual Reports and Accounts
Report on operations
Company activities
Company activities
The commercial network
Operating structure in Italy
During 2024, UniCredit domestic Retail Commercial Banking Network was subject to the closure of 7 branches.
The structure of the domestic network at 31 December 2024 consisted of a total of 2,256 branches, of which 1,943 belonging to Retail Commercial
Banking Network.
On that date, following the initiatives described above and a small-scale branch re-organization and optimization resulting from the ongoing
streamlining process of organizational units, the Italian distribution network was structured as follows.
Italian network
REGION
NUMBER OF BRANCHES AT
31.12.2024
%
- Abruzzo
24
1.1%
- Basilicata
7
0.3%
- Campania
115
5.1%
- Calabria
19
0.8%
- Emilia Romagna
300
13.3%
- Friuli Venezia Giulia
71
3.1%
- Lazio
281
12.5%
- Liguria
45
2.0%
- Lombardy
269
11.9%
- Marche
44
2.0%
- Molise
15
0.7%
- Piedmont
233
10.3%
- Puglia
89
3.9%
- Sardinia
35
1.6%
- Sicily
229
10.2%
- Tuscany
99
4.4%
- Trentino Alto Adige
36
1.6%
- Umbria
55
2.4%
- Valle d'Aosta
12
0.5%
- Veneto
278
12.3%
Total branches
2,256
100.0%
847
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Report on operations
Company activities
Branches and Representatives abroad
As at 31 December 2024 UniCredit S.p.A. is present abroad through ten Branches, one Permanent Establishment and two Representative offices.
Below the detail:
Foreing branches:
• Germany - Munich;
• United Kindom - London;
• United States - New York;
• France - Paris;
• Spain - Madrid;
• Czech Republic - Prague102;
• Slovakia - Bratislava102;
• Romania - Bucarest102;
• Poland - Szczecin102;
• Hungary - Budapest102.
Foreing Permanent Establishment:
• Austria - Wien.
Foreing Representative offices:
• Belgium - Bruxelles;
• PRC - Beijing.
102 Branch that carries out only digital/operations activities, without banking license.
848
UniCredit 2024 Annual Reports and Accounts
Report on operations
Company activities
Resources
Personnel trend
As at 31 December 2024, the workforce of UniCredit S.p.A. amounted to 33,346 FTEs, compared to 34,041 FTEs as at 31 December 2023. The
decrease in resources is mainly due to exits for Restructuring Plan.
Breakdown by category
31.12.2024
31.12.2023
CHANGE
NUMBER
OF WHICH:
ABROAD
NUMBER
OF WHICH:
ABROAD
AMOUNT
%
Senior management
573
4
596
4
-23
-3.8%
Management - grade 4 and 3
7,015
371
7,286
355
-272
-3.7%
Management - grade 2 and 1
11,058
1,055
11,075
1,014
-17
-0.2%
Other staff
14,701
1,821
15,084
1,749
-383
-2.5%
Total
33,346
3,251
34,041
3,122
-694
-2.0%
of which: part-time
3,416
197
3,586
174
-170
-4.7%
The composition of the workforce by seniority and by age bracket is shown in the following tables. With respect to educational level, 57% of
UniCredit S.p.A. employees have university degrees (mostly in the areas of economics and banking, or law).
Women make up 48% of personnel.
Breakdown by seniority
31.12.2024
31.12.2023
CHANGE
NUMBER
%
NUMBER
%
AMOUNT
PERCENT
Up to 10 years
7,245
21.7%
8,204
24.1%
-959
-11.7%
From 11 to 20 years
8,552
25.6%
9,112
26.8%
-560
-6.1%
From 21 to 30 years
9,911
29.7%
8,949
26.3%
962
10.8%
Over 30 years
7,639
22.9%
7,776
22.8%
-138
-1.8%
Total
33,346
100.0%
34,041
100.0%
-694
-2.0%
Breakdown by age
31.12.2024
31.12.2023
CHANGE
NUMBER
%
NUMBER
%
AMOUNT
PERCENT
Up to 30 years
3,259
9.8%
2,940
8.6%
319
10.8%
From 31 to 40 years
4,797
14.4%
4,867
14.3%
-70
-1.4%
From 41 to 50 years
10,535
31.6%
11,185
32.9%
-650
-5.8%
Over 50 years
14,756
44.3%
15,049
44.2%
-293
-1.9%
Total
33,346
100.0%
34,041
100.0%
-694
-2.0%
With regard to training, managerial growth, union relations, environment and occupational safety, refer to the Sustainability Statements of
Consolidated report on operation of UniCredit group.
849
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Report on operations
Other information
Share information
Reference is made to the paragraph “Share information” of the Consolidated financial statements of UniCredit group, Consolidated report on
operations, Group and UniCredit share historical data series, which is herewith quoted entirely.
Report on corporate governance and ownership structure
Within the meaning of Art.123-bis par.3 of the Legislative Decree 58 dated 24 February 1998, the “Report on corporate governance and ownership
structure” is available in the “Governance/Our Governance System” section of the UniCredit website (https://www.unicreditgroup.eu).
An explanatory chapter on the corporate governance structure is likewise included in the Consolidated report and accounts (“Corporate
Governance”).
Report on remuneration
Pursuant to Art.123-ter of the Legislative Decree 58, dated 24 February 1998 and of Art.84-quater, of the Consob Issuers’ Regulations, the “Group
Remuneration Policy and Report” is available on UniCredit’s website (https://www.unicreditgroup.eu).
Research and development projects
Reference is made to the paragraph “Research and development projects” of the Consolidated financial statements of UniCredit group,
Consolidated report on operations, Other information, which is herewith quoted entirely.
Other information
850
UniCredit 2024 Annual Reports and Accounts
Report on operations
Other information
Group activities development operations and other corporate transactions
With specific regard to events relating to the parent company UniCredit S.p.A., reference is made to the paragraph “Group activities development
operations and other corporate transactions” of the Consolidated financial statements of UniCredit group, Consolidated report on operations, Other
information, which is herewith quoted entirely.
Organisational model
Reference is made to the paragraph “Organisational model” of the Consolidated financial statements of UniCredit group, Consolidated report on
operations, Other information, which is herewith quoted entirely.
Conversion of Deferred tax assets (DTAs) into tax credits
The 2023 and 2024 financial year closed with a profit (€11,264 million financial year 2023 and €8,106 million financial year 2024) therefore, the
conditions to carry out a new transformation of deferred tax assets, for IRES and IRAP, into tax credits are not verified.
Certifications and other communications
Reference is made to the paragraph “Certifications and other communications” of the Consolidated financial statements of UniCredit group,
Consolidated report on operations, Other information, which is herewith quoted entirely.
For more information on related-party transactions refer to the Notes to the accounts, Part H - Related-party transactions.
Information on risks
For a complete description of the risks and uncertainties that the Bank must face under the current market conditions, refer to Part E - Information on
risks and related hedging policies of the Notes to the accounts.
851
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Report on operations
Subsequent events and outlook
Subsequent events and outlook
Subsequent events103
With specific regard to events relating to the parent company UniCredit S.p.A., reference is made to the paragraph “Subsequent events” of the
Consolidated financial statements of UniCredit group, Consolidated report on operations, Subsequent events and outlook, which is herewith quoted
entirely.
103 Up to the date of approval by the Board of Directors’ Meeting of 20 February 2025 which, on the same date, authorised the publication also in accordance with IAS10.
852
UniCredit 2024 Annual Reports and Accounts
Report on operations
Subsequent events and outlook
Outlook
Reference is made to the paragraph “Outlook”, of the Consolidated financial statements of UniCredit group, Consolidated report on operations,
Subsequent events and outlook, which is herewith quoted entirely.
Milan, 20 February 2025
THE BOARD OF DIRECTORS
CHAIRMAN
CEO
PIETRO CARLO PADOAN
ANDREA ORCEL
853
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
854
UniCredit 2024 Annual Reports and Accounts
854
UniCredit 2024 Annual Reports and Accounts
Proposal to Shareholders’ Meeting
Proposals to the Shareholders’ Meeting
For the proposals to Shareholders’ Meeting refer to the specific Board of Directors’ reports in relation to the allocation of the 2024 result.
855
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Company accounts
Company accounts
856
UniCredit 2024 Annual Reports and Accounts
856
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Company accounts
Company accounts
Company financial statements
Company accounts
Balance sheet
Balance sheet
(€)
AMOUNTS AS AT
ASSETS
31.12.2024
31.12.2023
10. Cash and cash balances
13,222,691,584
12,300,646,051
20. Financial assets at fair value through profit or loss:
52,621,823,830
21,267,989,561
a) financial assets held for trading
46,265,010,259
15,383,565,674
b) financial assets designated at fair value
131,923,703
131,799,109
c) other financial assets mandatorily at fair value
6,224,889,868
5,752,624,778
30. Financial assets at fair value through other comprehensive income
39,813,244,469
31,636,271,633
40. Financial assets at amortised cost:
228,212,154,578
241,824,989,251
a) loans and advances to banks
37,485,993,252
34,249,206,255
b) loans and advances to customers
190,726,161,326
207,575,782,996
50. Hedging derivatives
550,637,401
10,842,783,352
60. Changes in fair value of portfolio hedged items (+/-)
(902,064,729)
(1,955,951,795)
70. Equity investments
42,340,962,282
42,517,221,538
80. Property, plant and equipment
3,631,861,543
3,730,489,182
90. Intangible assets
1,707,338,013
1,580,047,133
of which: goodwill
-
-
100. Tax assets:
8,501,697,288
9,714,047,808
a) current
720,445,869
811,207,169
b) deferred
7,781,251,419
8,902,840,639
110. Non-current assets and disposal groups classified as held for sale
38,854,261
299,375,469
120. Other assets
7,770,699,918
8,352,197,584
Total assets
397,509,900,438
382,110,106,767
857
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Company accounts
Company accounts
continued: Balance sheet
(€)
AMOUNTS AS AT
LIABILITIES AND SHAREHOLDERS' EQUITY
31.12.2024
31.12.2023
10. Financial liabilities at amortised cost:
285,739,249,798
286,723,579,156
a) deposits from banks
36,913,093,429
32,608,235,210
b) deposits from customers
201,765,525,129
207,558,139,239
c) debt securities in issue
47,060,631,240
46,557,204,707
20. Financial liabilities held for trading
38,052,113,672
14,311,299,296
30. Financial liabilities designated at fair value
10,271,456,615
7,260,356,965
40. Hedging derivatives
316,466,511
11,950,477,886
50. Value adjustment of hedged financial liabilities (+/-)
(4,657,672,040)
(7,403,173,362)
60. Tax liabilities:
9,440,198
2,350,490
a) current
9,440,198
2,350,490
b) deferred
-
-
70. Liabilities associated with assets classified as held for sale
-
-
80. Other liabilities
7,882,433,780
6,950,304,070
90. Provision for employee severance pay
289,472,469
330,090,848
100. Provisions for risks and charges:
1,878,012,331
1,681,598,523
a) commitments and guarantees given
431,570,688
466,262,365
b) post-retirement benefit obligations
36,100,152
34,154,805
c) other provisions for risks and charges
1,410,341,491
1,181,181,353
110. Valuation reserves
815,284,427
658,187,274
120. Redeemable shares
-
-
130. Equity instruments
4,958,159,059
4,862,697,736
140. Reserves
23,898,750,823
23,944,526,253
145. Advanced dividends (-)
(1,440,000,000)
-
150. Share premium
22,580,466
22,580,466
160. Share capital
21,367,680,521
21,277,874,388
170. Treasury shares (-)
-
(1,726,850,405)
180. Profit (Loss) of the year (+/-)
8,106,471,808
11,264,207,183
Total Liabilities and Shareholders' Equity
397,509,900,438
382,110,106,767
858
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Company accounts
Company accounts
Income statement
Income statement
(€)
YEAR
ITEMS
2024
2023
10. Interest income and similar revenues
15,040,326,914
14,680,432,711
of which: interest income calculated with the effective interest method
11,531,060,761
11,199,480,459
20. Interest expenses and similar charges
(8,870,525,363)
(8,758,159,380)
30. Net interest margin
6,169,801,551
5,922,273,331
40. Fees and commissions income
5,001,781,689
4,751,591,616
50. Fees and commissions expenses
(796,166,053)
(817,636,022)
60. Net fees and commissions
4,205,615,636
3,933,955,594
70. Dividend income and similar revenues
5,090,330,214
3,086,391,025
80. Net gains (losses) on trading
837,335,931
501,635,998
90. Net gains (losses) on hedge accounting
(402,049,562)
4,646,856
100. Gains (Losses) on disposal and repurchase of:
12,030,305
414,024,831
a) financial assets at amortised cost
(59,640,355)
201,433,819
b) financial assets at fair value through other comprehensive income
69,665,795
147,162,009
c) financial liabilities
2,004,865
65,429,003
110. Net gains (losses) on other financial assets/liabilities at fair value through profit or loss:
(50,337,747)
(111,981,736)
a) financial assets/liabilities designated at fair value
(329,852,481)
(421,539,372)
b) other financial assets mandatorily at fair value
279,514,734
309,557,636
120. Operating income
15,862,726,328
13,750,945,899
130. Net losses/recoveries on credit impairment relating to:
(428,924,696)
(210,316,882)
a) financial assets at amortised cost
(413,615,469)
(199,136,084)
b) financial assets at fair value through other comprehensive income
(15,309,227)
(11,180,798)
140. Gains/Losses from contractual changes with no cancellations
10,492,605
6,609,865
150. Net profit from financial activities
15,444,294,237
13,547,238,882
160. Administrative expenses:
(5,862,298,848)
(5,903,841,788)
a) staff costs
(3,619,212,187)
(3,518,992,873)
b) other administrative expenses
(2,243,086,661)
(2,384,848,915)
170. Net provisions for risks and charges:
66,323,585
(37,216,496)
a) commitments and financial guarantees given
34,691,677
840,819
b) other net provisions
31,631,908
(38,057,315)
180. Net value adjustments/write-backs on property, plant and equipment
(315,904,130)
(368,921,821)
190. Net value adjustments/write-backs on intangible assets
(419,736,622)
(436,240,907)
200. Other operating expenses/income
1,277,094,522
1,229,717,326
210. Operating costs
(5,254,521,493)
(5,516,503,686)
220. Gains (Losses) of equity investments
(557,340,357)
3,889,361,619
230. Net gains (losses) on property, plant and equipment and intangible assets measured at fair value
(24,652,467)
(19,945,926)
240. Goodwill impairment
-
-
250. Gains (Losses) on disposals on investments
(851,904)
(261,139)
260. Profit (Loss) before tax from continuing operations
9,606,928,016
11,899,889,750
270. Tax expenses (income) for the year from continuing operations
(1,500,456,208)
(635,682,567)
280. Profit (Loss) after tax from continuing operations
8,106,471,808
11,264,207,183
290. Profit (Loss) after tax from discontinued operations
-
-
300. Profit (Loss) of the year
8,106,471,808
11,264,207,183
859
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Company accounts
Company accounts
Statement of other comprehensive income
(€)
YEAR
ITEMS
2024
2023
10. Profit (Loss) of the year
8,106,471,808
11,264,207,183
Other comprehensive income after tax not reclassified to profit or loss
228,620,566
(4,635,754)
20. Equity instruments designated at fair value through other comprehensive income
239,392,646
39,190,888
30. Financial liabilities designated at fair value through profit or loss (own creditworthiness changes)
9,838,462
(34,820,534)
40. Hedge accounting of equity instruments designated at fair value through other comprehensive income
-
-
50. Property, plant and equipment
(12,709,115)
(9,306,962)
60. Intangible assets
-
-
70. Defined-benefit plans
(4,448,311)
56,500
80. Non-current assets and disposal groups classified as held for sale
(3,453,116)
244,354
90. Portion of valuation reserves from investments valued at equity method
-
-
Other comprehensive income after tax reclassified to profit or loss
(71,523,413)
(49,161,584)
100. Foreign investments hedging
-
-
110. Foreign exchange differences
-
-
120. Cash flow hedging
49,343,258
(33,836,793)
130. Hedging instruments (non-designated items)
-
-
140. Financial assets (different from equity instruments) at fair value through other comprehensive income
(120,866,671)
(15,324,791)
150. Non-current assets and disposal groups classified as held for sale
-
-
160. Part of valuation reserves from investments valued at equity method
-
-
170. Total other comprehensive income after tax
157,097,153
(53,797,338)
180. Other comprehensive income (Item 10+170)
8,263,568,961
11,210,409,845
Statement of comprehensive income
860
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Company accounts
Company accounts
Statement of changes in the shareholders' equity as at 31 December 2024
(€)
CHANGE IN OPENING BALANCE
PREVIOUS YEAR
PROFIT (LOSS)
ALLOCATION
CHANGES IN THE YEAR
CHANGES IN RESERVES
SHAREHOLDERS' EQUITY TRANSACTIONS
2024
RESERVES
DIVIDENDS AND OTHER ALLOCATIONS
ISSUE OF NEW SHARES
PURCHASE OF TREASURY SHARES
ADVANCED DIVIDENDS
DIVIDENDS EXTRAORDINARY DISTRIBUTION
CHANGE IN EQUITY INSTRUMENTS
TREASURY SHARES DERIVATIVES
STOCK OPTIONS
31.12.2024
31.12.2023
01.01.2024
OTHER COMPREHENSIVE INCOME
SHAREHOLDERS' EQUITY AS AT
BALANCE AS AT
BALANCE AS AT
Share capital:
21,277,874,388
-
21,277,874,388
-
-
-
89,806,133
-
-
-
-
-
-
-
21,367,680,521
- ordinary shares
21,277,874,388
-
21,277,874,388
-
-
-
89,806,133
-
-
-
-
-
-
-
21,367,680,521
- other shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Share premium
22,580,466
-
22,580,466
-
-
-
-
-
-
-
-
-
-
-
22,580,466
Reserves:
23,944,526,253
-
23,944,526,253
8,219,469,863
-
(8,244,349,238)
(89,806,133)
-
-
-
-
-
68,910,078
-
23,898,750,823
- from profits
17,191,341,011
-
17,191,341,011
8,219,469,863
-
(5,016,236,655)
(89,806,133)
-
-
-
-
-
-
-
20,304,768,086
- other
6,753,185,242
-
6,753,185,242
-
-
(3,228,112,583)
-
-
-
-
-
-
68,910,078
-
3,593,982,737
Valuation reserves
658,187,274
-
658,187,274
-
-
-
-
-
-
-
-
-
-
157,097,153
815,284,427
Advanced dividends
-
-
-
-
-
-
-
- (1,440,000,000)
-
-
-
-
-
(1,440,000,000)
Equity instruments
4,862,697,736
-
4,862,697,736
-
-
-
-
-
-
- 95,461,323
-
-
-
4,958,159,059
Treasury shares
(1,726,850,405)
-
(1,726,850,405)
-
-
-
7,597,676,238 (5,870,825,833)
-
-
-
-
-
-
-
Profit (Loss) for the year
11,264,207,183
-
11,264,207,183
(8,219,469,863)
(3,044,737,320)
-
-
-
-
-
-
-
-
8,106,471,808
8,106,471,808
Shareholders’ equity
60,303,222,895
-
60,303,222,895
-
(3,044,737,320)
(8,244,349,238)
7,597,676,238 (5,870,825,833) (1,440,000,000)
- 95,461,323
-
68,910,078
8,263,568,961
57,728,927,104
Statement of changes in shareholders’e equity
The changes in the year of the item "Treasury shares" refer to the purchases of UniCredit ordinary shares executed under the share buy-back
programs and the subsequent cancellation of the shares purchased with no reduction in the nominal share capital; the positive change due to the
cancellation of the treasury shares is conventionally reported in the column “issue of new shares”.
The amounts disclosed in column “Stock Options” represent the effects of the delivery of shares connected with the ESOP Plans and other Group
Executive Incentive Plans.
861
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Company accounts
Company accounts
Statement of changes in the shareholders' equity as at 31 December 2023
(€)
CHANGE IN OPENING BALANCE
PREVIOUS YEAR
PROFIT (LOSS)
ALLOCATION
CHANGES IN THE YEAR
CHANGES IN RESERVES
SHAREHOLDERS' EQUITY TRANSACTIONS
2023
RESERVES
DIVIDENDS AND OTHER ALLOCATIONS
ISSUE OF NEW SHARES
PURCHASE OF TREASURY SHARES
ADVANCED DIVIDENDS
DIVIDENDS EXTRAORDINARY DISTRIBUTION
CHANGE IN EQUITY INSTRUMENTS
TREASURY SHARES DERIVATIVES
STOCK OPTIONS
31.12.2023
31.12.2022
01.01.2023
OTHER COMPREHENSIVE INCOME
SHAREHOLDERS' EQUITY AS AT
BALANCE AS AT
BALANCE AS AT
Share capital:
21,220,169,840
-
21,220,169,840
-
-
-
57,704,548
-
-
-
-
-
-
-
21,277,874,388
- ordinary shares
21,220,169,840
-
21,220,169,840
-
-
-
57,704,548
-
-
-
-
-
-
-
21,277,874,388
- other shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Share premium
2,516,382,837
-
2,516,382,837
-
-
(2,493,802,371)
-
-
-
-
-
-
-
-
22,580,466
Reserves:
23,706,970,948
-
23,706,970,948
1,212,066,067
-
(988,225,427)
(57,704,548)
-
-
-
-
-
71,419,213
-
23,944,526,253
- from profits
18,617,664,875
-
18,617,664,875
1,212,066,067
-
(2,580,685,383)
(57,704,548)
-
-
-
-
-
-
-
17,191,341,011
- other
5,089,306,073
-
5,089,306,073
-
-
1,592,459,956
-
-
-
-
-
-
71,419,213
-
6,753,185,242
Valuation reserves
711,984,612
-
711,984,612
-
-
-
-
-
-
-
-
-
-
(53,797,338)
658,187,274
Advanced dividends
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Equity instruments
6,099,697,039
-
6,099,697,039
-
-
-
-
-
-
- (1,236,999,303)
-
-
-
4,862,697,736
Treasury shares
-
-
-
-
-
-
3,031,011,692 (4,757,862,097)
-
-
-
-
-
-
(1,726,850,405)
Profit (Loss) for the year
3,106,674,500
-
3,106,674,500
(1,212,066,067)
(1,894,608,433)
-
-
-
-
-
-
-
-
11,264,207,183
11,264,207,183
Shareholders’ equity
57,361,879,776
-
57,361,879,776
-
(1,894,608,433)
(3,482,027,798)
3,031,011,692 (4,757,862,097)
-
- (1,236,999,303)
-
71,419,213
11,210,409,845
60,303,222,895
862
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Company accounts
Company accounts
Cash flow statement
Cash flow statement (indirect method)
(€)
YEAR
2024
2023
A. OPERATING ACTIVITIES
1. Operations:
8,402,925,415
7,383,039,081
- profit (loss) for the year (+/-)
8,106,471,808
11,264,207,183
- gains/losses on financial assets held for trading and on other financial assets/liabilities at fair value
through profit or loss (-/+)
(174,271,225)
(1,072,080,177)
- gains (losses) on hedge accounting (-/+)
402,049,562
(4,646,856)
- net impairment losses/writebacks on impairment for credit risk (+/-)
1,494,368,356
1,684,315,991
- net value adjustments/write-backs on property, plant and equipment and intangible assets (+/-)
760,293,219
825,108,654
- net provisions for risks and charges and other expenses/income (+/-)
(162,710,248)
11,962,264
- unpaid duties, taxes and tax credits (+/-)
1,230,075,508
605,144,623
- impairment/write-backs after tax on discontinued operations (+/-)
-
-
- other adjustments (+/-)
(3,253,351,565)
(5,930,972,601)
2. Liquidity generated/absorbed by financial assets:
1,287,712,619
9,765,193,151
- financial assets held for trading
(5,159,772,433)
(1,578,756,486)
- financial assets designated at fair value
(36,461)
80,721,832
- other financial assets mandatorily at fair value
(239,793,601)
(915,992,793)
- financial assets at fair value through other comprehensive income
(8,064,834,487)
(4,699,524,073)
- financial assets at amortised cost
12,404,996,252
16,107,041,201
- other assets
2,347,153,349
771,703,470
3. Liquidity generated/absorbed by financial liabilities:
(1,704,793,267)
(53,635,440,655)
- financial liabilities at amortised cost
(984,329,352)
(53,272,115,514)
- financial liabilities held for trading
(2,346,256,326)
(336,644,032)
- financial liabilities designated at fair value
2,849,163,833
1,516,991,111
- other liabilities
(1,223,371,422)
(1,543,672,220)
Net liquidity generated/absorbed by operating activities
7,985,844,767
(36,487,208,423)
B. INVESTMENT ACTIVITIES
1. Liquidity generated by:
5,047,344,980
3,160,101,819
- sales of equity investments
6,678,683
87,397,943
- collected dividends on equity investments
5,018,279,254
3,044,099,631
- sales of property, plant and equipment
22,387,043
24,554,110
- sales of intangible assets
-
4,050,135
- sales of business units
-
-
2. Liquidity absorbed by:
(1,204,038,689)
(625,836,947)
- purchases of equity investments
(404,818,973)
(95,301,601)
- purchases of property, plant and equipment
(251,986,638)
(150,317,918)
- purchases of intangible assets
(547,233,078)
(380,217,428)
- purchases of business units
-
-
Net liquidity generated/absorbed by investment activities
3,843,306,291
2,534,264,872
C. FUNDING ACTIVITIES
- issue/purchase of treasury shares
(5,878,381,625)
(4,762,935,009)
- issue/purchase of equity instruments
(162,436,154)
(1,250,000,000)
- dividend distribution and other
(4,929,075,367)
(2,417,652,641)
Net liquidity generated/absorbed by funding activities
(10,969,893,146)
(8,430,587,650)
NET LIQUIDITY GENERATED/ABSORBED IN THE YEAR
859,257,912
(42,383,531,201)
Key:
(+) generated;
(-) absorbed.
863
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Company accounts
Company accounts
Reconciliation
(€)
YEAR
ITEMS
2024
2023
Cash and cash balances at the beginning of the year
12,300,646,051
54,713,168,717
Net liquidity generated/absorbed in the year
859,257,912
(42,383,531,201)
Cash and cash balances: foreign exchange effect
62,787,621
(28,991,465)
Cash and cash balances at the end of the year
13,222,691,584
12,300,646,051
The item "Cash and cash balances" refers to the definition according to Banca d’Italia (Circular 262 of 22 December 2005 and subsequent
amendments) and is mainly related to “Current accounts and Demand deposits with Central Banks” for €10 billion.
864
UniCredit 2024 Annual Reports and Accounts
UniCredit 2024 Annual Reports and Accounts
865
865
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
866
UniCredit 2024 Annual Reports and Accounts
866
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part A - Accounting policies
Notes to the accounts
Part A - Accounting policies
A.1 - General
Section 1 - Statement of compliance with IFRS
These Company financial statements have been prepared in accordance with the IFRS issued by the International Accounting Standards Board
(IASB), including the interpretation documents issued by the SIC and the IFRIC, and endorsed by the European Commission up to 31 December
2024, pursuant to EU Regulation 1606/2002 which was incorporated into Italian legislation through Legislative Decree 38 of 28 February 2005 (refer
also to Section 4 - Other matters).
These financial statements are an integral part of the Annual financial statements as required by Art.154-ter, par.1 of the Single Finance Act
(Consolidated Law on Finance - TUF, Legislative Decree 58 of 24 February 1998).
In Circular 262 of 22 December 2005 (and subsequent amendments), with regard to the banks and financial institutions subject to supervision,
Banca d’Italia has established the formats for the financial statements and Notes to the accounts used to prepare these Company financial
statements.
867
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part A - Accounting policies
Section 2 - General Preparation Criteria
As mentioned above, these “Company financial statements as at 31 December 2024” have been prepared in accordance with the international
accounting standards endorsed by the European Commission.
The following documents have been used to interpret and support the application of IAS/IFRS, even though they have not all been endorsed by the
European Commission:
• the Conceptual Framework for Financial Reporting;
• Implementation Guidance, Basis for Conclusions, IFRICs and the documents prepared by either the IASB or the International Financial Reporting
Interpretations Committee (IFRIC) supplementing the IFRS;
• Interpretative documents on the application of the IAS/IFRS in Italy prepared by the Organismo Italiano di Contabilità (the Italian Standard Setter;
OIC) and Associazione Bancaria Italiana (Italian Banking Association, that is the trade association of Italian banks; ABI);
• Coordination Table between Banca d'Italia, Consob and Ivass with regard to the application of IAS/IFRS, in particular the Document No.9, dated 5
January 2021, Accounting Treatment of tax credits connected with the “Cura Italia” and “Rilancio” Law Decrees purchased following the sale
without recourse by the direct beneficiaries or previous buyers (“Trattamento contabile dei crediti d’imposta connessi con i Decreti Legge “Cura
Italia” e “Rilancio” acquistati a seguito di cessione da parte dei beneficiari diretti o di precedenti acquirenti”); such document was subsequently
updated by Banca d’Italia on 24 July 2023 with the clarification note “Credit risk - Standardised method and IRB - Clarification note” (“Rischio di
credito - Metodo Standardizzato e IRB - Nota di chiarimenti”);
• ESMA (European Securities and Markets Authority), European Banking Authority, European Central Bank and Consob documents on the
application of specific IAS/IFRS provisions also with specific reference to the presentation of the effects arising from geopolitical tensions and their
effects on the evaluation processes. In particular, it shall be made reference to the ESMA statements dated 29 October 2021, 14 March 2022, 13
May 2022, 28 October 2022, 25 October 2023 and 24 October 2024; and to Consob “Call for attention" dated 18 March 2022 and 19 May 2022.
The content of such communications, when relevant, has been reported in “Section 4. Other matters” of Notes to the accounts, Part A -
Accounting policies, A.1 - General, in the context of valuation choices performed by the Bank as at 31 December 2024.
The Company financial statements include the Balance sheet, the Income statement, the Statement of other comprehensive income, the Statement
of changes in shareholders’ equity, the Cash flow statement (compiled using the “indirect method”) and the Notes to the accounts, together with the
Report on operations and Annexes. The schemes and Notes of the Company financial statements as at 31 December 2024 are in line with Banca
d’Italia templates as prescribed by Circular 262 dated 22 December 2005 (and subsequent amendments) as well as 14 March 2023 communication
on impacts of Covid-19 and measures to support the economy, and they present comparative figures, as at 31 December 2023.
Unless otherwise specified, figures in the Company accounts are given in units of euro and the Notes to the accounts in millions of euros.
Risks and uncertainty relating to the use of estimates
Under the IFRS, management must make judgments, estimates and assumptions that affect the application of accounting principles and the
amounts of assets/liabilities and income and expenses reported in the accounts, as well as the disclosure concerning contingent assets and
liabilities.
Estimates and related assumptions are based on previous experience and on the available information framework with reference to the current and
expected context and have been used to estimate the carrying values of assets and liabilities not readily available from other sources.
Estimates and assumptions are regularly reviewed. Any change resulting from these reviews is recognised in the period in which the review was
carried out, provided the change only concerns that period. If the review concerns both current and future periods, it is recognised accordingly in
both current and future periods.
In particular, estimated figures have been used for the recognition and measurement of some of the main items in the Company financial statements
as at 31 December 2024, as required by the accounting policies, statements and regulations described above.
The current market environment continues to be affected by uncertainty stemming from geopolitical tension. In this respect, according to ECB
macroeconomic projections updated in December 2024104 remark that the economic outlook continues to be surrounded by uncertainty considering
tensions in the Middle East, the war in Ukraine, the lingering weakness in the Chinese real estate market and the possibility that the next US
Administration will turn more inward-looking. Therefore, the outlook for Gross Domestic Product (GDP) growth was slightly revised downward
compared to September 2024 projections; in detail, the outlook for GDP was negatively revised mainly following data revisions on investment,
expectations of weaker export growth in 2025, downward revision to the projected expansion of domestic demand in 2026.
104 ECB staff macroeconomic projections for the euro area, December 2024.
868
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part A - Accounting policies
With regard to the inflation, following a rise in late 2024, it is projected to decline and hover around ECB’s 2% inflation target from second quarter
2025. Base effects in energy component are expected to be the main driver of the temporary increase in inflation at the start of the projection
horizon. Based on assumptions of declining oil and gas prices, energy inflation is likely to remain negative until the second quarter 2025 and stay
subdued thereafter, except for an uptick in 2027 owing to the introduction of new climate change mitigation measures.
The outlook for headline HICP105 inflation, compared to September 2024 projections, was revised slightly down for 2024 and 2025, mainly owing to
lower oil and electricity price assumptions.
Moreover, although high uncertainty, fiscal policies are assumed to be on a consolidation path overall, despite funds from Next Generation EU
(NGEU) programme should support growth until its expiry in 2027.
In the context of persisting uncertainty explained above, UniCredit bank defined different macro-economic scenarios, to be used for the purposes of
the evaluation processes related to the 2024 Company financial statements.
In particular, in addition to the "Base" scenario, which reflects the expectations considered most likely concerning macro-economic trends, an
“Alternative/Recession” and a “Positive” scenario were outlined, these reflecting respectively a downward and an upward forecast of the
macroeconomic parameters and consequently in the expected profitability of the business.
The paragraphs below provide a detailed description of the characteristics associated with the above scenarios.
Features of the scenarios
• Base: it is the main reference scenario, underlying the approved budget for 2025, and the projections for 2026 and 2027. Such scenario assumes,
in terms of macro-economic conditions: (i) moderate GDP growth expected for 2025 impacted by manufacturing sector; improving trend in 2026-
2027 mainly underpinned by internal demand; (ii) inflation declining in 2025 and stabilizing in 2026-2027; (iii) ECB monetary policy consistent with
inflation normalization; ECB Deposit Facility Rate equal to 300 bps at year end 2024, and assumed equal to 2% at year-end 2025; (iv) 3M Euribor
assumed to decrease in 2025, landing to approx. 200 bps at year-end 2025 and remaining broadly stable in 2026; (v) Russia Sovereign Rating at
CCC.
In Italy and Germany, the GDP is expected to expand in 2025 but still at a low pace, consistently with weak manufacturing sector and slow
recovery in global trade; improving growth expected in 2026 and 2027, benefiting from lower inflation and internal demand.
For Central and Eastern Europe (including Austria and excluding Russia), the Real GDP is expected to increase by 1.9% in 2025 and close to ca.
2.4% in the following 2 years.
For Russia, minor growth is assumed in 2025 (after two strong years), improving trends are expected in 2026-2027.
With reference to the FX rates, the Base scenario assumes the Russian Ruble depreciation over time, from current levels to 149 as at year-end
2027, reflecting decreasing energy prices and gas export.
Average Inflation (excluding Russia) will decrease in 2025, remaining close to 2% in 2025-2027; still above 2% in CE&EE.
Uncertainties/risks in the short/medium term persist, both for inflation/rates and for growth (mainly for US elections impact).
Furthermore, potential pressure is assumed on BTP-Bund spread (150 bps year-end 2025, 175 bps year-end 2026-2027), to factor-in volatility and
uncertainties on Italian Sovereign debt and macro-economic developments.
• Alternative/Recession: this scenario embeds downward forecast of macro-economic parameters and consequently in the expected profitability of
the business and assumes an intensification of geopolitical tensions in the Middle East and Ukraine with negative supply. Activity starts contracting
in 2025 with deepen recession in 2026. Weaker demand resulting in lower inflation vs. Base. Central Banks respond to the shocks by cutting rates
more aggressively than in the Base.
For Italy and Germany, GDP would contract in 2025-2026, turning positive in 2027 (supply chains normalization).
For Central and Eastern Europe (including Austria and excluding Russia), the growth shock is assumed to be about -5.7% (cumulated in 2025-
2027).
For Russia, the growth shock is assumed to be -3.3% (cumulated in 2025-2027).
Expected inflation is lower than in the Base case as disinflation forces prevail overall (stronger impact by weaker demand). Concerning the ECB
monetary policy, Central banks cut interest rates more aggressively than in the baseline scenario (3M Euribor equal to 129 bps at year-end 2025,
close to 1% in subsequent years).
In addition, the pressure on BTP-Bund spread is higher compared to the Base case (223 bps for year-end 2025, 232 bps for year-end 2026),
reflecting deteriorated economic conditions.
105 Harmonised Indices of Consumer Prices.
869
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part A - Accounting policies
• Positive: it exhibits upward forecast of macro-economic parameters and assumes a de-escalation of geopolitical tensions and US trade policies
less restrictive than expected. Such a scenario foresees an improved labour market, wage growth and a relatively stable inflation leading,
therefore, to a stronger consumer spending and better economic growth. On the other side, favourable risk repricing and higher demand
accelerate investment activity.
For Italy and Germany, GDP increases constantly through the 3-year forecast period by 4.8% and 5.6% respectively on cumulative basis.
For Central and Eastern Europe (including Austria and excluding Russia), GDP is expected to rise by 10.6% (cumulated in 2025-27).
For Russia, GDP would increase, by 5.8% (2025-2027), at a low pace compared to the CE&EE area.
With reference to inflation, it is expected higher when compared to the Base scenario, due to the better economic growth leading to a higher
demand.
In addition, the pressure on BTP-Bund spread is lower compared to Base case (125 bps in 2025, 150 bps in 2026 and 2027), reflecting improved
economic conditions.
The table below shows the most significant macro-economic data featuring the Base, Alternative/Recession and Positive scenarios.
INTEREST RATES, INFLATION AND YIELD ENVIRONMENT
2024
2025
2026
2027
Base Scenario 2024
Euribor 3M (EoP, bps)
271
204
202
202
Spread BTP - Bund (EoP, bps)
116
150
175
175
Real GDP growth y/y, %
Italy
0.5
0.8
1.0
1.0
Germany
(0.2)
0.7
1.2
1.4
CE & EE (excl. Russia)
1.2
1.9
2.4
2.4
Russia
3.7
0.5
1.3
1.6
Inflation average %
Italy
1.0
1.5
1.6
2.0
Germany
2.3
1.5
1.7
1.8
CE & EE (excl. Russia)
3.4
3.4
2.8
2.7
Russia
8.4
5.8
4.3
4.1
Alternative/Recession Scenario 2024
Euribor 3M (EoP, bps)
-
129
104
102
Spread BTP - Bund (EoP, bps)
-
223
232
222
Real GDP growth y/y, %
Italy
-
(0.8)
(2.1)
0.2
Germany
-
(1.0)
(2.0)
0.5
CE & EE (excl. Russia)
-
0.2
(0.5)
1.5
Russia
-
(0.2)
(1.1)
1.3
Inflation average %
Italy
-
1.3
1.0
1.6
Germany
-
1.3
0.9
1.5
CE & EE (excl. Russia)
-
3.3
2.3
2.4
Russia
-
5.6
3.8
3.7
Positive Scenario 2024
Euribor 3M (EoP, bps)
-
289
307
307
Spread BTP - Bund (EoP, bps)
-
125
150
150
Real GDP growth y/y, %
Italy
-
1.5
1.9
1.4
Germany
-
1.3
2.3
2.0
CE & EE (excl. Russia)
-
2.5
3.5
3.0
Russia
-
1.2
2.5
2.2
Inflation average %
Italy
-
1.7
1.8
2.2
Germany
-
1.9
2.0
2.0
CE & EE (excl. Russia)
-
3.7
3.1
2.8
Russia
-
6.0
4.6
4.2
870
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part A - Accounting policies
Measurement of credit exposures
With reference to the credit exposures as at 31 December 2024, the macroeconomic scenarios used for calculation of credit risk parameters
(Probability of Default, Loss Given Default, Exposure at Default) were updated according to the Bank policies, on the basis of the features
highlighted above.
Starting from December 2024, while the Base scenario was kept at 60%, the weights of positive and alternative scenarios were reviewed, by setting
them respectively at 5% and 35% (vs 0% and 40% in the previous period).
In this regard, it shall be noted that the amount of loan loss provisions is determined by considering: (i) the classification (current and expected) of
credit exposures as non-performing; (ii) the sale prices, for those non-performing exposure whose recovery is expected through sale to external
counterparties; and (iii) credit parameters (Probability of Default, Loss Given Default and Exposure at Default) which, in accordance with the IFRS9,
incorporate forward looking information and the expected evolution of the macro-economic scenario.
Therefore, also in this case, the measurement is affected by the mentioned degree of uncertainty on the evolution of the geopolitical tension as well
as the evolution of the macroeconomic conditions.
Indeed, the evolution of these factors may require - in future financial years - the classification of additional credit exposures as non-performing, thus
determining the recognition of additional loan loss provisions, also related to performing exposures, following the update in credit parameters. In
addition, adjustments to the loan loss provisions might derive from the occurrence of a macro-economic scenario different from the one estimated for
the calculation of the credit risk parameters, or by the prevalence on the market of non-performing exposures of prices different from those used in
the measurement.
The evolution of the real estate market, in terms of downward correction of real estate prices, might impact (i) the value of properties received as
collateral requiring an adjustment to the loan loss provisions or (ii) the ability of certain counterparties operating in the real estate sector to serve
their debt.
Eventually, starting from 2024 the measurement of credit exposures reflects Climate and Environmental risk by incorporating such risk in the
evolution of Credit Risk parameters (Probability of Default, Loss Given Default as applicable) which have been calibrated considering different
assumptions in terms of implementation of transition policies and severity on physical risk. Therefore, adverse changes in climate risks which may
result in a tightening of transition policies and associated cost or in an increase severity of physical risk may require the recognition of additional loan
loss provisions.
For additional information on the measurement of credit exposures refer to the paragraph “2.1 Credit risk” of the Notes to the consolidated accounts
Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter.
Investments in subsidiaries and deferred tax assets
With reference to equity investments in subsidiaries and deferred tax assets, the measurement is significantly influenced by assumptions about
future cash flows, which in turn incorporate assumptions on the evolution of the macro-economic scenario. As a result, for the measurement
purposes, and with the aim to reflect the uncertainty, the “Base” and the “Alternative/Recession” scenarios above outlined were considered for the
estimation of future cash flows, weighting them respectively for 65% and 35% (respectively at 60% and 40% in the previous period). These weights
were applied in coherence with the weights applied for the measurement of credit exposures, by converging the positive scenario into the “Base”.
Moreover, considering that - further to the cash flows - additional parameters are relevant in the calculation approach underlying the DTA
sustainability test, the evaluation of the following parameters was reviewed taking into consideration the ESMA statements on recognition of
deferred tax assets arising from the carry-forward of unused tax losses106: (i) volatility parameter, calculated on the historical series since 2007 of the
pre-tax results of a significant sample of European Banks107; (ii) confidence level used in the MonteCarlo calculation.
The results of these evaluations might be subject to changes depending on the evolution of the underlying parameters, mainly Profit Before Tax,
volatility parameter, and confidence level used in the MonteCarlo calculation, whose changes, which may also be driven by change in macro-
economic scenario, might determine a change in the valuation.
For further information on the methodology, results and base assumptions used in the impairment test of investments in subsidiaries and deferred
tax assets, refer respectively to sections “Section 7 - Equity investments - Item 70” and “Section 10 - Tax assets and tax liabilities - Item 100
(Assets) and Item 60 (Liabilities)” of the Notes to the accounts, Part B - Balance sheet - Assets.
106 ESMA Public Statement. Consideration on recognition of deferred tax assets arising from the carry-forward of unused tax losses, issued on 15 July 2019.
107 Data from European Central Bank (ECB) Statistical Datawarehouse.
871
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part A - Accounting policies
Measurement of real estate portfolio
Always with reference to the valuation of non-financial assets, the valuation of the real estate portfolio has become relevant following the adoption,
starting from 31 December 2019, of the fair value model (assets held for investment) and the revaluation model (assets used in the business). For
these assets, on 31 December 2024, the fair value was determined by making recourse to external appraisals, following the Group guidelines.
In this context, it is worth to note that, in upcoming financial years, the fair value of these assets might be different from the fair value observed as at
31 December 2024, as a result of the possible evolution of real estate market, which also depends on the evolution of the macro-economic scenario,
including but not limited to the geo-political tensions as well as the evolution of the macroeconomic conditions.
For additional information on the measurement of the real estate portfolio, refer to the paragraph “Section 8 - Property, plant and equipment - Item
80” of the Notes to the accounts Part B - Balance sheet - Assets.
Russia
UniCredit S.p.A. is exposed to Russia through (i) its investments in AO UniCredit Bank; and (ii) exposures toward Russian Counterparties.
Geopolitical tensions have been arising from the conflict between Russia and Ukraine, leading to sanctions and countersanctions among the parties;
the Russian administration also took actions towards western investors, in terms of, e.g.,: (i) temporary management by Russian entities of
subsidiaries of western investors; (ii) lack of procedures for capital repatriation from Russia; (iii) limiting ability for Russian subsidiaries to distribute
dividends towards western investors; (iv) ruling of Russian Courts which considered local subsidiaries of western investors jointly and severally liable
in legal cases.
The evolution of such geopolitical tensions may affect, also significantly, the value of these assets and liabilities possibly determining the need to
recognise additional losses.
Regarding the Russian Ruble FX rate, the ECB stopped the quotation of EUR/RUB exchange rate since 2 March 2022. Therefore, as at 31
December 2024 and in coherence with the previous year, the Bank is applying an OTC foreign exchange rate provided by Electronic Broking
Service (EBS108). In this regard it cannot be excluded that, once the ECB will restart listing RUB/EUR FX rate, these quotes might be different from
EBS quotes, thus requiring the recognition of an impact in Net Equity and in P&L.
For additional information on the FX rate, refer to the “Section 4 - Other matters”, Notes to the accounts, Part A - Accounting policies, A.1 General.
Other measurements
The following additional Balance sheet items might be significantly affected in their evaluation by risks and uncertainties, even if not directly
connected with the slow-down of the economic activity and the associated uncertainty level of the economic recovery:
• fair value of financial instruments not listed in active markets;
• severance pay (in Italy) and other employee’s benefits (including defined benefit obligation);
• provisions for risks and charges.
While evaluations have been made on the basis of information deemed to be reasonable and supportable as at 31 December 2024, they might be
subject to changes not foreseeable at the moment, as a result of the evolution in the parameters used for the evaluation.
Furthermore, the following factors, in addition to those illustrated above, might influence the future results of the Bank and cause outcomes
materially different from those deriving from the valuations: (1) general economic and industrial conditions of the regions in which the Bank operates
or holds significant investments; (2) exposure to various market risks (e.g., foreign exchange risk); (3) political instability in the areas in which the
Bank operates or holds significant investments; (4) legislative, regulatory and tax changes, including regulatory capital and liquidity requirements,
also taking into account increased regulation in response to the financial crisis; (5) adverse change in climate which may affect the value of the
assets held and/or the ability of customers to serve their debts109. Other unknown and unforeseeable factors could determine material deviations
between actual and expected results.
Statement of going concern
In their joint Document No.4 of 3 March 2010, Banca d’Italia, Consob and ISVAP made observations on the situation of the markets and businesses
and requested that information essential for a better understanding of business trends and outlook be disclosed in financial reports. Also following
such guideline, the present statement of going concern is released.
UniCredit Directors observed that during the 2024 the geopolitical tensions between Russian Federation and Ukraine and in the middle - east
persisted. Such events determined a relevant uncertainty in the macroeconomic outlook, in terms of GDP, inflation rates and interest rates.
The Directors assessed such circumstances, and concluded, with reasonable certainty, that the Bank will be able to operate profitably in the
foreseeable future; as a result, in accordance with the provisions of IAS1, the Company reports as at 31 December 2024 was prepared on a going
concern basis.
108 EBS is a wholesale electronic trading platform used to trade on the foreign exchange market (FX) with market-making banks. It is part of CME Group (Chicago Mercantile Exchange).
109 For additional information about climate risk and how the Group affects it refer to Part E - Information on risks and related hedging policies - Climate-related and environmental risks.
872
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part A - Accounting policies
For releasing such statement and the connected evaluations, the main Group regulatory ratios were also taken into account at 31 December 2024,
in terms of: (i) actual figures as at 31 December 2024 (CET1 Ratio Transitional equal to 15.96%; MREL Ratio equal to 32.73% in terms of RWEA
and 10.33% in terms of Leverage Exposure; Liquidity Coverage Ratio at 144% based on monthly average on 12 months); (ii) the related buffer
versus the minimum requirements at the same reference date (CET1 Ratio Transitional: excess of 559 basis points; MREL Ratio: excess of 523
basis points in terms of RWEA and 424 in terms of Leverage Exposure; Liquidity Coverage Ratio: excess of about 44 percentage points); iii) the
expected evolution of the same ratios during 2025 (in particular, it is expected to stay well above the capital requirements, consistently with the
UniCredit Unlocked CET1 ratio target of 12.5-13 per cent).
On 12 April 2024 the Shareholders meeting has authorised the purchase of a maximum No.200,000,000 of UniCredit S.p.A. shares, to be carried
out, even in more transactions, within the earliest of: (i) the date which will fall after 18 (eighteen) months from the date of the authorisation of the
shareholders’ meeting; and (ii) the date of the shareholders’ meeting which will be called to approve the financial statements for the year ending on
31 December 2024. The request for authorisation to purchase treasury shares was proposed by the Board of Directors as a part of the activities
envisaged in the 2022-2024 Strategic Plan (“UniCredit Unlocked”) presented to the market on 9 December 2021.
In particular, the following distributions were envisaged:
• a first distribution, for a maximum disbursement of €3,085,250,000, relating to the residual part of the overall payout for the 2023 financial year
(the "2023 SBB Residual");
• a second distribution as an anticipation of the expected distributions for the 2024 financial year, for an amount to be defined by the Board of
Directors of the Company in accordance with certain criteria (the "2024 SBB Anticipation").
The shares purchased pursuant to the aforementioned programmes were subject to cancellation.
The purchase programmes were subject to the prior permissions of the European Central Bank (ECB). These permissions have been granted on 11
April 2024 and on 13 September 2024, respectively for "2023 SBB Residual" and for "2024 SBB Anticipation".
The "2023 SBB Residual" buy-back programme has been executed in two tranches during 2024:
• a tranche for an amount of €1,585,250,000 denominated “Second Tranche of the Buy-Back Programme 2023”, was initiated on 9 May 2024 and
completed on 20 June 2024;
• the final tranche for an amount of €1,500,000,081.14, denominated "Third Tranche of the Buy-Back Programme 2023", was initiated on 21 June
2024 and completed on 19 August 2024.
The execution of "2024 SBB Anticipation" for an amount of €1,700,000,000 has been launched on 16 September 2024 and initiated on the same
date, as per the authorisation granted by the Shareholders' Meeting of the Company held on 12 April 2024. On 14 November 2024 UniCredit S.p.A.
announced the completion of such share buy-back programme.
For the sake of completeness, it is worth to note that on 5 November 2024 a proposal for the distribution of interim cash dividend for €1.4 billion was
submitted for approval to UniCredit S.p.A. the Board of Directors, which approved on the same date such a distribution.
The measurement criteria adopted are therefore consistent with this assumption and with the principles of accrual-based accounting, the relevance
and materiality of accounting information, and the prevalence of economic substance over legal form.
These criteria have not changed with respect to the previous year.
Section 3 - Subsequent events
No material events110 have occurred after the Balance sheet date that would make it necessary to change any of the information given in the
Company financial statements as at 31 December 2024.
For a description of the significant events111 after year-end, refer to the information evidenced in the paragraph “Subsequent events” of the
Consolidated financial statements of UniCredit group, Consolidated report on operations, Subsequent events and outlook.
110 Events happened subsequently to Financial Statements’ reporting date that are adjusting events in accordance with IAS10.
111 Events happened subsequently to Financial Statements’ reporting date that are non adjusting events in accordance with IAS10.
873
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part A - Accounting policies
Section 4 - Other matters
In 2024 the following standards, amendments or interpretations of the existing accounting standards came into force:
• amendments to IFRS16 Leases: Lease Liability in a Sale and Leaseback (EU Regulation 2023/2579);
• amendments to IAS1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current; Classification of Liabilities as
Current or Non-current - Deferral of Effective Date and Non-current Liabilities with Covenants (EU Regulation 2023/2822);
• amendments to IAS7 Statement of Cash Flows and IFRS7 Financial Instruments: Disclosures: Supplier Finance Arrangements (EU Regulation
2024/1317).
The entry into force of these new standards, amendments or interpretations has not determined substantial effects on the amounts recognised in
balance sheet or income statement.
As at 31 December 2024, the following document, applicable to reporting starting from 1 January 2025, has been endorsed by the European
Commission:
• amendments to IAS21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (EU Regulation 2024/2862).
The Bank does not expect significant impacts arising from the entry into force of such amendments.
As at 31 December 2024 the IASB issued the following accounting standards, amendments or interpretations of the existing accounting standards,
whose application is subject to completion of the endorsement process by the competent bodies of the European Union:
• IFRS18 Presentation and Disclosure in Financial Statements (issued on 9 April 2024);
• IFRS19 Subsidiaries without Public Accountability: Disclosures (issued on 9 May 2024);
• amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS9 and IFRS7) (issued on 30 May 2024);
• Annual Improvements Volume 11 (issued on 18 July 2024);
• Contracts Referencing Nature-dependent Electricity – Amendments to IFRS9 and IFRS7 (issued on 18 December 2024).
With regard to the amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS9 and IFRS7) the Bank is
assessing the impacts of new requirements and it expects to update the Group policies coherently.
Implications of geopolitical tensions between Russia and Ukraine on Company financial statements
UniCredit S.p.A. holds assets and liabilities potentially exposed to the consequences of the geopolitical tensions between Russia and Ukraine,
specifically: (i) the financial assets held by UniCredit S.p.A. towards Russian counterparties; (ii) its Russian Subsidiary.
1. Financial assets held by UniCredit S.p.A. toward Russian counterparties
The present section provides information about the credit exposures subject to Russian risk held by UniCredit S.p.A. (i.e., such exposures do not
include Letters of Credit).
The overall Gross Book Value for €331 million is composed by:
• on-balance exposures for an amount of €279 million, and off-balance exposures equal to approx. €52 million;
• overall coverage for approx. 35%.
The reduction for -€49 million compared to year-end 2023 (gross exposure for €380 million and overall write down for -€129 million) is mainly
attributable to redemptions occurred in the period.
PERFORMING ASSETS
GROSS EXPOSURE
OVERALL WRITEDOWNS
NET EXPOSURES
Deposits
-
-
-
Financial assets held for trading
-
-
-
Financial assets at FV through OCI
-
-
-
Financial assets at amortized cost
279
102
177
Total on balance exposures
279
102
177
Off Balance
52
15
37
Total 31.12.2024
331
117
214
Total 31.12.2023
380
129
251
Note:
Non-performing assets report a gross exposure (GBV) of €36 million and overall writedowns (LLP) of -€20 million (o/w Non-ECA amounting to €32 million in terms of GBV and -€19 million in terms of LLP).
874
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part A - Accounting policies
1.1 Classification and re-rating of loans toward Russian counterparties held by UniCredit S.p.A.
In the course of 2022, the credit exposures toward Russian counterparties by UniCredit S.p.A. were downgraded and classified into Stage 2. Such
Stage 2 classification was removed since June 2024.
Furthermore, an analysis was performed on the amount of LLPs to grant that they would be able to reflect in the measurement the differentiation in
asset valuation between onshore and offshore investors, where the latter are penalized in their ability to recover the claims against investments in
Russia. Indeed, in the perspective of an offshore investor exposed towards obligors with direct risk on Russia, such exposures are expected to
suffer from higher risk of missed fulfilment of credit obligation, as a consequence of sanctioning limitations and potential accelerated de-leveraging
actions.
Such analysis is still valid as at 31 December 2024; indeed, the persisting sanctions against Russia indicates that the mentioned differentiation in
asset valuation observed in 2022 continues to exist.
In this regard, the additional LLPs were quantified by assuming a coverage ratio comparable with the proactive classification of these exposures as
unlikely to pay. As at 31 December 2024 the stock of overall writedowns is equal to -€117 million (-€129 million as of year-end 2023).
1.2 Geopolitical overlay resulting from Russia-Ukraine crisis
For further information on geopolitical overlay refer to the paragraph “2.3.1 Staging allocation and Expected Credit Losses calculation” of the
Consolidated financial statements of UniCredit group, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies,
Section 2 - Risks of the prudential consolidated perimeter, 2.1 Credit risk, Qualitative information, 2. Credit risk management policies, 2.3
Measurement methods for expected losses, where the amounts related to UniCredit S.p.A. are also available.
2. Russian subsidiary
With reference to the investment in AO UniCredit Bank, write downs for -€161 million have been recognised.
For further details on the valuation of equity investments refer to Part B - Balance sheet - Assets, Section 7 - Equity investments - Item 70.
3. FX rate used as at 31 December for the conversion of exposures denominated in Rubles
As a result of the geopolitical tension, the ECB suspended the EUR/RUB listing since 2 March 2022 (last fixing on 1 March 2022), while Central
Bank of Russia (CBR) continued to provide a fixing versus other currencies. Despite such suspension, the availability of RUB FX rate is needed for
preparing the Company financial statements for the conversion into EUR of RUB denominated exposures.
In light of the IAS21 requirements (which establish that when several exchange rates are available, the rate used is the one at which the future cash
flows represented by the transaction could have been settled if those cash flows had occurred at the measurement date), the Bank decided to adopt
the RUB quotes listed by the Electronic Broking Service (EBS) in substitution of the lacking EUR/RUB quote. The choice of the provider was
executed following qualitative and quantitative assessment, which reported the following outcome: (i) the RUB quotes published by the platform are
representative of effective transactions between participants to the market; (ii) the FX quotes are substantially aligned with those provided by other
sources; (iii) the EBS RUB quotes resulted from actual transactions by non-Russian based operators, thus granting that such quote effectively
represents a market participant assessment of the value of the RUB and therefore of the economic conditions of Russia112.
112 Such conclusions are also corroborated by the meeting held by ECB - Foreign Exchange Contact Group during May 2022 in which EBS representative reported that EBS EUR/RUB Market continue to function, and that
liquidity in the Russian ruble is below pre-invasion levels, with activity concentrated mostly among larger banks in offshore markets.
875
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part A - Accounting policies
4. Claims in relation to guarantees and sanctions
UniCredit S.p.A. has made an application to the General Court of European Union (GCEU) to obtain definitive legal clarification of the obligations set
by the European Central Bank's (ECB) requirements to further reduce the risks associated with UniCredit's activities in Russia, carried out by
subsidiaries including AO UniCredit Bank. In this regard it should be noted that since Russia's invasion of Ukraine in February 2022, UniCredit has
been adopting a series of strategies to reduce its Russian presence resulting in a significant reduction of its cross-border and domestic exposures.
However, the unprecedented circumstances, the complexities inherent in the geo-political and economic scenario the lack of a harmonized
regulatory framework applicable to it and the potential for serious unintended consequences of implementing the decision that would impact not only
the Russian subsidiaries but UniCredit S.p.A., have compelled the Board of Directors of UniCredit to seek for clarity and certainty of the duties and
of the actions to be undertaken. To this purpose, UniCredit filed the application to the GCEU to get clarity about the obligations that UniCredit shall
abide by. This application has been made in the full knowledge of the ECB. While this application is being heard, UniCredit has requested an interim
suspension of the Decision pending the proceeding, which was denied by the GCEU in November 2024. The proceedings on the merits are ongoing.
***
The Company financial statements of UniCredit S.p.A. and the Consolidated financial statements of UniCredit group as at 31 December 2024 are
audited by KPMG S.p.A. pursuant to Legislative Decree No.39 of 27 January 2010 and to the resolution passed by the Shareholder’s Meeting on 9
April 2020.
UniCredit group prepared and published within the time limits set by law and in manner required by Consob, the Consolidated first half financial
report as at 30 June 2024, subject to limited scope audit, as well as the Consolidated interim reports as at 31 March and 30 September 2024, both
as press releases.
The Company financial statements of UniCredit S.p.A. and the Consolidated financial statements of UniCredit group as at 31 December 2024 have
been approved by the Board of Directors’ meeting of 20 February 2025, which authorised its disclosure to the public also pursuant to IAS10.
Directive 2004/109/EC (the "Transparency Directive") and Delegated Regulation (EU) 2019/815 introduced the obligation for issuers of securities
listed on regulated markets of the European Union to draw up the annual financial report in the language XHTML, based on the European Single
Electronic Format (ESEF), approved by ESMA.
The whole document is filed in the competent offices and entities as required by law.
876
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part A - Accounting policies
A.2 - Main items of the accounts
1 - Financial assets at fair value through profit or loss
a) Financial assets held for trading
Reference is made to the paragraph “a) Financial assets held for trading” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 1 - Financial assets at fair value through profit or loss, which is
herewith quoted entirely.
b) Financial assets designated at fair value through profit or loss
Reference is made to the paragraph “b) Financial assets designated at fair value through profit or loss” of the Consolidated financial statements of
UniCredit group, Notes to the consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 1 - Financial assets at fair value
through profit or loss, which is herewith quoted entirely.
c) Other financial assets mandatorily at fair value
Reference is made to the paragraph “c) Other financial assets mandatorily at fair value” of the Consolidated financial statements of UniCredit group,
Notes to the consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 1 - Financial assets at fair value through profit or
loss, which is herewith quoted entirely.
2 - Financial assets at fair value through other comprehensive income
Reference is made to the paragraph “2 - Financial assets at fair value through other comprehensive income” of the Consolidated financial
statements of UniCredit group, Notes to the consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, which is herewith
quoted entirely.
3 - Financial assets at amortised cost
Reference is made to the paragraph “3 - Financial assets at amortised cost” of the Consolidated financial statements of UniCredit group, Notes to
the consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, which is herewith quoted entirely.
4 - Hedge accounting
Reference is made to the paragraph “4 - Hedge accounting” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part A - Accounting policies, A.2 - Main items of the accounts, which is herewith quoted entirely.
5 - Equity investments
Equity investments are equity instruments and consequently defined as financial instruments under IAS32.
Investments in equity instruments made with the intention of establishing or maintaining a long-term operational relationship with the investee are
strategic investments.
The following are the types of equity investment:
Subsidiaries
Entities, including structured entities, over which the Bank has direct or indirect control, are considered subsidiaries. Control over an entity entails
the Bank's ability to exercise power in order to influence the variable returns to which the Bank is exposed through its relationship with them.
In order to verify the existence of control, the following factors are considered:
• the purpose and establishment of the investee, in order to identify which are the entity's objectives, the activities that determine its returns and how
these activities are ruled;
• the power, in order to understand whether the Bank has contractual rights that attribute the ability to govern the relevant activities; to this end only
substantial rights that provide practical ability to govern are considered;
• the exposure held in relation to the investee, in order to assess whether the Bank has relationships with the investee, the returns of which are
subject to changes deriving from variations in the investee's performance;
• the existence of potential principal - agent relationships.
877
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part A - Accounting policies
If the relevant activities are ruled through voting rights, the existence of control is verified considering the voting rights held, including the potential
ones, and the existence of any shareholders' or other agreements which attribute the right to control the majority of the voting rights, to appoint the
majority of the governing body or in any case the power to determine the entity's financial and operating policies.
Subsidiaries may also include any “structured entity” in which the voting rights are not significant for establishing control, including special purpose
entities and investment funds.
In the case of structured entities, the existence of control is ascertained considering both the contractual rights that enable governance of the
relevant activities (or those that contribute most to the results) and the Bank’s exposure to the variability of returns deriving from these activities.
Joint venture
A joint venture is an entity in which the Bank has:
• a joint control agreement;
• rights on the net assets of the entity.
In detail a joint control exists when the decisions over the relevant activities require the unanimous consent of all the parties that share control.
Associates
An associate is an entity over which the investor has significant influence and which are not subsidiaries or joint ventures.
Significant influence is presumed when the investor:
• holds, directly or indirectly, at least 20% of the share capital of another entity; or
• is able, also through shareholders' agreements, to exercise significant influence through:
- representation on the governing body of the company;
- participation in the policy-making process, including participation in decisions about dividends or other distributions;
- the existence of significant transactions;
- interchange of managerial personnel;
- provision of key technical information.
It should be noted that only companies which are governed through voting rights can be classified as associates.
Investments in subsidiaries, associates and joint ventures are measured at cost.
The purchase price of an equity investment is the sum of:
• the fair value, at the date of acquisition, of the assets sold, liabilities assumed and equity instruments issued by the purchaser in exchange for
control of the investee; and
• any cost directly attributable to the acquisition.
If there is evidence that an equity investment may have become impaired, its carrying value is compared with its recoverable value, which is
determined on the basis of its value in use, in turn calculated by means of valuation models in general use in financial business, which discount
expected future cash flow from the equity investment (methodology Discounted Cash Flow).
If it is not possible to obtain sufficient information the value in use is considered to be the net worth of the company.
If the recoverable value is less than the carrying value, the difference is recognised through profit or loss in item “220. Gains (Losses) of equity
investments”. If the reasons for impairment are removed following a subsequent event occurring after the recognition of impairment, write-backs are
made through same profit or loss item.
Equity investments considered strategic investments not covered by the above definitions and not recognised in item “110. Non-current assets and
disposal groups classified as held for sale” are classified as financial assets at fair value through other comprehensive income or other financial
assets mandatorily at fair value and accordingly treated.
878
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part A - Accounting policies
6 - Property, plant and equipment (Tangible assets)
Reference is made to the paragraph “6 - Property, plant and equipment (Tangible assets)” of the Consolidated financial statements of UniCredit
group, Notes to the consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, which is herewith quoted entirely.
7 - Intangible assets
An intangible asset is an identifiable non-monetary without physical substance which is expected to be used for more than one period, controlled by
the Bank and from which future economic benefits are probable.
Intangible assets are principally represented by software.
Intangible assets other than goodwill are recognised at purchase cost, i.e. including any cost incurred to bring the asset into use, less accumulated
amortisation and impairment losses.
Costs sustained after purchase are:
• added to initial cost, provided they increase future economic benefits arising from the underlying asset (i.e., if they increase its value or productive
capacity);
• in other cases (i.e., when they do not increase the asset’s original value, but are intended merely to preserve its original functionality) are taken to
profit or loss in a single amount in the year in which they have been borne.
In case of internally generated software the expenses incurred to develop the project are recognised under intangible assets only if the following
elements are demonstrated: (i) the technical feasibility of the project, (ii) the intention to complete the intangible asset, (iii) its future usefulness, (iv)
the availability of adequate technical, financial and other resources to complete the development and (v) the ability to measure reliably the
expenditure attributable to the intangible asset during its development.
An intangible asset with a finite life is subject to straight-line amortisation over its estimated useful life. If expectations differ from previous estimates,
the depreciation amount for the current and subsequent periods is adjusted accordingly.
Residual useful life is usually assessed as follows:
• software
up to 7 years;
• other intangible assets
up to 20 years.
If there is clear evidence that an asset has been impaired, the carrying amount of the asset is compared with its recoverable value, equal to the
greater of its fair value less selling cost and its value in use, i.e. the present value of future cash flows expected to be originated from the asset.
Any impairment loss is recognised in profit and loss item “190. Net value adjustments/write-backs on intangible assets”.
If the value of a previously impaired intangible asset, other than goodwill is restored, its increased carrying amount cannot exceed the net carrying
amount it would have had if there were no losses recognised on the prior-year impairment.
An intangible asset is derecognised (i) on disposal or (ii) when no further future economic benefits are expected from its use or sale in the future and
any difference between sale proceeds or recoverable value and carrying value is recognised in the profit and loss item “250. Gains (Losses) on
disposal of investments” or “190. Net value adjustments/write-backs on intangible assets”, respectively.
8 - Non-current assets and disposals groups classified as held for sale
Reference is made to the paragraph “8 - Non-current assets and disposal group classified as held for sale” of the Consolidated financial statements
of UniCredit group, Notes to the consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, which is herewith quoted
entirely.
9 - Current and deferred tax
Reference is made to the paragraph “9 - Current and deferred tax” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, which is herewith quoted entirely.
879
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part A - Accounting policies
10 - Provisions for risks and charges
Committments and guarantees given
Reference is made to the paragraph “Commitments and guarantees given” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 10 - Provision for risks and charges, which is herewith quoted
entirely.
Retirement payments and similar obligations
Reference is made to the paragraph “Retirement payments and similar obligations” of the Consolidated financial statements of UniCredit group,
Notes to the consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 10 - Provision for risks and charges, which is
herewith quoted entirely.
Other provisions
Reference is made to the paragraph “Other provisions” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 10 - Provision for risks and charges, which is herewith quoted entirely.
11 - Financial liabilities measured at amortised cost
Reference is made to the paragraph “11 - Financial liabilities measured at amortised cost” of the Consolidated financial statements of UniCredit
group, Notes to the consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, which is herewith quoted entirely.
12 - Financial liabilities held for trading
Reference is made to the paragraph “12 - Financial liabilities held for trading” of the Consolidated financial statements of UniCredit group, Notes to
the consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, which is herewith quoted entirely.
13 - Financial liabilities designated at fair value
Reference is made to the paragraph “13 - Financial liabilities designated at fair value” of the Consolidated financial statements of UniCredit group,
Notes to the consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, which is herewith quoted entirely.
14 - Foreign currency transactions
Reference is made to the paragraph “14 - Foreign currency transactions” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, which is herewith quoted entirely.
15 - Other information
Impairment
Reference is made to the paragraph “Impairment” of the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts,
Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, which is herewith quoted entirely.
Renegotiations
Reference is made to the paragraph “Renegotiations” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, which is herewith quoted entirely.
Business combinations
Reference is made to the paragraph “Business combinations” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, which is herewith quoted entirely.
Derecognition of financial assets
Reference is made to the paragraph “Derecognition of financial assets” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, which is herewith quoted entirely.
Repo transactions and securities lending
Reference is made to the paragraph “Repo transactions and securities lending” of the Consolidated financial statements of UniCredit group, Notes to
the consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, which is herewith quoted entirely.
880
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part A - Accounting policies
Equity instruments
Reference is made to the paragraph “Equity instruments” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, which is herewith quoted entirely.
Treasury shares
Reference is made to the paragraph “Treasury shares” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, which is herewith quoted entirely.
Leases
Reference is made to the paragraph “Leases” of the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts,
Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, which is herewith quoted entirely.
Factoring
Reference is made to the paragraph “Factoring” of the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts,
Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, which is herewith quoted entirely.
Italian staff severance pay (Trattamento di fine rapporto - “TFR”)
Reference is made to the paragraph “Italian staff severance pay (Trattamento di fine rapporto - “TFR”)” of the Consolidated financial statements of
UniCredit group, Notes to the consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, which is
herewith quoted entirely.
Share-based payment
Reference is made to the paragraph “Share-based payments” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, which is herewith quoted entirely.
Guarantees and credit derivatives in the same class
Reference is made to the paragraph “Guarantees and credit derivatives in the same class” of the Consolidated financial statements of UniCredit
group, Notes to the consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, which is herewith
quoted entirely.
Offsetting financial assets and financial liabilities
Reference is made to the paragraph “Offsetting financial assets and liabilities” of the Consolidated financial statements of UniCredit group, Notes to
the consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, which is herewith quoted entirely.
Amortised cost
Reference is made to the paragraph “Amortised cost” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, which is herewith quoted entirely.
ESG instruments
Reference is made to the paragraph “ESG instruments” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, which is herewith quoted entirely.
Recognition of income and expenses
Interest income and expenses
Reference is made to the paragraph “Interest income and expenses” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts, 16 - Other information, Recognition of income and expenses,
which is herewith quoted entirely.
Fees and commissions income and other operating income
Reference is made to the paragraph “Fees and commissions income and other operating income” of the Consolidated financial statements of
UniCredit group, Notes to the consolidated accounts, Part A - Accounting policies, A.2 - Main items of the accounts,16 - Other information,
Recognition of income and expenses, which is herewith quoted entirely.
Dividends
Reference is made to the paragraph “Dividends” of the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts,
Part A - Accounting policies, A.2 - Main items of the accounts,16 - Other information, Recognition of income and expenses, which is herewith quoted
entirely.
881
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part A - Accounting policies
A.3 - Information on transfers between portfolios of financial assets
There were no transfers between portfolios of financial assets in 2024.
A.4 - Information on fair value
Qualitative information
Reference is made to the paragraph “Qualitative information” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part A - Accounting policies, A.4 - Information on fair value, which is herewith quoted entirely.
A.4.1 Fair value Levels 2 and 3: valuation techniques and inputs used
Reference is made to the paragraph “A.4.1 Fair value Levels 2 and 3: valuation techniques and input used” of the Consolidated financial statements
of UniCredit group, Notes to the consolidated accounts, Part A - Accounting policies, A.4 - Information on fair value, Qualitative information, which is
herewith quoted entirely.
Assets and liabilities measured at fair value on a recurring basis
Reference is made to the paragraph “Assets and liabilities measured at fair value on a recurring basis” of the Consolidated financial statements of
UniCredit group, Notes to the consolidated accounts, Part A - Accounting policies, A.4 - Information on fair value, Qualitative information, A.4.1 Fair
value Levels 2 and 3: valuation techniques and inputs used, which is herewith quoted entirely.
Fair Value Adjustments (FVA)
Unless the info, reported below, reference is made to the paragraph “Fair Value Adjustments (FVA)” of the Consolidated financial statements of
UniCredit group, Notes to the consolidated accounts, Part A - Accounting policies, A.4 - Information on fair value, Qualitative information, A.4.1 Fair
value Levels 2 and 3: valuation techniques and inputs used, which is herewith quoted entirely.
As at 31 December 2024, net CVA/DVA cumulative adjustment, relating to Performing counterparts, amounts to €8.5 million negative; in addition,
the adjustment related to own credit spread evolution on own financial liabilities measured at fair value, which is filtered out from regulatory capital
(accordingly to CRDIV), amounts to €65.2 million negative.
As at 31 December 2024 the Fair Value Adjustment component (FundVA) reflected into P&L amounts to €1.1 million negative.
Assets and liabilities not measured at fair value or measured at fair value on a non-recurring basis
Reference is made to the paragraph “Assets and liabilities not measured at fair value or measured at fair value on a non-recurring basis” of the
Consolidated financial statements of UniCredit group, Notes to the consolidated accounts, Part A - Accounting policies, A.4 - Information on fair
value, Qualitative information, A.4.1 Fair value Levels 2 and 3: valuation techniques and inputs used, which is herewith quoted entirely.
Description of the valuation techniques
Reference is made to the paragraph “Description of the valuation techniques” of the Consolidated financial statements of UniCredit group, Notes to
the consolidated accounts, Part A - Accounting policies, A.4 - Information on fair value, Qualitative information, A.4.1 Fair value Levels 2 and 3:
valuation techniques and inputs used, which is herewith quoted entirely.
Description of the inputs used to measure the fair value of items categorised in Level 2 and 3
Reference is made to the paragraph “Description of the inputs used to measure the fair value of items categorised in Level 2 and 3” of the
Consolidated financial statements of UniCredit group, Notes to the consolidated accounts, Part A - Accounting policies, A.4 - Information on fair
value, Qualitative information, A.4.1 Fair value Levels 2 and 3: valuation techniques and inputs used, which is herewith quoted entirely.
882
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part A - Accounting policies
Quantitative information on significant unobservable inputs used in the fair value measurement: accounting portfolios
measured at fair value categorised as Level 3
The following table shows the relevant unobservable parameters for the valuation of financial instruments classified at fair value level 3 according to
the IFRS13 definition.
(€ million)
PRODUCT CATEGORIES
FAIR VALUE
ASSETS
FAIR VALUE
LIABILITIES
VALUATION
TECHNIQUES
UNOBSERVABLE
PARAMETERS
UNCERTAINTY RANGES
Derivatives
Financial
Foreign Exchange
11
22 Option Pricing Model
Volatility
0%
45%
Discounted Cash
Flows
Interest rate (bps)
0
587
Interest Rate
443
864 Discounted Cash
Flows
Swap Rate (bps)
0
587
Inflation Swap Rate
(bps)
3
12
Equity & commodities
919
581 Option Pricing Model
Volatility
1%
18%
Correlation
2%
25%
Credit
10
12 Hazard Rate Model
Credit Spread (bps)
1
67
Recovery rate
0%
5%
Debt Securities
and Loans
Corporate/Government/Other
47
501 Market Approach
Credit Spread (bps)
1
809
Mortgage & Asset
Backed Securities
1,052
- Discounted Cash
Flows
Credit Spread (bps)
62
992
Recovery rate
0%
70%
Default Rate
0%
3%
Prepayment Rate
0%
30%
Equity Securities
Unlisted Equity & Holdings
618
- Market Approach
Price
(% of used value)
0%
3%
Gordon Growth Model Ke
9%
22%
Growth Rate
1%
4%
Units in
Investment Funds
Real Estate &
Other Funds
3,097
- Adjusted Nav
PD
1%
30%
LGD
35%
60%
A.4.2 Valuations processes and sensitivities
Reference is made to the paragraph “A.4.2 Valuations processes and sensitivities” of the Consolidated financial statements of UniCredit group,
Notes to the consolidated accounts, Part A - Accounting policies, A.4 - Information on fair value, Qualitative information, which is herewith quoted
entirely.
883
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part A - Accounting policies
Fair value sensitivity to variations in unobservable inputs used in the fair value computation for instruments categorised as
Level 3
Unless the info, reported below, reference is made to the paragraph “Fair Value sensitivity to variations in unobservable inputs used in the fair value
computation for instruments categorised as Level 3” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part A - Accounting policies, A.4 - Information on fair value, Qualitative information, A.4.2 Valuation processes and sensitivities, which is
herewith quoted entirely.
(€ million)
PRODUCT CATEGORIES
FAIR VALUE MOVEMENTS
Derivatives
Financial
Equities & Commodities
+/-
34.19
Foreign Exchange
+/-
0.04
Interest Rate
+/-
0.52
Credit
+/-
0.05
Debt Securities and Loans
Corporate/Government/Other
+/-
0.02
Mortgage & Asset Backed Securities
+/-
0.40
Equity Securities
Unlisted Equity & Holdings
+/-
6.18
Units in investment funds
Real Estate & Other Funds
+/-
0.38
Within the unlisted Level 3 Units in Investment Funds, measured using a model, the shares in Atlante and Italian Recovery Fund, former Atlante II,
(€225 million at 31 December 2024) are classified. For further information refer to Notes to accounts, Part B - Balance sheet - Assets, Section 2 -
Financial assets at fair value through profit or loss: c) other financial assets mandatorily at fair value.
Amongst the financial instruments subject of valuation methods and sensitivity analysis, there are also included ABS issued by securitisation
vehicles as per Italian law 130/99 where the Bank is both originator and underwriter of some issues and quotes of open investment funds acquired
through credit disposal.
A.4.3 Fair value hierarchy
Reference is made to the paragraph “A.4.3 Fair value hierarchy” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts, Part A - Accounting policies, A.4 - Information on fair value, Qualitative information, which is herewith quoted entirely.
Transfers between hierarchy levels
The main drivers to transfers in and out the fair values levels (both between Level 1 and Level 2 and in/out Level 3) include changes in market
conditions (among which liquidity parameter) and enhancements to valuation techniques and weights for unobservable inputs used for the valuation
itself.
Quantitative and qualitative details about transfers between fair value levels occurred in the period are presented in the following paragraph “A.4.5
Fair value hierarchy”, Quantitative information.
A.4.4 Other information
Reference is made to the paragraph “A.4.4 Other information” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part A - Accounting policies, A.4 - Information on fair value, Qualitative information, which is herewith quoted entirely.
884
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part A - Accounting policies
Quantitative information
A.4.5 Fair value hierarchy
The following tables show the portfolios breakdown in terms of (i) financial assets and liabilities valued at fair value as well as (ii) assets and
liabilities not measured at fair value or measured at fair value on a non-recurring basis, according to the above-mentioned levels.
A.4.5.1 Assets and liabilities measured at fair value on a recurring basis: breakdown by fair value levels
(€ million)
FINANCIAL ASSETS/LIABILITIES MEASURED AT FAIR VALUE
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Financial assets at fair value through profit or loss
3,747
44,081
4,794
6,808
11,192
3,268
a) Financial assets held for trading
3,203
41,681
1,381
6,035
8,857
492
b) Financial assets designated at fair value
132
-
-
132
-
-
c) Other financial assets mandatorily at fair value
412
2,400
3,413
641
2,335
2,776
2. Financial assets at fair value through other
comprehensive income
36,785
1,628
1,400
26,791
3,187
1,658
3. Hedging derivatives
-
549
2
81
10,758
4
4. Property, plant and equipment
-
-
2,565
-
-
2,538
5. Intangible assets
-
-
-
-
-
-
Total
40,532
46,258
8,761
33,680
25,137
7,468
1. Financial liabilities held for trading
2,217
34,358
1,477
4,580
9,043
688
2. Financial liabilities designated at fair value
-
9,770
501
-
6,704
556
3. Hedging derivatives
-
314
2
124
11,799
27
Total
2,217
44,442
1,980
4,704
27,546
1,271
The item “1. c) Financial assets mandatorily at fair value” at Level 3 as at 31 December 2024 includes the investments in Atlante and Italian
Recovery Fund (IRF - former Atlante II) carrying value €225 million.
As at 31 December 2024 the fair value for Atlante and Italian Recovery Fund (former Atlante II) has been determined adopting an internal model in
which credit risk changes of single ABS in which Atlante fund is invested are considered.
For futher information refer to the paragraph “2.5 Other financial assets mandatorily at fair value: breakdown by product” of the Notes to the
accounts, Part B - Balance sheets - Assets, Section 2 - Financial assets at fair value through profit or loss - Item 20.
Transfers between level of fair value occurring during the year mainly reflect the evolution of reference market and the enhancement of processes
for fair value level attribution.
Besides the transfers related to financial assets and liabilities carried at Level 3 detailed in the sections below during the year the following transfers
occurred:
• from Level 2 to Level 1 owing to an improvement of the liquidity and price reliability indicators (based on the bid-ask spread, relative size and
applicability of the published prices) collected by third parties as calculated and recorded in the context of the Global Bond IPV process:
- of financial assets measured at fair value through profit or loss (financial assets held for trading, designed at fair value and mandatorily at fair
value) for €1 million;
- of financial assets measured at fair value through reserves (financial assets at fair value through other comprehensive income) for €294 million.
885
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part A - Accounting policies
A.4.5.2 Annual changes in assets measured at fair value on a recurring basis (Level 3)
(€ million)
CHANGES IN 2024
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
FINANCIAL
ASSETS AT FAIR
VALUE THROUGH
OTHER
COMPREHENSIVE
INCOME
HEDGING
DERIVATIVES
PROPERTY,
PLANT AND
EQUIPMENT
INTANGIBLE
ASSETS
TOTAL
OF WHICH: A)
FINANCIAL
ASSETS HELD
FOR TRADING
OF WHICH: B)
FINANCIAL
ASSETS
DESIGNATED AT
FAIR VALUE
OF WHICH: C)
OTHER
FINANCIAL
ASSETS
MANDATORILY
AT FAIR VALUE
1. Opening balances
3,268
492
-
2,776
1,658
4
2,538
-
2. Increases
6,050
4,343
-
1,707
242
211
165
-
2.1 Purchases
3,150
1,583
-
1,567
25
102
86
-
2.2 Profits recognised in
2,645
2,574
-
71
51
88
44
-
2.2.1 Income statement
2,645
2,574
-
71
4
88
15
-
- of which unrealised gains
1,122
1,055
-
67
-
2
15
-
2.2.2 Equity
X
X
X
X
47
-
29
-
2.3 Transfers from other levels
192
186
-
6
-
20
-
-
2.4 Other increases
63
-
-
63
166
1
35
-
3. Decreases
4,524
3,454
-
1,070
500
213
138
-
3.1 Sales
1,747
1,519
-
228
57
87
-
-
3.2 Redemptions
665
-
-
665
261
-
-
-
3.3 Losses recognised in
1,999
1,828
-
171
174
126
102
-
3.3.1 Income statement
1,999
1,828
-
171
16
126
73
-
- of which unrealised losses
398
246
-
152
-
24
40
-
3.3.2 Equity
X
X
X
X
158
-
29
-
3.4 Transfers to other levels
113
107
-
6
-
-
36
-
3.5 Other decreases
-
-
-
-
8
-
-
-
of which: business combinations
-
-
-
-
-
-
-
-
4. Closing balances
4,794
1,381
-
3,413
1,400
2
2,565
-
The sub-items “2.2.1 Profits recognised in Income statement” and “3.3.1 Losses recognised in Income statement” in financial assets are included in
the following items:
• Item 80: Net gains (losses) on trading;
• Item 90: Net gains (losses) on hedge accounting;
• Item 110: Net gains (losses) on other financial assets/liabilities at fair value through profit or loss.
The sub-item “2.2.2 Profits recognised in Equity” and the sub-item “3.3.2 Losses recognised in Equity” reports the profits and the losses arising from
fair value changes on financial assets at fair value through other comprehensive income and tangible assets used in business, with reference to land
and buildings, according to the rules explained below.
With reference to financial assets at fair value through other comprehensive income these profits and losses are accounted in item “110. Valuation
reserves” of shareholder’s equity until the financial assets is not sold, instant in which cumulative gains and losses are reported: i) if referred to debt
securities in Income statement under item “100. Gains (Losses) on disposal and repurchase of: b) financial assets at fair value through other
comprehensive income” and ii) if referred to equity instruments in the shareholder’s equity under item “140. Reserves”; the exception regards the
case of impairment and gains and losses on exchange rates on monetary assets (debt securities) which are reported respectively under item “130.
Net losses/recoveries on credit impairment relating to: b) financial assets at fair value through other comprehensive income” and item “80. Net gains
(losses) on trading”.
With reference to tangible assets used in business, the profits arising from the valuation are recognised in item “110. Valuation reserves” of
shareholder’s equity for the portion exceeding the cumulated losses recognised in item “230. Net gains (losses) on property, plant and equipment
and intangible assets measured at fair value”. Losses arising from the valuation are recognised in item “110. Valuation reserves” up to the
cumulated profits recognised in the same item. Further losses are recognised in item “230. Net gains (losses) on property, plant and equipment and
intangible assets measured at fair value”. On disposal the cumulated profits reported in item “110. Valuation reserves” are recycled to item “140.
Reserves”.
886
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part A - Accounting policies
A.4.5.3 Annual changes in liabilities measured at fair value on a recurring basis (Level 3)
(€ million)
CHANGES IN 2024
FINANCIAL LIABILITIES
HELD FOR TRADING
FINANCIAL LIABILITIES
DESIGNATED AT FAIR
VALUE
HEDGING DERIVATIVES
1. Opening balances
688
556
27
2. Increases
5,759
475
626
2.1 Issuance
2,261
384
602
2.2 Losses recognised in
3,264
62
24
2.2.1 Income statement
3,264
58
24
- of which unrealised losses
1,037
32
2
2.2.2 Equity
X
4
-
2.3 Transfers from other levels
234
15
-
2.4 Other increases
-
14
-
3. Decreases
4,970
530
651
3.1 Redemptions
2,228
-
22
3.2 Purchases
-
311
-
3.3 Profits recognised in
2,597
13
612
3.3.1 Income statement
2,597
10
612
- of which unrealised gains
336
10
10
3.3.2 Equity
X
3
-
3.4 Transfers to other levels
145
192
16
3.5 Other decreases
-
14
1
of which: business combinations
-
-
-
4. Closing balances
1,477
501
2
The sub-items “2.2.1 Losses recognised in Income statement” and “3.3.1 Profits recognised in Income statement” in financial liabilities are included
in the profit and loss in the following items:
• Item 80: Net gains (losses) on trading;
• Item 90: Net gains (losses) on hedge accounting;
• Item 110: Net gains (losses) on other financial assets/liabilities at fair value through profit or loss.
A.4.5.4 Assets and liabilities not measured at fair value or measured at fair value on a non-recurring basis: breakdown by fair value
levels
(€ million)
ASSETS/LIABILITIES NOT MEASURED AT
FAIR VALUE OR MEASURED AT FAIR VALUE
ON A NON-RECURRING BASIS
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
BOOK VALUE
FAIR VALUE
BOOK VALUE
FAIR VALUE
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Financial assets at amortised cost
228,212
33,838
97,915
92,410
241,825
37,783
81,776
117,778
2. Property, plant and equipment held for
investment
-
-
-
-
-
-
-
-
3. Non-current assets and disposal groups
classified as held for sale
39
-
26
-
299
-
13
-
Total
228,251
33,838
97,941
92,410
242,124
37,783
81,789
117,778
1. Financial liabilities at amortised cost
285,742
33,093
55,659
196,824
286,724
28,715
58,212
198,269
2. Liabilities associated with assets
classified as held for sale
-
-
-
-
-
-
-
-
Total
285,742
33,093
55,659
196,824
286,724
28,715
58,212
198,269
The changes occurred between 31 December 2023 and 31 December 2024 in the ratio between fair value and book value for financial assets at
amortised cost reflect the enhancement of the methodology and the parameters adopted for the fair value calculation for disclosure and the
evolution in the benchmark interest rate, in the risk premium and in the probability of default depending on or deriving from markets trend.
These events together with the evolution of the approach to identify the significance of non-observable inputs have been reflected in fair value
hierarchy level distribution.
887
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part A - Accounting policies
The book value of item “3. Non-current assets and disposal groups classified as held for sale” (Assets) includes amounts referred to assets
measured on Balance sheet on the basis of their cost for €13 million. For further details on this item refer to the table “11.1 Non-current assets and
disposal groups classified as held for sale: breakdown by asset type”, Notes to the accounts, Part B - Balance sheet - Assets, Section 11 - Non-
current assets and disposal groups classified as held for sale and Liabilities associated with classified as held for sale - Item 100 (Assets) and Item
70 (Liabilities).
A.5 - Information on “day one profit/loss”
The value at which financial instruments are recognised is equal to their fair value on the same date.
The fair value of financial instruments, other than those designated at fair value through profit or loss, at their recognition date is usually assumed to
be equal to the amount collected or paid.
For financial instruments held for trading (refer to Sections 1.a) and 12 of part A.2 above) and instruments designated at fair value (refer to Sections
1.b) and 13 of part A.2 above), any difference from the amount collected or paid is posted under the appropriate items of the Income statement.
The use of conservative valuation models, the processes described above for revising the models used and related parameters and value
adjustments to reflect model risk ensure that the amount recognised in the Income statement is not derived from the use of valuation parameters
that cannot be observed.
More specifically, the calculation of fair value adjustments to reflect model risk ensures that the fair value portion of these instruments relating to the
use of subjective parameters is not recognised in the profit and loss account but changes the Balance sheet value of these instruments.
The presence of further “day one profit” leads to the recognition of a distinct asset component that is the object of linear competition.
Recognition of this portion in the profit and loss account is then made only when objective parameters are applied and therefore the adjustments are
derecognised.
The overall fair value adjustments to reflect these adjustments (amount not recognised in the Income statement) amounts to +€6 million as at 31
December 2024 (+€6 million as at 31 December 2023).
888
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Part B - Balance sheet
Assets
Section 1 - Cash and cash balances - Item 10
1.1 Cash and cash balances: breakdown
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
a) Cash
1,483
1,394
b) Current accounts and demand deposits with Central Banks
10,295
9,166
c) Current accounts and demand deposits with Banks
1,445
1,741
Total
13,223
12,301
The change in the item "Current accounts and demand deposits with Central Banks" (equal to about €1.1 billion) is mainly attributable to the
increase of liquidity invested into overnight deposits with Banca d’Italia, in addition to the part that is maintained in the Compulsory Reserves.
Section 2 - Financial assets at fair value through profit or loss - Item 20
2.1 Financial assets held for trading: breakdown by product
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
ITEMS/VALUES
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
A. Financial assets (non-derivatives)
1. Debt securities
3,194
81
-
6,027
1
-
1.1 Structured securities
-
-
-
-
-
-
1.2 Other debt securities
3,194
81
-
6,027
1
-
2. Equity instruments
-
-
-
-
-
-
3. Units in investment funds
9
-
-
-
-
-
4. Loans
-
-
-
-
-
-
4.1 Reverse Repos
-
-
-
-
-
-
4.2 Other
-
-
-
-
-
-
Total (A)
3,203
81
-
6,027
1
-
B. Derivative instruments
1. Financial derivatives
-
41,600
1,381
8
8,856
492
1.1 Trading
-
40,294
475
8
8,546
159
1.2 Linked to fair value option
-
300
476
-
264
321
1.3 Other
-
1,006
430
-
46
12
2. Credit derivatives
-
-
-
-
-
-
2.1 Trading
-
-
-
-
-
-
2.2 Linked to fair value option
-
-
-
-
-
-
2.3 Other
-
-
-
-
-
-
Total (B)
-
41,600
1,381
8
8,856
492
Total (A+B)
3,203
41,681
1,381
6,035
8,857
492
Total Level 1, Level 2 and Level 3
46,265
15,384
The sub-item "Financial assets (non-derivatives)" consists mainly of Italian Government bonds from Market Making activity.
The sub-item "Derivative instruments - Financial derivatives - Other" comprises derivatives that, for economic purposes, relate to banking book
entries.
Fair value evolution of outstanding derivatives, further to volumes, is also influenced by growing dynamic of interest rates. Further, in 2024, following
the start of execution of Trading Centralization project (for which refer to Part G – Business Combination), volumes in derivatives have significatively
increased in respect of 2023.
Changes in respect of 2023 final figures are also due to application, for the first time in 2024, of accounting offsetting ex IAS32.
889
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Valuations at fair value were classified according to a hierarchy of levels reflecting the observability of the valuations input.
For further information refer to the paragraph “A.4 - Information on fair value”, Notes to the accounts, Part A - Accounting policies.
2.2 Financial assets held for trading: breakdown by borrowers/issuers/counterparties
(€ million)
AMOUNTS AS AT
ITEMS/VALUES
31.12.2024
31.12.2023
A. Financial assets (non-derivatives)
1. Debt securities
3,275
6,028
a) Central Banks
-
-
b) Governments and other Public Sector Entities
2,219
6,028
c) Banks
1,042
-
d) Other financial companies
4
-
of which: insurance companies
-
-
e) Non-financial companies
10
-
2. Equity instruments
-
-
a) Banks
-
-
b) Other financial companies
-
-
of which: insurance companies
-
-
c) Non-financial companies
-
-
d) Other issuers
-
-
3. Units in investment funds
9
-
4. Loans
-
-
a) Central Banks
-
-
b) Governments and other Public Sector Entities
-
-
c) Banks
-
-
d) Other financial companies
-
-
of which: insurance companies
-
-
e) Non-financial companies
-
-
f) Households
-
-
Total A
3,284
6,028
B. Derivative instruments
a) Central counterparties
-
1,389
d) Other
42,981
7,967
Total B
42,981
9,356
Total (A+B)
46,265
15,384
2.3 Financial assets designated at fair value: breakdown by product
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
ITEMS/VALUES
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Debt securities
132
-
-
132
-
-
1.1 Structured securities
-
-
-
-
-
-
1.2 Other debt securities
132
-
-
132
-
-
2. Loans
-
-
-
-
-
-
2.1 Structured
-
-
-
-
-
-
2.2 Other
-
-
-
-
-
-
Total
132
-
-
132
-
-
Total Level 1, Level 2 and Level 3
132
132
The item is mainly composed of government debt securities.
890
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
2.4 Financial assets designated at fair value: breakdown by borrowers/issuers
(€ million)
AMOUNTS AS AT
ITEMS/VALUES
31.12.2024
31.12.2023
1. Debt securities
132
132
a) Central Banks
-
-
b) Governments and other Public Sector Entities
132
132
c) Banks
-
-
d) Other financial companies
-
-
of which: insurance companies
-
-
e) Non-financial companies
-
-
2. Loans
-
-
a) Central Banks
-
-
b) Governments and other Public Sector Entities
-
-
c) Banks
-
-
d) Other financial companies
-
-
of which: insurance companies
-
-
e) Non-financial companies
-
-
f) Households
-
-
Total
132
132
2.5 Other financial assets mandatorily at fair value: breakdown by product
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
ITEMS/VALUES
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Debt securities
53
2,400
86
66
2,335
124
1.1 Structured securities
-
72
-
-
-
-
1.2 Other debt securities
53
2,328
86
66
2,335
124
2. Equity instruments
359
-
34
575
-
41
3. Units in investment funds
-
-
3,097
-
-
2,407
4. Loans
-
-
196
-
-
204
4.1 Reverse Repos
-
-
-
-
-
-
4.2 Other
-
-
196
-
-
204
Total
412
2,400
3,413
641
2,335
2,776
Total Level 1, Level 2 and Level 3
6,225
5,752
The sub-item “Debt securities” changes in respect of previous year due to fair value changes in purchased Additional Tier 1 instruments and
includes investments qualified as Level 3 in FINO Project’s Mezzanine and Junior Notes with a value of €12 million, in Mezzanine and Junior bonds
of Prisma securitisation for €0.1 million and in Mezzanine, Junior bonds of Olympia for €1 million, in Mezzanine and Junior bonds of Itaca
securitisation for €1 million and in Mezzanine and Junior bonds of Altea securitisation for €6 million.
Into the item “Equity instruments”, the investment in a “Schema Volontario” (presented among Level 3 instruments) has been fully impaired in 2022.
Changes in respect of December 2023 are mainly driven by purchases of new stakes.
The item “3 Unit in investment funds” includes the investments in Atlante and Italian Recovery Fund, former Atlante II (presented among Level 3)
instruments, with a value of €225 million.
Valuations at fair value were classified according to a hierarchy of levels reflecting the observability of the valuations input.
For further information refer to the paragraph “A.4 - Information on fair value”, Notes to the accounts, Part A - Accounting policies.
891
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Exposures to securities relating to Securitisation transactions
(€ million)
TRANCHING
AMOUNTS AS AT 31.12.2024
Senior
-
Mezzanine
22
Junior
18
Total
40
Information about the units of Atlante Fund and Italian Recovery Fund (former Atlante II)
Atlante is a closed-end alternative investment fund (FIA) ruled by Italian law reserved to professional investors and managed by DeA Capital
Alternative Funds SGR S.p.A. (DeA). The size of the fund was equal to €4,249 million, of which UniCredit S.p.A. invested for about 19.9%.
The investment policy of Atlante foresees that the fund may be invested (i) in banks with regulatory capital ratios lower than the minimum level set
down in the SREP process and, thus, realise, upon request of the supervisory authority, actions of capital strengthening through capital increases
and (ii) in Non-Performing Loans (NPLs) of a plurality of Italian banks.
With reference to Atlante fund, as at 31 December 2024 UniCredit S.p.A. holds shares classified as financial assets mandatory at fair value with a
carrying value of €111 million. The year-to-date overall cash investments are equal to €844 million against which impairments for €684 million and
positive fair value changes for €6 million were carried out. Received reimbursement amount to €55 million. In addition, UniCredit S.p.A. has a
residual commitment to invest in the fund for an amount less than €2 million.
On August 2016, it was launched the Atlante II fund, redenominated Italian Recovery Fund since 27 October 2017, a closed-end investment
alternative fund reserved to professional investors, also managed by DeA, which, unlike the Atlante fund, may invest only in NPL and instruments
linked to NPL transactions (such as warrants) in order to reduce the risk in line with the parameters used by the largest world institutional investors.
With reference to Italian Recovery Fund, as at 31 December 2024 UniCredit S.p.A. holds shares with a carrying value of €114 million, classified as
financial assets mandatory at fair value. The year-to-date overall cash investments are equal to €187 against which positive fair value changes for
€0 million were carried out. Received reimbursement amount to €73 million. In addition, UniCredit S.p.A. has a residual commitment to invest in
Italian Recovery Fund for about €8 million.
As at 31 December 2024 the book value (fair value) of these funds has been determined adopting an internal model in which credit risk changes of
single ABS in which Atlante fund is invested are considered. This fair value valuation resulted in a lower value of €15 million in the year, accounted
in the profit and loss.
Under a regulatory perspective, the treatment of the quotes held by UniCredit S.p.A. in the Atlante Fund and Italian Recovery Fund foresees the
application of article 128 of the CRR (Items associated with particular high risk). With reference to the residual commitments, the regulatory
treatment foresees the application of a Credit Conversion Factor equal to 100% (“full risk” according to the Annex I of CRR), for the calculation of the
related Risk Weighted Assets.
Information about the investment in the Schema Volontario
In November 2015 UniCredit S.p.A. has joined the "Schema Volontario" (hereafter SV), a private entity introduced by Fondo Interbancario di Tutela
dei Depositi (FITD), with appropriate modification of its statute.
SV is an instrument for the resolution of bank crises through supporting measures in favour of its member banks, if specific conditions laid down by
the legislation occur. SV has an independent funding and the participating banks are committed to supply the relevant resources upon demand,
when resources are needed to fund interventions. The initial participating size of the SV has been set up to €700 million (of which €110 million
referred to UniCredit S.p.A.).
Here follow the main transactions carried out by SV.
Cassa di Risparmio di Cesena (CariCesena)
In June 2016 the SV approved an action supporting CariCesena, in relation to a capital increase approved by the bank itself on 8 June 2016 for
€280 million of which €44 million referred to UniCredit S.p.A. On 30 September 2016 this commitment was converted into a monetary payment
which has led to the recognition of capital instruments classified, on the basis of the pre-existing accounting standard IAS39, as “available for sale"
for €44 million for UniCredit S.p.A. (in line with the monetary payment). The update of the evaluation of the instruments as at 31 December 2016,
according to an internal evaluation model based on multiples of a banking basket integrated with estimates on Cassa di Risparmio di Cesena’s
credit portfolio and the related equity/capital needs, brought to the full impairment of the position.
892
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
CariCesena, Cassa di Risparmio di Rimini (Carim) e Cassa di Risparmio di San Miniato (Carismi)
In September 2017, in order to face Crédit Agricole CariParma intervention in favour of CariCesena, Carim and Carismi, based on a capital increase
of €464 million and on the subscription of bonds from NPL securitisation of these banks for €170 million, the Fund increased its capital endowment
for €95 million (to an overall amount of €795 million), increasing the residual commitment referred to UniCredit S.p.A. to €81 million. Hence, in the
same month UniCredit S.p.A. paid €9 million in respect of the part of the intervention relating to the capital increase of Carim and Carismi, and in
December 2017, UniCredit S.p.A. paid the remaining €72 million (of which €45 million referred to the capital increase of the banks and €27 million
referred to the subscription of securitisations). Following these events, UniCredit group’s residual commitment towards SV was substantially nil.
All the payments referred to the capital increase of the banks brought to the recognition of capital instruments classified, on the basis of the pre-
existing accounting standard IAS39, as “available for sale” and amounting to €54 million for UniCredit S.p.A., entirely cancelled in 2017 financial
statements due to the sale of the banks to Crédit Agricole CariParma at a symbolic price.
Regarding the portion of investment referred to the subscription of SV of Junior and Mezzanine quotes of the securitisation, the initial value (€27
million for UniCredit S.p.A.) was rectified in 2017 to reflect fair value valuation declared by the SV (€4 million for UniCredit S.p.A.) resulting from the
analysis conducted by the advisors in charge of the underlying credits evaluation, conducted according to a Discounted Cash Flow model based on
recovery plans elaborated by SPV’s special servicer.
Following the update of the assessment received from the SV (supported by the analysis of the appointed advisor), as at 31 December 2022
UniCredit S.p.A. recognised an accumulated impairment of €4.4 million. Thus, since 31 December 2022, UniCredit S.p.A. carrying value of
investments related to securitisation is nil.
Banca Carige
On 30 November 2018, the Shareholders' Meeting of the SV decided to intervene in favour of Banca Carige S.p.A. by subscribing a Tier 2
subordinated loan (for a maximum amount of €320 million) issued by Banca Carige S.p.A. and addressed to the conversion into capital to the extent
necessary to allow an expected capital increase of €400 million.
On the same date, within the framework of the agreement stipulated with SV, Banca Carige S.p.A. placed bonds for €320 million, of which €318.2
million subscribed directly through the SV itself. The bonds were issued at par (100% of the nominal value), with a fixed rate coupon of 13% and a
maturity of 10 years (maturity 30 November 2028).
Considering the failure to provide by 22 December 2018 the delegation to the Board of Directors by the Extraordinary Shareholders' Meeting of
Banca Carige S.p.A. to increase by payment the share capital for a maximum total amount of €400 million, with retroactive effect interests on the
principal amount of outstanding bonds from time to time mature at a nominal fixed rate of 16% starting from the date of issue.
With reference to the intervention in favour of Banca Carige S.p.A., UniCredit S.p.A. contribution to the SV at the recognition date amounts to €53
million, and it has been identified as a financial instrument classified, on the basis of the existing accounting standard IFRS9, under item "20.c)
Financial assets mandatorily at fair value through profit or loss”.
As at 31 December 2018, following the evaluation process of the investment, UniCredit S.p.A. recognised impairments for €16 million, thus bringing
the carrying value of the instrument to €37 million.
As at 31 December 2019 UniCredit S.p.A. has evaluated instrument’s fair value according to internal models (Market Multiples and Multi-Scenario
Analysis) for €13 million, also considering the occurred reimbursement of interests for €9 million.
Update of evaluation at 31 December 2020 has determined a fair value of €5.1 million, subsequently zeroed since 31 December 2021.
893
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
2.6 Other Financial assets mandatorily at fair value:breakdown by borrowers/issuers
(€ million)
AMOUNTS AS AT
ITEMS/VALUES
31.12.2024
31.12.2023
1. Equity instruments
393
616
of which: banks
313
449
of which: other financial companies
68
67
of which: non-financial companies
12
100
2. Debt securities
2,539
2,525
a) Central banks
-
-
b) Governments and other Public Sector Entities
57
57
c) Banks
2,327
2,334
d) Other financial companies
154
119
of which: insurance companies
43
44
e) Non-financial companies
1
15
3. Units in investment funds
3,097
2,407
4. Loans and advances
196
204
a) Central banks
-
-
b) Governments and other Public Sector Entities
-
-
c) Banks
-
-
d) Other financial companies
-
-
of which: insurance companies
-
-
e) Non-financial companies
196
204
f) Households
-
-
Total
6,225
5,752
894
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Section 3 - Financial assets at fair value through other comprehensive income - Item 30
3.1 Financial assets at fair value through other comprehensive income: breakdown by product
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
ITEMS/VALUES
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Debt securities
34,113
1,253
816
26,441
2,812
1,028
1.1 Structured securities
-
-
-
-
-
-
1.2 Other
34,113
1,253
816
26,441
2,812
1,028
2. Equity instruments
2,672
375
584
350
375
630
3. Loans
-
-
-
-
-
-
Total
36,785
1,628
1,400
26,791
3,187
1,658
Total Level 1, Level 2 and Level 3
39,813
31,636
Changes in debt securities is mainly determined by new purchases of government and banking bonds net of sales and maturities.
Item “Debt Securities” includes FINO Project’s investments in Senior and in part in Mezzanine notes for €32 million, in Senior bonds of Prisma
securitisation for €430 million, in Senior bonds of Olympia securitisation for €111 million, in Senior bonds of Relais for €211 million, in Senior bonds
of Itaca securitisation for €30 million, all qualified as Level 3 instruments.
Item “Equity instruments” includes Banca d’Italia stake (presented among Level 2 instruments), with a value of €375 million, ABH Holding SA
investments (presented among Level 3 instruments) acquired in contemplation of the sale of PJSC Ukrsotbank to Alfa Group, with a value of €263
million, equal to the consideration of the put option of the shares exercised by UniCredit S.p.A. on 9 November 2021, and Commerzbank Ag stake
for €1.749.
Valuations at fair value were classified according to a hierarchy of levels reflecting the observability of the valuations input. For further information
see the paragraph “A.4 - Information on fair value”, Notes to the accounts, Part A - Accounting policies.
Exposures to securities relating to Securitisation transactions
(€ million)
TRANCHING
AMOUNTS AS AT 31.12.2024
Senior
807
Mezzanine
9
Junior
-
Total
816
Information about the shareholding in Banca d'Italia
As at 31 December 2024, UniCredit has a shareholding of 5.0% in the share capital of Banca d’Italia, with a carrying value of €375 million.
The current stake is the result of the disposal process started at the end of 2015, when UniCredit owned 22.1% (€1,659 million) of Banca d’Italia
share capital. All the transactions occurred at a consideration corresponding to the carrying value, equal to €7,500 million for a 100% stake.
UniCredit did not finalized any disposals in 2024.
895
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
3.2 Financial assets at fair value through other comprehensive income: breakdown by borrowers/issuers
(€ million)
AMOUNTS AS AT
ITEMS/VALUES
31.12.2024
31.12.2023
1. Debt securities
36,182
30,281
a) Central Banks
-
-
b) Governments and other Public Sector Entities
29,994
25,592
c) Banks
3,312
1,711
d) Other financial companies
1,974
2,127
of which: insurance companies
-
-
e) Non-financial companies
902
851
2. Equity instruments
3,631
1,355
a) Banks
2,211
463
b) Other issuers
1,420
892
- Other financial companies
1,324
776
of which: insurance companies
564
-
- Non-financial companies
96
116
- Other
-
-
3. Loans and advances
-
-
a) Central Banks
-
-
b) Governments and other Public Sector Entities
-
-
c) Banks
-
-
d) Other financial companies
-
-
of which: insurance companies
-
-
e) Non-financial companies
-
-
f) Households
-
-
Total
39,813
31,636
The item “2. Equity instruments a) Banks” includes Banca d’Italia stake.
3.3 Financial assets at fair value through other comprehensive income: gross value and total accumulated impairments
(€ million)
GROSS VALUE
TOTAL ACCUMULATED IMPAIRMENTS
PARTIAL
ACCUMULATED
WRITE-OFFS(*)
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
OF WHICH:
INSTRUMENTS
WITH LOW
CREDIT RISK
EXEMPTION
Debt securities
35,362
35,174
793
114
-
4
1
82
-
-
Loans and advances
-
-
-
-
-
-
-
-
-
-
Total
31.12.2024
35,362
35,174
793
114
-
4
1
82
-
-
Total
31.12.2023
30,251
29,351
100
2
-
70
-
2
-
-
Note:
(*) Value shown for information purposes.
896
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Section 4 - Financial assets at amortised cost - Item 40
4.1 Financial assets at amortised cost: breakdown by product of loans and advances to banks
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
BOOK VALUE
FAIR VALUE
BOOK VALUE
FAIR VALUE
TYPE OF TRANSACTIONS/VALUES
STAGE 1 AND
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
LEVEL 1
LEVEL 2
LEVEL 3
STAGE 1 AND
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
LEVEL 1
LEVEL 2
LEVEL 3
A. Loans and advances to Central
Banks
2,381
-
-
-
419
1,960
1,834
-
-
-
-
1,834
1. Time deposits
-
-
-
X
X
X
-
-
-
X
X
X
2. Compulsory reserves
1,946
-
-
X
X
X
1,813
-
-
X
X
X
3. Reverse repos
422
-
-
X
X
X
-
-
-
X
X
X
4. Other
13
-
-
X
X
X
21
-
-
X
X
X
B. Loans and advances to banks
35,105
-
-
3,977
22,927
8,193
32,415
-
-
4,534
19,252
8,457
1. Loans
17,473
-
-
-
13,490
3,933
16,091
-
-
-
12,256
3,679
1.1 Current accounts
-
-
-
X
X
X
-
-
-
X
X
X
1.2 Time deposits
310
-
-
X
X
X
394
-
-
X
X
X
1.3 Other loans
17,163
-
-
X
X
X
15,697
-
-
X
X
X
- Reverse repos
14,222
-
-
X
X
X
11,730
-
-
X
X
X
- Lease Loans
11
-
-
X
X
X
17
-
-
X
X
X
- Other
2,930
-
-
X
X
X
3,950
-
-
X
X
X
2. Debt securities
17,632
-
-
3,977
9,437
4,260
16,324
-
-
4,534
6,996
4,778
2.1 Structured
-
-
-
-
-
-
-
-
-
-
-
-
2.2 Other
17,632
-
-
3,977
9,437
4,260
16,324
-
-
4,534
6,996
4,778
Total
37,486
-
-
3,977
23,346
10,153
34,249
-
-
4,534
19,252
10,291
Total Level 1, Level 2 and Level 3
37,476
34,077
Loans and Advances with Central Banks include into compulsory reserve temporary retained liquidity to be invested in a short term.
Into Loans and advances to banks, debt securities increase due to purchases of bonds mainly issued by legal entities belonging to the Group.
Loans and receivables with banks are not managed on the basis of their fair value, which is only shown in order to meet financial disclosure
requirements. Fair value measurements have been classified according to a hierarchy of levels reflecting the observability of the valuations input.
For further information refer to the paragraph “A.4 - Information on fair value”, Notes to the accounts, Part A - Accounting policies.
It should be noted that securities lending transactions collateralised by other securities or not collateralised are shown under “off-Balance sheet”
exposures in table reported in the paragraph “A.1.6 On and off-Balance sheet credit exposure with banks: gross and net values”, Notes to the
accounts, Part E - Information on risks and related hedging policies, Section 1 - Credit risk, A. Credit quality, Quantitative information.
897
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
4.2 Financial assets at amortised cost: breakdown by product of loans and advances to customers
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
BOOK VALUE
FAIR VALUE
BOOK VALUE
FAIR VALUE
TYPE OF TRANSACTIONS/VALUES
STAGE 1
AND
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
LEVEL 1
LEVEL 2
LEVEL 3
STAGE 1
AND
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
LEVEL 1
LEVEL 2
LEVEL 3
1. Loans
157,214
2,206
10
-
74,222
81,155
170,331
2,195
-
-
62,177
106,075
1.1 Current accounts
5,686
189
-
X
X
X
5,663
160
-
X
X
X
1.2 Reverse repos
12,308
-
-
X
X
X
18,965
-
-
X
X
X
1.3 Mortgages
83,417
1,359
10
X
X
X
90,800
1,306
-
X
X
X
1.4 Credit cards and personal loans,
including wage assignment
13,319
195
-
X
X
X
12,428
143
-
X
X
X
1.5 Lease loans
69
-
-
X
X
X
68
-
-
X
X
X
1.6 Factoring
154
1
-
X
X
X
152
2
-
X
X
X
1.7 Other loans
42,261
462
-
X
X
X
42,255
584
-
X
X
X
2. Debt securities
31,294
2
-
29,861
347
1,102
35,049
1
-
33,249
347
1,412
2.1 Structured securities
263
-
-
165
-
93
71
1
-
-
-
75
2.2 Other debt securities
31,031
2
-
29,696
347
1,009
34,978
-
-
33,249
347
1,337
Total
188,508
2,208
10
29,861
74,569
82,257
205,380
2,196
-
33,249
62,524
107,487
Total Level 1, Level 2 and Level 3
186,687
203,260
The decrease of impaired loans to customers (Stage 3) is mainly due to the sale initiatives carried out during the 2024.
For further information refer to Section 1 - Credit risk, Qualitative information, Notes to the accounts, Part E - Information on risks and related
hedging policies.
Debt securities decrease due to buy, sell and maturity dynamic, mainly in bonds issued by Governments.
The item “2.2 Other debt securities" include securities related to securitisation transactions shown in the following table.
It should be noted that during the period, the sales performed out of Item “40. Financial assets at amortised cost” have been non-significant being
below the threshold established internally.
The fair value of impaired loans was estimated by considering that the realizable value expressed by the net book value is the best estimate of the
future expected cash flows discounted at the valuation date, further adjusted to incorporate, when available, a premium derived from significant
market’s transaction for similar instruments. According to this assumption, impaired loans were classified as Level 3 in the fair value hierarchy.
Loans and receivables with customers are not managed on the basis of their fair value, which is only shown in order to meet disclosure
requirements. Fair value measurements have been classified according to a hierarchy of levels reflection the observability of the valuations input.
For further information refer to the paragraph “A.4 - Information on fair value”, Notes to the accounts, Part A - Accounting policies.
Exposures to securities relating to Securitisation transactions
(€ million)
TRANCHING
AMOUNTS AS AT 31.12.2024
Senior
680
Mezzanine
-
Junior
-
Total
680
898
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
4.3 Financial assets at amortised cost: breakdown by borrowers/issuers of loans and advances to customers
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
TYPE OF TRANSACTIONS/VALUES
STAGE 1 OR
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED
CREDIT-IMPAIRED
FINANCIAL ASSETS
STAGE 1 OR
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED
CREDIT-IMPAIRED
FINANCIAL ASSETS
1. Debt securities
31,294
2
-
35,049
1
-
a) Governments and other Public Sector Entities
28,888
-
-
32,107
-
-
b) Other financial companies
936
-
-
1,199
-
-
of which: insurance companies
-
-
-
-
-
-
c) Non-financial companies
1,470
2
-
1,743
1
-
2. Loans
157,214
2,206
10
170,331
2,195
-
a) Governments and other Public Sector Entities
3,413
143
-
3,368
201
-
b) Other financial companies
38,164
2
-
44,287
5
-
of which: insurance companies
236
-
-
220
-
-
c) Non-financial companies
59,268
1,181
10
63,014
1,168
-
d) Households
56,369
880
-
59,662
821
-
Total
188,508
2,208
10
205,380
2,196
-
4.4 Financial assets at amortised cost: gross value and total accumulated impairments
(€ million)
GROSS VALUE
TOTAL ACCUMULATED IMPAIRMENTS
STAGE 1
OF WHICH:
INSTRUMENTS
WITH LOW
CREDIT RISK
EXEMPTION
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
PARTIAL
ACCUMULATED
WRITE-OFFS(*)
1. Debt securities
48,872
48,420
68
5
-
11
3
3
-
-
2. Loans
165,356
60,199
13,413
4,054
10
395
1,306
1,848
-
429
Total
31.12.2024
214,228
108,619
13,481
4,059
10
406
1,309
1,851
-
429
Total
31.12.2023
220,865
111,992
20,638
4,308
-
322
1,552
2,112
-
434
Note:
(*) Value shown for information purposes.
For additional information on this section refer to the paragraph “A. Credit quality”, Note to the accounts, Part E - Information on risks and related
hedging policies, Quantitative information.
4.4a Financial assets at amortised cost subject to Covid-19 measures: gross value and total accumulated impairments
(€ million)
GROSS VALUE
TOTAL ACCUMULATED IMPAIRMENTS
STAGE 1
OF WHICH:
INSTRUMENTS
WITH LOW
CREDIT RISK
EXEMPTION
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT
IMPAIRED
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT
IMPAIRED
PARTIAL
ACCUMULATED
WRITE-OFFS(*)
Loans guaranteed by public
guarantee Covid 19
7,281
-
923
332
-
2
4
57
-
-
Total 31.12.2024
7,281
-
923
332
-
2
4
57
-
-
Total 31.12.2023
11,674
-
2,642
358
-
6
8
83
-
-
899
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Section 5 - Hedging derivatives - Item 50
5.1 Hedging derivatives: breakdown by hedged risk and fair value hierarchy
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
FAIR VALUE
NOTIONAL
AMOUNT
FAIR VALUE
NOTIONAL
AMOUNT
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
A. Financial derivatives
-
549
2
224,186
81
10,758
4
236,312
1) Fair value
-
54
2
212,325
81
9,060
-
221,390
2) Cash flows
-
495
-
11,861
-
1,698
4
14,922
3) Net investment in foreign subsidiaries
-
-
-
-
-
-
-
-
B. Credit derivatives
-
-
-
-
-
-
-
-
1) Fair value
-
-
-
-
-
-
-
-
2) Cash flows
-
-
-
-
-
-
-
-
Total
-
549
2
224,186
81
10,758
4
236,312
Total Level 1, Level 2 and Level 3
551
10,843
Fair value evolution of outstanding derivatives, further to volumes, is also influenced by the dynamic of interest rates.
Changes in respect of 2023 final figures are also due to application, for the first time in 2024, of accounting offsetting ex IAS32.
Valuations at fair value were classified according to a hierarchy of levels reflecting the observability of the inputs used in the measurements.
For further information refer to paragraph “A.4 - Information on fair value”, Notes to the accounts, Part A - Accounting policies.
5.2 Hedging derivatives: composition for covered portfolios and by type of hedging
(€ million)
TRANSACTIONS/TYPE OF HEDGES
AMOUNTS AS AT 31.12.2024
FAIR VALUE
CASH FLOW
FOREIGN
INVESTMENTS
MICRO-HEDGE
MACRO-
HEDGE
MICRO-
HEDGE
MACRO-
HEDGE
DEBT
SECURITIES
AND
INTEREST
RATES RISK
EQUITY
INSTRUMENTS
AND EQUITY
INDICES RISK
CURRENCY
AND GOLD CREDIT RISK COMMODITIES
OTHERS
1. Financial assets at fair value
through other comprehensive
income
2
-
8
-
X
X
X
-
X
X
2. Financial assets at amortised
cost
-
X
-
-
X
X
X
-
X
X
3. Portfolio
X
X
X
X
X
X
26
X
408
X
4. Other transactions
-
-
8
-
-
-
X
-
X
-
Total assets
2
-
16
-
-
-
26
-
408
-
1. Financial liabilities
-
X
-
-
-
-
X
-
X
X
2. Portfolio
X
X
X
X
X
X
12
X
87
X
Total liabilities
-
-
-
-
-
-
12
-
87
-
1. Expected transactions
X
X
X
X
X
X
X
-
X
X
2. Financial assets and liabilities
portfolio
X
X
X
X
X
X
-
X
-
-
900
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Section 6 - Changes in fair value of portfolio hedged items - Item 60
6.1 Changes to macro-hedged financial assets: breakdown by hedged portfolio
(€ million)
AMOUNTS AS AT
CHANGES TO HEDGED ASSETS/GROUP COMPONENTS
31.12.2024
31.12.2023
1. Positive changes
1,250
1,153
1.1 Of specific portfolios
22
26
a) Financial assets at amortised cost
22
26
b) Financial assets at fair value through other comprehensive income
-
-
1.2 Overall
1,228
1,127
2. Negative changes
2,152
3,109
2.1 Of specific portfolios
69
141
a) Financial assets at amortised cost
69
141
b) Financial assets at fair value through other comprehensive income
-
-
2.2 Overall
2,083
2,968
Total
(902)
(1,956)
Change in the item is attributable to the evolution of hedged volumes and markets interest rate curves.
901
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Section 7 - Equity investments - Item 70
7.1 Equity: information on shareholder's equity
COMPANY NAME
MAIN OFFICE LEGAL
MAIN OFFICE
OPERATIVE(*)
EQUITY %
VOTING RIGHTS %
A. Subsidiaries
1
ALPHA BANK ROMANIA S.A.
BUCHAREST
BUCHAREST
90.10%
2
AO UNICREDIT BANK
MOSCOW
MOSCOW
100.00%
3
CORDUSIO SOCIETA' FIDUCIARIA PER AZIONI
MILAN
MILAN
100.00%
4
EBS FINANCE S.R.L.
MILAN
MILAN
100.00%
5
NUOVA COMPAGNIA DI PARTECIPAZIONI- SOCIETA' A
RESPONSABILITA' LIMITATA
ROME
ROME
100.00%
6
PAI (BERMUDA) LIMITED
HAMILTON
HAMILTON
100.00%
7
PAI MANAGEMENT LTD
DUBLIN
DUBLIN
100.00%
8
PIRTA VERWALTUNGS GMBH
VIENNA
VIENNA
100.00%
9
UNICREDIT BANK A.D. BANJA LUKA
BANJA LUKA
BANJA LUKA
99.64%
10
UNICREDIT BANK AUSTRIA AG
VIENNA
VIENNA
100.00%
11
UNICREDIT BANK CZECH REPUBLIC AND SLOVAKIA, A.S.
PRAGUE
PRAGUE
100.00%
12
UNICREDIT BANK GMBH
MUNICH
MUNICH
100.00%
13
UNICREDIT BANK HUNGARY ZRT.
BUDAPEST
BUDAPEST
100.00%
14
UNICREDIT BANK S.A.
BUCHAREST
BUCHAREST
88.73%
15
UNICREDIT BANK SERBIA JSC
BELGRADE
BELGRADE
100.00%
16
UNICREDIT BANKA SLOVENIJA D.D.
LJUBLJANA
LJUBLJANA
100.00%
17
UNICREDIT BPC MORTGAGE S.R.L.
VERONA
VERONA
60.00%
18
UNICREDIT BULBANK AD
SOFIA
SOFIA
99.45%
19
UNICREDIT CONSUMER FINANCING IFN S.A.
BUCHAREST
BUCHAREST
49.90%
20
UNICREDIT FACTORING SPA
MILAN
MILAN
100.00%
21
UNICREDIT INTERNATIONAL BANK (LUXEMBOURG) SA
LUXEMBOURG
LUXEMBOURG
100.00%
22
UNICREDIT LEASING SPA
MILAN
MILAN
100.00%
23
UNICREDIT MYAGENTS SRL
BOLOGNA
BOLOGNA
100.00%
24
UNICREDIT OBG S.R.L.
VERONA
VERONA
60.00%
25
UNICREDIT RE SERVICES S.P.A.
MILAN
MILAN
100.00%
26
UNICREDIT SERVICES GMBH I.L. (IN LIQUIDATION)
VIENNA
VIENNA
100.00%
27
UNICREDIT TURN-AROUND MANAGEMENT CEE GMBH
VIENNA
VIENNA
100.00%
28
VISCONTI SRL
MILAN
MILAN
76.00%
29
ZAGREBACKA BANKA D.D.
ZAGREB
ZAGREB
96.19%
902
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
continued: 7.1 Equity: information on shareholder's equity
COMPANY NAME
MAIN OFFICE LEGAL
MAIN OFFICE
OPERATIVE(*)
EQUITY %
VOTING RIGHTS %
C. Companies under significant influence
1
ASSET BANCARI II
MILAN
MILAN
21.55%
2
CAMFIN S.P.A.
MILAN
MILAN
8.53%
15.82%
3
CNP UNICREDIT VITA S.P.A.
MILAN
MILAN
49.00%
4
COMPAGNIA AEREA ITALIANA S.P.A.
ROME
ROME
36.59%
5
EUROPROGETTI & FINANZA S.R.L. IN LIQUIDAZIONE
ROME
ROME
39.79%
6
UNICREDIT ALLIANZ ASSICURAZIONI S.P.A.
MILAN
MILAN
50.00%
7
UNICREDIT ALLIANZ VITA S.P.A.
MILAN
MILAN
50.00%
8
UNIQLEGAL SOCIETA' TRA AVVOCATI PER AZIONI
MILAN
MILAN
9.00%
9
VALUE TRANSFORMATION SERVICES SPA
VERONA
SEGRATE (MI)
49.00%
Notes:
(*) Also meaning the administrative office.
AO UNICREDIT BANK: It should be noted that as at 31 December 2024 the voting rights that can be exercised directly or indirectly relating to subsidiaries based in Russia, or companies subject to significant influence by
them, are enforceable and there are no indications that lead to reconsider the effectiveness of the shareholding relationship with these companies on the same date.
UNICREDIT BANK AUSTRIA AG: a fractional share is held by third parties.
UNICREDIT CONSUMER FINANCING IFN S.A.: the remaining share of 50.10% is held indirectly by UniCredit Bank S.A.
UNICREDIT RE SERVICES S.P.A.: formerly UNICREDIT SUBITO CASA S.P.A.
ASSET BANCARI II: It is a real estate closed-end investment fund.
With reference to section “B. Companies subject to joint control”, UniCredit S.p.A. does not hold stakes in jointly controlled companies.
Valuation of investment in subsidiaries
The item Equity investments is equal to €42,341 million of which €751 million related to investments in associates and €41,590 million related to
investments in subsidiaries.
In accordance with the IAS27 standard these investments are held at cost net of impairment losses determined in compliance with the IAS36
principle. According to this International Accounting Standard, equity investments must be subject to an impairment test whenever there is objective
evidence that events have taken place which may have decreased their value. According to the relevant standard, the impairment test shall be
carried out by comparing the carrying amount of each equity investments with its recoverable amount. If the latter value is found to be lower than the
carrying amount an impairment must be recognised. On the contrary, should the recoverable amount be found to be higher than the carrying
amount, the latter cannot be modified unless an impairment was recognised in previous periods. In this case, a reversal of previous impairment must
be recognised for the difference between the recoverable amount and carrying amount and the reversal cannot exceed impairment recognised in
previous periods.
With reference to investments in subsidiaries, it should be noted that the recoverable amount is generally determined through the discounting of
future cash flows at an appropriate discount rate as explained in the section “Estimating cash flows to determine the value in use of investments in
subsidiaries”.
For some investments, the future cash flows expected to be received from the subsidiary are not deemed to be appropriate for the computation of
the recoverable amount, generally due to the fact that their contribution to Group profitability is not expected to take place through the distribution of
dividends but rather through the provision of specific services to other companies in the Group with the aim of reducing the costs that these
companies incur into in order to perform their business. In cases such as these the recoverable amount has been generally determined based on
the net equity of the investment.
On 31 December 2024 net write downs were recognised on investments in subsidiaries for -€653 million, due to the write down recognised mainly
on AO UniCredit Bank (-€483 million), UniCredit Leasing S.p.A. (-€92 million), UniCredit International Luxembourg (-€41 million) e Pioneer
Alternative Investment Management (-€33 million).
With reference to investments in associates net write downs were recognized for an amount not significant.
903
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Estimating cash flows to determine the value in use of investments in subsidiaries
Projections
The set of projections employed for the impairment test of investments in subsidiaries as at 31 December 2024 was based around two alternative
scenarios, to reflect the volatility and uncertainty underlying the current macroeconomic environment. The two scenarios were articulated as follows
and were weighted respectively for 65% and 35%:
• “Baseline” scenario based on the financial forecasts (Net Profit and RWEA) underlying the 2025 budget and the 2026 and 2027 multi-year
projections;
• “Adverse” scenario less favourable than the “Baseline” scenario, reflecting lowered 2025-2027 macroeconomic forecasts to take into account the
higher risks part of the current uncertain context.
For a description of the assumptions underlying the “Baseline” and “Adverse” scenarios refer to the paragraph “Section 2 - General preparation
criteria” of the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts, Part A - Accounting policies.
Impairment test model
The calculation of the value in use for impairment testing purposes was carried out using a Dividend Discount Model (DDM). The free cash flows to
equity were determined by subtracting from Net Profit (gross of minority interests) the annual capital requirement generated by changes in risk-
weighted exposure amounts (RWEA). The capital requirement is defined as the level of capitalisation that the Group aims to achieve in the long
term, also in light of the minimum regulatory capital requirements currently in place.
The DDM model employed is based on three stages with an explicit forecast period, an intermediate period and a terminal value. Due to the
employment of the two scenarios described above the model was set-up in different ways in the various stages.
PERIOD
"BASE" SCENARIO
“ADVERSE” SCENARIO
Explicit forecast (2025 - 2027)
Financial forecasts underlying the 2025 budget and the 2026,
2027 multi-year projections
Financial forecasts derived from the macroeconomic scenario
underlying the “Adverse” scenario.
Intermediate (2028 - 2032)
Financial projections extrapolated by applying to the last year
of the explicit forecast period (2027) growth rates converging
to that of the “terminal value”.
The application of an intermediate period aims to allow a
normalisation in the nominal growth rate of Net Profit and
RWEA before their convergence to terminal value, since the
Group operates in different geographical areas and business
segments and these are characterised by different risk
profiles and growth prospects.
For subsidiaries in Italy, Germany and Austria the growth
rates for the intermediate period are defined considering a
conservative cap.
Financial projections extrapolated by applying to the last year
of the explicit forecast period (2027) a fixed growth rate equal
to the nominal long term growth rate.
Terminal value
Derived through a nominal long term growth rate of 2%. The
average growth rate of real GDP in the Eurozone from 2003
to 2023 was 1.1%. The nominal rate of 2%, corresponding to
approximately 0% in real terms, was chosen for cautionary
reasons.
Derived through a nominal long term growth rate of 2%.
With specific reference to AO UniCredit Bank valuation, it should be noted that the basic assumptions for the definition of the Value in Use have
been adjusted to consider the persisting geo-political context and, in particular, the sanctions and counter-sanctions regime in place, affecting the
hypothesis on the determination of the cash flows used for test purposes, on the expected growth rate and on the discount rate considered.
Discount rates and regulatory capital targets
Future financial flows were discounted using an estimate of the discount rate incorporating in the cost of equity the various risk factors linked to each
business sector. This discount rate is a nominal rate, net of taxes.
In particular, the cost of equity for each subsidiary is assessed with the Capital Asset Pricing Model as the sum of the following items:
• Risk Free Rate: equal to the expected one-year average yield of the benchmark government bond of the reference country (local currency
approach, maturity: 10 years), alternative references are used for countries lacking appropriate government issuances;
• Equity Risk Premium: given by the product of the following items:
- UniCredit Beta (β): measures the sensitivity of UniCredit shares to variations in the reference market, assessed over a 5 year period;
- Market Risk Premium: estimated by Professor Damodaran as the difference between the return of US stock and bond markets since 1928
(geometric mean).
A further parameter used to determine the initial allocated capital and its evolution over time is the Common Equity Tier 1 ratio target. A target
Common Equity Tier 1 ratio coherent with the Group target was employed for all subsidiaries.
904
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Results of the impairment test
The results of the two scenarios were weighted differently to reflect their different probability of taking place. Specifically, the results from the
“Baseline” scenario, considered the most probable scenario, were weighted at 65% while the “Adverse” scenario was weighted at 35%.
The investment in subsidiaries impairment test performed in the 2024 period led to a write-down of €254 million.
The table below shows the result of the test for the subsidiaries with carrying value before the test above €1 billion, plus AO UniCredit Bank.
(€ million)
COMPANY NAME
CARRYING AMOUNT
AS AT 31 DECEMBER 2024
IMPAIRMENT/REVERSAL OF
IMPAIRMENT FOLLOWING THE
IMPAIRMENT TEST
CARRYING AMOUNT AFTER THE
IMPAIRMENT TEST
UNICREDIT BANK GMBH
19,334
-
19,334
UNICREDIT BANK AUSTRIA AG
12,422
-
12,422
UNICREDIT BANK CZECH REPUBLIC AND SLOVAKIA
2,042
-
2,042
AO UNICREDIT BANK
504
(161)
343
ZAGREBACKA BANKA D.D. ZAGREB
2,005
-
2,005
UNICREDIT BULBANK AD
1,291
-
1,291
It must be underlined that the parameters and information used to verify the recoverability of carrying values (in particular, the expected cash flows
for the various subsidiaries, and the discount rates applied) are significantly influenced by the macroeconomic and market situation, which may be
subject to changes which are not currently predictable. In the coming reporting periods the effect of such changes, alongside potential changes in
corporate strategies, could therefore lead to a review of the estimated cash flows of the various subsidiaries and of the assumptions on the main
financial parameters (discount rates, expected growth rates, Common Equity Tier 1 ratio, etc.) and these could impact the results of future
impairment tests.
Sensitivity analysis
Following the employment of two scenarios for the impairment test of investments in subsidiaries as at 31 December 2024, an analysis on the
sensitivity of the test result to changes in the weights of the two scenarios was carried out. The results of this analysis for subsidiaries with carrying
value before the test above €1 billion are reported below.
(€ million)
COMPANY NAME
CHANGE IN THE IMPAIRMENT/REVERSAL OF IMPAIRMENT OF
THE SUBSIDIARY WITH AN INCREASE OF 5% IN THE WEIGHT
OF THE “BASE” SCENARIO
UNICREDIT BANK GMBH
-
UNICREDIT BANK AUSTRIA AG
-
UNICREDIT BANK CZECH REPUBLIC AND SLOVAKIA
-
AO UNICREDIT BANK
-
ZAGREBACKA BANKA D.D. ZAGREB
-
UNICREDIT BULBANK AD
-
905
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
7.5 Equity investments: annual changes
(€ million)
CHANGES IN
2024
2023
A. Opening balance
42,517
38,569
B. Increases
686
4,271
of which: business combinations
576
-
B.1 Purchases
582
95
B.2 Write-backs
4
4,131
B.3 Revaluation
-
-
B.4 Other changes
100
45
C. Decreases
862
323
of which: business combinations
-
3
C.1 Sales
195
81
C.2 Write-downs
657
242
C.3 Impairment
-
-
C.4 Other changes
10
-
D. Closing balance
42,341
42,517
E. Total revaluation
-
-
F. Total write-downs
7,377
6,738
906
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Section 8 - Property, plant and equipment - Item 80
With reference to the description of effects produced by update of appraisals conducted for fair value evaluation of respective assets, reference is
made to the paragraph “Section 9 - Property, plant and equipment - item 90” of the Consolidated financial statements of UniCredit group, Notes to
the consolidated accounts, Part B - Consolidated balance sheet - Assets, which is herewith quoted entirely for the information related to UniCredit
S.p.A.
8.1 Property, plant and equipment used in the business: breakdown of assets carried at cost
(€ million)
AMOUNTS AS AT
ASSETS/VALUES
31.12.2024
31.12.2023
1. Owned assets
440
421
a) Land
-
-
b) Buildings
-
-
c) Office furniture and fitting
47
48
d) Electronic systems
329
317
e) Other
64
56
2. Right of use of Leased Assets
627
771
a) Land
-
-
b) Buildings
611
759
c) Office furniture and fitting
-
-
d) Electronic systems
-
-
e) Other
16
12
Total
1,067
1,192
of which: obtained by the enforcement of collateral
-
-
8.2 Property, plant and equipment held for investment: breakdown of assets carried at cost
No data to be disclosed.
907
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
8.3 Property, plant and equipment used in the business: breakdown of revalued assets
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
ASSETS/VALUES
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Owned assets
-
-
2,349
-
-
2,276
a) Land
-
-
865
-
-
820
b) Buildings
-
-
1,484
-
-
1,456
c) Office furniture and fitting
-
-
-
-
-
-
d) Electronic systems
-
-
-
-
-
-
e) Other
-
-
-
-
-
-
2. Right of use of Leased Assets
-
-
-
-
-
-
a) Land
-
-
-
-
-
-
b) Buildings
-
-
-
-
-
-
c) Office furniture and fitting
-
-
-
-
-
-
d) Electronic systems
-
-
-
-
-
-
e) Other
-
-
-
-
-
-
Total
-
-
2,349
-
-
2,276
of which: obtained by the enforcement of collateral
-
-
-
-
-
-
Total Level 1, Level 2 and Level 3
2,349
2,276
8.4 Property, plant and equipment held for investment: breakdown of assets designated at fair value
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
ASSETS/VALUES
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Owned assets
-
-
216
-
-
262
a) Land
-
-
69
-
-
85
b) Buildings
-
-
147
-
-
177
2. Right of use of Leased Assets
-
-
-
-
-
-
a) Land
-
-
-
-
-
-
b) Buildings
-
-
-
-
-
-
Total
-
-
216
-
-
262
of which: obtained by the enforcement of collateral
-
-
-
-
-
-
Total Level 1, Level 2 and Level 3
216
262
8.5 Inventories of tangible assets regulated by IAS2: breakdown
The Company does not have tangible assets to be recorded according to IAS2.
908
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
8.6 Tangible assets used in the business: annual changes
(€ million)
CHANGES IN 2024
LANDS
BUILDINGS
OFFICE
FURNITURE AND
FITTINGS
ELECTRONIC
SYSTEMS
OTHER
TOTAL
A. Gross opening balance
820
3,721
716
2,198
489
7,944
A.1 Total net reduction in value
-
(1,506)
(668)
(1,881)
(421)
(4,476)
A.2 Net opening balance
820
2,215
48
317
68
3,468
B. Increases
61
200
7
101
36
405
B.1 Purchases
48
116
7
101
36
308
of which: business combinations
-
2
-
3
-
5
B.2 Capitalised expenditure on improvements
-
31
-
-
-
31
B.3 Write-backs
-
5
-
-
-
5
B.4 Increases in fair value
10
27
-
-
-
37
a) In equity
5
24
-
-
-
29
b) Through profit or loss
5
3
-
-
-
8
B.5 Positive exchange differences
-
-
-
-
-
-
B.6 Transfer from properties held for investment
1
3
X
X
X
4
B.7 Other changes
2
18
-
-
-
20
C. Reductions
16
320
8
89
24
457
C.1 Disposals
-
22
-
-
-
22
of which: business combinations
-
-
-
-
-
-
C.2 Depreciation
-
189
8
87
22
306
C.3 Impairment losses
-
13
-
2
-
15
a) In equity
-
-
-
-
-
-
b) Through profit or loss
-
13
-
2
-
15
C.4 Reduction of fair value
13
25
-
-
-
38
a) In equity
8
21
-
-
-
29
b) Through profit or loss
5
4
-
-
-
9
C.5 Negative exchange differences
-
-
-
-
-
-
C.6 Transfer to
3
8
-
-
-
11
a) Property, plant and equipment held for investment
3
8
X
X
X
11
b) Non-current assets and disposal groups classified
as held for sale
-
-
-
-
-
-
C.7 Other changes
-
63
-
-
2
65
D. Net final balance
865
2,095
47
329
80
3,416
D.1 Total net reduction in value
-
(1,575)
(671)
(1,859)
(420)
(4,525)
D.2 Gross closing balance
865
3,670
718
2,188
500
7,941
E. Carried at cost
715
893
-
-
-
1,608
909
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
8.7 Tangible assets held for investment: annual changes
(€ million)
CHANGES IN 2024
LANDS
BUILDINGS
TOTAL
A. Opening balances
85
177
262
B. Increases
8
17
25
B.1 Purchases
2
1
3
of which: business combinations
-
-
-
B.2 Capitalised expenditure on improvements
-
3
3
B.3 Increases in fair value
2
5
7
B.4 Write-backs
-
-
-
B.5 Positive exchange differences
-
-
-
B.6 Transfer from properties used in the business
3
8
11
B.7 Other changes
1
-
1
C. Reductions
24
47
71
C.1 Disposals
-
-
-
of which: business combinations
-
-
-
C.2 Depreciation
-
-
-
C.3 Reductions in fair value
11
20
31
C.4 Impairment losses
-
-
-
C.5 Negative exchange differences
-
-
-
C.6 Transfer to
13
27
40
a) Properties used in the business
1
3
4
b) Non-current assets and disposal groups classified as held for sale
12
24
36
C.7 Other changes
-
-
-
D. Closing balances
69
147
216
E. Measured at fair value
-
-
-
8.8 Inventories of tangible assets regulated by IAS2: annual changes
No data to be disclosed.
8.9 Commitments to purchase property, plant and equipment
At Financial Statement date, Commitments for the purchase of tangible assets do not exist.
Section 9 - Intangible assets - Item 90
9.1 Intangible assets: breakdown by asset type
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
ASSETS/VALUES
FINITE LIFE
INDEFINITE LIFE
FINITE LIFE
INDEFINITE LIFE
A.1 Goodwill
X
-
X
-
A.2 Other intangible assets
1,707
-
1,580
-
of which: software
1,707
-
1,580
-
A.2.1 Assets carried at cost
1,707
-
1,580
-
a) Intangible assets generated internally
1,573
-
1,424
-
b) Other assets
134
-
156
-
A.2.2 Assets measured at fair value
-
-
-
-
a) Intangible assets generated internally
-
-
-
-
b) Other assets
-
-
-
-
Total
1,707
-
1,580
-
Total finite and indefinite life
1,707
1,580
910
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
9.2 Intangible assets: annual changes
(€ million)
CHANGES IN 2024
OTHER INTANGIBLE ASSETS
GENERATED INTERNALLY
OTHER
GOODWILL
FINITE LIFE
INDEFINITE
LIFE
FINITE LIFE
INDEFINITE
LIFE
TOTAL
A. Gross opening balance
-
4,477
-
1,949
-
6,426
A.1 Total net reduction in value
-
(3,053)
-
(1,793)
-
(4,846)
A.2 Net opening balance
-
1,424
-
156
-
1,580
B. Increases
-
522
-
26
-
548
B.1 Purchases
-
206
-
26
-
232
B.2 Increases in intangible assets generated internally
X
316
-
-
-
316
B.3 Write-backs
X
-
-
-
-
-
B.4 Increases in fair value
-
-
-
-
-
-
- In equity
X
-
-
-
-
-
- Through profit or loss
X
-
-
-
-
-
B.5 Positive exchange differences
-
-
-
-
-
-
B.6 Other changes
-
-
-
-
-
-
of which: business combinations
-
206
-
6
-
212
C. Reduction
-
373
-
48
-
421
C.1 Disposals
-
-
-
-
-
-
C.2 Write-downs
-
372
-
48
-
420
- Amortisation
X
344
-
44
-
388
- Write-downs
-
28
-
4
-
32
+ In equity
X
-
-
-
-
-
+ Through profit or loss
-
28
-
4
-
32
C.3 Reduction in fair value
-
-
-
-
-
-
- In equity
X
-
-
-
-
-
- Through profit or loss
X
-
-
-
-
-
C.4 Transfer to non-current assets held for sale
-
-
-
-
-
-
C.5 Negative exchange differences
-
-
-
-
-
-
C.6 Other changes
-
1
-
-
-
1
of which: business combinations
-
-
-
-
-
-
D. Net closing balance
-
1,573
-
134
-
1,707
D.1 Total net write-down
-
(3,924)
-
(1,889)
-
(5,813)
E. Gross closing balance
-
5,497
-
2,023
-
7,520
F. Carried at cost
-
-
-
-
-
-
The increases mainly include:
• third parties software, whose amount represents capitalized other administrative expenses;
• internally developed software, whose amount represents capitalized personnel costs;
• the remain part consists of licences and software developed by third parties based on technical specifications provided by the Company.
The decreases mainly include:
• depreciation for internally developed software and other software licences;
• impairments on internally developed software.
9.3 Intangible assets: other information
No data to be disclosed.
911
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Section 10 - Tax assets and tax liabilities - Item 100 (Assets) and Item 60 (Liabilities)
10.1 Deferred tax assets: breakdown
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
Deferred tax assets arising from Italian law 214/2011
2,962
4,298
Deferred tax assets arising from tax losses (*)
3,778
3,552
Deferred tax assets arising from temporary differences
1,369
1,291
Financial assets and liabilities (different from loans and deposits)
66
37
Loans and deposits to/from banks and customers
393
490
Hedging and hedged item revaluation
65
65
Property, plant and equipment and intangible assets different from goodwill
115
100
Goodwill and equity investments
66
-
Current assets and liabilities held for sale
-
-
Other assets and Other liabilities
40
37
Provisions, pension funds and similar
624
562
Other
-
-
Accounting offsetting
(328)
(238)
Total
7,781
8,903
The item "Deferred tax assets arising from tax losses" also includes the IRAP tax credit deriving from the conversion of the ACE benefit.
10.2 Deferred tax liabilities: breakdown
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
Deferred tax liabilities arising from temporary differences
328
238
Financial assets and liabilities (different from loans and deposits)
126
89
Loans and deposits to/from banks and customers
-
-
Hedging and hedged item revaluation
82
57
Property, plant and equipment and intangible assets different from goodwill
119
91
Goodwill and equity investments
-
-
Assets and liabilities held for sale
1
-
Other assets and Other liabilities
-
-
Other
-
1
Accounting offsetting
(328)
(238)
Total
-
-
912
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Deferred tax assets deriving from Law No.214/2011
The item includes:
• the amount of €1,617 million related to deferred tax assets (for IRES and IRAP) due to the tax release of the value of the equity investments
pursuant to Art.23 of D.L. No.98/2011;
• the amount of €657 million related to deferred tax assets (for IRES and IRAP) arising from goodwill tax redemption;
• the amount of €688 million related to deferred tax assets (for IRES and IRAP) arising from impairment losses on receivables.
As at 31 December 2024, the total amount of deferred tax assets convertible into tax credits is equal to €2,962 million of which €2,538 million for
IRES and €424 million for IRAP.
Deferred tax assets for the carry-forward of unused tax losses - DTA TLCF
The possibility to book DTA TLCF, against future taxable income, implies an estimate of future economic results; this estimate is based on the
execution of a sustainability test, in accordance with the provisions of IAS12.
With reference to the Italian tax group perimeter, starting from 31 December 2019, the sustainability test for both IRES and IRAP has been
developed on a 10 years-time length, for testing the DTA on TLCF, deemed coherent to assess sufficient taxable base generation to be used for the
offsetting of said deferred taxes given: (i) the absence in Italy of legal time-limits for the use of DTAs TLCF, and (ii) a reasonable time limitation given
that lengthening of forecast horizon increases the uncertainty.
Considered the 10 years-time horizon and in order to mitigate the effects of the uncertainty inherent the adoption of an approach based also on
estimates beyond the plan horizon, a model incorporating a probabilistic component was adopted; in particular, in line with ESMA recommendation
issued on 15 July 2019113, the sustainability test for the determination of future taxable incomes envisages:
• a deterministic approach for the years for which official projections are available;
• a statistical approach for the years beyond official projections; for this purpose, also aiming to adhere to the ESMA recommendation, the
projections after the deterministic period rely on a concept of stochastic approach, performed through the Monte-Carlo method.
Furthermore, in line with IAS12, as well as taking into consideration the ESMA document, a confidence interval - which reflects a probability greater
than 50% in relation to the expected tax incomes - has been selected.
As per the Group internal regulations, the definition of the confidence interval requires to assess the macroeconomic conditions and the coherence
of the forecasted cash flows estimated through the scenario itself; with reference to 2024 test, the market environment still features a certain degree
of uncertainty of macro-economic indicators, following geopolitical tensions, which are, nonetheless, stabilizing. Indeed, persisting uncertainty is
highlighted in the ECB Macro-economic projections issued in December 2024, which acknowledge that the economic outlook continues to be
surrounded by uncertainty given the tensions in Middle East, war in Ukraine, lingering weakness in Chinese real estate market and the possibility
that next US Administration will turn more inward-looking.
However, the main macroeconomic indicators in the last quarters proved a lower degree of volatility compared to previous years (2020-2023) and a
certain stabilizing path; indeed, GDP growth both in EU and Italy is stabilizing converging to a range of 1-2% more consistent with long-term growth.
Interest rates are normalizing, as a result of a more dovish monetary policy, and the inflation is expected to converge to the 2% European Central
Bank target.
Furthermore, in the recent years, UniCredit Group has proved the ability to exceed the profitability targets set by Multiyear Plan UniCredit Unlocked;
in addition, the structural and strategic initiatives put in place aimed at supporting future growth, allowing the Group to face potential challenges that
could emerge. These elements are indicative of an increased reliability of Group future projections.
For additional information about macroeconomic scenarios, refer to Part A - Accounting policies, A.1 General, Section 2 - General preparation
criteria of the Consolidated Accounts.
Regarding the multiyear projections underlying the sustainability test:
• the expected tax base for 2025 was determined in coherence with the budget for year 2025, approved by the Board of Directors during the
meeting held on 12 December 2024;
• the expected tax base for the periods 2026 and 2027 were determined according to the projections for such years, acknowledged by the Board of
Directors in the same meeting;
• the test considers the updates introduced by Law 207 of 30 December 2024, related to (i) the postponement of the reversal of convertible DTAs to
2026 – 2029 with reference to DTAs convertible in 2025 and to 2027 – 2029 with reference to DTAs convertible in 2026 and (ii) the reduction of the
limit to utilization of tax loss carried forward in 2025;
• for determining the Profit before tax for the years 2028-2034: (iii) the nominal future growth rate was set with a 4% cap, applied to pre-tax profit for
the first year of projections beyond the deterministic period, converging in subsequent years to the long-term annual growth rate; (ii) the long-term
annual growth rate was set at 2%, incorporating an assumption of growth at 0% in real terms, as 2% represents the target rate of price stability.
113 ESMA32-63-743 - Public Statement - Considerations on recognition of deferred tax assets arising from the carryforward of unused tax losses (15 July 2019).
913
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Regarding the cash-flows projections used to determine the expected tax results, two macroeconomic scenarios - i.e., “Base” and “Alternative” -
were used, and respectively weighted 65% and 35%114. With specific reference to the “Alternative” scenario, the methodological adjustments for the
years beyond the deterministic period (i.e. beyond 2027), were confirmed assuming a growth rate stable at 2% equal to the European Central Bank
target inflation rate.
Regarding the parameters, the following items are worth to be specified:
• the confidence interval was set to 60% in line with the sustainability test executed as of 31 December 2022 (as of 31 December 2023 a confidence
interval of 80% was applied);
• the volatility multiplier applied in the stochastic model has been updated to 4.6 so to reflect the update in the historical series of European Central
Bank data on pre-tax profits of the main European banks and financial institutions (as of 31 December 2023 the volatility multiplier was set to 7.3).
Under a quantitative perspective, the sustainability test executed as of 31 December 2024 (for the Italian tax group perimeter by applying the current
ordinary tax rate of 24%, and for UniCredit S.p.A. by applying the additional tax rate of 3.5%) resulted in the recognition of additional DTA TLCF for
€319 million, of which €130 million related to the IRES tax rate and €189 million corresponding to the IRES additional tax rate 3.5%. As a result, the
amount of DTA TLCF booked is equal to €3,661 million (of which €2,897 million deriving from accounting items originated in the Income statement
and €764 million from Net equity components). As a result of the test all the DTAs TLCF were recognized and no such unrecognized DTAs remain.
Regarding the sensitivity analysis, disclosed as per ESMA recommendation:
• with reference to the test results derived from the statistical approach, a sensitivity analysis was run on volatility parameter and on confidence
interval; the outcomes of such analysis are the following: (i) +0.1 increase of volatility parameter would originate an amount of sustainable DTA
TLCF equal to €7,149 million; (ii) a 10% increase in the confidence interval would result in an amount of sustainable DTA TLCF equal to €6,773
million;
• with reference to the weight assigned to the scenarios adopted (“Base” and “Alternative”), the analysis pointed out that a 5% reduction in “Base”
scenario weight (meaning 60% weight for “Base” and 40% “Alternative”) would result in an amount of sustainable DTA TLCF equal to €6,996
million.
The sensitivity analysis evidences that in all the considered scenarios the amount of sustainable DTAs TLCF would be above the amount of € 3,661
million recognized on the basis of the test executed as of 31 December 2024.
Regarding the regulatory capital, the DTA TLCF write-up is basically neutral given its deduction from the Common Equity Tier 1.
Further risk elements related to the approach above outlined are linked to a possible significant reduction in the tax rate, as well as to any time limits
on the recovery of tax assets that may be introduced by changes in the current legislation.
Deferred tax assets from temporary differences
With reference to the deferred tax assets due to temporary differences (€1,486 million booked before the offset against the corresponding deferred
tax liabilities), the sustainability test caused the total sustainability of deferred tax assets due to temporary differences, of which: (i) €1,310 million
recognised through Income statement and (ii) €176 million recognised through Net equity originated from transactions accrued to Net equity due to
IFRS principles.
114 Consistently with the evaluation performed for the macro-economic scenario and investments in subsidiaries and in compliance with ESMA Public Statement "European common enforcement priorities for 2023 Annual
Financial Reports" which makes reference to its previous 2022 and 2021 public statements recommending, given the uncertainty, the use of multiple scenarios for the impairment of assets.
914
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
10.3 Deferred tax assets: annual changes (balancing P&L)
(€ million)
CHANGES IN
2024
2023
1. Opening balance
8,117
8,722
2. Increases
1,199
1,912
2.1 Deferred tax assets arisen during the year
892
1,640
a) Relating to previous years
44
171
b) Due to change in accounting criteria
-
-
c) Write-backs
427
980
d) Other
421
489
2.2 New taxes or increases in tax rates
-
-
2.3 Other increases
307
272
3. Decreases
2,474
2,517
3.1 Deferred tax assets derecognised during the year
2,101
2,044
a) Reversals
2,013
1,930
b) Write-downs of non-recoverable items
-
-
c) Change in accounting criteria
-
-
d) Other
88
114
3.2 Reduction in tax rates
-
-
3.3 Other decreases
373
473
a) Conversion into tax credit under Italian Law 214/2011
27
158
b) Other
346
315
4. Closing balance
6,842
8,117
For the portion of deferred tax assets arising from tax losses carried forward to subsequent years, please refer to the table 10.1 of these section of
the Notes to the accounts.
The sub-item “2.1 c) Write-backs” reports mainly the effects of the recognition in the Income statement of DTA TLCF arising from the results of the
sustainability test; the sub-items “2.3 Other increases” and “3.3 Other decreases” b) Other” include the effect of netting DTA/DTL of previous and
current year.
915
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
10.3bis Deferred tax assets (Italian Law 214/2011): annual changes
(€ million)
CHANGES IN
2024
2023
1. Opening balance
4,298
5,691
2. Increases
-
4
3. Decreases
1,336
1,397
3.1 Reversals of temporary differences
1,309
1,239
3.2 Conversion into tax credits
27
158
a) Due to loss positions arisen from P&L
-
-
b) Due to tax losses
27
158
3.3 Other decreases
-
-
4. Closing balance
2,962
4,298
In accordance with the Circular 262 of 22 December 2005 of Banca d’Italia (and subsequent amendments), starting from 31 December 2018, the
table shows the deferred tax asset annual changes of which L.214/2011 both equity balancing and Income statement balancing.
10.4 Deferred tax liabilities: annual changes (balancing P&L)
(€ million)
CHANGES IN
2024
2023
1. Opening balance
-
-
2. Increases
48
22
2.1 Deferred tax liabilities arisen during the year
31
1
a) Relating to previous years
-
-
b) Due to change in accounting criteria
-
-
c) Other
31
1
2.2 New taxes or increases in tax rates
-
-
2.3 Other increases
17
21
3. Decreases
48
22
3.1 Deferred tax liabilities derecognised during the year
4
6
a) Reversals of temporary differences
4
5
b) Due to change in accounting criteria
-
-
c) Other
-
1
3.2 Reduction in tax rates
-
-
3.3 Other decreases
44
16
4. Closing balance
-
-
The items “2.3 Other increases” and “3.3 Other decreases” include the effect of netting DTA/DTL of previous and current year.
916
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
10.5 Deferred tax assets: annual changes (balancing Net Equity)
(€ million)
CHANGES IN
2024
2023
1. Opening balance
786
787
2. Increases
154
21
2.1 Deferred tax assets arisen during the year
154
21
a) Relating to previous years
-
-
b) Due to change in accounting criteria
-
-
c) Other
154
21
2.2 New taxes or increase in tax rates
-
-
2.3 Other increases
-
-
3. Decreases
1
22
3.1 Deferred tax assets derecognised during the year
1
22
a) Reversals of temporary differences
1
22
b) Write-downs of non-recoverable items
-
-
c) Due to change in accounting criteria
-
-
d) Other
-
-
3.2 Reduction in tax rates
-
-
3.3 Other decreases
-
-
4. Closing balance
939
786
10.6 Deferred tax liabilities: annual changes (balancing Net Equity)
(€ million)
CHANGES IN
2024
2023
1. Opening balance
-
-
2. Increases
301
266
2.1 Deferred tax liabilities arisen during the year
79
13
a) Relating to previous years
-
-
b) Due to change in accounting criteria
-
-
c) Other
79
13
2.2 New taxes or increase in tax rates
-
-
2.3 Other increases
222
253
3. Decreases
301
266
3.1 Deferred tax liabilities derecognised during the year
17
44
a) Reversal of temporary differences
16
42
b) Due to change in accounting criteria
-
-
c) Other
1
2
3.2 Reduction in tax rates
-
-
3.3 Other decreases
284
222
4. Closing balance
-
-
The items “2.3 Other increases” and “3.3 Other decreases” include the effect of netting DTA/DTL of previous and current year.
917
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
10.7 Other information
Italian Tax Group
The Tax Group regime was introduced in Italy by Legislative Decree of 12 December 2003 No.344, that implemented the Italian corporate income
tax (IRES) reform.
The regime of italian Tax Group is optional, with a duration bound for three financial years and certain conditions (controlling relationship, same
operating period) to be met.
The participation to the Tax Group regime allows the offsetting between taxable income and tax losses generated by the companies participating to
such regime.
For financial year 2024 the following legal entities adhered to the Italian Tax Group with UniCredit S.p.A.:
• UniCredit Factoring S.p.A. - Milan;
• UniCredit Leasing S.p.A.- Milan;
• Cordusio Fiduciaria S.p.A.- Milan;
• UniCredit Bank GmbH Milan Branch;
• UniCredit Leased Asset Management S.p.A.- Milano.
The number of the legal entities adhered to the italian Tax Group has remained unchanged in the year 2024.
Considering the italian Tax Group the financial year 2024 closed with an income amount equal to €1,206 million. Tax due on income is equal to €289
million, this amount has been partially reduced due to residual tax losses of €231 million and the utilization of ACE of €0,07 million. Therefore, the
tax on income of the italian Tax Group is equal to €58 million.
The amount of deferred tax assets arising from tax losses related to the legal entities adhered to the italian Tax Group fully booked is equal to
€3,406 million (of which €3,148 million for UniCredit S.p.A., €257 million for UniCredit Leasing S.p.A. and €1 million for UniCredit Leased Asset
Management S.p.A.).
Deferred tax assets due to tax losses carried forward
The amount of individual residual deferred tax assets arising from tax losses carried forward is equal to €3,661 million (of which €2,897 million
deriving from accounting items originated in the Income statement and €764 million from Net equity components). Following the sustainability test
the residual amount of deferred tax assets not booked has been registered for an amount of €319 million can be registered of which €130 related to
24% IRES ordinary tax rate, €189 million related to the 3.5% IRES.
The deferred tax assets arising from tax losses are originated as follows:
• €3,148 million related to the IRES tax rate (of which €2,485 million deriving from accounting items originated in the Income statement and €663
million from Net equity components);
• €513 million related to IRES additional tax rate 3.5% (of which €412 million deriving from accounting items originated in the Income statement and
€101 million from Net equity components).
In respect of foreign branches, relevant tax losses not utilized are equal to €7,553 million, due to start-up expenses or other operating costs. These
tax losses can only be used to offset the taxable income of each single branch for taxes due in the relevant country of establishment.
918
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Section 11 - Non current assets and disposal groups classified as held for sale and
Liabilities associated with assets classified as held for sale - Item 110 (Assets) and Item
70 (Liabilities)
11.1 Non-current assets and disposal groups classified as held for sale: breakdown by asset type
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
A. Assets held for sale
A.1 Financial assets
7
278
A.2 Equity investments
6
8
A.3 Property, plant and equipment
26
13
of which: obtained by the enforcement of collateral
-
-
A.4 Intangible assets
-
-
A.5 Other non-current assets
-
-
Total (A)
39
299
of which: carried at cost
13
286
of which: designated at fair value - level 1
-
-
of which: designated at fair value - level 2
26
13
of which: designated at fair value - level 3
-
-
B. Discontinued operations
B.1 Financial assets at fair value through profit or loss
-
-
- Financial assets held for trading
-
-
- Financial assets designated at fair value
-
-
- Other financial assets mandatorily at fair value
-
-
B.2 Financial assets at fair value through other comprehensive income
-
-
B.3 Financial assets at amortised cost
-
-
B.4 Equity investments
-
-
B.5 Property, plant and equipment
-
-
of which: obtained by the enforcement of collateral
-
-
B.6 Intangible assets
-
-
B.7 Other assets
-
-
Total (B)
-
-
of which: carried at cost
-
-
of which: designated at fair value - level 1
-
-
of which: designated at fair value - level 2
-
-
of which: designated at fair value - level 3
-
-
C. Liabilities associated with assets classified as held for sale
C.1 Deposits
-
-
C.2 Securities
-
-
C.3 Other liabilities
-
-
Total (C)
-
-
of which: carried at cost
-
-
of which: designated at fair value - level 1
-
-
of which: designated at fair value - level 2
-
-
of which: designated at fair value - level 3
-
-
D. Liabilities associated with discontinued operations
D.1 Financial liabilities at amortised cost
-
-
D.2 Financial liabilities held for trading
-
-
D.3 Financial liabilities designated at fair value
-
-
D.4 Provisions
-
-
D.5 Other liabilities
-
-
Total (D)
-
-
of which: carried at cost
-
-
of which: designated at fair value - level 1
-
-
of which: designated at fair value - level 2
-
-
of which: designated at fair value - level 3
-
-
Sub-item “A.1 Financial assets” mainly includes non-performing loans that will be sold during 2025.
Sub-item “A.2 Equity investments” is composed by stake into Risanamento S.p.A. (€6 million).
919
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
11.2 Other information
No data to be disclosed.
Section 12 - Other assets - Item 120
12.1 Other assets: breakdown
(€ million)
AMOUNTS AS AT
ITEMS/VALUES
31.12.2024
31.12.2023
Margin with derivatives clearers (non-interest bearing)
-
-
Gold, silver and precious metals
39
49
Accrued income and prepaid expenses other than capitalised income
437
324
Positive value of management agreements (so-called servicing assets)
-
-
Cash and other valuables held by cashier
112
110
- Current account cheques being settled, drawn on third parties
112
110
- Current account cheques payable by group banks, cleared and in the process of being debited
-
-
- Money orders, bank drafts and equivalent securities
-
-
- Coupons, securities due on demand, revenue stamps and miscellaneous valuables
-
-
Interest and changes to be debited to
-
-
- Customers
-
-
- Banks
-
-
Items in transit between branches not yet allocated to destination accounts
2
-
Items in processing
82
158
Items deemed definitive but not-attributable to other items
1,645
1,683
- Securities and coupons to be settled
35
121
- Other transactions
1,610
1,562
Adjustments for unpaid bills and notes
3
430
Tax items other than those included in item 110
4,817
5,000
Commercial credits pursuant to IFRS15
263
252
Other items
371
347
Total
7,771
8,353
As at 31 December 2024, into the item "Gold, silver and precious metals" are recognised, at their fair value of €39 million, the precious stones
(diamonds) repurchased from customers within the "customer care" initiative promoted by the Bank regarding this topic.
Item “Accrued income and prepaid expenses other than capitalised income” includes the contract assets recognised in accordance with IFRS15.
In this context accrued income represents the portion of the performance obligation already satisfied through the services provided by the Bank and
that will be settled in the future periods in accordance with contractual provisions.
The aggregate amount of revenues from services to customers related to the portion of performance obligations not yet satisfied, and therefore not
represented in the table above, is of a non-material amount and relates to performance obligations expected to be satisfied by the following year end
reporting date.
It should be noted that during the period the change in the item “accrued income and prepaid expenses not included in the carrying amount of the
relevant financial assets” is mainly due to the entry into force of a new contract with a payment services company.
Item “Tax items other than those included in item 110” includes tax credits deriving from Decree-laws “Cura Italia” and “Rilancio” Law Decrees for
€3.5 billion.
920
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Assets
Periodic change of accrued income/expenses and prepaid expenses/income
(€ million)
AMOUNTS AS AT 31.12.2024
ACCRUED INCOME AND
PREPAID EXPENSES
ACCRUED EXPENSES AND
DEFERRED INCOME
Opening balance
324
199
Increases
127
67
a) Changes due to business combinations
-
-
b) Cumulative catch-up adjustments to revenue that affect the corresponding contract asset or contract
liability, including adjustments arising from a change in the measure of progress, a change in an estimate of
the transaction price (including any changes in the assessment of whether an estimate of variable
consideration is constrained) or a contract modification (IFRS15 Par. 118.b)
-
-
c) Reversal of impairment of a contract asset (IFRS15 Par. 118.c)
-
X
d) Change in the time frame for a right to consideration to become unconditional (ie for a contract asset to
be reclassified to a receivable) (IFRS15 Par. 118.d)
-
-
e) Change in the time frame for a performance obligation to be satisfied (ie for the recognition of revenue
arising from a contract liability (IFRS15 Par. 118.e)
-
-
f) Other
127
67
Decreases
14
50
a) Changes due to business combinations
-
-
b) Cumulative catch-up adjustments to revenue that affect the corresponding contract asset or contract
liability, including adjustments arising from a change in the measure of progress, a change in an estimate of
the transaction price (including any changes in the assessment of whether an estimate of variable
consideration is constrained) or a contract modification (IFRS15 Par. 118.b)
-
-
c) Impairment of a contract asset (IFRS15 Par. 118.c)
-
X
d) Change in the time frame for a right to consideration to become unconditional (ie for a contract asset to
be reclassified to a receivable) (IFRS15 Par. 118.d)
-
-
e) Change in the time frame for a performance obligation to be satisfied (ie for the recognition of revenue
arising from a contract liability (IFRS15 Par. 118.e)
-
-
f) Other
14
50
Closing balance
437
216
Note that the item “f) other” include (i) the deferral of income and expenses related to performance obligation that have already been paid but not yet
satisfied as well as the recognition in P&L of the amount previously deferred in accordance with the progressive satisfaction of the performance
obligation and (ii) the accrual in P&L of the amounts due as a result of the satisfaction of a performance obligation for which the payment is
contractually postponed as well as their subsequent settlement.
921
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
Liabilities
Section 1 - Financial liabilities at amortised cost - Item 10
1.1 Financial liabilities at amortised cost: breakdown by product of deposits from banks
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
TYPE OF TRANSACTIONS/VALUES
BOOK
VALUE
FAIR VALUE
BOOK
VALUE
FAIR VALUE
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Deposits from central banks
975
X
X
X
5,836
X
X
X
2. Deposits from banks
35,938
X
X
X
26,773
X
X
X
2.1 Current accounts and demand
deposits
7,715
X
X
X
3,303
X
X
X
2.2 Time deposits
2,749
X
X
X
3,651
X
X
X
2.3 Loans
25,458
X
X
X
19,788
X
X
X
2.3.1 Repos
23,879
X
X
X
17,933
X
X
X
2.3.2 Other
1,579
X
X
X
1,855
X
X
X
2.4 Liabilities relating to commitments to
repurchase treasury shares
-
X
X
X
-
X
X
X
2.5 Lease deposits
4
X
X
X
24
X
X
X
2.6 Other deposits
12
X
X
X
7
X
X
X
Total
36,913
-
24,939
11,954
32,609
-
23,661
8,401
Total Level 1, Level 2 and Level 3
36,893
32,062
“Deposits from central banks” no more include TLTRO III facilities subscribed in March 2021 and outstanding as at December 2023 for €5 billion,
due to their full reimbursement during the year.
Deposits from banks are not carried based at their fair value, which is only shown in order to meet disclosure requirements. Fair value
measurements have been classified according to a hierarchy of levels reflecting the observability of the valuations input. For further information refer
to the paragraph “A.4 - Information on fair value”, Notes to the accounts Part A - Accounting policies.
1.2 Financial liabilities at amortised cost: breakdown by product of deposits from customers
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
TYPE OF TRANSACTION/VALUES
BOOK
VALUE
FAIR VALUE
BOOK
VALUE
FAIR VALUE
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Current accounts and demand deposits
176,168
X
X
X
178,214
X
X
X
2. Time deposits
4,911
X
X
X
6,586
X
X
X
3. Loans
18,808
X
X
X
20,310
X
X
X
3.1 Repos
16,994
X
X
X
18,100
X
X
X
3.2 Other
1,814
X
X
X
2,210
X
X
X
4. Liabilities relating to commitments to
repurchase treasury shares
-
X
X
X
21
X
X
X
5. Lease deposits
758
X
X
X
898
X
X
X
6. Other deposits
1,121
X
X
X
1,529
X
X
X
Total
201,766
-
21,880
179,789
207,558
-
23,195
184,266
Total Level 1, Level 2 and Level 3
201,669
207,461
The item “Liabilities relating to commitments to repurchase treasury shares” reported in 2023 the amounts to be settled in respect of shares
purchased in execution of the share buy-back programs aimed at remunerating the shareholders.
922
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
Deposits from customers are not carried at fair value, which is presented solely for the purpose of fulfilling financial disclosure requirements.
Fair value measurements have been classified according to a hierarchy of levels reflecting the observability of the valuations input. The fair value of
demand items was estimated to be equal to their net book value by exercising the option provided for by IFRS7.29. According to this assumption,
demand items were classified as Level 3 in the fair value hierarchy. For further information refer to the paragraph “A.4 - Information on fair value”,
Notes to the accounts, Part A - Accounting policies.
1.3 Financial liabilities at amortised cost: breakdown by product of debt securities in issue
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
BOOK
VALUE
FAIR VALUE
BOOK
VALUE
FAIR VALUE
TYPE OF SECURITIES/VALUES
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
A. Debt securities
1. Bonds
41,855
33,093
8,778
-
40,881
28,715
11,299
-
1.1 Structured
1,081
-
1,050
-
581
-
551
-
1.2 Other
40,774
33,093
7,728
-
40,300
28,715
10,748
-
2. Other securities
5,206
-
62
5,081
5,676
-
57
5,602
2.1 Structured
47
-
47
-
47
-
47
-
2.2 Other
5,159
-
15
5,081
5,629
-
10
5,602
Total
47,061
33,093
8,840
5,081
46,557
28,715
11,356
5,602
Total Level 1, Level 2 and Level 3
47,014
45,673
Sub-items “1.1 structured” of bonds and “2.1. Structured” of other securities totally amount to €1,128 million and represent 2.4% of the total.
They mainly relate to interest-rate linked instruments with highly correlated derivative component, identified in accordance with the Mifid
classification rules.
Issued bonds change due to joint effect of maturities and new issuances and as a consequence of buy - backs realised in the period.
The fair value of derivatives embedded in structured securities, presented in item 20 of Assets and item 20 of Liabilities and included in Trading
derivatives - Others, amounted to a net balance of €13 million negative.
Fair value measurements solely for financial disclosure purposes only are classified according to a hierarchy of levels reflecting the observability of
the inputs used. For further information refer to the paragraph “A.4 - Information on fair value”, Notes to the accounts, Part A - Accounting policies.
1.4 Breakdown of subordinated debts/securities
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
Deposits from banks
-
-
Deposits from customers
-
-
Debt securities
5,988
7,016
Total
5,988
7,016
923
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
1.5 Breakdown of structured debts
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
Deposits from banks
-
-
Deposits from customers
-
1
Total
-
1
The debts are taken as part of ordinary operations with customers.
1.6 Amounts payable under finance leases
(€ million)
TIME BUCKET
31.12.2024
31.12.2023
CASH OUTFLOWS
CASH OUTFLOWS
FINANCE LEASES
OPERATING LEASES
FINANCE LEASES
OPERATING LEASES
Up to 1 year
-
202
-
214
1 year to 2 years
-
187
-
200
2 year to 3 years
-
149
-
185
3 year to 4 years
-
96
-
142
4 year to 5 years
-
82
-
88
Over 5 years
-
108
-
168
Total Lease Payments to be made
-
824
-
997
RECONCILIATION WITH DEPOSITS
Unearned finance expenses (-) (Discounting effect)
-
62
-
75
Lease deposits
-
762
-
922
It should be noted that table “1.6 Amounts payable under finance leases” reports the maturity analysis based on time bucket of the lease liability as
requested by IFRS16 and the concurrent Circular 262 of 22 December 2005 of Banca d’Italia (and subsequent amendments).
924
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
Section 2 - Financial liabilities held for trading - Item 20
2.1 Financial liabilities held for trading: breakdown by product
(€ million)
TYPE OF TRANSACTIONS/VALUES
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
NOMINAL
VALUE
FAIR VALUE
FAIR VALUE*
NOMINAL
VALUE
FAIR VALUE
FAIR VALUE*
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3 FAIR VALUE*
A. Cash liabilities
1. Deposits from banks
-
1,759
-
-
1,759
-
596
-
-
596
2. Deposits from customers
-
458
-
-
458
-
3,968
-
-
3,968
3. Debt securities
-
-
-
-
-
-
-
-
-
-
3.1 Bonds
-
-
-
-
-
-
-
-
-
-
3.1.1 Structured
-
-
-
-
X
-
-
-
-
X
3.1.2 Other
-
-
-
-
X
-
-
-
-
X
3.2 Other securities
-
-
-
-
-
-
-
-
-
-
3.2.1 Structured
-
-
-
-
X
-
-
-
-
X
3.2.2 Other
-
-
-
-
X
-
-
-
-
X
Total (A)
-
2,217
-
-
2,217
-
4,564
-
-
4,564
B. Derivatives instruments
1. Financial derivatives
X
-
34,358
1,477
X
X
16
9,043
688
X
1.1 Trading derivatives
X
-
33,028
340
X
X
16
8,482
178
X
1.2 Linked to fair value option
X
-
479
601
X
X
-
546
498
X
1.3 Other
X
-
851
536
X
X
-
15
12
X
2. Credit derivatives
X
-
-
-
X
X
-
-
-
X
2.1 Trading derivatives
X
-
-
-
X
X
-
-
-
X
2.2 Linked to fair value option
X
-
-
-
X
X
-
-
-
X
2.3 Other
X
-
-
-
X
X
-
-
-
X
Total (B)
X
-
34,358
1,477
X
X
16
9,043
688
X
Total (A+B)
X
2,217
34,358
1,477
X
X
4,580
9,043
688
X
Total Level 1, Level 2 and Level 3
38,052
14,311
Note:
Fair value* = Fair value calculated excluding the value changes due to the change of credit worthiness of the issuer compared to the issue date.
“Deposit from banks” and “Deposit from customers” are referred to technical overdrafts in respect of which no nominal amount was attributed. They
are fed by the recognition of technical overdrafts typical of primary dealer and market-maker transactions in government bonds.
“Financial derivatives: other” comprises derivatives that, for economic purposes are associated with Banking Book instruments.
Fair value evolution of outstanding derivatives, further to volumes, is also influenced by interest rates dynamic. Further, in 2024, following the start of
execution of Trading Centralization project (for which refer to Part G - Business Combination), volumes in derivatives have significatively increased
in respect of 2023.
Changes in respect of 2023 final figures are also due to application, for the first time in 2024, of accounting offsetting ex IAS32.
Valuations at fair value were classified according to a hierarchy of levels reflecting the observability of the valuations input. For further information
refer to the paragraph “A.4 - Information on fair value”, Notes to the accounts, Part A - Accounting policies.
2.2 Detail of financial liabilities held for trading: subordinated liabilities
Subordinated trading financial liabilities do not exist.
2.3 Detail of financial liabilities held for trading: structured debts
Structured trading financial liabilities do not exist.
925
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
Section 3 - Financial liabilities designated at fair value - Item 30
3.1 Financial liabilities designated at fair value: breakdown by product
(€ million)
TYPE OF TRANSACTIONS/VALUES
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
NOMINAL
VALUE
FAIR VALUE
FAIR VALUE*
NOMINAL
VALUE
FAIR VALUE
FAIR VALUE*
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
1. Deposits from banks
-
-
-
-
-
-
-
-
-
-
1.1 Structured
-
-
-
-
X
-
-
-
-
X
1.2 Other
-
-
-
-
X
-
-
-
-
X
of which:
- loan commitments given
-
X
X
X
X
-
X
X
X
X
- financial guarantees given
-
X
X
X
X
-
X
X
X
X
2. Deposits from customers
-
-
-
-
-
-
-
-
-
-
2.1 Structured
-
-
-
-
X
-
-
-
-
X
2.2 Other
-
-
-
-
X
-
-
-
-
X
of which:
- loan commitments given
-
X
X
X
X
-
X
X
X
X
- financial guarantees given
-
X
X
X
X
-
X
X
X
X
3. Debt securities
10,448
-
9,770
501
10,175
7,579
-
6,704
556
7,149
3.1 Structured
10,448
-
9,770
501
X
7,579
-
6,704
556
X
3.2 Other
-
-
-
-
X
-
-
-
-
X
Total
10,448
-
9,770
501
10,175
7,579
-
6,704
556
7,149
Total Level 1, Level 2 and Level 3
10,271
7,260
Note:
Fair value* = Fair value calculated excluding the value changes due to the change of credit worthiness of the issuer compared to the issue date.
Item “Debt securities - Structured” includes “Certificates” (structured debt securities) issued by UniCredit S.p.A. starting from the first quarter of
2016. These securities are classified as measured at fair value their embedded derivative component not being separable.
Valuations at fair value were classified according to a hierarchy of levels reflecting the observability of the valuations input.
For further information refer to the paragraph “A.4 - Information on fair value”, Notes to the accounts, Part A - Accounting policies.
3.2 Detail of financial liabilities designated at fair value: subordinated liabilities
Subordinated financial liabilities designated at fair value do not exist.
926
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
Section 4 - Hedging derivatives - Item 40
4.1 Hedging derivatives: breakdown by type of hedging and by levels
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
FAIR VALUE
NOTIONAL
AMOUNT
FAIR VALUE
NOTIONAL
AMOUNT
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
A. Financial derivatives
-
314
2
154,167
124
11,799
27
281,867
1) Fair value
-
94
2
145,463
124
11,275
17
271,342
2) Cash flows
-
220
-
8,704
-
524
10
10,525
3) Net investment in foreign subsidiaries
-
-
-
-
-
-
-
-
B. Credit derivatives
-
-
-
-
-
-
-
-
1) Fair value
-
-
-
-
-
-
-
-
2) Cash flows
-
-
-
-
-
-
-
-
Total
-
314
2
154,167
124
11,799
27
281,867
Total Level 1, Level 2 and Level 3
316
11,950
Fair value evolution of outstanding derivatives, further to volumes, is also influenced by the dynamic of interest rates.
Changes in respect of 2023 final figures are also due to application, for the first time in 2024, of accounting offsetting ex IAS32.
Valuations at fair value were classified according to a hierarchy of levels reflecting the observability of the inputs used in the measurements.
For further information refer to the paragraph “A.4 - Information on fair value”, Notes to the accounts, Part A - Accounting policies.
4.2 Hedging derivatives: breakdown by hedged portfolios and type of hedging
(€ million)
AMOUNTS AS AT 31.12.2024
FAIR VALUE
CASH FLOW
MICRO-HEDGE
TRANSACTIONS/HEDGE TYPES
DEBT
SECURITIES
AND
INTEREST
RATES RISK
EQUITY
INSTRUMENTS
AND EQUITY
INDICES RISK
CURRENCY
AND GOLD CREDIT RISK COMMODITIES
OTHER
MACRO-
HEDGE
MICRO-
HEDGE
MACRO-
HEDGE
FOREIGN
INVESTMENTS
1. Financial assets at fair value
through other comprehensive
income
33
-
9
-
X
X
X
-
X
X
2. Financial assets at amortised
cost
-
X
-
-
X
X
X
-
X
X
3. Portfolio
X
X
X
X
X
X
26
X
220
X
4. Other transactions
-
-
7
-
-
-
X
-
X
-
Total assets
33
-
16
-
-
-
26
-
220
-
1. Financial liabilities
-
X
-
-
-
-
X
-
X
X
2. Portfolio
X
X
X
X
X
X
21
X
-
X
Total liabilities
-
-
-
-
-
-
21
-
-
-
1. Expected transactions
X
X
X
X
X
X
X
-
X
X
2. Financial assets and liabilities
portfolio
X
X
X
X
X
X
-
X
-
-
927
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
Section 5 - Value adjustment of hedged financial liabilities - Item 50
5.1 Changes to hedged financial liabilities
(€ million)
AMOUNTS AS AT
CHANGES TO HEDGED LIABILITIES/GROUP COMPONENTS
31.12.2024
31.12.2023
1. Positive changes to financial liabilities
1,253
931
2. Negative changes to financial liabilities
(5,911)
(8,334)
Total
(4,658)
(7,403)
Change in the item is attributable to the evolution of hedged volumes and markets interest rate curves.
Section 6 - Tax liabilities - Item 60
Refer to the paragraph “Section 10 - Tax assets and tax liabilities - Item 100 (Assets) and Item 60 (Liabilities)”, Notes to the accounts, Part B -
Balance sheet - Asset.
Section 7 - Liabilities associated with assets classified as held for sale - Item 70
Refer to the paragraph “Section 11 - Non current assets and disposal groups classified as held for sale and Liabilities associated with assets
classified as held for sale- Item 110 (Assets) and Item 70 (Liabilities)”, Notes to the accounts, Part B - Balance sheet - Asset.
928
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
Section 8 - Other liabilities - Item 80
8.1 Other liabilities: breakdown
(€ million)
AMOUNTS AS AT
ITEMS/VALUES
31.12.2024
31.12.2023
Liabilities in respect of financial guarantees issued
-
-
Accrued expenses and deferred income other than those to be capitalised for the financial liabilities
concerned
216
199
Negative value of management agreements (so-called servicing assets)
-
-
Payment agreements based on the value of own capital instruments classified as liabilities pursuant to
IFRS2
-
-
Other liabilities due to employees
1,258
1,507
Other liabilities due to other staff
1
1
Other liabilities due to Directors and Statutory Auditors
-
-
Interest and amounts to be credited to
-
-
- Customers
-
-
- Banks
-
-
Items in transit between branches and not yet allocated to destination accounts
12
9
Available amounts to be paid to others
-
-
Items in processing
435
357
Entries relating to securities transactions
420
87
Definitive items but not attributable to other lines
2,576
3,490
- Accounts payable - suppliers
623
690
- Provisions for tax withholding on accrued interest, bond coupon payments or dividends
6
4
- Other entries
1,947
2,796
Liabilities for miscellaneous entries related to tax collection service
-
-
Adjustments for unpaid portfolio entries
1,375
-
Tax items different from those included in item 60
1,478
1,178
Other entries
111
122
Total
7,882
6,950
Item “Accrued expenses and deferred income other than those to be capitalised for the financial liabilities” includes the contract liabilities recognised
in accordance with IFRS15.
In this context, deferred income represents the portion of performance obligations not yet satisfied through the services provided by the Bank but
already settled during the period or in previous periods.
The majority of this amount relates to performance obligations expected to be satisfied by the following year end reporting date.
For information about the changes in deferred income and accrued expenses occurred in the period refer to “Section 12 - Other assets - Item 120”,
Notes to the accounts, Part B - Balance sheet - Assets.
929
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
Section 9 - Provision for employee severance pay - Item 90
The “TFR” provision for Italy-based employee benefits is to be constructed as a “post-retirement defined benefit”. Its recognition in financial
statements has required the estimate, through actuarial techniques, of the amount of benefit accrued by employees and its discount to present
value. The calculation of this benefit has been performed by an external actuary using “projected unit credit” method (refer to the paragraph “Part
A.2 - Main items of the accounts”, Notes to the accounts, Part A - Accounting policies).
9.1 Provisions for employee severance pay: annual changes
(€ million)
CHANGES IN
2024
2023
A. Opening balance
330
361
B. Increases
13
33
B.1 Provisions for the year
11
14
B.2 Other increases
2
19
of which: business combinations
-
-
C. Reductions
54
64
C.1 Severance payments
54
64
C.2 Other decreases
-
-
of which: business combinations
-
-
D. Closing Balance
289
330
9.2 Other information
(€ million)
CHANGES IN
2024
2023
Cost Recognised in P&L:
11
14
- Current Service Cost
-
-
- Interest Cost on the DBO
11
14
- Settlement (gains)/losses
-
-
- Past Service Cost
-
-
Remeasurement Effects (Gains) Losses Recognised in OCI
1
19
Annual weighted average assumptions
- Discount rate
3.30%
3.50%
- Price inflation
1.45%
1.75%
The financial duration of the commitments is 9 years; the balance of the negative Revaluation reserves, net of tax, changed from -€101 million at 31
December 2023 to -€102 million at 31 December 2024.
A change of -25 basis points in the discount rate would result in an increase in liabilities of €6 million (+2.07%); an equivalent increase in the rate, on
the other hand, would result in a reduction in liabilities of €6 million (-2.02%). A change of -25 basis points in the inflation rate would result in a
reduction in liabilities of €4 million (-1.28%); an equivalent increase in the rate, on the other hand, would result in an increase in liabilities of €4
million (+1.30%).
930
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
Section 10 - Provisions for risks and charges - Item 100
10.1 Provisions for risks and charges: breakdown
(€ million)
AMOUNTS AS AT
ITEMS/COMPONENTS
31.12.2024
31.12.2023
1. Provisions for credit risk on commitments and financial guarantees given
432
466
2. Provisions for other commitments and other guarantees given
-
-
3. Pensions and other post-retirement benefit obligations
36
34
4. Other provisions for risks and charges
1,410
1,182
4.1 Legal and tax disputes
270
266
4.2 Staff expenses
920
551
4.3 Other
220
365
Total
1,878
1,682
To cover liabilities that may result from pending lawsuits (excluding labor disputes and tax cases), UniCredit S.p.A. has set aside a provision for risks
and charges of €258 million (€253 million at 31 December 2023). More details are included in “Part E - Information on risks and risks of hedging
policies”, Notes to the accounts.
10.2 Provisions for risks and charges: annual changes
(€ million)
CHANGES IN 2024
PROVISIONS FOR
OTHER OFF-BALANCE
SHEET COMMITMENTS
AND OTHER
GUARANTEES GIVEN
PENSION AND POST-
RETIREMENT BENEFIT
OBLIGATIONS
OTHER PROVISIONS
FOR RISKS AND
CHARGES
TOTAL
A. Opening balance
-
34
1,182
1,216
B. Increases
-
21
726
747
B.1 Provisions for the year
-
4
619
623
B.2 Changes due to the passing time
-
1
8
9
B.3 Differences due to discount-rate changes
-
-
2
2
B.4 Other changes
-
16
97
113
of which: business combinations
-
-
-
-
C. Decreases
-
19
498
517
C.1 Use during the year
-
-
398
398
C.2 Differences due to discount-rate changes
-
-
1
1
C.3 Other changes
-
19
99
118
of which: business combinations
-
1
-
1
D. Closing balance
-
36
1,410
1,446
More details about annual changes for pensions and post-retirement benefit obligation are presented in the paragraph “10.5 - Pensions and other
postretirement defined benefit obligations”, Notes to the accounts, Part B - Balance sheet - Liabilities, Section 10 - Provision for risks and charges -
Item 100.
10.3 Provisions for credit risk on commitments and financial guarantees given
(€ million)
AMOUNTS AS AT 31.12.2024
PROVISIONS FOR CREDIT RISK ON COMMITMENTS AND FINANCIAL GUARANTEES GIVEN
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED CREDIT-
IMPAIRED FINANCIAL
ASSETS
TOTAL
Loan commitments given
16
34
41
-
91
Financial guarantees given
16
66
258
-
340
Total
32
100
299
-
431
931
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
More details on provisions for commitments and guarantees given are presented in the paragraph “10.3 Provisions for credit risk on commitments
and financial guarantees given” and “10.4 Provisions on other commitments and other issued guarantees”, Notes to the accounts, Part B - Balance
sheet - Liabilities, Section 10 - Provision for risks and charges - Item 100.
10.4 Provisions on other commitments and other issued guarantees
No data to be disclosed.
10.5 Pensions and other post-retirement defined-benefit obligations
1. Pensions and other post-retirement benefit obligations
According to IAS19, obligations arising from defined-benefit plans are determined using the “Projected Unit Credit” method, while segregated assets
are measured at fair value at Balance sheet reporting date. The Balance sheet obligation is the result of the deficit or surplus (i.e. the difference
between obligations and assets) net of any impacts of the asset ceiling; actuarial gains and losses are recognised in shareholders’ equity and shown
in a specific item of revaluation reserves in the financial year in which they are recorded.
The actuarial assumptions used to determine obligations vary from country to country and from plan to plan; the discount rate is determined,
depending on the currency of denomination of the commitments and the maturity of the liability, by reference to market yields at the Balance sheet
date on a basket of “high quality corporate bonds”.
In light of evolving common interpretation about “high quality corporate bonds” identification, UniCredit group refined its Discount Rate setting
methodology by referencing AA rated corporate bonds basket. In addition, it is worth to mention that, instead of econometric models, a Nelson
Siegel methodology has been applied since years in modelling the yield-curve expressed by the basket of securities (adjusted above the last liquid
point, defined as the average maturity of the last 5 available bonds, relying on the slope of a Treasury curve build with AA Govies).
The balance of the negative Revaluation reserves, net of deferred taxes, changed from -€113 million as at 31 December 2023 to -€115 million as at
31 December 2024.
The Annexes provide details of Internal Fund movements and include statements of changes in funds with segregated assets pursuant to Art.2117
of the Italian Civil Code, as well as explanatory notes thereto.
932
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
2. Changes of net defined benefit liability/asset and any reimbursement rights
2.1 Breakdown of defined benefit net obligation
(€ million)
31.12.2024
31.12.2023
Current value of the defined benefit obligation
430
423
Current value of the plan assets
(394)
(389)
Deficit/(Surplus)
36
34
Irrecoverable surplus (effect of asset ceiling)
-
-
Net defined benefit liability/(asset) as of the period end date
36
34
2.2 Changes in defined benefit obligations
(€ million)
31.12.2024
31.12.2023
Initial defined benefit obligation
423
424
Current service cost
4
4
Settlement (gain)/loss
-
-
Past service cost
-
-
Interest expense on the defined benefit obligation
15
16
Write-downs for actuarial (gains)/losses on defined benefit plans
13
9
Employees' contributions for defined benefit plans
-
-
Disbursements from plan assets
(20)
(21)
Disbursements directly paid by the fund
(5)
(4)
Settlements
-
-
Other increases (decreases)
-
(5)
Net defined benefit liability/(asset) as of the period end date
430
423
2.3 Changes to plan assets
(€ million)
31.12.2024
31.12.2023
Initial fair value of plan assets
389
359
Interest income on plan assets
14
14
Administrative expenses paid from plan assets
-
-
Write-downs on the fair value of plan assets for actuarial gains (losses) on the discount rate
10
4
Employer contributions
5
-
Disbursements from plan assets
(20)
(21)
Settlements
-
-
Other increases (decreases)
(4)
33
Final fair value of plan assets
394
389
3. Information on plan assets' fair value
(€ million)
31.12.2024
31.12.2023
1. Shares
49
56
2. Bonds
94
86
3. Units in investment funds
219
218
4. Real estate properties
1
1
5. Derivative instruments
-
-
6. Other assets
31
28
Total
394
389
933
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
4. Description of major actuarial assumptions
31.12.2024
31.12.2023
%
%
Discount rate
3.54
3.60
Expected return on plan assets
3.54
3.60
Expected compensation increase rate
2.51
2.50
Future increases relating to pension treatments
1.75
1.94
Expected inflation rate
1.99
2.10
5. Information of amounts, timing and uncertainties of disbursement cash flows
(€ million)
31.12.2024
- Impact of changes in financial/demographic assumptions on DBOs
A. Discount rate
A1. -25 basis points
14
3.15%
A2. +25 basis points
(13)
-2.98%
B. Future increase rate relating to pension treatments
B1. -25 basis points
(9)
-1.98%
B2. +25 basis points
9
2.06%
C. Mortality
C.1 Life expectancy + 1 year
16
3.68%
- Financial duration (years)
12.7
10.6 Provisions for risks and charges - other provisions
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
4.3 Other provisions for risks and charges - other
Real estate risks/charges
-
-
Restructuring costs
-
-
Allowances payable to agents
7
6
Disputes regarding financial instruments and derivatives
5
6
Costs for liabilities arising from equity investment disposals
1
13
Other
207
340
Total
220
365
Other Provisions include:
• the ones posted in order to cope with the probable risks of loss related to the purchases of diamonds, that could be carried out under action of
“customer care” promoted by the Bank. To complete the information more details are included in the paragraph “E. Other claims by customers”,
Notes to the accounts, Part E - Information about risks and hedging policies, Section 5 - Operational risk, Qualitative information;
• those referring to cover the risks related to certain standard contractual terms contained in the documentary frameworks (i.e. reps & warranties),
including securitisation transactions with derecognition of non-performing loans, signed with the SPVs, of which UniCredit S.p.A. is Originator,
pending the analysis and assessments to be completed within the deadlines established.
Section 11 - Redeemable shares - Item 120
No data to be disclosed.
934
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
Section 12 - Shareholders’ equity - Item 110, 130, 140, 150, 160, 170 and 180
Further information about shareholders’ equity is disclosed in the paragraph “Part F - Shareholders’ equity”, Notes to the accounts.
12.1 "Share capital" and "treasury shares": breakdown
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
ISSUED SHARES
UNDERWRITTEN
SHARES
ISSUED SHARES
UNDERWRITTEN
SHARES
A. Share capital
A.1 Ordinary shares
21,368
-
21,278
-
A.2 Savings shares
-
-
-
-
Total A
21,368
-
21,278
-
B. Treasury shares
B.1 Ordinary shares
-
-
(1,727)
-
B.2 Savings shares
-
-
-
-
Total B
-
-
(1,727)
-
Share capital, which as at 31 December 2023 was represented by No.1,784,663,080 ordinary shares, in 2024 changed due to a free share capital
increase by €90 million resolved on 04 February 2024 by UniCredit’s Board of Directors by issuing No.7,227,514 ordinary shares to be granted to
the employees of UniCredit group.
In terms of the number of shares representing the share capital, during 2024 No.240,470,744 shares, the cancellation was carried out with no
reduction in the amount of the share capital, but exclusively through a reduction in the number of existing shares, with a consequent increase in their
accounting par value.
As a result of the above as at 31 December 2024 the share capital of UniCredit S.p.A. amounts to €21,368 million represented by No.1,551,419,850
ordinary shares with no nominal value, as also reported on section 12.2 below.
The treasury shares in the portfolio at the end of the 2024 financial year have been entirely cancelled.
935
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
12.2 Share capital - Number of shares: annual changes
CHANGES IN 2024
ITEMS/TYPES
ORDINARY
SAVINGS
A. Issued shares as at the beginning of the year
1,784,663,080
-
- Fully paid
1,784,663,080
-
- Not fully paid
-
-
A.1 Treasury shares (-)
(72,239,501)
-
A.2 Shares outstanding: opening balance
1,712,423,579
-
B. Increases
7,227,514
-
B.1 New issues
7,227,514
-
- Against payment
-
-
- Business combinations
-
-
- Bonds converted
-
-
- Warrants exercised
-
-
- Other
-
-
- Free
7,227,514
-
- To employees
7,227,514
-
- To directors
-
-
- Other
-
-
B.2 Sales of treasury shares
-
-
B.3 Other changes
-
-
C. Decreases
168,231,243
-
C.1 Cancellation
-
-
C.2 Purchase of treasury shares
168,231,243
-
C.3 Business tranferred
-
-
C.4 Other changes
-
-
of which: business combinations
-
-
D. Shares outstanding: closing balance
1,551,419,850
-
D.1 Treasury shares (+)
-
-
D.2 Shares outstanding as at the end of the year
1,551,419,850
-
- Fully paid
1,551,419,850
-
- Not fully paid
-
-
The item “Purchase of treasury shares” recognize the shares purchased during the year 2024 in execution of the share buy-back programs aimed at
remunerating the shareholders and in particular:
• the purchase of No.124,917,568 treasury shares in execution of the "Buy-Back Programme 2023" (First and Second Tranche) resolved by the
Shareholders' Meeting on 12 April 2024 and relating to the distribution for the year 2023;
• the purchase of No.43,313,675 treasury shares in execution of the “First Tranche of the “Buy-Back Programme 2024” authorized by the
Shareholders’ Meeting on 12 April 2024 and relating to the distribution for the year 2024.
The treasury shares in the portfolio at the end of the 2024 financial year have been entirely cancelled.
12.3 Capital: other information
Shares have no face value pursuant to the resolution passed by the Extraordinary Shareholders' Meeting on 15 December 2011.
Outstanding ordinary shares relating to the usufruct contract signed with Mediobanca S.p.A. on UniCredit shares for the issuance of convertible
securities denominated “Cashes” amount to No.9,675,640 (issued in the context of the 2009 capital increase) provides for Euribor-linked
discretionary payments contingent also on the payment of dividends on ordinary shares. The voting right cannot be exercised on these shares.
936
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
12.4 Reserves from profits: other information
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
Legal reserve
1,618
1,618
Statutory reserve
16,052
13,917
Other reserves
2,634
1,656
Total
20,304
17,191
The Legal reserve in overall includes, in addition to the amount of €1,618 million, also the amount of €2,738 million classified among other reserves
(not from profits) through a withdrawal from the “Share premium reserve” as resolved by the Shareholders’ Meeting of 11 May 2013, 13 May 2014,
14 April 2016 and 15 April 2021 in order to replenish the Legal reserve above the limit set by Art.2430 of the Italian Civil Code.
12.5 Equity instruments: composition and annual changes
The item is entirely composed by Additional Tier 1 bond issuances placed between 2014 and 2024 net of the related issue costs. During 2024 an
early repayment of equity instruments placed in 2014 was carried out for a total nominal value of $1,250 million and a new Additional Tier 1 bond
issuance was placed for a total nominal value of €1,000 million.
12.6 Other Information
Valuation reserves: breakdown
(€ million)
AMOUNTS AS AT
ITEM/TYPES
31.12.2024
31.12.2023
1. Equity instruments designated at fair value through other comprehensive income
48
(192)
2. Financial assets (other than equity instruments) at fair value through other comprehensive income
26
148
3. Hedging of equity instruments at fair value through other comprehensive income
-
-
4. Financial liabilities at fair value through profit or loss (changes in own credit risk)
(70)
(80)
5. Hedging instruments (non-designated elements)
-
-
6. Property, plant and equipment
711
729
7. Intangible assets
-
-
8. Hedges of foreign investments
-
-
9. Cash-flow hedges
33
(16)
10. Exchange differences
-
-
11. Non-current assets classified as held for sale
5
3
12. Actuarial gains (losses) on defined-benefit plans
(215)
(211)
13. Part of valuation reserves of investments valued at net equity
-
-
14. Special revaluation laws
277
277
Total
815
658
The following table, in accordance with article 2427, paragraph 7-bis, of the Italian Civil Code, provides details on the origin, possible uses and
availability of distribution of shareholders’ equity, as well as the summary of its use in the three previous financial years.
937
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
Breakdown of Shareholders' Equity (with indication of availability and distribution)
(€ million)
SUMMARY OF USE IN THE THREE
PREVIOUS FINANCIAL YEARS
ITEMS
AMOUNT
PERMITTED
USES(*)
AVAILABLE
PORTION
TO COVER
LOSSES
OTHER
REASONS
Share capital
21,368
-
-
Share premium
23
A, B, C
23
-
5,424
(1)
Reserves:
23,899
Legal reserve
4,356
B
(2)
4,356
-
-
Reserve for treasury shares
-
-
-
-
-
Statutory reserves
16,053
A, B, C
16,053
-
7,937
(3)
Reserves arising out of transfer of assets
420
A, B, C
(4)
420
-
-
Reserves related to the medium-term incentive programme for
Group staff
114
-
(5)
-
-
234
(14)
Reserve related to equity-settled plans
1,097
A, B, C
(6)
880
-
-
Reserve related to business combinations (IFRS3)
671
A, B, C
(7)
671
-
1,152
(15)
Reserve pursuant to Art.1, C.984 Legislative Decree 145/2018
145
A, B, C
(8)
145
Reserve related to business combinations within the Group
701
A, B, C
(9)
701
-
-
Reserve pursuant to Art.6, paragraph 2 Legislative Decree
38/2005
654
B
(10)
654
-
-
Reserve for share purchase transactions
-
-
-
Other reserves
95
A, B, C
88
-
-
Reserve for extra profits tax Banks L.135 of 091020 art 26c 5 BIS
1,125
0
(15)
-
-
-
Negative components of shareholders' equity
(1,532)
-
(11)
(1,532)
-
-
Revaluation reserves:
815
Monetary equalisation reserve under L.576/75
4
A, B, C
(12)
4
-
-
Monetary revaluation reserve under L.72/83
85
A, B, C
(12)
85
-
-
Asset revaluation reserve under L.408/90
29
A, B, C
(12)
29
-
-
Property revaluation reserve under L.413/91
159
A, B, C
(12)
159
-
-
Financial assets and liabilities at fair value through other
comprehensive income
4
-
(13)
-
-
-
Reserve for property plant and equipment
711
-
(13)
-
Cash-flow hedges reserve
33
-
(13)
-
-
-
Asset held for sale
5
-
-
-
-
Reserve for actuarial gains (losses) on employee defined -benefit
plans
(215)
-
(13)
-
-
-
Total
46,105
22,736
-
14,747
Portion not allowed in distribution
5,010
Remaining portion available for distribution(**)
17,726
Notes:
(*) A: for capital increase; B: to cover losses; C: distribution to shareholders.
(**) The distributable portion is net of negative items.
(1) Reserve used for coverage negative reserves (€653 million) and for the allocation to the unavailable reserve for buyback (€4,771 million).
(2) Reserve available to cover losses only after the use of other reserves, except for the reserves pursuant to article 6, paragraph 2, of Legislative Decree 38/2005; the reserve includes €2,738 million from Share premium
reserve as approved by the Ordinary Shareholders’ Meetings of 11 May 2013, 13 May 2014, 14 April 2016 and 15 April 2021.
(3) Reserve used to cover negative reserves (€279 million), for allocation to the reserve pursuant to Art. 6 of Legislative Decree 38/2005 (€286 million), for allocation to the reserve related to the medium-term incentive plan
for Group staff (€87 million) and for the allocation to the unavailable reserve for buyback (€7,285 million).
(4) The reserve includes €215 million distributable according to the procedure provided for by article 2445 of the Italian Civil Code and in case of utilization to cover losses, profits may not be distributed until the reserve is
restored to its full amount or is reduced by the corresponding amount.
(5) The Shareholders' meeting can resolve the removal of the constraint making it available and distributable.
(6) These reserves set up in application of the accounting standard IFRS2 are unavailable until the related plans are vested.
(7) The Reserve from business combination (IFRS3), generated with the acquisition of the shareholdings UniCredit Bank GmbH and UniCredit Bank Austria AG, is fully available due to the write-downs recognised through
profit and loss in the previous years on these shareholdings and covered without using the reserve in question. A portion of this reserve equal to €653 million is restricted in tax suspension due to the tax realignment of the
properties carried out pursuant to Art.110 of the D.L.2020/104. In the event of distribution of the reserve, the related restricted portion will be subject to taxation at the ordinary rate.
(8) Reserve in suspension of tax established with withdrawal of the Statutory reserve; in case of distribution will be subject to taxation at the ordinary rate.
(9) The reserve includes the surplus from the merger of controlled subsidiaries.
(10) Reserve from profit non distributable until the actual realization of the underlying gains; the reserve can be used to cover losses only after the use of the available reserves with constraint of subsequent reconstitution.
(11) Negative components affect the availability and distributability of positive reserves of the shareholders’ equity.
(12) The reserve, if not recognised under shareholders’ equity, may be reduced only in compliance with the provisions of paragraphs 2 and 3 of article 2445 of the Italian Civil Code. In case of use to cover losses, net income
cannot be distributed unless the reserve is replenished or correspondingly reduced.
(13) The reserve, when positive, is not available pursuant to article 6 of Legislative Decree 38/2005.
(14) Reserve used for free capital increase with respect to allocation of performance shares connected to the personnel incentive plan.
(15) Reserve in tax suspension introduced as an alternative to the payment of the extraordinary tax 2023 due to article 26 of the Law Decree 10 August 2023, No.104, converted, with amendments, into the Law 9 October
2023, No.136. Reserve restricted in tax suspension due to D.L. 104/2023 converted, with amendments, into the Law 136/2003. In case of distribution of the reserve (even partial) to shareholders, the entire tax must be paid.
938
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
In detail the composition of negative components of shareholders’ equity:
(€ million)
ITEMS
31.12.2024
Reserve for payments of AT1 and Cashes
(699)
Reserve for capital increase costs
(316)
Reserve for the unsustainable deferred tax assets relating to tax losses carried forward linked to equity items
0
Financial instruments at fair value through other comprehensive income
(378)
Reserve relating to business combination within the Group and other negative reserves
(139)
Total
(1,532)
The negative reserve connected to capital transactions also include the costs related to the execution of treasury share buyback programs; the
negative reserve from business combinations within the Group consists of the negative equity impact arising from merger transactions, transfer of
business unit carried out with subsidiaries.
939
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
Other information
1. Commitments and financial guarantees given (different from those designated at fair value)
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT
NOTIONAL AMOUNTS OF COMMITMENTS AND FINANCIAL GUARANTEES GIVEN
31.12.2023
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED
CREDIT-IMPAIRED
FINANCIAL ASSETS
TOTAL
TOTAL
1. Loan commitments given
20,522
1,008
188
-
21,718
28,584
a) Central Banks
11
-
-
-
11
13
b) Governments and other Public
Sector Entities
1,286
293
10
-
1,589
1,942
c) Banks
259
-
-
-
259
138
d) Other financial companies
3,266
73
-
-
3,339
9,831
e) Non-financial companies
15,574
636
176
-
16,386
16,502
f) Households
126
6
2
-
134
158
2. Financial guarantees given
35,581
2,675
931
-
39,187
39,540
a) Central Banks
1
-
-
-
1
1
b) Governments and other Public
Sector Entities
223
-
-
-
223
189
c) Banks
4,533
287
-
-
4,820
5,632
d) Other financial companies
5,828
7
1
-
5,836
5,965
e) Non-financial companies
24,853
2,375
929
-
28,157
27,593
f) Households
143
6
1
-
150
160
2. Others commitments and others guarantees given
(€ million)
AMOUNTS AS AT
31.12.2024
31.12.2023
NOTIONAL AMOUNTS
NOTIONAL AMOUNTS
1. Others guarantees given
-
-
of which: non-performing loans
-
-
a) Central Banks
-
-
b) Governments and other Public Sector Entities
-
-
c) Banks
-
-
d) Other financial companies
-
-
e) Non-financial companies
-
-
f) Households
-
-
2. Others commitments
98,639
98,162
of which: non-performing loans
706
412
a) Central Banks
388
404
b) Governments and other Public Sector Entities
1,050
994
c) Banks
8,588
9,714
d) Other financial companies
23,429
23,454
e) Non-financial companies
61,186
59,340
f) Households
3,998
4,256
Table “1. Commitments and financial guarantees given (different from those designated at fair value)” shows commitments and guarantees
evaluated according to the IFRS9 requirements.
Table “2. Other commitments and others guarantees given” shows commitments and guarantees that are not evaluated according to the IFRS9
requirements.
According to the Circular 262 of 22 December 2005 of Banca d’Italia (and subsequent amendments), the tables also include the revocable
commitments, and the item “financial guarantees” also includes the commercial ones.
940
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
3. Assets used to guarantee own liabilities and commitments
(€ million)
AMOUNTS AS AT
PORTFOLIOS
31.12.2024
31.12.2023
1. Financial assets at fair value through profit or loss
1,327
663
2. Financial assets at fair value through other comprehensive income
12,563
8,350
3. Financial assets at amortised cost
26,476
38,585
4. Property, plant and equipment
-
-
of which: inventories of property, plant and equipment
-
-
4. Asset management and trading on behalf of others
(€ million)
AMOUNTS AS AT
TYPE OF SERVICES
31.12.2024
31.12.2023
1. Execution of orders on behalf of customers
a) Purchases
3,313
-
1. Settled
3,309
-
2. Unsettled
4
-
b) Sales
2,564
-
1. Settled
2,564
-
2. Unsettled
-
-
2. Individual portfolio management
6,797
6,190
3. Custody and administration of securities
a) Third party securities on deposits: relating to depositary bank activities (excluding portfolio
management)
-
-
1. Securities issued by companies included in consolidation
-
-
2. Other securities
-
-
b) Third party securities held in deposits (excluding portfolio management): other
108,036
101,764
1. Securities issued by companies included in consolidation
10,605
8,353
2. Other securities
97,431
93,411
c) Third party securities deposited with third parties
107,582
101,269
d) Property securities deposited with third parties
104,754
106,869
4. Other transactions
6,459
6,297
5. Financial assets subject to accounting offsetting or under master netting agreements and similar agreements
(€ million)
GROSS AMOUNTS
OF FINANCIAL
ASSETS
FINANCIAL
LIABILITIES
OFFSET IN
BALANCE SHEET
NET BALANCE
SHEET VALUES
OF FINANCIAL
ASSETS
RELATED AMOUNTS NOT SUBJECT
TO ACCOUNTING OFFSETTING
NET AMOUNT
NET AMOUNT
INSTRUMENT TYPE
FINANCIAL
INSTRUMENTS
CASH
COLLATERAL
RECEIVED
31.12.2024
31.12.2023
(A)
(B)
(C=A-B)
(D)
(E)
(F=C-D-E)
1. Derivatives
171,019
127,918
43,101
34,909
5,913
2,279
498
2. Reverse repos
26,497
-
26,497
26,447
50
-
96
3. Securities lending
-
-
-
-
-
-
-
4. Others
5,516
4,984
532
428
-
104
-
Total
31.12.2024
203,032
132,902
70,130
61,784
5,963
2,383
X
Total
31.12.2023
50,089
-
50,089
47,797
1,698
X
594
UniCredit S.p.A. applied for the first time in 2024 accounting offsetting according to IAS32.
The amount of financial assets offset in Balance sheet by financial liabilities (column “B” item 1. Derivatives and column “B” item 4. Others) refers to
derivatives contracts and cash collateral settled with Central Clearing Counterparties (CCPs).
941
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part B - Balance sheet - Liabilities
6. Liabilities subject to accounting offsetting or under master netting agreements and similar ones
(€ million)
GROSS AMOUNTS
OF FINANCIAL
LIABILITIES
FINANCIAL
ASSETS OFFSET
IN BALANCE
SHEET
NET BALANCE
SHEET VALUES
OF FINANCIAL
LIABILITIES
RELATED AMOUNTS NOT SUBJECT
TO ACCOUNTING OFFSETTING
NET AMOUNT
NET AMOUNT
INSTRUMENT TYPE
FINANCIAL
INSTRUMENTS
CASH
COLLATERAL
PLEDGED
31.12.2024
31.12.2023
(A)
(B)
(C=A-B)
(D)
(E)
(F=C-D-E)
1. Derivatives
168,356
132,642
35,714
34,909
428
377
608
2. Reverse repos
40,526
-
40,526
40,368
103
55
64
3. Securities lending
-
-
-
-
-
-
-
4. Others
6,251
296
5,955
5,913
-
42
-
Total
31.12.2024
215,133
132,938
82,195
81,190
531
474
X
Total
31.12.2023
55,940
-
55,940
52,785
2,483
X
672
UniCredit S.p.A. applied for the first time in 2024 accounting offsetting according to IAS32.
The amount of financial liabilities offset in Balance sheet by financial assets (column “B” item 1. Derivatives and column “B” item 4. Others) refers to
derivatives contracts and cash collateral settled Central Clearing Counterparties (CCPs).
7. Security borrowing transactions
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS OF THE SECURITIES BORROWED/TRANSACTION PURPOSES
TYPE OF LENDER
GIVEN AS COLLATERAL
IN OWN FUNDING
TRANSACTIONS
SOLD
SOLD IN REPO
TRANSACTIONS
OTHER PURPOSES
A. Banks
-
-
759
1,241
B. Financial companies
-
-
665
2,839
C. Insurance companies
-
-
-
-
D. Non-financial companies
-
-
-
1,139
E. Others
-
-
423
2,098
Total
-
-
1,847
7,317
942
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part C - Income statement
Part C - Income statement
Section 1 - Interests - Items 10 and 20
1.1 Interest income and similar revenues: breakdown
(€ million)
YEAR 2024
YEAR
DEBT SECURITIES
LOANS
OTHER
TRANSACTIONS
2023
ITEMS/TYPES
TOTAL
TOTAL
1. Financial assets at fair value through profit or
loss
245
17
-
262
319
1.1 Financial assets held for trading
76
-
-
76
128
1.2 Financial assets designated at fair value
1
-
-
1
1
1.3 Other financial assets mandatorily at fair value
168
17
-
185
190
2. Financial assets at fair value through other
comprehensive income
1,000
-
X
1,000
818
3. Financial assets at amortised cost
1,309
9,222
X
10,531
10,381
3.1 Loans and advances to banks
747
1,072
X
1,819
2,178
3.2 Loans and advances to customers
562
8,150
X
8,712
8,203
4. Hedging derivatives
X
X
3,045
3,045
2,970
5. Other assets
X
X
199
199
185
6. Financial liabilities
X
X
X
3
7
Total
2,554
9,239
3,244
15,040
14,680
of which: interest income on impaired financial assets
3
209
-
212
246
of which: interest income on financial lease
X
3
X
3
2
The interests on financial assets mandatory at fair value include €99 million referred to the coupon settlement of Additional Tier 1 instruments issued
by UniCredit Bank GmbH subsidiary and €14 million referred to the first coupon settlement of Additional Tier 1 instrument issued by UniCredit Bank
Austria AG.
1.2 Interest income and similar revenues: other information
1.2.1 Interest income from financial assets denominated in currency
(€ million)
ITEMS
YEAR 2024
YEAR 2023
a) Assets denominated in currency
796
1,225
943
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part C - Income statement
1.3 Interest expenses and similar charges: breakdown
(€ million)
YEAR 2024
YEAR
DEBTS
SECURITIES
OTHER
TRANSACTIONS
2023
ITEMS/TYPES
TOTAL
TOTAL
1. Financial liabilities at amortised cost
(3,264)
(1,702)
X
(4,966)
(5,039)
1.1 Deposits from central banks
(63)
X
X
(63)
(776)
1.2 Deposits from banks
(1,189)
X
X
(1,189)
(918)
1.3 Deposits from customers
(2,012)
X
X
(2,012)
(1,572)
1.4 Debt securities in issue
X
(1,702)
X
(1,702)
(1,773)
2. Financial liabilities held for trading
-
(14)
(388)
(402)
(336)
3. Financial liabilities designated at fair value
-
(72)
-
(72)
(24)
4. Other liabilities and funds
X
X
(38)
(38)
(74)
5. Hedging derivatives
X
X
(3,391)
(3,391)
(3,276)
6. Financial assets
X
X
X
(2)
(9)
Total
(3,264)
(1,788)
(3,817)
(8,871)
(8,758)
of which: interest expenses on lease deposits
(20)
X
X
(20)
(21)
The interests on financial liabilities with central banks include €49 million (€761 million in 2023) arising from TLTRO III facilities.
1.4 Interest expenses and similar charges: other information
1.4.1 Interest expenses on liabilities denominated in currency
(€ million)
ITEMS
YEAR 2024
YEAR 2023
a) Liabilities denominated in currency
(1,038)
(1,299)
1.5 Differentials relating to hedging operations
(€ million)
ITEMS
YEAR 2024
YEAR 2023
A. Positive differentials relating to hedging operations
7,444
6,980
B. Negative differentials relating to hedging operations
(7,790)
(7,286)
C. Net differential (A-B)
(346)
(306)
944
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part C - Income statement
Section 2 - Fees and commissions - Items 40 and 50
2.1 Fees and commissions income: breakdown
(€ million)
TYPE OF SERVICES/VALUES
YEAR 2024
YEAR 2023
a) Financial Instruments
1,519
1,337
1. Placement of securities
1,285
1,070
1.1 Underwriting and/or on the basis of an irrevocable commitment
-
-
1.2 Without irrevocable commitment
1,285
1,070
2. Reception and transmission of orders
188
220
2.1 Reception and transmission of orders of financial instruments
180
220
2.2 Execution of orders on behalf of customers
8
-
3. Other fees related to activities linked to financial instruments
46
47
of which: proprietary Trading
1
-
of which: individual portfolio management
45
47
b) Corporate Finance
20
16
1. M&A advisory
-
-
2. Treasury services
-
-
3. Other fee and commission income in relation to corporate finance activities
20
16
c) Fee based advice
14
10
d) Clearing and settlement
-
-
e) Custody and administration of securities
11
10
1. Custodian Bank
-
-
2. Other fee and commission income in relation to corporate finance activities
11
10
f) Central administrative services for collective investment
-
-
g) Fiduciary transactions
-
-
h) Payment services
1,188
965
1. Current accounts
95
-
2. Credit cards
115
70
3. Debits cards and other card payments
246
200
4. Transfers and other payment orders
306
288
5. Other fees in relation to payment services
426
407
i) Distribution of third party services
822
781
1.Collective portfolio management
-
-
2. Insurance products
821
779
3. Other products
1
2
of which: individual portfolio management
-
1
j) Structured finance
-
-
k) Loan servicing activities
36
34
l) Loan commitment given
29
29
m) Financial guarantees
228
228
of which: credit derivatives
-
-
n) Lending transaction
232
200
of which: factoring services
-
-
o) Currency trading
142
140
p) Commodities
-
-
q) Other fee income
761
1,002
of which: management of sharing multilateral trading facilities
-
-
of which: management of organized trading systems
-
-
Total
5,002
4,752
945
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part C - Income statement
Item “a) Financial instruments - 1. Placement of securities” includes placement management fees on investment funds for €1,240 million.
Item “q) other fee income” mainly comprise:
• fees for ancillary services linked to current accounts (e.g., token, debt card): €243 million in 2024, €286 million in 2023 (-15%);
• fees for immediate funds availability: €328 million in 2024, €328 million in 2023 (0%).
2.2 Fees and commissions income: distribution channels of products and services
(€ million)
CHANNELS/VALUES
YEAR 2024
YEAR 2023
A) Through bank branches
2,152
1,898
1. Portfolio management
45
47
2. Placement of securities
1,285
1,070
3. Others' products and services
822
781
B) Off-site offer
-
-
1. Portfolio management
-
-
2. Placement of securities
-
-
3. Others' products and services
-
-
C) Other distribution channels
-
-
1. Portfolio management
-
-
2. Placement of securities
-
-
3. Others' products and services
-
-
2.3 Fees and commissions expenses: breakdown
(€ million)
SERVICES/VALUES
YEAR 2024
YEAR 2023
a) Financial instruments
(21)
(14)
of which: trading in financial instruments
(15)
(9)
of which: placement of financial instruments
(4)
(2)
of which: individual Portfolio management
(2)
(3)
- own portfolio
-
-
- third party portfolio
(2)
(3)
b) Clearing and settlement
-
-
c) Custody and administration of securities
(41)
(33)
d) Collection and payment services
(445)
(422)
of which: debit credit card service and other payment cards
(404)
(379)
e) Loan securitization servicing activities
(2)
(3)
f) Loan commitment given
-
-
g) Financial guarantees received
(149)
(191)
of which: credit derivatives
-
-
h) Off-site distribution of financial instruments, products and services
(12)
(7)
i) Currencies trading
(1)
-
j) Other fees and commissions expenses
(125)
(148)
Total
(796)
(818)
946
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part C - Income statement
Section 3 - Dividend income and similar revenue - Item 70
3.1 Dividend income and similar revenues: breakdown
(€ million)
YEAR 2024
YEAR 2023
ITEMS/REVENUES
DIVIDENDS
SIMILAR REVENUES
DIVIDENDS
SIMILAR REVENUES
A. Financial assets held for trading
-
-
-
-
B. Other financial assets mandatorily at fair value
20
15
3
14
C. Financial assets at fair value through other comprehensive
income
37
-
25
-
D. Equity investments
5,018
-
3,044
-
Total
5,075
15
3,072
14
Total dividends and similar revenues
5,090
3,086
Dividends are recognised in the Income statement when distribution is approved.
The item “B. Other financial assets mandatorily at fair value” includes €16 million from Investment Funds distributions (€14 million in 2023).
The item “C. Financial assets at fair value through other comprehensive income” includes mainly the dividends received relating to the shareholding
in Banca d’Italia (€17 million, as in 2023).
Here below the breakdown of dividends on equity investments collected during 2024 and 2023.
Breakdown of dividends by investments
(€ million)
YEAR 2024
YEAR 2023
UniCredit Bank GMBH
1,725
1,160
UniCredit Bank Austria AG
832
234
UniCredit Bank Czech Republic and Slovakia A.S.
604
376
Zagrebacka Banca DD
431
521
AO UniCredit Bank
415
137
UniCredit Bulbank AD
267
237
UniCredit Bank Hungary ZRT
195
132
UniCredit Bank SA
128
-
UniCredit Service GMBH I.L.
93
-
UniCredit Bank Serbia JSC
87
61
CNP UniCredit Vita S.p.A
74
23
UniCredit Factoring S.p.A
54
45
UniCredit Banka Slovenija D.D.
47
34
PAI Management LTD
32
-
UniCredit Allianz Assicurazioni S.p.A.
17
15
UniCredit Bank A.D. Banja Luka
12
29
Pirta Verwaltungs GMBH
2
4
UniCredit Myagents S.r.l.
2
1
Uniqlegal S.p.A
1
-
Nuova Compagnia di Partecipazioni S.p.A
-
20
Incontra Assicurazioni S.p.A. fusa in UniCredit Allianz Assicurazioni S.p.A.
-
14
Camfin S.p.A
-
1
Total
5,018
3,044
947
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part C - Income statement
Section 4 - Gains (Losses) on financial assets and liabilities held for trading - Item 80
4.1 Net gains (losses) on trading: breakdown
(€ million)
YEAR 2024
TRANSACTIONS/INCOME ITEMS
CAPITAL GAINS
(A)
REALISED PROFITS
(B)
CAPITAL LOSSES
(C)
REALISED LOSSES
(D)
NET PROFIT
[(A+B)-(C+D)]
1. Financial assets held for trading
35
190
(27)
(160)
38
1.1 Debt securities
35
190
(27)
(160)
38
1.2 Equity instruments
-
-
-
-
-
1.3 Units in investment funds
-
-
-
-
-
1.4 Loans
-
-
-
-
-
1.5 Other
-
-
-
-
-
2. Financial liabilities held for trading
-
-
-
-
-
2.1 Debt securities
-
-
-
-
-
2.2 Deposits
-
-
-
-
-
2.3 Other
-
-
-
-
-
3. Financial assets and liabilities: exchange
differences
X
X
X
X
(895)
4. Derivatives
36,559
50,833
(40,110)
(47,287)
1,694
4.1 Financial derivatives
36,559
50,833
(40,110)
(47,287)
1,694
- On debt securities and interest rates
34,621
49,761
(38,442)
(46,368)
(428)
- On equity securities and share indices
1,505
222
(1,237)
(103)
387
- On currencies and gold
X
X
X
X
1,699
- Other
433
850
(431)
(816)
36
4.2 Credit derivatives
-
-
-
-
-
of which: economic hedges linked to the fair
value option
X
X
X
X
-
Total
36,594
51,023
(40,137)
(47,447)
837
Financial derivatives include the ones connected to debt securities financial liabilities at fair value.
In 2024, following the start of execution of Trading Centralization project (for which refer to Part G – Business Combination), volumes in derivatives
have significatively increased in respect of 2023, and consequently also their economic effects.
948
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part C - Income statement
Section 5 - Fair value adjustments in hedge accounting - Item 90
5.1 Net gains (losses) on hedge accounting: breakdown
(€ million)
INCOME COMPONENT/VALUES
YEAR 2024
YEAR 2023
A. Gains on
A.1 Fair value hedging instruments
6,655
7,721
A.2 Hedged financial assets (in fair value hedge relationship)
1,903
4,284
A.3 Hedged financial liabilities (in fair value hedge relationship)
196
393
A.4 Cash-flow hedging derivatives
7,760
4
A.5 Assets and liabilities denominated in currency
-
-
Total gains on hedging activities (A)
16,514
12,402
B. Losses on
B.1 Fair value hedging instruments
(6,235)
(6,624)
B.2 Hedged financial assets (in fair value hedge relationship)
(92)
(171)
B.3 Hedged financial liabilities (in fair value hedge relationship)
(2,819)
(5,601)
B.4 Cash-flow hedging derivatives
(7,770)
(1)
B.5 Assets and liabilities denominated in currency
-
-
Total losses on hedging activities (B)
(16,916)
(12,397)
C. Net hedging result (A-B)
(402)
5
of which: net gains (losses) of hedge accounting on net positions
-
-
The change in the items gain and losses on the hedging derivatives reflects the evolution in the markets interest rate curves that have been slightly
descendent in 2024.
Further, in 2024, following the start of execution of Trading Centralization project (for which refer to Part G – Business Combination), the result
reflects the economic impact of the new established operative model.
The item includes effects (-€1 million) of the market risks hedging strategy on the subsidiaries UniCredit Bank Hungary Zrt, UniCredit Bank Czech
and UniCredit Bank SA.
Hedging derivatives evaluation include any eventual “model” adjustment needed to reflect the presence of guarantees and credit risk of
counterparties.
949
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part C - Income statement
Section 6 - Gains (Losses) on disposals/repurchases - Item 100
6.1 Gains (Losses) on disposal/repurchase: breakdown
(€ million)
YEAR 2024
YEAR 2023
ITEMS/INCOME ITEMS
GAINS
LOSSES
NET PROFIT
GAINS
LOSSES
NET PROFIT
A. Financial assets
1. Financial assets at amortised cost
164
(224)
(60)
381
(179)
202
1.1 Loans and advances to banks
1
(10)
(9)
9
(19)
(10)
1.2 Loans and advances to customers
163
(214)
(51)
372
(160)
212
2. Financial assets at fair value through other
comprehensive income
475
(405)
70
867
(720)
147
2.1 Debt securities
475
(405)
70
867
(720)
147
2.2 Loans
-
-
-
-
-
-
Total assets (A)
639
(629)
10
1,248
(899)
349
B. Financial liabilities at amortised cost
1. Deposits from banks
1
-
1
-
-
-
2. Deposits from customers
10
(9)
1
12
(6)
6
3. Debt securities in issue
20
(20)
-
61
(2)
59
Total liabilities (B)
31
(29)
2
73
(8)
65
Total financial assets/liabilities
12
414
Net results on financial assets at amortised cost mainly arise from sale of bonds (+€27 million) and from sale of non-performing customers loans (-
€90 million) and performing customers loans (+€3 million).
Net gains on financial assets at fair value through other comprehensive income are essentially related to effects of the sale of government bonds,
mainly Italian ones.
Net gains from repurchase of debts securities in issue arise from buyback of some issuances before their original maturity.
950
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part C - Income statement
Section 7 - Net gains (losses) on other financial assets/liabilities at fair value through
profit or loss - Item 110
7.1 Net gains (losses) on other financial assets/liabilities at fair value through profit or loss: breakdown of financial assets and liabilities
designated at fair value
(€ million)
YEAR 2024
TRANSACTIONS/INCOME ITEMS
CAPITAL GAINS
(A)
REALISED PROFITS
(B)
CAPITAL LOSSES
(C)
REALISED LOSSES
(D)
NET PROFIT
[(A+B)-(C+D)]
1. Financial assets
1
-
(1)
-
-
1.1 Debt securities
1
-
(1)
-
-
1.2 Loans
-
-
-
-
-
2. Financial liabilities
142
107
(319)
(260)
(330)
2.1 Debt securities
142
107
(319)
(260)
(330)
2.2 Deposits from banks
-
-
-
-
-
2.3 Deposits from customers
-
-
-
-
-
3. Financial assets and liabilities in foreign
currency: exchange differences
X
X
X
X
-
Total
143
107
(320)
(260)
(330)
Financial liabilities represented by debt securities show the economic result of “certificates” (structured debt securities) issued by UniCredit S.p.A. to
which are also linked some financial derivatives for economic hedge purposes and whose economic results are included into table reported in the
paragraph “4.1 Net gain (losses) on trading: breakdown”, Notes to the accounts, Part C - Income statement, Section 4 - Gain (Losses) on financial
assets and liabilities held for trading - Item 80.
7.2 Net change in other financial assets/liabilities at fair value through profit or loss: breakdown of other financial assets mandatorily at
fair value
(€ million)
YEAR 2024
TRANSACTIONS/INCOME ITEMS
CAPITAL GAINS
(A)
REALISED PROFITS
(B)
CAPITAL LOSSES
(C)
REALISED LOSSES
(D)
NET PROFIT
[(A+B)-(C+D)]
1. Financial assets
400
54
(167)
(7)
280
1.1 Debt securities
211
2
(94)
(4)
115
1.2 Equity securities
147
50
(15)
(1)
181
1.3 Units in investment funds
41
2
(50)
(2)
(9)
1.4 Loans
1
-
(8)
-
(7)
2. Financial assets: exchange differences
X
X
X
X
-
Total
400
54
(167)
(7)
280
Debt securities into financial assets also include evaluation effects of Additional Tier 1 instruments subscribed by the Bank, among which, for +€121
million, the ones issued by the subsidiary UniCredit Bank GmbH and subscribed in the fourth quarter 2020 for a nominal amount of €1,700 million
and, for +€75 million, the ones issued by the subsidiary UniCredit Bank Austria AG and subscribed in the fourth quarter 2021 for a nominal amount
of €600 million.
Equity securities include effects of the evaluation of the interests held in the “Schema Volontario” for which refer to specific comment below table
reported in the paragraph “2.5 Financial assets mandatory at fair value: breakdown by product”, Notes to the accounts, Part B - Balance sheet -
Assets, Section 2 - Financial assets at fair value through profit or loss - Item 20.
Units in investment funds include economic effects from Atlante fund and Italian Recovery Fund (-€15 million), for which refer to specific disclosure
below table reported in the paragraph “2.5 Financial assets mandatory at fair value: breakdown by product”, Notes to the accounts, Part B - Balance
sheet - Assets, Section 2 - Financial assets at fair value through profit or loss - Item 20.
951
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part C - Income statement
Section 8 - Net losses/recoveries on credit impairment - Item 130
8.1 Net impairment losses for credit risk relating to financial assets at amortised cost: breakdown
(€ million)
YEAR 2024
YEAR
WRITE-DOWNS
WRITE-BACKS
TOTAL
2023
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED CREDIT-
IMPAIRED FINANCIAL
ASSETS
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
TRANSACTIONS/INCOME ITEMS
WRITE-OFF
OTHER WRITE-OFF
OTHER
TOTAL
A. Loans and advances to banks
(5)
(1)
-
-
-
-
1
1
-
-
(4)
14
- Loans
(1)
(1)
-
-
-
-
1
1
-
-
-
12
- Debt securities
(4)
-
-
-
-
-
-
-
-
-
(4)
2
B. Loans and advances to
customers
(172)
(702)
(63)
(936)
(1)
-
595
371
496
2
(410)
(213)
- Loans
(170)
(700)
(63)
(934)
(1)
-
590
370
496
2
(410)
(209)
- Debt securities
(2)
(2)
-
(2)
-
-
5
1
-
-
-
(4)
Total
(177)
(703)
(63)
(936)
(1)
-
596
372
496
2
(414)
(199)
8.2 Net change for credit risk relating to financial assets at fair value through other comprehensive income: breakdown
(€ million)
YEAR 2024
YEAR
WRITE-DOWNS
WRITE-BACKS
TOTAL
2023
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR
ORIGINATED CREDIT-
IMPAIRED FINANCIAL
ASSETS
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
TRANSACTIONS/INCOME ITEMS
WRITE-OFF
OTHER WRITE-OFF
OTHER
TOTAL
A. Debt securities
(3)
(1)
-
(14)
-
-
1
-
2
-
(15)
(11)
B. Loans
-
-
-
-
-
-
-
-
-
-
-
-
- Loans and advances to
customers
-
-
-
-
-
-
-
-
-
-
-
-
- Loans and advances to banks
-
-
-
-
-
-
-
-
-
-
-
-
Total
(3)
(1)
-
(14)
-
-
1
-
2
-
(15)
(11)
As on 31 December 2024 LLPs impacts include:
• -€66 million of write - downs resulting from the maintenance overlay in the calculation of the expected loss mainly due to geopolitical energy -
intensive risk and Commercial Real Estate risk;
• €20 million of write- backs connected to IFRS9 macro economic scenario update;
• €35 million of write backs due to the contraction of credits in the Russia perimeter due to reimbursements;
• -€59 million of write - downs as a linked effect to the adjustment of the sales price on impaired counterparties (Stage 3) which recovery is achieved
through the related transfer to third party counterparties;
• -€340 million of net write - downs mainly connected to credit portfolio dynamics like recoveries, inflows and outflows to non performing exposures.
For further information on this section, please refer to paragraph “A. Credit quality" of the Company Financial Statements of UniCredit S.p.A., Notes
to the accounts, Part E - Information on risks and related hedging policies, Information of a quantitative nature.
For further details regarding the calculation of write-downs, please refer to paragraph “2.3 Methods of measuring expected losses” of the
Consolidated Financial Statements of the UniCredit group, Notes to the Consolidated Financial Statements, Part E - Information on risks and related
hedging policies, Section 2 - Risks of the prudential consolidation, 2.1 Credit risk, Qualitative information, 2. Credit risk management policies.
952
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part C - Income statement
Section 9 - Gains/Losses from contractual changes with no cancellations - Item 140
9.1 Gains (Losses) from contractual changes: breakdown
(€ million)
YEAR 2024
YEAR
GAINS
LOSSES
TOTAL
2023
TOTAL
A. Financial assets at amortised costs
A.1 Debt securities
-
-
-
-
A.2 Loans to banks
-
-
-
-
A.3 Loans to customers
17
(7)
10
7
Total (A)
17
(7)
10
7
B. Financial assets at fair value through other
comprehensive income
B.1 Debt securities
-
-
-
-
B.2 Loans to banks
-
-
-
-
B.3 Loans to customers
-
-
-
-
Total (B)
-
-
-
-
Total (A+B)
17
(7)
10
7
Section 10 - Administrative expenses - Item 160
10.1 Staff expenses: breakdown
(€ million)
TYPE OF EXPENSES/VALUES
YEAR 2024
YEAR 2023
1) Employees
(3,604)
(3,504)
a) Wages and salaries
(2,179)
(2,115)
b) Social charges
(574)
(567)
c) Severance pay
(18)
(19)
d) Social security costs
-
-
e) Allocation to employee severance pay provision
(11)
(20)
f) Provision for retirements and similar provisions
(5)
(6)
- Defined contribution
-
-
- Defined benefit
(5)
(6)
g) Payments to external pension funds
(180)
(171)
- Defined contribution
(180)
(171)
- Defined benefit
-
-
h) Costs arising from share-based payments
(45)
(44)
i) Other employee benefits
(592)
(562)
2) Other non-retired staff
(3)
(5)
3) Directors and Statutory Auditors
(5)
(5)
4) Early retirement costs
-
-
5) Recoveries of payments for seconded employees to other companies
43
47
6) Refund of expenses for secunded employees to the company
(50)
(52)
Total
(3,619)
(3,519)
953
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part C - Income statement
10.2 Average number of employees by category
YEAR 2024
YEAR 2023
HEAD COUNT
HEAD COUNT
Employees
35,144
36,407
a) Senior managers
631
672
b) Managers
17,552
17,860
c) Remaining employees staff
16,962
17,875
Other non-retired staff
136
210
Total
35,280
36,616
Employees by category at year end
YEAR 2024
YEAR 2023
HEAD COUNT
HEAD COUNT
Employees
34,777
35,511
a) Senior managers
616
645
b) Managers
17,434
17,670
c) Remaining employees staff
16,727
17,196
Other non-retired staff
112
159
Total
34,889
35,670
The average number of employees in 2024 decreases about -4 percent over 2023 due to exits for restructuring plans only partly replaced by new
hires.
10.3 Defined benefit company retirement funds: costs and revenues
(€ million)
YEAR 2024
YEAR 2023
Current service cost
(4)
(4)
Settlement gains (losses)
-
-
Past service cost
-
-
Interest cost on the DBO
(15)
(15)
Interest income on plan assets
14
13
Other costs/revenues
-
-
Administrative expenses paid through plan assets
-
-
Total recognised in profit or loss
(5)
(6)
10.4 Other employee benefits
(€ million)
YEAR 2024
YEAR 2023
- Seniority premiums
-
-
- Leaving incentives
(464)
(446)
- Other
(128)
(116)
Total
(592)
(562)
The net balance in the sub-item Leaving incentives for 2024 is mainly determined by the update of strategic plan that envisages a reduction of the
workforce over the plan horizon and the recognition of restructuring costs as at 31 December 2024.
The exits for restructuring will be realised on a voluntary basis following the update of early-retirement plan, in this regard, the agreement with the
Trade Unions has been signed in October 2024.
It should be noted that these expenses are initially recognised as provisions for risks and charges and will be reclassified to “Other liabilities” when a
specific debt toward the employees will arise.
954
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part C - Income statement
10.5 Other administrative expenses: breakdown
(€ million)
TYPE OF EXPENSES/SECTORS
YEAR 2024
YEAR 2023
1) Indirect taxes and duties
(500)
(451)
1a. Settled
(500)
(451)
1b. Unsettled
-
-
2) Contributions to Resolution Funds, Deposit Guarantee Schemes (DGS) and Life Insurance
Guarantee Fund
(176)
(360)
3) Guarantee fee for DTA conversion
(79)
(97)
4) Miscellaneous costs and expenses
(1,488)
(1,477)
a) Advertising marketing and communication
(63)
(49)
b) Expenses relating to credit risk
(80)
(41)
c) Indirect expenses relating to personnel
(38)
(41)
d) Information & Communication Technology expenses
(863)
(879)
Lease of ICT equipment and software
(38)
(39)
Software expenses: lease and maintenance
(264)
(229)
ICT communication systems
(16)
(16)
Services ICT in outsourcing
(504)
(561)
Financial information providers
(41)
(34)
e) Consulting and professionals services
(58)
(44)
Consulting
(36)
(31)
Legal expenses
(22)
(13)
f) Real estate expenses
(172)
(222)
Premises rentals
(21)
(23)
Utilities
(88)
(132)
Other real estate expenses
(63)
(67)
g) Operating costs
(214)
(201)
Surveillance and security services
(24)
(16)
Money counting services and transport
(24)
(19)
Printing and stationery
(6)
(5)
Postage and transport of documents
(20)
(18)
Administrative and logistic services
(72)
(73)
Insurance
(37)
(38)
Association dues and fees and contributions to the administrative expenses deposit guarantee funds
(21)
(23)
Other administrative expenses - other
(10)
(9)
Total (1+2+3+4)
(2,243)
(2,385)
Expenses related to personnel include the expenses that do not represent remuneration of the working activity of an employee in compliance with
IAS19.
Contributions to Resolution and Guarantee funds
Reference is made to the paragraph “Contribution to Resolution and Guarantee funds” of the Consolidated financial statements of UniCredit group,
Notes to the consolidated accounts, Part C - Consolidated income statement, Section 12 - Administrative expenses - Item 190, which is herewith
quoted entirely.
Guarantee fees for DTA conversion
Reference is made to the paragraph “Guarantee fees for DTA conversion” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts, Part C - Consolidated income statement, Section 12 - Administrative expenses - Item 190, which is herewith quoted entirely.
955
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part C - Income statement
Section 11 - Net provisions for risks and charges - Item 170
11.1 Net provisions for credit risk from loans commitments and financial guarantees given: breakdown
(€ million)
YEAR 2024
PROVISIONS
SURPLUS
REALLOCATIONS
TOTAL
Loan committments
(56)
60
4
Financial guarantees given
(143)
174
31
11.2 Net provisions for other commitments and guarantees given: breakdown
No data to be disclosed.
11.3 Net provisions for risks and charges: breakdown
(€ million)
YEAR 2024
YEAR
ASSETS/INCOME ITEMS
PROVISIONS
SURPLUS
REALLOCATIONS
TOTAL
2023
TOTAL
1. Other provisions
1.1 Legal disputes
(82)
38
(44)
(28)
1.2 Staff costs
-
-
-
-
1.3 Other
(46)
121
75
(10)
Total
(128)
159
31
(38)
Provisions for legal disputes are posted to cover potential liabilities that may result from pending lawsuits.
More details on legal disputes are included into the paragraph “B. Legal risks”, Notes to the consolidated accounts, Part E - Information on risks and
related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.5 Operational risks.
956
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part C - Income statement
Section 12 - Net value adjustments/write-backs on property, plant and equipment - Item
180
12.1 Impairment on property, plant and equipment: breakdown
(€ million)
YEAR 2024
ASSETS/INCOME ITEMS
DEPRECIATION
(A)
IMPAIRMENT LOSSES
(B)
WRITE-BACKS
(C)
NET PROFIT
(A+B-C)
A. Property, plant and equipment
A.1 Used in the business
(306)
(15)
5
(316)
- Owned
(144)
(2)
-
(146)
- Right of use of Leased Assets
(162)
(13)
5
(170)
A.2 Held for investment
-
-
-
-
- Owned
-
-
-
-
- Right of use of Leased Assets
-
-
-
-
A.3 Inventories
-
-
-
-
Total A
(306)
(15)
5
(316)
B. Non-current assets and groups of assets held for sale
X
-
-
-
- Used in the business
X
-
-
-
- Held for investments
X
-
-
-
- Inventories
X
-
-
-
Total (A+B)
(306)
(15)
5
(316)
Section 13 - Net value adjustments/write-backs on intangible assets - Item 190
13.1 Net value adjustments/write-backs on intangible assets: breakdown
(€ million)
YEAR 2024
ASSETS/INCOME ITEMS
AMORTISATION
(A)
IMPAIRMENT LOSSES
(B)
WRITE-BACKS
(C)
NET PROFIT
(A+B-C)
A. Intangible assets
of which: software
(388)
(32)
-
(420)
A.1 Owned
(388)
(32)
-
(420)
- Generated internally by the company
(344)
(28)
-
(372)
- Other
(44)
(4)
-
(48)
A.2 Right of use of Leased Assets
-
-
-
-
Total
(388)
(32)
-
(420)
For further datails, please refer to Section 9 - intangible assets - Item 90, Notes to the accounts, Part B - Balance sheet - Assets.
957
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part C - Income statement
Section 14 - Other operating expenses/income - Item 200
Other net operating income: breakdown
(€ million)
INCOME ITEMS/VALUE
YEAR 2024
YEAR 2023
Total of other operating expenses
(314)
(325)
Total of other operating income
1,591
1,555
Other operating expenses/income
1,277
1,230
14.1 Other operating expenses: breakdown
(€ million)
TYPE OF EXPENSE/VALUES
YEAR 2024
YEAR 2023
Costs for operating leases
-
-
Non-deductible tax and other fiscal charges
-
-
Write-downs on leasehold improvements
(28)
(29)
Costs relating to the specific service of financial leasing
-
-
Other
(286)
(296)
Total other operating expenses
(314)
(325)
The sub-item “Other” includes:
• settlements and indemnities for -€164 million (- €162 million in 2023);
• non-deductible VAT for -€41 million (-€67 million in 2023);
• additional costs relating to customer accounts for -€7 million (-€11 million in 2023).
14.2 Other operating income: breakdown
(€ million)
TYPE OF REVENUE/VALUES
YEAR 2024
YEAR 2023
A) Recovery of costs
610
485
B) Other revenues
981
1,070
Revenues from administrative services
820
865
Revenues from operating leases
5
6
Recovery of miscellaneous costs paid in previous years
3
1
Revenues on financial leases activities
-
-
Other
153
198
Total other operating income (A+B)
1,591
1,555
Items “revenues from administrative services” and “Other” also include revenues for services rendered to other Group legal entities.
The sub-item “Other” includes:
• revenues for software developed for Group entities for €30 million (€53 million in 2023);
• payments of indemnities and compensation for €31 million (€19 million in 2023).
958
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part C - Income statement
Section 15 - Gains (Losses) of equity investments - Item 220
15.1 Profit (Loss) of equity investments: breakdown
(€ million)
INCOME ITEMS/VALUES
YEAR 2024
YEAR 2023
A. Income
100
4,131
1. Revaluations
-
-
2. Gains on disposal
96
24
3. Writebacks
4
4,107
4. Other gains
-
-
B. Expenses
(657)
(242)
1. Writedowns
-
-
2. Impairment losses
(657)
(242)
3. Losses on disposal
-
-
4. Other expenses
-
-
Net profit
(557)
3,889
Gains on disposal include the results from the sale of quotes of UniCredit Bank S.A. for €95 million.
Impairment losses in subsidiaries include AO UniCredit Bank (-€483 million), UniCredit Leasing S.p.A. (-€92 million), UniCredit International
Luxembourg S.A. (-€41 million), Pioneer Alternative Investment Management Ltd (-€33 million), UniCredit Services Gmbh (-€7 million).
Writebacks in subsidiaries include UniCredit Subito Casa S.p.A. (€2 million), Unicredit Turn Around Management Cee Gmbh (€1 million), Nuova
Compagnia di Partecipazioni S.p.A. (€1 million).
959
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part C - Income statement
Section 16 - Net gains (losses) on property, plant and equipment and intangible assets
measured at fair value - Item 230
16.1 Net gains (losses) on property, plant and equipment and intangible assets measured at fair value: breakdown
(€ million)
YEAR 2024
EXCHANGE DIFFERENCES
NET PROFIT
(A-B+C-D)
ASSETS/INCOME ITEMS
REVALUATIONS
(A)
WRITEDOWNS
(B)
POSITIVE
(C)
NEGATIVE
(D)
A. Property, plant and equipment
15
(40)
-
-
(25)
A.1 Used in the business
8
(9)
-
-
(1)
- Owned
8
(9)
-
-
(1)
- Right of use of Leased Assets
-
-
-
-
-
A.2 Held for investment
7
(31)
-
-
(24)
- Owned
7
(31)
-
-
(24)
- Right of use of Leased Assets
-
-
-
-
-
A.3 Inventories
-
-
-
-
-
B. Intangible assets
-
-
-
-
-
B.1 Owned
-
-
-
-
-
- Generated internally by the company
-
-
-
-
-
- Other
-
-
-
-
-
B.2 Right of use of Leased Assets
-
-
-
-
-
Total (A+B)
15
(40)
-
-
(25)
For further information about the description of effects produced by update of appraisals conducted for fair value evaluation of respective assets,
reference is made to the paragraph “Section 9 - Property, plant and equipment - item 90” of the Consolidated financial statements of UniCredit
group, Notes to the consolidated accounts, Part B - Consolidated balance sheet - Assets.
Section 17 - Goodwill impairment - Item 240
17.1 Impairment of goodwill: breakdown
No data to be disclosed.
Section 18 - Gains (Losses) on disposals on investments - Item 250
18.1 Gains and losses on disposal of investments: breakdown
(€ million)
INCOME ITEMS/SECTORS
YEAR 2024
YEAR 2023
A. Property
- Gains on disposal
-
1
- Losses on disposal
-
-
B. Other assets
- Gains on disposal
-
1
- Losses on disposal
(1)
(2)
Net profit
(1)
-
960
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part C - Income statement
Section 19 - Tax expenses (income) for the period from continuing operations - Item 270
Taxes on income are accounted in accordance with IAS12. The tax charge consists of current and deferred taxes, mainly determined in accordance
with the applicable provisions on IRES and IRAP, and CFC separate taxation (Controlled Foreign Companies, i.e., foreign subsidiaries taxed on a
transparency basis where specific conditions are met).
IRES is calculated by making specific upward or downward adjustments to the current year profit or loss as resulting from the Income statement for
determining the taxable income. These tax adjustments are made as required by the provisions of the Italian Income Tax Code (TUIR), in relation to
the non-deductibility of certain expenses or the non-taxability of certain revenues.
The IRES tax rate applied to the taxable income is 24%. An additional surcharge of 3.5% applies to banks and financial companies.
The above-mentioned tax adjustments may be “permanent” or “temporary”.
The “permanent” adjustments refer to expenses/revenues that are totally or partially non-deductible/non-taxable.
The “temporary” adjustments, on the other hand, relate to expenses or revenues whose deductibility or taxability is deferred to future tax periods on
the occurrence of particular events, or distributed in equal quotas over a predefined number of years.
The presence of “temporary” adjustments leads to the recognition of deferred tax assets (for costs to be deducted) or deferred tax liabilities (for
revenues to be taxed).
The purpose of the recognition of deferred tax assets and liabilities is to reconcile in the Financial statement the different tax period of relevance
established by the TUIR compared to the accounting accrual principle.
For IRES purposes, subject to a specific election to be submitted to the “Agenzia delle Entrate”, this tax can be paid on a Tax Group level rather
than on an individual basis.
All Italian companies that meet the control pre-requisite can adhere to the Tax Group regime, in order to compute the tax payment on a unique
taxable base consisting of the algebraic sum of the taxable amounts of all the companies adhering to the Tax Group regime.
The tax rate applicable to the Tax Group is 24%.
For IRES purposes, is stated a separate taxation “for transparency” on incomes, calculated according to the provisions of the Italian Income Tax
Code (TUIR), of the foreign direct and indirect subsidiaries (so-called CFCs: Controlled Foreign Companies) which have the following requirements:
• effective taxation lower than 50% of the effective tax rate that such companies would apply if they were resident in Italy (Effective tax rate);
• more than a third of the revenues derive from "passive income".
IRAP is levied on productive activities and relevant taxable base corresponds to the algebraic sum of certain items of the Income statement as
specifically identified by Legislative Decree No.446 of 1997, which also states further upward and downward adjustments to be made (other than
IRES ones).
The tax is calculated by apportioning the overall value of production among the various administrative regions where the productive activities are
carried out (for banks the apportionment is made on the basis of the regional distribution of customer’s deposits) and applying the respective
regional rate to each of the individual portions identified. A national rate of 4.65% is established, to which each region can autonomously add a
surcharge up to 0.92%, with an overall theoretical rate of 5.57% (plus a further rate of 0.15% for regions with a deficit in spending on the local
welfare sector).
Law No.136 of 9 October 2023 introduced the extraordinary windfall tax for banks, calculated on the increase in the interest margin relating to the
fiscal years from 2021 to 2023. The Windfall tax can be fulfilled in two different ways: the payment of the amount due or opting to allocate to an
extraordinary non-distributable capital reserve an amount not less than two and a half times the windfall tax due.
Following approval by the Shareholders’ meeting of the 2023 Annual Reports have been established a non-distributable Reserve for extra profits tax
Banks for an amount equal to €1,125 million, as provided for by Law.
During 2024 the Regulator amended with Law 207 of 30 December 2024 the current tax laws in relation to the referral of write down on losses on
loans and goodwill, as follow:
• the portion of write down on losses on loans to customers deductible, for IRES and IRAP, for 2025 is deferred to the tax period 2026 and to the
following three tax periods in constant installments;
• the portion of write down on losses on loans to customers deductible, for IRES and IRAP, for 2026 is deferred to the tax period 2027 and to the
following two tax periods in constant installments;
• the portion of referral of FTA IFRS9 deductible, for IRES and IRAP, for 2025 is deferred to the tax period 2026 and to the following three tax
periods in constant installments. Therefore, the portion deductible, for IRES and IRAP, for 2026 is deferred to the tax period 2027 and to the
following two tax periods in constant installments;
• the portions of depreciation (and write down) on goodwill not deducted until the tax period 2017, deductible, for IRES and IRAP, for 2025 are
deferred to the tax period 2026 and to the following three tax periods in constant installments;
• the portions of depreciation (and write down) on goodwill not deducted until the tax period 2017, deductible, for IRES and IRAP, for 2026 are
deferred to the tax period 2027 and to the following two tax periods in constant installments.
961
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part C - Income statement
Furthermore, in determining the IRES taxable base for 2025, the previous tax losses carried forward (art. 84 TUIR) and the ACE excess cumulated
until 2023 can be deducted within the limits of 54 percent of the major taxable income determined, for the same tax period, as a consequence of the
referral related to the previous points.
UniCredit S.p.A. in the previous years has accounted for a foreign tax credit not recovered in the year of accounting in the financial statements. Such
foreign tax credit, which amounts to a total of €79 million (updated as for the usage as determined with the tax return related to fiscal year 2023),
may be recovered in the future years if the requirements provided by the current tax legislation are verified.
As of fiscal year 2024, the UniCredit group, as a multinational group, will fall within the scope of the newly designed Pillar Two regulation, which is
aimed at ensuring a global minimum taxation in every jurisdiction where the Group operates. In particular, Pillar 2 regulation has established the
introduction of an additional tax in case the effective tax rate in a certain jurisdiction falls below 15%. During 2024 the provision done in application of
the mentioned legislation is equal to €5 million. For further information refer to the paragraph “11.8 Other information”, Notes to the consolidated
accounts, Part B - Consolidated balance sheet - Assets, Section 11 - Tax assets and tax liabilities - Item 110 (Assets) and Item 60 (Liabilities).
Taxes on income for 2024 reports a negative amount of €1,500 million, in comparison with the negative amount of €636 million in 2023.
The amount of the current IRES is:
• IRES tax rate 24% is equal to a negative amount for €93 million (of which negative €164 million produced by tax cases from Income statement and
positive €71 million produced by tax cases from Net equity) assigned to Italian tax group perimeter;
• IRES additional tax rate 3.5% not due since fully reduced thanks to the utilization of residual tax losses and the utilization of ACE from previous
years.
During the year 2024, considering that UniCredit tax returns and the italian tax group perimeter declarations for 2023 have admitted only the partial
use of the ACE benefit, as provided for by Law Decree 24 June 2014, No.91 (converted with modification by Law 11 August 2014, No.116), a
transformation into an IRAP tax credit has been executed of the amount, not used in the italian tax group perimeter, of ACE benefit for 2023 for €54
million as already done in the previous years. The residual credit still to be used for IRAP purposes amounts to € 175 million (of which €60 million to
be used to reduce the IRAP debit related to the period 2024 and €115 million to be used in the further years).
The amount of the current IRAP is negative for €281 million (negative €273 million produced by tax cases from Income statement and negative €8
million produced by tax cases from Net equity).
19.1 Tax expense (income) relating to profit or loss from continuing operations: breakdown
(€ million)
INCOME ITEMS/SECTORS
YEAR 2024
YEAR 2023
1.
Current taxes (-)
(561)
(294)
2.
Change of current taxes of previous years (+/-)
297
57
3.
Reduction of current taxes for the year (+)
-
-
3.bis Reduction of current taxes for the year due tax credit under Law 214/2011 (+)
27
158
4.
Change of deferred tax assets (+/-)
(1,236)
(562)
5.
Change of deferred tax liabilities (+/-)
(27)
5
6.
Tax expenses for the year (-) (-1+/-2+3+3bis+/-4+/-5)
(1,500)
(636)
962
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part C - Income statement
19.2 Reconciliation of theoretical tax charge to actual tax charge
(€ million)
YEAR 2024
YEAR 2023
Profit (Loss) before tax from continuing operations (income statement item)
9,606
11,900
Theoretical tax rate
27.5%
27.5%
Theoretical computed taxes on income
(2,642)
(3,273)
1. Different tax rates
-
-
2. Non-taxable income - permanent differences
1,417
1,992
3. Non-deductible expenses - permanent differences
(148)
(3)
4. Different fiscal laws/IRAP
(503)
(198)
a) IRAP (italian companies)
(416)
(203)
b) Other taxes (foreign companies)
(87)
5
5. Previous years and changes in tax rates
264
177
a) Effects on current taxes
93
23
- Tax loss carryforward/unused Tax credit
-
-
- Other effects of previous periods
93
23
b) Effects on deferred taxes
171
154
- Changes in tax rates
-
-
- New taxes incurred (+) previous taxes revocation (-)
-
-
- True-ups/adjustments of the calculated deferred taxes
171
154
6. Valuation adjustments and non-recognition of deferred taxes
192
669
a) Deferred tax assets write-down
-
(29)
b) Deferred tax assets recognition
197
699
c) Deferred tax assets non-recognition
-
-
d) Deferred tax assets non-recognition according to IAS12.39 and 12.44
-
-
e) Other
(5)
(1)
7. Amortisation of goodwill
-
-
8. Non-taxable foreign income
-
-
9. Other differences
(80)
-
Recognised taxes on income
(1,500)
(636)
963
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part C - Income statement
Section 20 - Profit (Loss) after tax from discontinued operations - Item 290
20.1 Profit (Loss) after tax from discontinued operations: breakdown
No data to be disclosed.
20.2 Breakdown of tax on discontinued operations
No data to be disclosed.
Section 21 - Other information
Disclosure regarding the transparency of public funding required by article 1, paragraph 125 of the Law 124/2017
Pursuant to Art.1, paragraph 125 of law 124/2017, during 2024 UniCredit S.p.A. collected the following public contributions granted by Italian
entities:
Contributions for the recruitment/stabilization of personnel deriving from the application of the CCNL of the Credit in force from time
to time
(€ million)
LENDING ENTITY
LEGAL ENTITY
BENEFICIARY
PUBLIC CONTRIBUTION
AMOUNT
Fondo Nazionale per il sostegno dell'occupazione nel settore del credito
UNICREDIT S.P.A.
3.97
Total
3.97
Contributions for new recruits/stabilizations, introduced by the stability Law 2018 (Law No.205/2017)
(€ million)
LENDING ENTITY
LEGAL ENTITY
BENEFICIARY
PUBLIC CONTRIBUTION
AMOUNT
Istituto Nazionale della Previdenza Sociale
UNICREDIT S.P.A.
0.68
Total
0.68
Article 8 of Legislative Decree 30 September 2005, 203 converted, with modifications, from the Law 2 December 2005, 248.
Compensatory measures for companies that assign the TFR to supplementary pension schemes and/or to the Fund for the payment
of the TFR
(€ million)
LENDING ENTITY
LEGAL ENTITY
BENEFICIARY
PUBLIC CONTRIBUTION
AMOUNT
Istituto Nazionale della Previdenza Sociale
UNICREDIT S.P.A.
9.38
Total
9.38
Result awards decontribution for year 2023 - Decree 50 of 24/4/2017 - Article 55; converted into Law 96 of 21 June 2017
(€ million)
LENDING ENTITY
LEGAL ENTITY
BENEFICIARY
PUBLIC CONTRIBUTION
AMOUNT
Istituto Nazionale della Previdenza Sociale
UNICREDIT S.P.A.
3.37
Total
3.37
For further information, refer to the National State Aid Register "Transparency”.
964
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part C - Income statement
Section 22 - Earnings per share
22.1 and 22.2 Average number of diluted shares and other information
YEAR 2024
YEAR 2023
Net profit (Loss) (€ million)
7,859
11,089
Average number of outstanding shares
1,621,646,008
1,827,892,681
Average number of potential dilutive shares
16,835,472
21,879,901
Average number of diluted shares
1,638,481,480
1,849,772,582
Earnings per share (€)
4.847
6.067
Diluted earnings per share (€)
4.797
5.995
€247 million has been deducted from the 2024 net profit of €8,106 million due to the disbursements (charged to net equity and referring to the
results of the year 2023) in connection with the usufruct contract signed with Mediobanca S.p.A. on UniCredit shares supporting the issuance of
convertible securities denominated “Cashes” (€175 million was deducted from 2023 net profit).
The average number of outstanding shares is net of the average number of treasury shares, considering the shares buyback made during the 2024
and totally cancelled, and of further average No.9,675,640 shares held under a contract of usufruct.
965
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part D - Other comprehensive income
I
Analytical statement of other comprehensive income
(€)
YEAR
ITEMS
2024
2023
10. Profit (Loss) of the year
8,106,471,808
11,264,207,183
Other comprehensive income not reclassified to profit or loss
228,620,566
(4,635,754)
20. Equity instruments designated at fair value through other comprehensive income:
293,055,605
45,010,597
a) fair value changes
224,108,673
31,271,866
b) tranfers to other shareholders' equity items
68,946,932
13,738,731
30. Financial liabilities designated at fair value through profit or loss (own creditworthiness changes):
14,680,283
(51,955,592)
a) fair value changes
(6,603,231)
(58,261,719)
b) tranfers to other shareholders' equity items
21,283,514
6,306,127
40. Hedge accounting of equity instruments measured at fair value through other comprehensive income:
-
-
a) fair value change (hedged instrument)
-
-
b) fair value change (hedging instrument)
-
-
50. Property, plant and equipment
(14,307,645)
(7,731,139)
60. Intangible assets
-
-
70. Defined benefit plans
(6,205,760)
(24,269,675)
80. Non-current assets and disposal groups classified as held for sale
(3,453,116)
(727,684)
90. Part of valuation reserves from investments valued at equity method
-
-
100. Tax expenses (income) relating to items not reclassified to profit or loss
(55,148,801)
35,037,739
Other comprehensive income reclassified to profit or loss
(71,523,413)
(49,161,584)
110. Foreign investments hedging:
-
-
a) fair value changes
-
-
b) reclassification to profit or loss
-
-
c) other changes
-
-
120. Foreign exchange differences:
-
-
a) value changes
-
-
b) reclassification to profit or loss
-
-
c) other changes
-
-
130. Cash flow hedging:
73,626,082
(50,475,811)
a) fair value changes
73,626,082
(50,475,811)
b) reclassification to profit or loss
-
-
c) other changes
-
-
of which: net position
-
-
140. Hedging instruments (not designated items):
-
-
a) value changes
-
-
b) reclassification to profit or loss
-
-
c) other changes
-
-
150. Financial assets (different from equity instruments) at fair value through other comprehensive income:
(165,566,616)
(17,957,632)
a) fair value changes
(130,020,904)
164,403,073
b) reclassification to profit or loss:
(30,678,930)
(195,204,441)
- impairment losses
14,411,441
10,634,792
- gains/losses on disposals
(45,090,371)
(205,839,233)
c) other changes
(4,866,782)
12,843,736
160. Non-current assets and disposal groups classified as held for sale:
-
-
a) fair value changes
-
-
b) reclassification to profit or loss
-
-
c) other changes
-
-
170. Part of valuation reserves from investments valued at equity method:
-
-
a) fair value changes
-
-
b) reclassification to profit or loss:
-
-
- impairment losses
-
-
- gains/losses on disposals
-
-
c) other changes
-
-
180. Tax expenses (income) relating to items reclassified to profit or loss
20,417,121
19,271,859
190. Total other comprehensive income
157,097,153
(53,797,338)
200. Other comprehensive income (Item 10+190)
8,263,568,961
11,210,409,845
Part D - Comprehensive income
966
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
Part E - Information on risks and related hedging policies
Introduction
Reference is made to the paragraph “Introduction” of the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts,
Part E - Information on risks and related hedging policies, which is herewith quoted entirely.
Section 1 - Credit risk
Qualitative information
1. General aspects
Credit policies
Reference is made to the paragraph “1. General aspects - Credit policies” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.1
Credit risk, Qualitative information, which is herewith quoted entirely.
Credit strategies
Reference is made to the paragraph “1. General aspects - Credit strategies” of the Consolidated financial statements of UniCredit group, Notes to
the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.1
Credit risk, Qualitative information, which is herewith quoted entirely.
967
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
2. Credit risk management policies
2.1 Organisational aspects
In credit risk management, the organisational structure as at 31 December 2024, envisages specific structures and responsibilities at Group and
local level. Regarding the Organisational model of the Parent Company functions, reference is made to the paragraph “2.1 Organisational aspects”
of the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts, Part E - Information on risks and related hedging
policies, Section 2 - Risks of the prudential consolidated perimeter, 2.1 Credit risk, Qualitative information, 2. Credit risk management policies, which
is herewith quoted entirely.
With specific reference to the Italian perimeter of UniCredit S.p.A., the “Risk Italy” function is responsible for credit risk and non-financial risk
oversight: it coordinates and manages the activities of competence regarding the credit granting, credit monitoring, restructuring and workout
activities, it is also responsible for analysing and monitoring the riskiness and overall credit quality of the Italian loan portfolio, identifying anomalies
in relation to expectations and identifying corrective actions, as well as for the definition and monitoring of the credit strategies both for performing
and non-performing loans; it is also in charge of the definition of credit operating rules and policies, consistently with standards defined by Group
Risk Management structures, as well as for the identification, management and monitoring of operational risks, supporting the related business
functions. The structure is also responsible for the managerial coordination of the credit activities of UniCredit S.p.A. Italian Legal Entities.
The organisational units under “Risk Italy” are the following:
• the “Credit Risk Framework & Rules Italy” structure is responsible, for the Italian perimeter of UniCredit S.p.A. to contribute to credit risk
management, through:
- the definition and related cascading of credit rules and policies;
- the definition of the lending process framework, designed and maintained by Italy Products COO structures;
- the definition and ongoing maintenance of activities related to Credit Administration, Monitoring, Restructuring and Workout framework,
coordinating for the areas of competence, with the Group and Italy Products COO structures that ensure the coherence of the E2E process;
- the governance of credit decision engines, the management and development of risk and management models released from regulatory
parameters, in the context of credit processes;
- the management of the relevant supplier / outsourcer portfolio;
- the execution of second-level controls on the correct application of the decision-making and disbursement processes;
- in line with the risk strategies and guidelines defined by the dedicated Group Risk Management (GRM) structures and in collaboration with the
Business, Italy - Products COO and IT structures.
• The structure consists of the following units:
- “Managerial Models & Credit Engines”;
- “Origination & Credit Administration Framework”;
- “Monitoring & Npe Framework”;
- “Credit Products & Policies”;
- “Credit Processes Controls”.
• the “Credit Risk Management Italy” structure whose responsibilities include the following activities for the Italian perimeter:
- providing Top Management with a current view of credit risk;
- definition and monitoring process of credit strategies (both for performing and non-performing loans), the monitoring, on a periodic basis, of the
overall credit portfolio;
- the AQ planning, the provisions, the RWAs and the capital absorption for performing and non-performing loans;
- periodical analysis production in order to give to the Top Management a credit risk profile view;
- performing second level controls on the perimeter of competence.
The structure consists of the following units:
- “Credit Risk Strategies & Planning Italy”;
- “Credit Risk Portfolio Monitoring Italy”;
- “Credit Risk Controls Italy”;
- “Risk Analysis & Strategy Italy”.
• the “Non-Financial Risk Italy” structure whose responsibilities include the following activities for the Italian perimeter of UniCredit S.p.A.:
- identification, management and monitoring of operational risks, also by executing specific risk assessment activities (e.g., on relevant
transactions);
- identifying, assessing and monitoring the ICT/Cyber and Third-party risks (including outsourcing contracts) in coherence with Group framework.
• the “Credit Underwriting Italy” structure is responsible for the “Italy” perimeter of UniCredit S.p.A., for Credit Underwriting activities related to
Individuals/Freelancers credit products of competence as well as - for credit proposals above Credit Hub’s approval authority, with reference to the
Enterprises perimeter - for issuing risk opinions to the competent Business decision-making Bodies and registering their credit decisions in the
system.
Moreover, the structure is directly responsible for managing the activities related to the functioning of the Italy Transactional Credit Committee.
968
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
The structure consists of the following units:
- “Enterprises Credit Transactions Italy”;
- “Individuals Credit Underwriting Italy”.
• the “Retail & Small Corporate Proactive Management Italy” structure is responsible for coordinating, heading, and managing the credit risk
monitoring activities for all customers within the Italian perimeter of UniCredit S.p.A. supporting the activities aimed at improving the
creditworthiness Retail and Small Corporate customers.
The structure is furthermore responsible for managing and supporting Retail credit collection processes.
The structure consists of the following functions:
- “Monitoring Support & Quality Assurance”;
- “Small Corporate North Monitoring”;
- “Small Corporate Center Monitoring”;
- “Small Corporate South Monitoring”;
- “Retail Monitoring”;
- “Monitoring Analysis & Retail classification”;
- “Customer Recovery”.
• the “Corporate Proactive Management Italy” structure is responsible for i) coordinating, directing and managing monitoring activities on positions
falling within the perimeter of competence, also with a view to improving their creditworthiness, ii) offering the Business specialist support on a
cluster of positions characterized by significant exposure and political or reputational risks and iii) coordinating and managing restructuring
activities relating to Clients classified as Unlikely to Pay. The structure consists of the following functions:
- “Large-Medium Corporate & PB-WM Monitoring”;
- “Specialised Direct Management”;
- “Specialised Indirect Management”;
- “Fronting”;
- “Corporate Proactive Management Support”.
• the “Credit Recovery & Special Activities Italy” structure is responsible for managing and supporting credit collection processes for Individual and
Corporate counterparts, managing the workout positions of the Italian perimeter of UniCredit S.p.A. The structure consists of the following
functions:
- “CRM Direct Workout”;
- “CRM Indirect Workout”;
- “Specialised Activities”.
• in addition, with respect to credit risk, specific committee has been set up, the “Italy Transactional Credit Committee”, which is responsible, within
its assigned sub-delegated powers, to evaluate and approve the underwriting and the review of the credit lines and to evaluate and approve the
loan loss provisions, asset value adjustments and releases of capital and/or capitalised interests related to performing and non-performing portfolio
of UniCredit S.p.A., with the exclusion of Banks, Financial Institutions and Sovereign(FIBS), as well as of the “Investment Banking” segment;
• finally, with reference to non-Financial risks, the “Italy Non-Financial Risks and Controls Committee (INFRCC)” is active, which supports the Head
of Italy in the role of steering and monitoring the Non-Financial Risks (NFRs) at Italy level also overseeing the related internal control system (ICS).
The INFRCC enables the coordination among the three lines of defense with the aim to identify and share Italy priorities concerning Non-Financial
Risks (e.g., events, regulations, or emerging risks), assessing and monitoring the effectiveness of initiatives put in place.
2.2 Credit risk management, measurement and control
2.2.1 Credit risk management
Reference is made to the paragraph “2.2.1 Credit risk management” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.1
Credit risk, Qualitative information, 2. Credit risk management policies, 2.2 Credit risk management, measurement and control, which is herewith
quoted entirely.
2.2.2 Risk parameters
Reference is made to the paragraph “2.2.2 Risk parameters” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.1 Credit risk,
Qualitative information, 2. Credit risk management policies, 2.2 Credit risk management, measurement, and control, which is herewith quoted
entirely.
2.2.3 Rating systems
Reference is made to the paragraph “2.2.3 Rating systems” of the Consolidated financial statements of UniCredit Group, Notes to the consolidated
accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.1 Credit risk,
Qualitative information, 2. Credit risk management policies, 2.2 Credit risk management, measurement and control, which is herewith quoted
entirely.
969
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
2.2.4 Stress Test
Reference is made to the paragraph “2.2.4 Stress test” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.1 Credit risk,
Qualitative information, 2. Credit risk management policies, 2.2 Credit risk management, measurement, and control, which is herewith quoted
entirely.
2.3 Measurement methods for expected losses
Risk management practices
2.3.1 Staging allocation and Expected Credit Losses calculation
Reference is made to the paragraph “2.3.1 Staging allocation and Expected Credit Losses calculation” of the Consolidated financial statements of
UniCredit group, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 – Risk of the prudential
consolidated perimeter, 2.1 - Credit risk, Qualitative information, 2. Credit risk management policies, 2.3 Measurement methods for expected losses,
which is herewith quoted entirely.
2.3.2 Non-performing exposures
Reference is made to the paragraph “2.3.2 Measurement methods for expected losses - Non-performing exposures” of the Consolidated financial
statements of UniCredit group, Notes to the consolidated accounts Part E - Information on risks and related hedging policies, Section 2 – Risks of
the prudential consolidated perimeter, 2.1 - Credit risk, Qualitative information, 2. Credit risk management policies, 2.3.2 Measurement methods for
expected losses, which is herewith quoted entirely.
2.3.3 Selling scenarios
Reference is made to the paragraph “2.3.3 Selling scenario” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.1 Credit risk,
Qualitative information, 2. Credit risk management policies, 2.3 Measurement methods for expected losses, which is herewith quoted entirely.
2.3.4 Scenarios and Sensitivity
Reference is made to the paragraph “2.3.4 Scenarios and Sensitivity” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.1
Credit risk, Qualitative information, 2. Credit risk management policies, 2.3 Measurement methods for expected losses, which is herewith quoted
entirely.
2.4 Credit risk mitigation technique
Reference is made to the paragraph “2.4 Credit risk mitigation technique” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.1
Credit risk, Qualitative information, 2. Credit risk management policies, which is herewith quoted entirely.
970
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
3. Non-performing credit exposures
3.1 Management strategies and policies
In order to ensure a homogeneous approach in the classification of credit exposures for regulatory and reporting purposes, UniCredit has defined
guidelines at Group level for the classification of non-performing exposures that refer to the principles reported in the Implementing Technical
Standards issued by the Authority European Banking in 2014. This definition of non-performing exposures complements the definition of “default”
exposures, disciplined by EBA Guidelines on default definition in line with article 178 of Regulation (EU) 575/2013 of the European Parliament and
of the Council (EBA/GL/2016/07) in force since 1 January 2021, and “impaired” exposures defined by IFRS9 Accounting Standards. A substantial
alignment within the Group has been pursued between the three definitions, providing the Supervisory Authorities with a harmonized view of these
concepts and strengthening the tools available to the Authorities for assessing the asset quality.
The default classification criteria in force since 1 January 2021 include, among the main aspects, harmonized thresholds at European level for past
due materiality and additional Unlikely to Pay triggers further regulated by EBA/GL/2016/07 with respect to the high-level provisions of article 178 of
Regulation (EU) 575/2013. In this regard, it is highlighted the Distressed Restructuring for credit obligation object of concession, where a maximum
threshold for decreasing the Net Present Value of 1% has been set, as well as specific requirements on the contagion effects of default in the case
of connected customers (mainly, groups of companies, joint headings between individuals and links between individuals and companies with
unlimited liability). In addition, a mandatory minimum probation period before returning to the non-defaulted status has been defined.
Furthermore, in accordance with the provisions of Banca d’Italia in Circular 272/2008, non-performing credit exposures must be classified in one of
the following risk classes:
• past-due and/or overdue exposures: problematic exposures that are more than 90 days past due on any material obligation (the latter assessed in
line with article 178 (2d) of Regulation (EU) 575/2013 and the Technical Standards of the EBA);
• unlikely to pay: the classification in this category is the result of the judgment of the bank about the unlikeliness, without recourse to actions such
as realising collaterals, that the obligor will pay in full (principal and/or interest) its credit obligations. This assessment should be carried out
independently of the presence of any past due and unpaid amount;
• bad loans: exposures to borrowers in a state of insolvency (even when not recognised in a court of law) or in an essentially similar situation,
regardless of any loss forecasts made by the bank.
According to the Group rules, all debtors in the Bank's portfolio must be mapped in the classes defined by Banca d’Italia, regardless of local
reporting which has to be performed according to local accounting standards and/or local supervisory regulations or instructions.
These classification rules are further integrated by accounting principles defined in IFRS9, according to which credit exposures must be allocated in
three "stages" (for details see section "Expected loss measurement method” - Section 2). With regard to non-performing exposures, the allocation to
"Stage 3" occurs when the customer's status changes into "non-performing". This is a classification at counterparty level and not at transaction level
based on specific regulations on the classification of non-performing exposures.
In accordance with article 156 EBA ITS, an exposure must remain classified as non-performing as long as the following criteria (exit criteria) are not
met simultaneously:
• the situation of the debtor has improved to the extent that full repayment of the original due amount is likely to be made;
• the debtor does not have any amount past-due by more than 90 days.
Specific exit criteria must be applied in case the forbearance measures are extended to non-performing exposures, listed below:
• the starting date of the observation period of one year is the latest between the adoption of Forbearance measures and the classification as non-
performing;
• any past due amount is verified if no past due occurs at debtor level;
• concerns regarding the “full repayment" refer to a judgmental evaluation by the empowered Bodies.
In the non-performing credit exposures management, UniCredit S.p.A. adopts certain strategies that operationally define the activities necessary to
achieve the targets defined yearly.
971
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
The aforementioned strategies concerning impaired loans include:
• an effective internal restructuring activity, supported by qualified resources with specific skills dedicated to the management of loans classified as
unlikely to pay; within these activities, ad hoc approaches are then envisaged for positions considered strategic or referring to the Corporate and
Real Estate segment;
• proactive portfolio management through judicial and extra-judicial procedures managed by internal Workout professionals or assigned to external
agencies specialised in credit recovery;
• the recourse of alternative recovery strategies (which UniCredit was one of the first banks to use) based on formalised partnerships aimed at
managing positions in the industrial or Real Estate sector;
• disposal of impaired loans as a further strategy for internal recovery both for individual positions and for portfolios of impaired loans, already
classified as bad loans and unlikely to pay.
These strategies reflect the main levers for reducing the amount of impaired loans and have led to an important result during 2024, highlighting:
• write-off for €309 million;
• recoveries for €1,332 million;
• disposals for €1,626 million.
Non-Performing Credit stock reduction performed better than expectations underlying previous multiyear plan “UniCredit Unlocked”, achieving an
improvement in asset quality with an NPE ratio of 2,5% (+5 bps vs NPE ratio 2023).
Regarding the management strategies and policies in force for the UniCredit group reference is made to the paragraph “3.1 Management strategies
and policies” of the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts, Part E - Information on risks and
related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 3. non-performing credit exposures, which is herewith quoted
entirely.
3.2 Write-off
UniCredit group guidelines for write-offs on financial assets provides that whenever a loan is deemed to be uncollectable/unrecoverable it needs to
be identified at the earliest possible opportunity and properly dealt with in accordance with financial regulations. Write-offs can relate to a financial
asset in its entirety, or to a portion of it.
In assessing the recoverability of Non-Performing Exposures (NPE) and in determining internal NPE write-off approaches, the following cases, in
particular, are taken into account:
• exposures with prolonged arrears: it is assessed the recoverability of an exposure that presents arrears for a prolonged period of time. If, following
this assessment, an exposure or part of an exposure is deemed as non-recoverable, it should be written-off in a timely manner, adopting different
thresholds predefined on the basis of the different portfolios;
• exposures under insolvency procedure: where the collateralisation of the exposure is low, legal expenses often absorb a significant portion of the
proceeds from the bankruptcy procedure and therefore estimated recoveries are expected to be very low;
• a partial write-off may be warranted where there are reasonable elements to demonstrate the debtor's inability to repay the full amount of the debt,
i.e. a significant level of debt, even following the implementation of a forbearance treatment and/or the execution of collateral.
Below a non-exhaustive list of hard evidences implying, with high likelihood, the not recoverability of the exposure, to be assessed, for the potential
(total or partial) write-off:
• the Bank cannot call the guarantor(s), or his assets are not sufficient for the recovery of the debtor’s exposures;
• negative outcome of the judicial and/or out-of-court initiatives with absence of other assets that can be called in the event of un-recoverability of
the debtor’s exposures;
• impossibility to initiate actions to recover credit;
• current insolvency procedure, from which the procedure itself states that the unsecured exposures will not have redress;
• loans not backed by mortgage security older than 3 years that have not registered repayments/collections during the first 3 years after the NPE
classification;
• mortgage loans to private individuals with collaterals already executed or not recoverable (because of legal or administrative defects and if
execution is considered not economically viable), if they have been classified as non-performing for more than 7 years, or between 2 and 7 years if
the residual debt is less than €110,000.
Specifically, for UniCredit S.p.A. perimeter, write-offs on financial assets still subject to an enforcement procedure amount to €474 million as at 31
December 2024, of which partial write-offs amount to €430 million and total write-offs amount to €44 million. The amount of write-offs (both partial
and total) related to the 2024 financial year is €70 million. 2024 write-offs cannot be compared with write-offs amount reported in gross changes in
non-performing exposures, because the latter includes debt forgiveness.
972
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
3.3 Acquired or originated impaired financial assets
Reference is made to the paragraph “3.3 Acquired or originated impaired financial assets” of the Consolidated financial statements of UniCredit
group, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential
consolidated perimeter, 2.1 Credit risk, Qualitative information, 3. Non-performing credit exposures, which is herewith quoted entirely.
4. Financial assets subject to commercial renegotiations and forborne exposures
Renegotiation of existing financial instruments which determine a modification of contractual conditions might be the result of either:
• commercial initiatives, which may be specific for each customer or applied to portfolio of customers also as a result of dedicated initiatives
sponsored by public authorities or banking associations, or
• concessions granted in light of debtor’s financial difficulties (Forbearance).
Such changes are accounted on the basis of whether the modification is considered significant or not. In this regard, reference is made to the
Part A - Accounting policies, A.2 - Main items of the accounts.
The concessions granted due to debtor’s financial difficulties, so-called Forbearance initiatives, are usually considered not significant from an
accounting perspective.
4.1 Loan categorisation in the risk categories and forborne exposures
Reference is made to the paragraph “4.1 Loan categorization in the risk categories and forborne exposures” of the Consolidated financial statements
of UniCredit group, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential
consolidated perimeter, 2.1 Credit risk, Qualitative information, 4. Financial assets subject to commercial renegotiations and forborne exposures,
which is herewith quoted entirely.
973
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
Quantitative information
In the following tables, the volume of impaired assets according to the IFRS definition is equivalent to the one for non-performing exposures referred
to in the EBA standards.
A. Credit quality
For the purposes of the disclosure of quantitative information about credit quality, the term “credit exposures” does not include equity instruments
and units in investment funds.
A.1 Non-performing and performing credit exposure: amounts, write-downs, changes, distribution by business activity
A.1.1 Breakdown of financial assets by portfolio and credit quality (carrying value)
(€ million)
PORTFOLIOS/QUALITY
BAD
EXPOSURES
UNLIKELY TO
PAY
NON-
PERFORMING
PAST-DUE
EXPOSURES
PERFORMING
PAST-DUE
EXPOSURES
OTHER
PERFORMING
EXPOSURES
TOTAL
1. Financial assets at amortised cost
372
1,547
299
2,977
223,017
228,212
2. Financial assets at fair value through other
comprehensive income
-
32
-
-
36,150
36,182
3. Financial assets designated at fair value
-
-
-
-
132
132
4. Other financial assets mandatorily at fair value
1
33
-
-
2,701
2,735
5. Financial instruments classified as held for sale
-
7
-
-
-
7
Total
31.12.2024
373
1,619
299
2,977
262,000
267,268
Total
31.12.2023
362
1,837
321
3,557
269,168
275,245
A.1.2 Breakdown of financial assets by portfolio and credit quality (gross and net values)
(€ million)
NON-PERFORMING ASSETS
PERFORMING ASSETS
PORTFOLIOS/QUALITY
GROSS
EXPOSURE
OVERALL
WRITEDOWNS NET EXPOSURE
OVERALL
PARTIAL WRITE-
OFFS(*)
GROSS
EXPOSURE
OVERALL
WRITEDOWNS NET EXPOSURE
TOTAL (NET
EXPOSURE)
1. Financial assets at amortised cost
4,069
1,851
2,218
429
227,708
1,714
225,994
228,212
2. Financial assets at fair value through other
comprehensive income
114
82
32
-
36,155
5
36,150
36,182
3. Financial assets designated at fair value
-
-
-
-
X
X
132
132
4. Other financial assets mandatorily at fair value
105
71
34
-
X
X
2,701
2,735
5. Financial instruments classified as held for sale
11
4
7
-
-
-
-
7
Total
31.12.2024
4,299
2,008
2,291
429
263,863
1,719
264,977
267,268
Total
31.12.2023
5,016
2,496
2,520
434
271,853
1,943
272,725
275,245
Note:
(*) Value shown for information purposes.
The reduction in impaired credit exposures is mainly due to the Non-performing disposal transactions performed during 2024.
For more details related to the evaluation of the credit exposure as at 31 December 2023” of the Consolidated financial, for what relates specifically
to UniCredit S.p.A., refer to paragraph Section 2 - Risks of the prudential consolidated financial statements, Notes to the consolidated accounts,
Part E - Information on risks and related hedging policies.
(€ million)
ASSETS OF EVIDENT LOW CREDIT QUALITY
OTHER ASSETS
PORTFOLIOS/QUALITY
CUMULATED LOSSES
NET EXPOSURE
NET EXPOSURE
1. Financial assets held for trading
1
8
46,248
2. Hedging derivatives
-
-
551
Total
31.12.2024
1
8
46,799
Total
31.12.2023
1
1
26,226
974
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.1.3 Breakdown of financial assets by past-due buckets (carrying value)
(€ million)
PORTFOLIOS/RISK STAGES
STAGE 1
STAGE 2
STAGE 3
PURCHASED OR ORIGINATED
CREDIT-IMPAIRED FINANCIAL
ASSETS
FROM 1
TO 30
DAYS
OVER 30
AND UP
TO 90
DAYS
OVER 90
DAYS
FROM 1
TO 30
DAYS
OVER 30
AND UP
TO 90
DAYS
OVER 90
DAYS
FROM 1
TO 30
DAYS
OVER 30
AND UP
TO 90
DAYS
OVER 90
DAYS
FROM 1
TO 30
DAYS
OVER 30
AND UP
TO 90
DAYS
OVER 90
DAYS
1. Financial assets at amortised
cost
1,684
36
22
932
272
31
934
157
1,116
10
-
-
2. Financial assets at fair value
through other comprehensive
income
-
-
-
-
-
-
32
-
-
-
-
-
3. Financial instruments
classified as held for sale
-
-
-
-
-
-
7
-
-
-
-
-
Total 31.12.2024
1,684
36
22
932
272
31
973
157
1,116
10
-
-
Total 31.12.2023
1,584
26
68
1,583
240
56
1,174
244
1,057
-
-
-
A.1.4 Financial assets, loan commitments and financial guarantees given: changes in overall impairments and provisions
(€ million)
OVERALL WRITE-DOWNS
FINANCIAL ASSETS CLASSIFIED IN STAGE 1
FINANCIAL ASSETS CLASSIFIED IN STAGE 2
SOURCES/RISK STAGES
CURRENT
ACCOUNTS
AND DEMAND
DEPOSITS
WITH BANKS
AND CENTRAL
BANKS
FINANCIAL
ASSETS AT
AMORTISED
COST
FINANCIAL
ASSETS AT FAIR
VALUE THROUGH
OTHER
COMPREHENSIVE
INCOME
FINANCIAL
INSTRUMENTS
CLASSIFIED AS
HELD FOR
SALE
OF WHICH:
INDIVIDUAL
IMPAIRMENT
OF WHICH:
COLLECTIVE
IMPAIRMENT
CURRENT
ACCOUNTS
AND DEMAND
DEPOSITS
WITH BANKS
AND CENTRAL
BANKS
FINANCIAL
ASSETS AT
AMORTISED
COST
FINANCIAL
ASSETS AT FAIR
VALUE THROUGH
OTHER
COMPREHENSIVE
INCOME
FINANCIAL
INSTRUMENTS
CLASSIFIED AS
HELD FOR
SALE
OF WHICH:
INDIVIDUAL
IMPAIRMENT
OF WHICH:
COLLECTIVE
IMPAIRMENT
Opening balance (gross amount)
1
321
70
-
2
389
-
1,552
-
-
-
1,552
Increases in acquired or originated financial
assets
-
99
1
-
-
101
-
149
1
-
-
149
Reversals different from write-offs
-
(126)
(1)
-
-
(127)
-
(180)
-
-
-
(180)
Net losses/recoveries on credit impairment
-
111
(67)
-
-
44
1
(202)
-
-
-
(201)
Contractual changes without cancellation
-
-
-
-
-
-
-
(11)
-
-
-
(11)
Changes in estimation methodology
-
-
-
-
-
-
-
-
-
-
-
-
Write-off not recognised directly in profit or
loss
-
-
-
-
-
-
-
-
-
-
-
-
Other changes
-
1
1
-
-
1
-
1
-
-
-
1
Closing balance (gross amount)
1
406
4
-
2
408
1
1,309
1
-
-
1,310
Recoveries from financial assets subject to
write-off
-
-
-
-
-
-
-
-
-
-
-
-
Write-off recognised directly in profit or loss
-
-
-
-
-
-
-
(10)
-
-
-
(10)
975
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
continued: A.1.4 Financial assets, loan commitments and financial guarantees given: changes in overall impairments and provisions
(€ million)
SOURCES/RISK STAGES
OVERALL WRITE-DOWNS
ASSETS BELONGING TO THIRD STAGE
PURCHASED OR ORIGINATED CREDIT-IMPAIRED FINANCIAL ASSETS
CURRENT
ACCOUNTS
AND DEMAND
DEPOSITS
WITH BANKS
AND
CENTRAL
BANKS
FINANCIAL
ASSETS AT
AMORTISED
COST
FINANCIAL
ASSETS AT FAIR
VALUE THROUGH
OTHER
COMPREHENSIVE
INCOME
FINANCIAL
INSTRUMENTS
CLASSIFIED
AS HELD FOR
SALE
OF WHICH:
INDIVIDUAL
IMPAIRMENT
OF WHICH:
COLLECTIVE
IMPAIRMENT
FINANCIAL
ASSETS AT
AMORTISED
COST
FINANCIAL
ASSETS AT FAIR
VALUE THROUGH
OTHER
COMPREHENSIVE
INCOME
FINANCIAL
INSTRUMENTS
CLASSIFIED
AS HELD FOR
SALE
OF WHICH:
INDIVIDUAL
IMPAIRMENT
OF WHICH:
COLLECTIVE
IMPAIRMENT
Opening balance (gross amount)
-
2,112
2
305
1,422
997
-
-
-
-
-
Increases in acquired or originated financial assets
-
117
-
-
49
68
-
-
-
-
-
Reversals different from write-offs
-
(638)
-
(645)
(501)
(781)
-
-
-
-
-
Net losses/recoveries on credit impairment
-
434
80
(9)
(1)
506
(2)
-
-
(1)
-
Contractual changes without cancellation
-
-
-
-
-
-
-
-
-
-
-
Changes in estimation methodology
-
-
-
-
-
-
-
-
-
-
-
Write-off not recognised directly in profit or loss
-
(229)
-
(15)
(227)
(18)
-
-
-
-
-
Other changes
-
55
-
369
234
190
2
-
-
1
-
Closing balance (gross amount)
-
1,851
82
5
976
962
-
-
-
-
-
Recoveries from financial assets subject to write-off
-
19
-
-
-
19
-
-
-
-
-
Write-off recognised directly in profit or loss
-
(63)
-
-
(54)
(9)
(1)
-
-
(1)
-
continued: A.1.4 Financial assets, loan commitments and financial guarantees given: changes in overall impairments and provisions
(€ million)
SOURCES/RISK STAGES
OVERALL WRITE-DOWNS
TOTAL
TOTAL PROVISIONS ON LOANS COMMITMENTS AND FINANCIAL GUARANTEES GIVEN
STAGE 1
STAGE 2
STAGE 3
COMMITMENTS
FUNDS AND
FINANCIAL
GUARANTEES
PURCHASED OR
ORIGINATED CREDIT-
IMPAIRED
Opening balance (gross amount)
24
143
299
-
4,829
Increases in acquired or originated financial assets
16
9
20
-
412
Reversals different from write-offs
-
-
-
-
(1,590)
Net losses/recoveries on credit impairment
(7)
(53)
(19)
-
267
Contractual changes without cancellation
-
-
-
-
(11)
Changes in estimation methodology
-
-
-
-
-
Write-off not recognised directly in profit or loss
-
-
-
-
(244)
Other changes
(1)
1
(1)
-
428
Closing balance (gross amount)
32
100
299
-
4,091
Recoveries from financial assets subject to write-off
-
-
-
-
19
Write-off recognised directly in profit or loss
-
-
-
-
(74)
976
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.1.5 Financial assets, loan commitments and financial guarantees given: transfers between risk stages (gross values and nominal
values)
(€ million)
PORTFOLIOS/RISK STAGES
GROSS VALUES/NOMINAL VALUES
TRANSFERS BETWEEN STAGE 1
AND STAGE 2
TRANSFERS BETWEEN STAGE 2
AND STAGE 3
TRANSFERS BETWEEN STAGE 1
AND STAGE 3
FROM STAGE 1
TO STAGE 2
FROM STAGE 2
TO STAGE 1
FROM STAGE 2
TO STAGE 3
FROM STAGE 3
TO STAGE 2
FROM STAGE 1
TO STAGE 3
FROM STAGE 3
TO STAGE 1
1. Financial assets at amortised cost
5,729
6,870
976
210
657
54
2. Financial assets at fair value through other
comprehensive income
677
135
-
-
114
-
3. Financial instruments classified as held for sale
-
-
-
-
-
-
4. Loan commitments and financial guarantees given
1,391
4,850
282
20
34
49
Total
31.12.2024
7,797
11,855
1,258
230
805
103
Total
31.12.2023
14,067
14,219
985
343
480
66
A.1.5a Other loans and advances guaranteed by Covid-19 public guarantee: transfers between impairment stages (gross values)
(€ million)
PORTFOLIOS/RISK STAGES
GROSS VALUES
TRANSFERS BETWEEN STAGE 1
AND STAGE 2
TRANSFERS BETWEEN STAGE 2
AND STAGE 3
TRANSFERS BETWEEN STAGE 1
AND STAGE 3
FROM STAGE 1
TO STAGE 2
FROM STAGE 2
TO STAGE 1
FROM STAGE 2
TO STAGE 3
FROM STAGE 3
TO STAGE 2
FROM STAGE 1
TO STAGE 3
FROM STAGE 3
TO STAGE 1
A. Financial assets at amortised cost
373
797
157
22
79
2
B. Financial assets at fair value through other
comprehensive income
-
-
-
-
-
-
Total at 31.12.2024
373
797
157
22
79
2
977
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.1.6 On- and off-balance sheet credit exposures with banks: gross and net values
(€ million)
AMOUNTS AS AT
31.12.2024
EXPOSURE TYPES/VALUES
GROSS EXPOSURE
OVERALL WRITE-DOWNS AND PROVISIONS
NET
EXPOSURE
OVERALL
PARTIAL
WRITE-
OFFS(*)
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
A. On-balance sheet credit
exposures
A.1 On Demand
11,741
11,714
27
-
-
1
1
1
-
-
11,740
-
a) Non-performing
-
X
-
-
-
-
X
-
-
-
-
-
b) Performing
11,741
11,714
27
X
-
1
1
1
X
-
11,740
-
A.2 Other
44,196
40,600
222
4
-
28
19
5
4
-
44,168
-
a) Bad exposures
4
X
-
4
-
4
X
-
4
-
-
-
of which: forborne exposures
-
X
-
-
-
-
X
-
-
-
-
-
b) Unlikely to pay
-
X
-
-
-
-
X
-
-
-
-
-
of which: forborne exposures
-
X
-
-
-
-
X
-
-
-
-
-
c) Non-performing past due
-
X
-
-
-
-
X
-
-
-
-
-
of which: forborne exposures
-
X
-
-
-
-
X
-
-
-
-
-
d) Performing past due
-
-
-
X
-
-
-
-
X
-
-
-
of which: forborne exposures
-
-
-
X
-
-
-
-
X
-
-
-
e) Other performing exposures
44,192
40,600
222
X
-
24
19
5
X
-
44,168
-
of which: forborne exposures
-
-
-
X
-
-
-
-
X
-
-
-
Total (A)
55,937
52,314
249
4
-
29
20
6
4
-
55,908
-
B. Off-balance sheet credit
exposures
a) Non-performing
-
X
-
-
-
-
X
-
-
-
-
-
b) Performing
66,556
4,804
287
X
-
14
5
10
X
-
66,542
-
Total (B)
66,556
4,804
287
-
-
14
5
10
-
-
66,542
-
Total (A+B)
122,493
57,118
536
4
-
43
25
16
4
-
122,450
-
Note:
(*) Value shown for information purposes.
On-Balance sheet exposures to banks include all balance-sheet assets regardless of their belonging portfolio (held-for-trading, assets designed and
mandatorily at fair value through profit or loss, assets at fair value through other comprehensive income, assets at amortised cost and assets held
for sale). In more details columns Stage1, Stage 2, Stage 3 and Purchased or Originated Credit-Impaired financial assets include assets at
amortised cost, assets at fair value through other comprehensive income, current accounts and demand deposits with banks and central banks and
assets held for sale; the overall gross exposures also report held-for-trading, assets designed and mandatorily at fair value through profit or loss.
Off-Balance sheet exposures to banks comprise guarantees given, irrevocable commitments, derivatives regardless of each transaction’s
classification category and the revocable commitments to disburse funds.
978
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.1.7 On- and off-balance sheet credit exposures with customers: gross and net values
(€ million)
AMOUNTS AS AT
31.12.2024
EXPOSURE TYPES/VALUES
GROSS EXPOSURE
OVERALL WRITE-DOWNS AND PROVISIONS
NET
EXPOSURE
OVERALL
PARTIAL
WRITE-
OFFS(*)
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT-
IMPAIRED
FINANCIAL
ASSETS
A. On-balance sheet credit
exposures
a) Bad exposures
1,138
X
-
1,135
-
764
X
-
762
-
374
422
of which: forborne exposures
170
X
-
167
-
128
X
-
126
-
42
6
b) Unlikely to pay
2,728
X
-
2,619
10
1,109
X
-
1,044
-
1,619
8
of which: forborne exposures
1,070
X
-
1,060
10
397
X
-
397
-
673
1
c) Non-performing past due
430
X
-
426
-
131
X
-
127
-
299
-
of which: forborne exposures
4
X
-
4
-
1
X
-
1
-
3
-
d) Performing past due
3,201
1,773
1,428
X
-
223
31
192
X
-
2,978
-
of which: forborne exposures
143
-
143
X
-
23
-
23
X
-
120
-
e) Other performing exposures
222,576
207,217
12,624
X
-
1,471
359
1,113
X
-
221,105
-
of which: forborne exposures
3,860
-
3,824
X
-
293
-
293
X
-
3,567
-
Total (A)
230,073
208,990
14,052
4,180
10
3,698
390
1,305
1,933
-
226,375
430
B. Off-balance sheet credit
exposures
a) Non-performing
1,825
X
-
1,119
-
300
X
-
300
-
1,525
-
b) Performing
150,223
51,298
3,396
X
-
118
28
90
X
-
150,105
-
Total (B)
152,048
51,298
3,396
1,119
-
418
28
90
300
-
151,630
-
Total (A+B)
382,121
260,288
17,448
5,299
10
4,116
418
1,395
2,233
-
378,005
430
Note:
(*) Value shown for information purposes.
On-Balance sheet exposures to customers include all balance-sheet assets regardless of their belonging portfolio (held-for-trading, assets designed
and mandatorily at fair value through profit or loss, assets at fair value through other comprehensive income, assets at amortised cost and assets
held for sale). In more details columns Stage1, Stage 2, Stage 3 and Purchased or Originated Credit-Impaired financial assets include assets at
amortized cost, assets at fair value through other comprehensive income and assets held for sale; the overall gross exposures also report held-for-
trading, assets designed and mandatorily at fair value through profit or loss.
Off-Balance sheet exposures to customers comprise guarantees given, irrevocable commitments, derivatives regardless of each transaction’s
classification category and the revocable commitments to disburse funds.
979
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.1.7a Other loans and advances guaranteed by Covid-19 public guarantee: gross and net value
(€ million)
AMOUNTS AS AT 31.12.2024
GROSS EXPOSURE
OVERALL WRITE-DOWNS
EXPOSURE TYPES/VALUES
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT
IMPAIRED
STAGE 1
STAGE 2
STAGE 3
PURCHASED
OR
ORIGINATED
CREDIT
IMPAIRED
NET
EXPOSURE
OVERALL
PARTIAL
WRITE-OFFS(*)
A. Bad loans
1
-
-
1
-
-
-
-
-
-
1
-
B. Unlikely to pay loans
317
-
-
317
-
56
-
-
56
-
261
-
C. Non-performing past due loans
14
-
-
14
-
1
-
-
1
-
13
-
D. Performing past due loans
184
63
121
-
-
1
-
1
-
-
183
-
E. Other performing exposures loans
8,021
7,219
802
-
-
4
2
3
-
-
8,017
-
For further details refer to the table “A.1.5a Other loans and advances subject to Covid-19 measures: gross and net value”, Notes to the
consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter,
2.1 Credit risk, Quantitative information.
A.1.8 On-balance sheet exposures with banks: changes in gross non-performing exposures
(€ million)
CHANGES IN 2024
SOURCES/CATEGORIES
BAD EXPOSURES
UNLIKELY TO PAY
NON-PERFORMING PAST
DUE
A. Opening balance (gross amount)
4
-
-
of which sold non-cancelled exposures
-
-
-
B. Increases
-
-
-
B.1 Transfers from performing loans
-
-
-
B.2 Transfers from acquired or originated impaired financial assets
-
-
-
of which: business combinations
-
-
-
B.3 Transfers from other categories of non-perforiming exposures
-
-
-
B.4 Contractual changes with no cancellations
-
-
-
B.5 Other increases
-
-
-
of which: business combinations - mergers
-
-
-
C. Reductions
-
-
-
C.1 Transfers to performing loans
-
-
-
C.2 Write-offs
-
-
-
C.3 Collections
-
-
-
C.4 Sale proceeds
-
-
-
C.5 Losses on disposal
-
-
-
C.6 Transfers to other non-performing exposures
-
-
-
C.7 Contractual changes with no cancellations
-
-
-
C.8 Other decreases
-
-
-
of which: business combinations
-
-
-
D. Closing balance (gross amount)
4
-
-
of which sold non-cancelled exposures
-
-
-
A.1.8bis Regulatory consolidation - On-balance sheet exposures with banks: changes by credit quality in gross forborne exposures
No data to be disclosed.
980
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.1.9 On-balance sheet credit exposures with customers: changes in gross non-performing exposures
(€ million)
CHANGES IN 2024
SOURCES/CATEGORIES
BAD EXPOSURES
UNLIKELY TO PAY
NON-PERFORMING PAST
DUE
A. Opening balance (gross amount)
1,201
3,336
475
of which sold non-cancelled exposures
12
41
12
B. Increases
1,100
1,996
408
B.1 Transfer from performing loans
566
1,383
362
B.2 Transfer from acquired or originated impaired financial assets
-
10
-
of which: business combinations
-
-
-
B.3 Transfer from other non-performing exposures
358
122
4
B.4 Contractual changes with no cancellations
-
1
-
B.5 Other increases
176
480
42
of which: business combinations - mergers
-
-
-
C. Decreases
1,163
2,604
453
C.1 Transfers to performing loans
1
209
86
C.2 Write-offs
117
192
-
C.3 Collections
373
805
192
C.4 Sale proceeds
208
481
-
C.5 Losses on disposals
32
89
-
C.6 Transfers to other non-performing exposures
6
304
174
C.7 Contractual changes with no cancellations
-
1
-
C.8 Other decreases
426
523
1
of which: business combinations
-
-
-
D. Closing balance (gross amount)
1,138
2,728
430
of which sold non-cancelled exposures
25
18
20
A.1.9bis On-balance sheet exposures with customers: changes by credit quality in gross forborne exposures
(€ million)
CHANGES IN 2024
SOURCES/QUALITY
FORBORNE EXPOSURES:
NON-PERFORMING
FORBORNE EXPOSURES:
PERFORMING
A. Opening balance (gross amount)
2,045
4,041
of which sold non-cancelled exposures
35
7
B. Increases
719
2,920
B.1 Transfers from performing non-forborne exposures
49
2,295
B.2 Transfers from performing forbone exposures
383
X
B.3 Transfers from non-performing forborne exposures
X
143
of which: business combinations
X
-
B.4 Transfers from non-performing non-forborne exposures
137
-
B.5 Other increases
150
482
of which: business combinations - mergers
-
-
C. Reductions
1,520
2,958
C.1 Transfers to performing non-forborne exposures
X
923
C.2 Transfers to performing forbone exposures
143
X
C.3 Transfers to non-performing forborne exposures
X
383
C.4 Write-offs
124
-
C.5 Collections
376
1,641
C.6 Sale proceeds
424
-
C.7 Losses from disposal
60
-
C.8 Other reductions
393
11
of which: business combinations
-
-
D. Closing balance (gross amount)
1,244
4,003
of which sold non-cancelled exposures
8
3
981
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.1.10 On-balance sheet non-performing credit exposures with banks: changes in overall write-downs
(€ million)
CHANGES IN 2024
NON-PERFORMING LOANS
UNLIKELY TO PAY
NON-PERFORMING PAST DUE
SOURCES/CATEGORIES
TOTAL
OF WHICH
FORBORNE
EXPOSURES
TOTAL
OF WHICH
FORBORNE
EXPOSURES
TOTAL
OF WHICH
FORBORNE
EXPOSURES
A. Opening balance (gross amount)
4
-
-
-
-
-
of which sold non-cancelled exposures
-
-
-
-
-
-
B. Increases
-
-
-
-
-
-
B.1 Write-downs of acquired or originated impaired
financial assets
-
X
-
X
-
X
of which: business combinations
-
-
-
-
-
-
B.2 Other write-downs
-
-
-
-
-
-
B.3 Losses on disposal
-
-
-
-
-
-
B.4 Transfers from other categories of non-performing
exposures
-
-
-
-
-
-
B.5 Contractual changes with no cancellations
-
X
-
X
-
X
B.6 Other increases
-
-
-
-
-
-
of which: business combinations - mergers
-
-
-
-
-
-
C. Reductions
-
-
-
-
-
-
C.1 Write-backs from valuation
-
-
-
-
-
-
C.2 Write-backs from collections
-
-
-
-
-
-
C.3 Gains from disposals
-
-
-
-
-
-
C.4 Write-offs
-
-
-
-
-
-
C.5 Transfers to other categories of non-performing
exposures
-
-
-
-
-
-
C.6 Contractual changes with no cancellations
-
X
-
X
-
X
C.7 Other decreases
-
-
-
-
-
-
of which: business combinations
-
-
-
-
-
-
D. Closing balance (gross amount)
4
-
-
-
-
-
of which sold non-cancelled exposures
-
-
-
-
-
-
982
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.1.11 On-balance sheet non-performing credit exposures with customers: changes in overall write-downs
(€ million)
CHANGES IN 2024
NON-PERFORMING LOANS
UNLIKELY TO PAY
NON-PERFORMING PAST DUE
SOURCES/CATEGORIES
TOTAL
OF WHICH
FORBORNE
EXPOSURES
TOTAL
OF WHICH
FORBORNE
EXPOSURES
TOTAL
OF WHICH
FORBORNE
EXPOSURES
A. Opening balance (gross amount)
839
158
1,499
818
155
1
of which sold non-cancelled exposures
9
1
17
16
2
-
B. Increases
687
77
896
345
102
1
B.1 Write-downs of acquired or originated impaired
financial assets
-
X
-
X
-
X
of which: business combinations
-
-
-
-
-
-
B.2 Other write-downs
440
36
536
215
65
1
B.3 Losses on disposal
32
9
89
51
-
-
B.4 Transfers from other categories of non-performing
exposures
158
30
35
2
2
-
B.5 Contractual changes with no cancellations
-
X
1
X
-
X
B.6 Other increases
57
2
235
77
35
-
of which: business combinations - mergers
-
-
-
-
-
-
C. Reductions
762
107
1,286
766
126
1
C.1 Write-backs from valuation
106
9
285
136
1
-
C.2 Write-backs from collections
49
4
54
20
33
-
C.3 Gains from disposals
14
6
17
14
-
-
C.4 Write-offs
117
5
192
119
-
-
C.5 Transfers to other categories of non-performing
exposures
4
1
141
30
50
1
C.6 Contractual changes with no cancellations
-
X
1
X
-
X
C.7 Other decreases
472
82
596
447
42
-
of which: business combinations
-
-
-
-
-
-
D. Closing balance (gross amount)
764
128
1,109
397
131
1
of which sold non-cancelled exposures
12
1
1
1
1
-
983
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.2 Classification of credit exposure, of loan commitments and financial guarantees given based on internal and external ratings
A.2.1 Breakdown of financial assets, loan commitments and financial guarantees given by external rating classes (gross amounts)
(€ million)
AMOUNT AS AT 31.12.2024
EXTERNAL RATING CLASSES
NO RATING
TOTAL
EXPOSURES
CLASS 1
CLASS 2
CLASS 3
CLASS 4
CLASS 5
CLASS 6
A. Financial assets at amortised cost
- Stage 1
9,607
14,001
49,094
1,383
418
-
139,725
214,228
- Stage 2
23
-
133
191
14
-
13,120
13,481
- Stage 3
-
-
-
-
135
-
3,924
4,059
- Purchased or Originated Credit-
Impaired Financial Assets
-
-
-
-
-
-
10
10
B. Financial assets at fair value through
other comprehensive income
- Stage 1
3,287
8,799
20,910
69
-
-
2,297
35,362
- Stage 2
-
-
-
151
-
-
642
793
- Stage 3
-
-
-
-
-
-
114
114
- Purchased or Originated Credit-
Impaired Financial Assets
-
-
-
-
-
-
-
-
C. Financial instruments classified as
held for sale
- Stage 1
-
-
-
-
-
-
-
-
- Stage 2
-
-
-
-
-
-
-
-
- Stage 3
-
-
-
-
-
-
11
11
- Purchased or Originated Credit-
Impaired Financial Assets
-
-
-
-
-
-
-
-
Total (A+B+C)
12,917
22,800
70,137
1,794
567
-
159,843
268,058
D. Loan commitments and financial
guarantees given
- Stage 1
3,551
3,985
15,244
3,833
479
4
29,007
56,103
- Stage 2
-
1
44
549
70
2
3,017
3,683
- Stage 3
-
-
-
-
-
-
1,119
1,119
- Purchased or Originated Credit-
Impaired Financial Assets
-
-
-
-
-
-
-
-
Total (D)
3,551
3,986
15,288
4,382
549
6
33,143
60,905
Total (A+B+C+D)
16,468
26,786
85,425
6,176
1,116
6
192,986
328,963
The table details on- and off-Balance sheet credits granted to counterparties rated by external rating agencies, which provide brief assessments of
the creditworthiness of different classes of borrowers such as Countries, Banks, Public-Sector Entities, Insurance Companies and (usually large)
Enterprises.
The table refers to classification of Circular 262 of 22 December 2005 of Banca d’Italia (and subsequent amendments); then it provides, for external
ratings, 6 classes of creditworthiness.
Rating agencies utilised to fill the table are: S&Ps and Fitch.
Where more than one rating agency is available, the most prudential rating is assigned.
Concerning the classification of credit exposure, of loan commitments and financial guarantees given based on internal and external ratings in force
for the UniCredit Group is made to the paragraph “A.2 Classification of credit exposure based on internal and external ratings”, Notes to the
consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.1
Credit risk, Quantitative information, A. Credit quality, which is herewith quoted entirely.
Excluding unrated counterparties and non-performing loans, 95% of the exposure is concentrated on investment grade (from Class 1 to Class 3),
referring to best-rated borrowers.
Unrated exposures, i.e. those with no external rating, is about 59% of the portfolio, due to considerable proportion of borrowers were private
individuals or SMEs, which are not externally rated.
984
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.2.2 Breakdown of financial assets, loan commitments and financial guarantees given by internal rating classes (gross amounts)
(€ million)
AMOUNT AS AT 31.12.2024
INTERNAL RATING CLASSES
NO RATING
TOTAL
EXPOSURES
1
2
3
4
5
6
7
8
A. Financial assets at amortised cost
- Stage 1
17,895
56,851
22,589
28,887
25,351
13,834
4,558
1,449
42,814
214,228
- Stage 2
45
23
318
1,036
2,207
2,037
2,325
3,472
2,018
13,481
- Stage 3
-
-
-
-
-
-
-
-
4,059
4,059
- Purchased or Originated Credit-Impaired Financial Assets
-
-
-
-
-
-
-
-
10
10
B. Financial assets at fair value through other comprehensive
income
- Stage 1
12,018
21,448
736
241
-
-
-
-
919
35,362
- Stage 2
-
-
-
99
52
-
-
-
642
793
- Stage 3
-
-
-
-
-
-
-
-
114
114
- Purchased or Originated Credit-Impaired Financial Assets
-
-
-
-
-
-
-
-
-
-
C. Financial instruments classified as held for sale
- Stage 1
-
-
-
-
-
-
-
-
-
-
- Stage 2
-
-
-
-
-
-
-
-
-
-
- Stage 3
-
-
-
-
-
-
-
-
11
11
- Purchased or Originated Credit-Impaired Financial Assets
-
-
-
-
-
-
-
-
-
-
Total (A+B+C)
29,958
78,322
23,643
30,263
27,610
15,871
6,883
4,921
50,587
268,058
D. Loan commitments and financial guarantees given
- Stage 1
7,651
12,291
13,323
6,413
3,067
1,918
501
236
10,703
56,103
- Stage 2
-
29
496
923
889
401
273
159
513
3,683
- Stage 3
-
-
-
-
-
-
-
-
1,119
1,119
- Purchased or Originated Credit-Impaired Financial Assets
-
-
-
-
-
-
-
-
-
-
Total (D)
7,651
12,320
13,819
7,336
3,956
2,319
774
395
12,335
60,905
Total (A+B+C+D)
37,609
90,642
37,462
37,599
31,566
18,190
7,657
5,316
62,922
328,963
The table contains on-Balance and off-Balance sheet exposures grouped according to the counterparties’ internal rating.
Ratings are assigned to individual counterparties using internally developed models included in their credit risk management processes.
The internal models validated by the regulators are both “local” and “group-wide” (e.g. for Banks, Multinationals, Countries).
The different rating scales of these models are mapped into a single Group master-scale of 8 classes (illustrated above) based on Probability of
Default (PD). The internal models used are only the IRB ones approved for capital requirements calculation.
Excluding unrated counterparties and non-performing loans, “Investment Grade” portfolio (rating classes 1-3) represents 62% of the exposure
managed with an internal regulatory rating model.
The exposures referring to counterparties without a specific internal regulatory rating model represent 19% of the overall exposure.
985
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.3 Distribution of secured credit exposures by type of security
A.3.1 Secured on-balance and off-balance sheet credit exposures with banks
(€ million)
AMOUNT AS AT 31.12.2024
GROSS EXPOSURE
NET EXPOSURE
COLLATERALS (1)
PROPERTY -
MORTGAGES
PROPERTY - LEASE
LOANS
SECURITIES
OTHER
COLLATERALS
1. Secured on-balance sheet credit exposures
1.1 Totally secured
14,708
14,708
-
-
14,446
-
of which non-performing
-
-
-
-
-
-
1.2 Partially secured
54
54
-
-
-
-
of which non-performing
-
-
-
-
-
-
2. Secured off-balance sheet credit exposures
2.1 Totally secured
1,258
1,258
-
-
1,226
3
of which non-performing
-
-
-
-
-
-
2.2 Partially secured
233
233
-
-
-
-
of which non-performing
-
-
-
-
-
-
continued: A.3.1 Secured on-balance and off-balance sheet credit exposures with banks
(€ million)
AMOUNT AS AT 31.12.2024
GUARANTEES (2)
CREDIT DERIVATIVES
SIGNATURE LOANS (LOANS GUARANTEES)
TOTAL (1)+(2)
OTHER CREDIT DERIVATIVES
CLN
GOVERNMENT
AND
CENTRAL
BANKS
BANKS
OTHER
PUBLIC
ENTITIES
OTHER
ENTITIES
GOVERNMENTS
AND OTHER
PUBLIC
SECTOR
ENTITIES
BANKS
OTHER
PUBLIC
ENTITIES
OTHER
ENTITIES
1. Secured on-balance sheet credit
exposures
1.1 Totally secured
-
-
-
-
-
57
7
-
-
14,510
of which non-performing
-
-
-
-
-
-
-
-
-
-
1.2 Partially secured
-
-
-
-
-
26
26
-
-
52
of which non-performing
-
-
-
-
-
-
-
-
-
-
2. Secured off-balance sheet credit
exposures
2.1 Totally secured
-
-
-
-
-
-
6
1
21
1,257
of which non-performing
-
-
-
-
-
-
-
-
-
-
2.2 Partially secured
-
-
-
-
-
9
13
-
132
154
of which non-performing
-
-
-
-
-
-
-
-
-
-
A.3.2 Secured on-balance and off-balance sheet credit exposures with customers
(€ million)
AMOUNT AS AT 31.12.2024
GROSS EXPOSURE
NET EXPOSURE
COLLATERALS (1)
PROPERTY -
MORTGAGES
PROPERTY - LEASE
LOANS
SECURITIES
OTHER
COLLATERALS
1. Secured on-balance sheet credit exposures
1.1 Totally secured
87,667
85,772
47,955
-
14,393
3,888
of which non-performing
2,283
1,341
751
-
1
47
1.2 Partially secured
15,751
15,439
3
-
347
291
of which non-performing
509
344
-
-
5
1
2. Secured off-balance sheet credit exposures
2.1 Totally secured
27,954
27,876
1,700
-
8,092
314
of which non-performing
403
353
15
-
3
11
2.2 Partially secured
4,060
4,015
1
-
217
90
of which non-performing
190
149
-
-
24
1
986
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
continued: A.3.2 Secured on-balance and off-balance sheet credit exposures with customers
(€ million)
AMOUNT AS AT 31.12.2024
GUARANTEES (2)
CREDIT DERIVATIVES
SIGNATURE LOANS (LOANS GUARANTEES)
TOTAL (1)+(2)
OTHER CREDIT DERIVATIVES
CLN
GOVERNMENT
AND
CENTRAL
BANKS
BANKS
OTHER
PUBLIC
ENTITIES
OTHER
ENTITIES
GOVERNMENTS
AND OTHER
PUBLIC
SECTOR
ENTITIES
BANKS
OTHER
PUBLIC
ENTITIES
OTHER
ENTITIES
1. Secured on-balance sheet credit
exposures
1.1 Totally secured
-
-
-
-
-
8,237
53
683
10,299
85,508
of which non-performing
-
-
-
-
-
293
-
10
225
1,327
1.2 Partially secured
-
-
-
-
-
5,607
150
69
4,241
10,708
of which non-performing
-
-
-
-
-
134
1
2
139
282
2. Secured off-balance sheet credit
exposures
2.1 Totally secured
-
-
-
-
-
2,519
123
964
14,119
27,831
of which non-performing
-
-
-
-
-
87
20
42
174
352
2.2 Partially secured
-
-
-
-
-
753
32
288
1,304
2,685
of which non-performing
-
-
-
-
-
4
4
3
34
70
A.4 Financial and non-financial assets obtained by taking possession of collaterals
(€ million)
CANCELLED CREDIT
EXPOSURE
GROSS AMOUNT
OVERALL WRITE-
DOWNS
CARRYING VALUE
OF WHICH OBTAINED
DURING THE YEAR
A. Property, plant and equipment
-
-
-
-
-
A.1 Used in business
-
-
-
-
-
A.2 Held for investment
-
-
-
-
-
A.3 Inventories
-
-
-
-
-
B. Equity instruments and debt securities
157
72
49
23
-
C. Other assets
-
-
-
-
-
D. Non-current assets and disposal groups
classified as held for sale
-
-
-
-
-
D.1 Property, plant and equipment
-
-
-
-
-
D.2 Other assets
-
-
-
-
-
Total
31.12.2024
157
72
49
23
-
Total
31.12.2023
168
115
50
65
-
987
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
B. Distribution and concentration of credit exposures
B.1 Distribution by segment of on-balance and off-balance sheet credit exposures with customers
(€ million)
GOVERNMENTS AND OTHER
PUBLIC SECTOR ENTITIES
FINANCIAL COMPANIES
FINANCIAL COMPANIES (OF
WHICH INSURANCE COMPANIES)
NON-FINANCIAL COMPANIES
HOUSEHOLDS
EXPOSURES/COUNTERPARTIES
NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS
A. On-balance sheet credit exposures
A.1 Bad exposures
-
-
-
2
-
-
269
534
105
228
of which: forborne exposures
-
-
-
-
-
-
30
104
12
24
A.2 Unlikely to pay
142
10
51
136
-
-
905
784
521
179
of which: forborne exposures
7
6
-
1
-
-
379
299
287
91
A.3 Non-performing past-due
1
1
-
4
-
-
44
17
254
109
of which: forborne exposures
-
-
-
-
-
-
1
-
2
1
A.4 Performing exposures
64,699
29
41,183
133
279
-
61,832
891
56,369
641
of which: forborne exposures
13
-
484
58
-
-
2,887
203
303
55
Total (A)
64,842
40
41,234
275
279
-
63,050
2,226
57,249
1,157
B. Off-balance sheet credit exposures
B.1 Non-performing exposures
86
4
2
-
-
-
1,416
294
23
1
B.2 Performing exsposures
3,066
1
33,742
7
6,630
-
105,123
109
4,257
1
Total (B)
3,152
5
33,744
7
6,630
-
106,539
403
4,280
2
Total (A+B)
31.12.2024
67,994
45
74,978
282
6,909
-
169,589
2,629
61,529
1,159
Total (A+B)
31.12.2023
71,391
73
88,170
301
5,987
-
171,516
3,070
65,183
1,407
B.2 Distribution of on-balance and off-balance sheet credit exposures with customers by geographic area
(€ million)
ITALY
OTHER EUROPEAN COUNTRIES
AMERICA
ASIA
REST OF THE WORLD
EXPOSURES/GEOGRAPHIC AREAS
NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS
A. On-balance sheet credit exposures
A.1 Bad exposures
371
757
1
2
2
3
-
2
-
-
A.2 Unlikely to pay
1,387
1,017
94
89
1
3
2
-
135
-
A.3 Non-performing past-due
298
131
1
-
-
-
-
-
-
-
A.4 Performing exposures
189,375
1,550
19,796
133
5,889
4
6,391
4
2,632
3
Total (A)
191,431
3,455
19,892
224
5,892
10
6,393
6
2,767
3
B. Off-balance sheet credit exposures
B.1 Non-performing exposures
1,425
299
16
-
5
-
-
-
80
-
B.2 Performing exposures
132,901
99
9,821
17
2,963
1
315
-
189
-
Total (B)
134,326
398
9,837
17
2,968
1
315
-
269
-
Total (A+B)
31.12.2024
325,757
3,853
29,729
241
8,860
11
6,708
6
3,036
3
Total (A+B)
31.12.2023
352,013
4,215
24,879
609
8,753
11
8,837
10
1,778
5
988
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
B.2 Distribution of on-balance and off-balance sheet credit exposures with customers by geographic area - Italy
(€ million)
NORTH-WEST ITALY
NORTH-EAST ITALY
CENTRAL ITALY
SOUTH ITALY AND ISLANDS
EXPOSURES/GEOGRAPHIC AREAS
NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS
A. On-balance sheet credit exposures
A.1 Bad exposures
73
178
74
130
107
212
117
237
A.2 Unlikely to pay
389
345
340
224
371
235
287
213
A.3 Non-performing past-due
78
37
66
29
61
26
93
39
A.4 Performing exposures
60,231
608
29,327
358
78,718
316
21,099
268
Total (A)
60,771
1,168
29,807
741
79,257
789
21,596
757
B. Off-balance sheet credit exposures
B.1 Non-performing exposures
516
89
563
100
259
94
86
16
B.2 Performing exposures
53,559
51
27,300
26
42,872
12
9,171
9
Total (B)
54,075
140
27,863
126
43,131
106
9,257
25
Total (A+B)
31.12.2024
114,846
1,308
57,670
867
122,388
895
30,853
782
Total (A+B)
31.12.2023
123,629
1,362
61,804
884
135,093
1,061
31,487
907
B.3 Distribution of on-balance and off-balance sheet credit exposures with banks by geographic area
(€ million)
ITALY
OTHER EUROPEAN COUNTRIES
AMERICA
ASIA
REST OF THE WORLD
EXPOSURES/GEOGRAPHIC AREAS
NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS
A. On-balance sheet credit exposures
A.1 Bad exposures
-
-
-
-
-
4
-
-
-
-
A.2 Unlikely to pay
-
-
-
-
-
-
-
-
-
-
A.3 Non-performing past-due
-
-
-
-
-
-
-
-
-
-
A.4 Performing exposures
18,715
14
31,767
11
2,048
-
2,533
-
845
-
Total (A)
18,715
14
31,767
11
2,048
4
2,533
-
845
-
B. Off-balance sheet credit exposures
B.1 Non-performing exposures
-
-
-
-
-
-
-
-
-
-
B.2 Performing exposures
3,974
3
45,891
10
757
-
3,118
-
1,208
1
Total (B)
3,974
3
45,891
10
757
-
3,118
-
1,208
1
Total (A+B)
31.12.2024
22,689
17
77,658
21
2,805
4
5,651
-
2,053
1
Total (A+B)
31.12.2023
22,307
13
49,266
35
2,260
4
6,352
4
1,767
-
B.3 Distribution of on-balance and off-balance sheet credit exposures with banks by geographic area - Italy
(€ million)
NORTH-WEST ITALY
NORTH-EAST ITALY
CENTRAL ITALY
SOUTH ITALY AND ISLANDS
EXPOSURES/GEOGRAPHIC AREAS
NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS NET EXPOSURE
OVERALL
WRITE-DOWNS
A. On-balance sheet credit exposures
A.1 Bad exposures
-
-
-
-
-
-
-
-
A.2 Unlikely to pay
-
-
-
-
-
-
-
-
A.3 Non-performing past-due
-
-
-
-
-
-
-
-
A.4 Performing exposures
4,289
13
1,749
-
12,677
1
-
-
Total (A)
4,289
13
1,749
-
12,677
1
-
-
B. Off-balance sheet credit exposures
B.1 Non-performing exposures
-
-
-
-
-
-
-
-
B.2 Performing exposures
3,628
3
229
-
115
-
3
-
Total (B)
3,628
3
229
-
115
-
3
-
Total (A+B)
31.12.2024
7,917
16
1,978
-
12,792
1
3
-
Total (A+B)
31.12.2023
8,680
13
2,385
-
11,242
-
-
-
989
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
B.4 Large exposures
31.12.2024
a) Amount book value (€ million)
240,870
b) Amount weighted value (€ million)
24,575
c) Number
8
According to Art.4.1 39 of Regulation (EU) No.575/2013 (CRR), in case of exposures towards a group of connected clients formed by a Central
Government and other groups of connected clients, such exposure towards the Central Government is reported for each group of connected clients
when remitting regulatory reporting; despite the abovementioned regulatory approach, both the amounts shown in letter a), b), and the number in
letter c) in the table above disclose only once the exposure towards the Central Government. It should be noted that deferred tax assets towards
Central Government were considered as fully exempted and, consequently, the weighted amount reported is null. Carrying and weighted amounts
also include the indirect exposures towards the issuers of securities used as collateral under reverse repurchase agreement transactions included in
master netting agreements, in compliance to EBA Q&A n.5496.
990
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
C. Securitisation transactions
Qualitative information
In 2024 UniCredit S.p.A. carried out 7 new transactions, of which 6 synthetic and 1 traditional one:
• Leopard - traditional;
• A.R.T.S. Corporate 2024 - synthetic;
• A.R.T.S. Large Corporate 2024 - synthetic;
• A.R.T.S. ReMo 2024 - synthetic;
• TC Italia - synthetic;
• TC Italia 2 - synthetic;
• TC MiniBond 2023 - synthetic.
Details of the transactions, traditional and synthetic, are set out in the tables enclosed in the “Annexes” to the Consolidated financial statements,
including also those carried out in previous financial years.
It should also be noted that "self-securitisations" and transactions in warehousing phase are not included in the quantitative tables of this paragraph
(C. Securitisation transactions), as required by regulations.
Part of the portfolio are:
• own securitisation transactions, both traditional and synthetic, including also those traditional carried out by the Banks absorbed by UniCredit
S.p.A. in previous years, for a book value of €14,246 million as at 31 December 2024;
• securities arising out of securitisation transactions carried out by other companies belonging to the UniCredit group, for a book value of €211
million as at 31 December 2024;
• other third-party securitisation exposures, for a book value of €72 million as at 31 December 2024.
Quantitative information
C.1 - Exposure from the main "in-house" securitisation transactions broken down by type of securitised asset and by type of exposure
(€ million)
TYPE OF SECURITISED ASSETS/EXPOSURE
BALANCE-SHEET EXPOSURE
SENIOR
MEZZANINE
JUNIOR
CARRYING VALUE
WRITE-DOWNS/
WRITE-BACKS CARRYING VALUE
WRITE-DOWNS/
WRITE-BACKS CARRYING VALUE
WRITE-DOWNS/
WRITE-BACKS
A. Totally derecognised
1,218
-
30
-
8
-
A.1 - Residential mortgages
449
-
-
-
-
-
A.2 - Loans to corporates
270
-
9
-
-
-
A.3 - Loans to SME
499
-
21
-
8
-
B. Partially derecognised
-
-
-
-
-
-
B.1 - Loans to SME
-
-
-
-
-
-
C. Not-derecognised
12,759
-
1
-
230
-
C.1 - Residential mortgages
4,824
-
-
-
201
-
C.2 - Loans to corporates
7,037
-
-
-
-
-
C.3 - Loans to SME
849
-
1
-
7
-
C.4 - Consumer loans
49
-
-
-
22
-
Possible write-downs and write-backs, including depreciations and revaluations posted on the Income statement or to reserves, refer to financial
year 2024 only.
991
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
continued C.1 - Exposure from the main "in-house" securitisation transactions broken down by type of securitised asset and by type of exposure
TYPE OF SECURITISED ASSETS/EXPOSURE
GUARANTEES GIVEN
SENIOR
MEZZANINE
JUNIOR
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
A. Totally derecognised
-
-
-
-
-
-
A.1 - Residential mortgages
-
-
-
-
-
-
A.2 - Loans to corporates
-
-
-
-
-
-
A.3 - Loans to SME
-
-
-
-
-
-
B. Partially derecognised
-
-
-
-
-
-
B.1 - Loans to SME
-
-
-
-
-
-
C. Not-derecognised
-
-
-
-
-
-
C.1 - Residential mortgages
-
-
-
-
-
-
C.2 - Loans to corporates
-
-
-
-
-
-
C.3 - Loans to SME
-
-
-
-
-
-
C.4 - Consumer loans
-
-
-
-
-
-
continued C.1 - Exposure from the main "in-house" securitisation transactions broken down by type of securitised asset and by type of exposure
TYPE OF SECURITISED ASSETS/EXPOSURE
CREDIT FACILITIES
SENIOR
MEZZANINE
JUNIOR
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
A. Totally derecognised
-
-
-
-
-
-
A.1 - Residential mortgages
-
-
-
-
-
-
A.2 - Loans to corporates
-
-
-
-
-
-
A.3 - Loans to SME
-
-
-
-
-
-
B. Partially derecognised
-
-
-
-
-
-
B.1 - Loans to SME
-
-
-
-
-
-
C. Not-derecognised
-
-
-
-
-
-
C.1 - Residential mortgages
-
-
-
-
-
-
C.2 - Loans to corporates
-
-
-
-
-
-
C.3 - Loans to SME
-
-
-
-
-
-
C.4 - Consumer loans
-
-
-
-
-
-
C.2 - Exposure resulting from the main third-party securitisation transactions broken down by type of securitised asset and by type of
exposure
(€ million)
TYPE OF SECURITISED ASSETS/EXPOSURE
BALANCE-SHEET EXPOSURE
SENIOR
MEZZANINE
JUNIOR
CARRYING VALUE
WRITE-DOWNS/
WRITE-BACKS CARRYING VALUE
WRITE-DOWNS/
WRITE-BACKS CARRYING VALUE
WRITE-DOWNS/
WRITE-BACKS
- Loans to corporates
57
-
-
-
-
-
- Loans to SME
3
-
-
-
10
-
- Leasing
211
-
-
-
-
-
- Other retail exposures
-
-
-
-
2
-
Possible write-downs and write-backs, including depreciations and revaluations posted on the Income statement or to reserves, refer to financial
year 2024 only.
992
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
continued C.2 - Exposure resulting from the main third-party securitisation transactions broken down by type of securitised asset and by type of
exposure
TYPE OF SECURITISED ASSETS/EXPOSURE
GUARANTEES GIVEN
SENIOR
MEZZANINE
JUNIOR
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
- Loans to corporates
-
-
-
-
-
-
- Loans to PMI
-
-
-
-
-
-
- Leasing
-
-
-
-
-
-
- Other retail exposures
-
-
-
-
-
-
continued C.2 - Exposure resulting from the main third-party securitisation transactions broken down by type of securitised asset and by type of
exposure
TYPE OF SECURITISED ASSETS/EXPOSURE
CREDIT FACILITIES
SENIOR
MEZZANINE
JUNIOR
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
NET EXPOSURE
WRITE-DOWNS/
WRITE-BACKS
- Loans to corporates
-
-
-
-
-
-
- Loans to SME
-
-
-
-
-
-
- Leasing
-
-
-
-
-
-
- Other retail exposures
-
-
-
-
-
-
C.3 SPVs for securitisations
(€ million)
NAME OF SECURITISATION/NAME OF
VEHICLE
COUNTRY OF INCORPORATION
CONSOLIDATION
ASSETS
LIABILITIES
LOANS AND
RECEIVABLES DEBT SECURITIES
OTHERS
SENIOR MEZZANINE
JUNIOR
ARTS Consumer
VIALE DELL'AGRICOLTURA 7, 37135 VERONA
Y
347
-
65
216
179
17
ARTS Consumer 2023
VIALE DELL'AGRICOLTURA 7, 37135 VERONA
Y
601
-
91
500
181
10
Capital Mortgage S.r.l. - CAPITAL MORTGAGE 2007 - 1
Piazzetta Monte 1 - 37121 Verona
Y
248
-
62
132
74
55
F-E Mortgages S.r.l. - 2005
Piazzetta Monte 1 - 37121 Verona
Y
66
-
11
-
16
32
ALTEA SPV S.R.L.
VIA VALTELLINA,15/17, 20159 MILANO
N
357
-
64
249
86
22
ARCOBALENO FINANCE SRL
FORO BUONAPARTE,70 20121 MILANO
N
10
-
2
-
-
18
ARTS LARGE CORPORATE S.R.L.
VIA VITTORIO ALFIERI 1, 31015 CONEGLIANO (TV)
N
241
-
65
267
-
29
CREDIARC SPV SRL
FORO BUONAPARTE,70 20121 MILANO
N
6
-
-
-
22
FINO 1 SECURITISATION SRL
VIALE LUIGI MAJNO 45, 20122 MILANO
N
95
-
36
-
-
1
FINO 2 SECURITISATION SRL
VIALE LUIGI MAJNO 45, 20122 MILANO
N
72
-
383
180
201
40
ITACA SPV S.R.L.
VIA VITTORIO ALFIERI 1, 31015 CONEGLIANO (TV)
N
711
-
43
30
24
6
KREOS SPV S.R.L.
VIA VALTELLINA 15/17, 20159 MILANO
N
108
-
4
85
25
3
OLYMPIA SPV S.R.L.
VIA VITTORIO ALFIERI 1, 31015 Conegliano
N
92
-
100
109
26
3
ONIF FINANCE SRL
VIA ALESSANDRO PESTALOZZA 12/14, 20131 MILANO
N
119
-
9
-
-
84
Pillarstone Italy SPV S.r.l. - Premuda
Via Pietro Mascagni 14, 20122 MILANO
N
29
-
2
1
180
92
Pillarstone Italy SPV S.r.l. - Rainbow
Via Pietro Mascagni 14, 20122 MILANO
N
46
-
0
26
26
106
PRISMA SPV S.R.L.
VIA MARIO CARUCCI 131, Roma
N
218
-
425
475
80
30
Sestante Finance S.r.l.
Via Borromei, 5 - 20123 Milano
N
86
-
-
45
90
9
Tahiti SPV S.r.l.
PZA GEN.ARMANDO DIAZ 5, 20123 MILANO
N
23
-
2
19
5
1
C.4 Special Purpose Vehicles for securitisation not subject to consolidation
Refer to the corresponding paragraph “C.4 Regulatory consolidation - Special Purpose Vehicles for securitisation not subject to consolidation”,
Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated
perimeter, 2.1 Credit risk, Quantitative information, C. Securitisation transactions, Quantitative information.
C.5 Servicer activities - “In house” securitisations - Collections of securitised loans and redemptions of securities issued by the special
purpose vehicle for securitisation
As at 31 December 2024, the Bank does not perform any servicer activity in its “in house” securitisations in which the assets sold were derecognised
from the Balance sheet under IFRS9.
993
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
D. Information on structured entities not consolidated for accounting purposes (other than vehicles for securitisation
transactions)
Refer to the corresponding paragraph “B.2 Non-consolidated for accounting purposes structured entities” of the Consolidated financial statements of
UniCredit group, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 1 - Risks of the accounting
consolidated perimeter, Quantitative information, B. Structured entities (other than entities for securitisation transaction).
E. Sales transaction
A. Financial assets sold and not fully derecognised
Quantitative information
Any exposures that, at the reference date, are booked under item “110. Non-current assets and disposal groups classified as held for sale”, in the
tables below are shown in correspondence of the original accounting portfolio.
E.1 Financial assets sold and fully recognised and associated financial liabilities: book value
(€ million)
FINANCIAL ASSETS SOLD AND FULLY RECOGNISED
ASSOCIATED FINANCIAL LIABILITIES
BOOK VALUE
OF WHICH:
SUBJECT TO
SECURITISATION
TRANSACTION
OF WHICH:
SUBJECT TO SALE
AGREEMENT WITH
REPURCHASE
OBLIGATION
OF WHICH NON-
PERFORMING
BOOK VALUE
OF WHICH:
SUBJECT TO
SECURITISATION
TRANSACTION
OF WHICH:
SUBJECT TO SALE
AGREEMENT WITH
REPURCHASE
OBLIGATION
A. Financial assets held for trading
1,255
-
1,255
X
1,329
-
1,329
1. Debt securities
1,255
-
1,255
X
1,329
-
1,329
2. Equity instruments
-
-
-
X
-
-
-
3. Loans
-
-
-
X
-
-
-
4. Derivative instruments
-
-
-
X
-
-
-
B. Other financial assets mandatorily at fair value
52
-
52
-
55
-
55
1. Debt securities
52
-
52
-
55
-
55
2. Equity instruments
-
-
-
X
-
-
-
3. Loans
-
-
-
-
-
-
-
C. Financial assets designated at fair value
20
-
20
-
21
-
21
1. Debt securities
20
-
20
-
21
-
21
2. Loans
-
-
-
-
-
-
-
D. Financial assets at fair value through other
comprehensive income
12,563
-
12,563
-
13,309
-
13,309
1. Debt securities
12,563
-
12,563
-
13,309
-
13,309
2. Equity instruments
-
-
-
X
-
-
-
3. Loans
-
-
-
-
-
-
-
E. Financial assets at amortised cost
15,069
1,261
13,808
50
15,672
1,044
14,628
1. Debt securities
13,808
-
13,808
-
14,628
-
14,628
2. Loans
1,261
1,261
-
50
1,044
1,044
-
Total 31.12.2024
28,959
1,261
27,698
50
30,386
1,044
29,342
Total 31.12.2023
28,885
4,811
24,074
49
24,587
1,461
23,126
994
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
E.2 Financial assets sold and partially recognised and associated financial liabilities: book value
(€ million)
ORIGINAL GROSS VALUE
OF ASSETS BEFORE SALE
BOOK VALUE OF ASSETS
STILL PARTIALLY
RECOGNISED
OF WHICH NON-
PERFORMING
BOOK VALUE OF
ASSOCIATED FINANCIAL
LIABILITIES
A. Financial assets held for trading
-
-
X
-
1. Debt securities
-
-
X
-
2. Equity instruments
-
-
X
-
3. Loans
-
-
X
-
4. Derivative instruments
-
-
X
-
B. Other financial assets mandatory at fair value
-
-
-
-
1. Debt securities
-
-
-
-
2. Equity instruments
-
-
X
-
3. Loans
-
-
-
-
C. Financial assets designated at fair value
-
-
-
-
1. Debt securities
-
-
-
-
2. Loans
-
-
-
-
D. Financial assets at fair value through other comprehensive income
-
-
-
-
1. Debt securities
-
-
-
-
2. Equity instruments
-
-
X
-
3. Loans
-
-
-
-
E. Financial assets at amortised cost
-
-
-
-
1. Debt securities
-
-
-
-
2. Loans
-
-
-
-
Total
31.12.2024
-
-
-
-
Total
31.12.2023
60
14
14
1
E.3 Sale transactions relating to financial liabilities with repayment exclusively based on assets sold and not fully derecognised: fair
value
(€ million)
FULLY
RECOGNISED
PARTIALLY
RECOGNISED
TOTAL
31.12.2024
31.12.2023
A. Financial assets held for trading
-
-
-
-
1. Debt securities
-
-
-
-
2. Equity instruments
-
-
-
-
3. Loans
-
-
-
-
4. Derivative instruments
-
-
-
-
B. Other financial assets mandatorily at fair value
-
-
-
-
1. Debt securities
-
-
-
-
2. Equity instruments
-
-
-
-
3. Loans
-
-
-
-
C. Financial assets designated at fair value
-
-
-
-
1. Debt securities
-
-
-
-
2. Loans
-
-
-
-
D. Financial assets at fair value through other comprehensive income
-
-
-
-
1. Debt securities
-
-
-
-
2. Equity instruments
-
-
-
-
3. Loans
-
-
-
-
E. Financial assets at amortised cost (fair value)
1,231
-
1,231
4,811
1. Debt securities
-
-
-
-
2. Loans
1,231
-
1,231
4,811
Total associated financial assets
1,231
-
1,231
4,811
Total associated financial liabilities
1,044
-
X
X
Total net amount
31.12.2024
187
-
187
X
Total net amount
31.12.2023
3,372
13
X
3,385
995
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
B. Financial assets sold and fully derecognised with recognition of continuing involvement
Qualitative and quantitative information
At the end of the year there were no disposals of financial assets that had been fully derecognised, which required the recognition of continuing
involvement.
C. Financial assets sold and fully derecognised
Quantitative information
As at 31 December 2024, the Bank holds asset-backed securities and units in investment funds acquired following the sale of financial assets fully
derecognised, carried out in 2024 and in previous years.
These transactions involved the sale of financial assets, mainly consisting of loans non-performing, by the Bank to securitisation vehicles or
investment funds and their derecognition from the financial statements pursuant to IFRS9, following the assessment that the Bank originator itself
has substantially transferred the risks and benefits of the assets sold and at the same time has not maintained any control over the same assets.
Instead of these derecognised assets, the asset-backed securities or the units in investment funds received in the same transactions were
recognised among the financial assets.
For further information on each transaction carried out in the 2024 and also in the previous years, with specific regard to UniCredit S.p.A. as
Originator, refer to the two annexes “Annex 3 - Securitisations - qualitative tables” and “Annex 4 - Sales of financial assets to investment funds,
receiving as consideration units issued by the same funds - qualitative tables” of Consolidated financial statements of UniCredit group, which are
herewith quoted entirely.
C. Financial assets sold and fully derecognised
(€ million)
ORIGINAL BOOK VALUE OF
ASSETS BEFORE SALE OF WHICH NON-PERFORMING
BOOK VALUE OF THE
BALANCE-SHEET EXPOSURE
ACQUIRED
A. Financial assets held for trading
-
X
-
1. Debt securities
-
X
-
2. Equity instruments
-
X
-
3. Loans
-
X
-
4. Derivative instruments
-
X
-
B. Other financial assets mandatorily at fair value
3
3
1
1. Debt securities
-
-
-
2. Equity instruments
-
X
-
3. Loans
3
3
1
C. Financial assets designated at fair value
-
-
-
1. Debt securities
-
-
-
2. Loans
-
-
-
D. Financial assets at fair value through other comprehensive income
-
-
-
1. Debt securities
-
-
-
2. Equity instruments
-
X
-
3. Loans
-
-
-
E. Financial assets at amortised cost
440
440
346
1. Debt securities
-
-
-
2. Loans
440
440
346
Total 31.12.2024
443
443
347
The asset-backed securities acquired during the year by such transactions, amounting to €86 million, are classified in the Financial assets at
amortised cost and in those mandatorily at fair value, while the units in investment Funds underwritten, amounting to €261 million, are classified in
the Financial assets mandatorily at fair value portfolio.
D. Covered bond transaction
Reference is made to the paragraph “D. Covered bond transactions” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risk of the prudential consolidated perimeter, 2.1
Credit Risk, Quantitative information, D. Sales transactions, which is herewith quoted entirely.
996
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
Information on Sovereign exposures
With reference to the UniCredit S.p.A. sovereign exposures115, the book value of sovereign debt securities as at 31 December 2024 amounted to
€60,032 million, of which 94% concentrated in eight countries; Italy, with €37,382 million, represents over 62% of the total. For each of the eight
countries, the following table shows the book value and the fair value of the exposures broken down by portfolio as at 31 December 2024.
115 Sovereign exposures are bonds issued by and loans given to central and local governments and governmental bodies. To the purpose of this risk exposure are not included:
• Sovereign exposures and Group’s Legal entities classified as held for sale as at 31 December 2024;
• ABSs.
997
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
Breakdown of sovereign debt securities by country and portfolio
(€ million)
COUNTRY/PORTFOLIO
AMOUNTS AS AT 31.12.2024
BOOK VALUE
FAIR VALUE
- Italy
37,382
37,463
financial assets/liabilities held for trading (net exposures*)
34
34
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
53
53
financial assets at fair value through other comprehensive income
18,648
18,648
financial assets at amortised cost
18,647
18,728
- Spain
7,428
7,419
financial assets/liabilities held for trading (net exposures*)
109
109
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
-
-
financial assets at fair value through other comprehensive income
2,683
2,683
financial assets at amortised cost
4,636
4,627
- Japan
4,381
4,381
financial assets/liabilities held for trading (net exposures*)
-
-
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
-
-
financial assets at fair value through other comprehensive income
4,381
4,381
financial assets at amortised cost
-
-
- U.S.A.
3,844
3,877
financial assets/liabilities held for trading (net exposures*)
-
-
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
-
-
financial assets at fair value through other comprehensive income
1,707
1,707
financial assets at amortised cost
2,137
2,170
- France
1,527
1,527
financial assets/liabilities held for trading (net exposures*)
232
232
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
-
-
financial assets at fair value through other comprehensive income
1,295
1,295
financial assets at amortised cost
-
-
- Portugal
802
800
financial assets/liabilities held for trading (net exposures*)
-
-
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
-
-
financial assets at fair value through other comprehensive income
-
-
financial assets at amortised cost
802
800
- Slovakia
627
620
financial assets/liabilities held for trading (net exposures*)
1
1
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
-
-
financial assets at fair value through other comprehensive income
169
169
financial assets at amortised cost
457
450
- Ireland
524
524
financial assets/liabilities held for trading (net exposures*)
-
-
financial assets designated at fair value
-
-
financial assets mandatorily at fair value
-
-
financial assets at fair value through other comprehensive income
-
-
financial assets at amortised cost
524
524
Total on-balance sheet exposures
56,515
56,611
With respect to these exposures, as at 31 December 2024 there were no indications that default have occurred.
998
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
The table below shows the classification of bonds belonging to the banking book and their percentage proportion of the total of the portfolio under
which they are classified:
Breakdown of sovereign debt securities by portfolio
AMOUNTS AS AT 31.12.2024
FINANCIAL ASSETS
DESIGNATED AT
FAIR VALUE
FINANCIAL ASSETS
MANDATORILY AT
FAIR VALUE
FINANCIAL ASSETS AT
FAIR VALUE THROUGH
OTHER
COMPREHENSIVE
INCOME
FINANCIAL ASSETS AT
AMORTISED COST
TOTAL
Book value (€ million)
132
57
29,994
28,888
59,071
% Portfolio
100.00%
0.92%
75.34%
12.66%
21.53%
In addition to the exposures to Sovereign debt securities, loans given to central and local governments and governmental bodies must be taken into
account.
The table below shows the total amount of the loans as at 31 December 2024:
Breakdown of sovereign loans by country
(€ million)
COUNTRY
AMOUNTS AS AT 31.12.2024
BOOK VALUE
- Italy
2,280
- Qatar
745
- Egypt
230
- Kenya
135
- Angola
67
- Dominican Republic
27
- Senegal
1
Total on-balance sheet exposures
3,485
It should also be noted that, as at 31 December 2024, there are in addition also loans to Supranational Organisations amounting to €70 million
booked in financial assets at amortised cost.
Other transaction
With reference to the indications of Banca d’Italia/Consob/IVASS document No.6 of 8 March 2013 - Booking of "long-term structured repos" -
instructions, there are no transactions of this kind to report.
999
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
Information on trading book derivative instruments with customers
The business model governing OTC derivatives trading with customers provides for the centralisation of market risk in Group Client Risk
Management, while credit risk is assumed by the Group company which, under the divisional or geographical segmentation model, manages the
relevant customer’s account.
The Group’s operational model provides for customer trading derivatives business to be carried on, as part of each subsidiary’s operational
independence:
• by the commercial banks and divisions that close transactions in OTC derivatives in order to provide non-institutional clients with products to
manage currency, interest-rate and price risks. Under these transactions, the commercial banks transfer their market risks to the Group Client Risk
management by means of equal and opposite contracts, retaining only the relevant counterparty risk. The commercial banks also place or collect
orders on behalf of others for investment products with embedded derivatives (e.g. structured bonds);
• by CE and EE Banks, which transact business directly with their customers (and possibly manage market risk associated with specific products
and/or risk factors).
UniCredit group trades OTC derivatives on a wide range of underlying, e.g. interest rates, currency rates, share prices and indexes, commodities
(precious metals, base metals, petroleum and energy materials) and credit rights.
OTC derivatives offer considerable scope for personalisation: new payoff profiles can be constructed by combining several OTC derivatives (for
example, a plain vanilla IRS with one or more plain vanilla or exotic options). The risk and the complexity of the structures obtained in this manner
depend on the respective characteristics of the components (reference parameters and indexation mechanisms) and the way in which they are
combined.
Credit and market risk arising from OTC derivatives business is controlled by the Chief Risk Officer competence line (CRO) in the Parent and/or in
the Division or subsidiary involved. This control is carried out by means of guidelines and policies covering risk management, measurement and
controls in terms of principles, rules and processes, as well as by setting VaR limits.
The business with non-institutional clients does not (usually) entail the use of margin calls, whereas with institutional counterparties recourse may be
made to ‘credit-risk mitigation’ (CRM) techniques, by using netting and/or collateral agreements.
Write-downs and write-backs of derivatives to take account of counterparty risk are determined in line with the procedure used to assess other credit
exposure, specifically:
• performing exposure to customers are mapped by deriving EAD (Exposure at Default) with simulation techniques that take into account the
Wrong-Way Risk and measured with PD (Probability of Default) and LGD (Loss Given Default) implied by current market default rates obtained
from credit & loan-credit default swaps, in order to obtain a value in terms of ‘expected loss’ (EL) to be used for items designated and measured at
fair value maximising the usage of market’s inputs;
• non-performing positions are valued in terms of estimated expected future cash flows according to specific indications of impairment (which are
the basis for the calculation of the amount and timing of the cash flow).
Here follows the breakdown of balance-sheet asset item “20. Financial assets at fair value through profit or loss: a) financial assets held for trading”
and of balance-sheet liability item “20. Financial liabilities held for trading”.
For the purpose of the distinction between customers and banking counterparties, the definition contained in Circular 262 of 22 December 2005 of
Banca d’Italia and subsequent amendments (which was used for the preparation of the accounts) was used as a reference.
Structured products were defined as derivative contracts that incorporate in the same instrument forms of contracts that generate exposure to
several types of risk (with the exception of cross-currency swaps) and/or leverage effects.
The balance of item “20. Financial assets at fair value through profit or loss: a) financial assets held for trading” with regard to derivative contracts
totaled €42,980 million (with a notional value of €3,587,771 million) including €2,559 million with customers. The notional value of derivatives with
customers amounted to €1,545,027 million. The notional value of derivatives with banking counterparties totaled €2,042,744 million (fair value of
€40,421 million).
The balance of item “20. Financial liabilities held for trading” with regard to derivative contracts totaled €35,834 million (with a notional value of
€3,436,110 million) including €2,161 million with customers. The notional value of derivatives with customers amounted to €1,521,901 million.
The notional value of derivatives with banking counterparties totaled €1,923,208 million (fair value of €33,673 million).
1000
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
F. Credit risk measurement models
At 31 December 2024 the expected loss on the credit risk perimeter was 0.57% of total Bank credit exposure. This trend is mitigated by the
exposures which have migrated to default and therefore do not enter in the calculation of expected loss and improvement PD and LGD dynamics.
Besides, since risk measurement systems tend to be anti-cyclical, this may result in a smaller elasticity to the swift changes of the macroeconomic
scenario.
The ratio between credit economic capital (including a component to cover migration risk) and its relative credit exposure amount is 3.01% with
reference date end of December 2024.
As far as quantitative information of the Group, reference is made to the paragraph “E. Prudential perimeter - Credit risk measurement models” del
Consolidated financial statements, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks
of the prudential consolidated perimeter, 2.1 Credit risk, Quantitative information.
Section 2 - Market risks
Reference is made to the paragraph “2.2 Market risk” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part E - Information on risks and related hedging policies, Section 2 - Risk of the prudential consolidated perimeter, which is herewith
quoted entirely.
Below, end of year VaR, SVaR and IRC results of UniCredit S.p.A.
Daily VaR on Regulatory Trading book
(€ million)
2024
2023
12.27.2024
AVERAGE
MAX
MIN
AVERAGE
UniCredit S.p.A.
4.2
5.6
20.8
2.8
4.0
SVaR on Regulatory Trading book
(€ million)
2024
2023
12.27.2024
AVERAGE
MAX
MIN
AVERAGE
UniCredit S.p.A.
11.2
10.1
37.1
2.1
7.2
IRC on Regulatory Trading book
(€ million)
2024
2023
12.27.2024
AVERAGE
MAX
MIN
AVERAGE
UniCredit S.p.A.
10.5
23.6
78.4
0.8
56.1
1001
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
2.1 Interest rate risk and price risk - Regulatory trading book
Qualitative information
Interest rate risk
A. General aspects
Reference is made to the paragraph “A. General aspects” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.2 Market risk,
2.2.1 Interest rate risk and price risk - Regulatory trading book, Qualitative information, Interest rate risk, which is herewith quoted entirely.
B. Operational processes and methods for measuring interest rate risk and price risk
Reference is made to the paragraph “B. Risk management process and measurement methods” of the Consolidated financial statements of
UniCredit group, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential
consolidated perimeter, 2.2 Market risk, 2.2.1 Interest rate risk and price risk - Regulatory trading book, Qualitative information, Interest rate risk,
which is herewith quoted entirely.
Price risk
A. General aspects
Reference is made to the paragraph “A. General aspects” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.2 Market risk, 2.2.1
Interest rate risk and price risk - Regulatory trading book, Qualitative information, Price risk, which is herewith quoted entirely.
B. Operational processes and methods for measuring interest rate risk and price risk
Reference is made to the paragraph “B. Risk management process and measurement methods” of the Consolidated financial statements of
UniCredit group, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential
consolidated perimeter, 2.2 Market risk, 2.2.1 Interest rate risk and price risk - Regulatory trading book, Qualitative information, Price risk, which is
herewith quoted entirely.
Quantitative information
1. Regulatory trading portfolio: distribution by residual duration (re-pricing date) of financial assets and liabilities for cash and financial
derivatives
The table is not reported since a table showing interest rate sensitivity is described below, in accordance with internal model.
2. Regulatory trading portfolio: distribution of equity exposures and equity indices for the main listing countries
The table is not reported since a table showing price risk sensitivity is described below, in accordance with internal model.
3. Regulatory trading portfolio: internal models and other methods for sensitivity analysis
For both a description of internal processes for monitoring and managing risk and an illustration of the methodologies used to analyse exposure,
also refer to the introduction on internal models of the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts,
Part E - Information on risks and related hedging policies, Section 2 - Risk of the prudential consolidated perimeter, 2.2 Market risk, which is
herewith quoted entirely.
1002
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
Interest rate risk
Reference is made to the paragraph “Interest rate risk” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.2 Market risk,
2.2.1 Interest rate risk and price risk - Regulatory trading book, Quantitative information, which is herewith quoted entirely.
The tables below show trading book sensitivities.
(€ million)
INTEREST
RATES
+1BP LESS
THAN 1
MONTH
+1BP 1
MONTH TO
6 MONTHS
+1BP 6
MONTHS
TO 1 YEAR
+1BP 1
YEAR TO 5
YEARS
+1BP 5
YEARS TO
10 YEARS
+1BP 10
YEARS TO
20 YEARS
+1BP
OVER 20
YEARS
+1 BP
TOTAL -10 BP +10 BP
-100 PB +100 BP
CW
CCW
Total
-0.1
0.9
-0.1
-0.2
0.2
-0.3
0.1
0.6
-6.5
6.5
-45.2
53.9
23.5
-20.8
of which:
EUR
-0.1
0.9
0.0
-0.1
0.2
-0.3
0.1
0.7
-7.2
7.3
-53.4
60.9
22.3
-19.8
USD
0.0
0.0
-0.1
-0.0
0.0
0.0
0.0
-0.0
0.4
-0.3
3.6
-2.8
0.4
-0.3
GBP
0.0
-0.0
-0.0
-0.0
0.0
0.0
-0.0
-0.1
0.6
-0.6
5.8
-5.8
-0.7
0.7
CHF
-0.0
0.0
-0.0
-0.0
-0.0
-0.0
0.0
-0.0
0.0
-0.0
0.2
-0.2
0.2
-0.2
JPY
-0.0
0.0
0.0
-0.0
0.0
-0.0
-0.0
0.0
-0.2
0.2
-2.5
2.5
0.3
-0.3
Price risk
Reference is made to the paragraph “Price risk” of the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts,
Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.2 Market risk, 2.2.1 Interest
rate risk and price risk - Regulatory trading book, Quantitative information, which is herewith quoted entirely.
2.2 Interest rate and price risk - Banking book
Qualitative information
Interest rate risk and price risk
A. General aspects, operational processes and methods for measuring interest rate risk and price risk
Reference is made to the paragraph “A. General aspects, operational processes and methods for measuring interest rate risk” of the Consolidated
financial statements of UniCredit group, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 -
Risks of the prudential consolidated perimeter, 2.2 Market risk, 2.2.2 Interest rate risk and price risk - Banking book, Qualitative information, Interest
rate risk, which is herewith quoted entirely.
1003
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
Quantitative information
1. Banking book: breakdown by maturity (repricing date) of financial assets and liabilities
(€ million)
AMOUNTS AS AT 31.12.2024
TYPE/RESIDUAL MATURITY
ON DEMAND
UP TO 3
MONTHS 3 TO 6 MONTHS
6 MONTHS TO 1
YEAR
1 TO 5 YEARS
5 TO 10 YEARS
OVER 10
YEARS
INDEFINITE
MATURITY
1. On-balance sheet assets
35,308
96,566
27,402
15,372
55,034
39,920
16,201
-
1.1 Debt securities
709
15,928
9,148
7,264
27,518
24,389
4,635
-
- With prepayment option
-
-
-
-
-
-
-
-
- Other
709
15,928
9,148
7,264
27,518
24,389
4,635
-
1.2 Loans to banks
18,076
8,737
1,671
1,513
3,108
30
3
-
1.3 Loans to customers
16,523
71,901
16,583
6,595
24,408
15,501
11,563
-
- Current accounts
5,639
1
1
32
180
19
2
-
- Other loans
10,884
71,900
16,582
6,563
24,228
15,482
11,561
-
- With prepayment option
2,569
50,719
14,704
4,479
16,915
10,146
10,723
-
- Other
8,315
21,181
1,878
2,084
7,313
5,336
838
-
2. On-balance sheet liabilities
194,658
43,117
9,088
7,217
24,496
13,510
3,701
-
2.1 Deposits from customers
183,027
13,805
1,598
419
703
368
1,643
-
- Current accounts
171,707
3,169
731
312
1
1
-
-
- Other
11,320
10,636
867
107
702
367
1,643
-
- With prepayment option
-
-
-
-
-
-
-
-
- Other
11,320
10,636
867
107
702
367
1,643
-
2.2 Deposits from banks
10,912
22,725
1,677
775
796
5
-
-
- Current accounts
990
-
-
-
-
-
-
-
- Other
9,922
22,725
1,677
775
796
5
-
-
2.3 Debt secuties in issue
718
6,587
5,813
6,023
22,997
13,137
2,058
-
- With prepayment option
-
-
-
-
-
-
-
-
- Other
718
6,587
5,813
6,023
22,997
13,137
2,058
-
2.4 Other liabilities
1
-
-
-
-
-
-
-
- With prepayment option
-
-
-
-
-
-
-
-
- Other
1
-
-
-
-
-
-
-
3. Financial derivatives
3.1 With underlying security
- Option
+ Long positions
276
-
-
1,324
-
-
128
-
+ Short positions
1,324
-
-
277
100
27
-
-
- Other derivates
+ Long positions
-
-
-
-
-
-
-
-
+ Short positions
-
-
-
-
-
-
-
-
3.2 Without underlying security
- Option
+ Long positions
-
1,800
483
755
1,901
-
4
-
+ Short positions
-
2,173
484
662
1,623
-
4
-
- Other derivatives
+ Long positions
2,922
134,656
54,443
29,338
110,174
58,847
8,276
-
+ Short positions
2,821
155,424
54,786
24,493
104,222
44,862
11,614
-
4. Other off-balance sheet transactions
+ Long positions
207
27,202
615
409
1,763
540
955
-
+ Short positions
11,903
17,263
961
550
1,016
-
-
-
1004
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
1. Banking book: breakdown by maturity (repricing date) of financial assets and liabilities - Currency: euro
(€ million)
AMOUNTS AS AT 31.12.2024
TYPE/RESIDUAL MATURITY
ON DEMAND
UP TO 3
MONTHS 3 TO 6 MONTHS
6 MONTHS TO 1
YEAR
1 TO 5 YEARS
5 TO 10 YEARS
OVER 10
YEARS
INDEFINITE
MATURITY
1. On-balance sheet assets
31,460
93,552
26,835
14,387
50,255
34,761
13,643
-
1.1 Debt securities
628
14,453
9,045
6,485
23,829
19,528
2,091
-
- With prepayment option
-
-
-
-
-
-
-
-
- Other
628
14,453
9,045
6,485
23,829
19,528
2,091
-
1.2 Loans to banks
15,875
8,730
1,671
1,510
2,986
1
-
-
1.3 Loans to customers
14,957
70,369
16,119
6,392
23,440
15,232
11,552
-
- Current accounts
5,463
1
1
32
180
19
2
-
- Other loans
9,494
70,368
16,118
6,360
23,260
15,213
11,550
-
- With prepayment option
2,532
50,131
14,278
4,356
16,537
9,880
10,712
-
- Other
6,962
20,237
1,840
2,004
6,723
5,333
838
-
2. On-balance sheet liabilities
188,196
39,279
8,986
7,105
21,838
10,431
2,264
-
2.1 Deposits from customers
179,931
13,569
1,556
384
703
368
1,643
-
- Current accounts
169,067
2,950
699
289
1
1
-
-
- Other
10,864
10,619
857
95
702
367
1,643
-
- With prepayment option
-
-
-
-
-
-
-
-
- Other
10,864
10,619
857
95
702
367
1,643
-
2.2 Deposits from banks
7,590
19,151
1,665
775
796
5
-
-
- Current accounts
745
-
-
-
-
-
-
-
- Other
6,845
19,151
1,665
775
796
5
-
-
2.3 Debt secuties in issue
674
6,559
5,765
5,946
20,339
10,058
621
-
- With prepayment option
-
-
-
-
-
-
-
-
- Other
674
6,559
5,765
5,946
20,339
10,058
621
-
2.4 Other liabilities
1
-
-
-
-
-
-
-
- With prepayment option
-
-
-
-
-
-
-
-
- Other
1
-
-
-
-
-
-
-
3. Financial derivatives
3.1 With underlying security
- Option
+ Long positions
276
-
-
1,324
-
-
128
-
+ Short positions
1,324
-
-
277
100
27
-
-
- Other derivates
+ Long positions
-
-
-
-
-
-
-
-
+ Short positions
-
-
-
-
-
-
-
-
3.2 Without underlying security
- Option
+ Long positions
-
1,800
483
755
1,901
-
4
-
+ Short positions
-
742
371
662
1,623
-
4
-
- Other derivatives
+ Long positions
2,922
133,401
44,025
28,013
90,884
53,661
7,972
-
+ Short positions
2,815
152,181
41,532
23,994
91,222
34,536
6,851
-
4. Other off-balance sheet transactions
+ Long positions
207
27,192
615
409
1,763
489
912
-
+ Short positions
11,809
17,253
961
550
1,016
-
-
-
1005
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
1. Banking book: breakdown by maturity (repricing date) of financial assets and liabilities - Currency: other currencies
(€ million)
AMOUNTS AS AT 31.12.2024
TYPE/RESIDUAL MATURITY
ON DEMAND
UP TO 3
MONTHS 3 TO 6 MONTHS
6 MONTHS TO 1
YEAR
1 TO 5 YEARS
5 TO 10 YEARS
OVER 10
YEARS
INDEFINITE
MATURITY
1. On-balance sheet assets
3,848
3,014
567
985
4,779
5,159
2,558
-
1.1 Debt securities
81
1,475
103
779
3,689
4,861
2,544
-
- With prepayment option
-
-
-
-
-
-
-
-
- Other
81
1,475
103
779
3,689
4,861
2,544
-
1.2 Loans to banks
2,201
7
-
3
122
29
3
-
1.3 Loans to customers
1,566
1,532
464
203
968
269
11
-
- Current accounts
176
-
-
-
-
-
-
-
- Other loans
1,390
1,532
464
203
968
269
11
-
- With prepayment option
37
588
426
123
378
266
11
-
- Other
1,353
944
38
80
590
3
-
-
2. On-balance sheet liabilities
6,462
3,838
102
112
2,658
3,079
1,437
-
2.1 Deposits from customers
3,096
236
42
35
-
-
-
-
- Current accounts
2,640
219
32
23
-
-
-
-
- Other
456
17
10
12
-
-
-
-
- With prepayment option
-
-
-
-
-
-
-
-
- Other
456
17
10
12
-
-
-
-
2.2 Deposits from banks
3,322
3,574
12
-
-
-
-
-
- Current accounts
245
-
-
-
-
-
-
-
- Other
3,077
3,574
12
-
-
-
-
-
2.3 Debt secuties in issue
44
28
48
77
2,658
3,079
1,437
-
- With prepayment option
-
-
-
-
-
-
-
-
- Other
44
28
48
77
2,658
3,079
1,437
-
2.4 Other liabilities
-
-
-
-
-
-
-
-
- With prepayment option
-
-
-
-
-
-
-
-
- Other
-
-
-
-
-
-
-
-
3. Financial derivatives
3.1 With underlying security
- Option
+ Long positions
-
-
-
-
-
-
-
-
+ Short positions
-
-
-
-
-
-
-
-
- Other derivates
+ Long positions
-
-
-
-
-
-
-
-
+ Short positions
-
-
-
-
-
-
-
-
3.2 Without underlying security
- Option
+ Long positions
-
-
-
-
-
-
-
-
+ Short positions
-
1,431
113
-
-
-
-
-
- Other derivatives
+ Long positions
-
1,255
10,418
1,325
19,290
5,186
304
-
+ Short positions
6
3,243
13,254
499
13,000
10,326
4,763
-
4. Other off-balance sheet transactions
+ Long positions
-
10
-
-
-
51
43
-
+ Short positions
94
10
-
-
-
-
-
-
1006
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
2. Banking book: internal models and other methods for sensitivity analysis
Interest Rate Risk
The economic value and net interest income sensitivity to a change in interest rate is computed as described in EBA guidelines (EBA/GL/2022/14)
and in regulation update (2024/856) that adopt the Regulatory Technical Standard on SOTs.
The EU IRRBB1 template reported below, contains the interest rate risk exposure metrics as of 31 December 2024 and 31 December 2023. For the
descriptions of the scenarios refer to Qualitative information - Interest rate risk section.
Regarding the sensitivity of the economic value of shareholders’ equity the worst of the six SOT scenarios is the Parallel down and for that scenario
an immediate and parallel change in interest rates, differentiated by currencies, is applied (e.g. -200 bps for EUR and USD, -300 bps for HUF etc).
The sensitivity of the economic value of shareholders’ equity of the worst of the six SOT scenarios as at 31 December 2024 was equal to -2,146
euro million. The economic value of shareholders’ equity sensitivity change in 2024 is mainly driven by the evolution of replicating strategy in
UniCredit S.p.A.
The net interest income sensitivity (with annual time-horizon and constant balance-sheet) as of 31 December 2024 for the worst of two SOT
scenarios (Parallel down) was equal to -806 euro million. The Parallel down scenario applies an immediate and parallel change in interest rates
differentiated by currencies (e.g. -200 bps for EUR and USD, -300 bps for HUF etc.). The net interest income sensitivity in 2024 remained almost
stable.
Template EU IRRBB1 - Interest rate risks on positions not held in the trading book
(€ million)
SUPERVISORY SHOCK SCENARIOS
a
b
c
d
CHANGES OF THE ECONOMIC VALUE OF EQUITY
CHANGES OF THE NET INTEREST INCOME
31.12.2024
31.12.2023
31.12.2024
31.12.2023
1
Parallel up
291
309
262
283
2
Parallel down
(2,146)
(2,024)
(806)
(763)
3
Steepener
816
638
-
-
4
Flattener
(1,234)
(1,154)
-
-
5
Short rates up
(758)
(673)
-
-
6
Short rates down
160
143
-
-
2.3 Exchange rate risk
Qualitative information
A. General aspects, risk management processes and measurement methods
Reference is made to the paragraph “A. General aspects, risk management processes and measurement methods” of the Consolidated financial
statements of UniCredit group, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of
the prudential consolidated perimeter, 2.2 Market risk, 2.2.3 Exchange rate risk, Qualitative information, which is herewith quoted entirely.
B. Hedging exchange rate risk
Reference is made to the paragraph “B. Hedging exchange rate risk” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.2
Market risk, 2.2.3 Exchange rate risk, Qualitative information, which is herewith quoted entirely.
1007
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
Quantitative information
1. Distribution by currency of assets and liabilities and derivatives
(€ million)
ITEMS
AMOUNTS AS AT 31.12.2024
CURRENCIES
CZECH KORUNA
BULGARIAN LEV
U.S. DOLLAR NEW ROMANIAN LEU
JAPAN YEN OTHER CURRENCIES
A. Financial assets
545
2
13,600
621
4,458
1,601
A.1 Debt securities
19
-
8,160
17
4,381
369
A.2 Equity securities
-
-
476
-
-
18
A.3 Loans to banks
123
2
1,753
29
69
392
A.4 Loans to customers
402
-
3,211
575
8
823
A.5 Other financial assets
-
-
-
-
-
-
B. Other assets
40
0
385
17
2
29
C. Financial liabilities
504
2
16,050
50
215
877
C.1 Deposits from banks
433
1
6,160
1
25
301
C.2 Deposits from customers
10
1
2,673
28
160
537
C.3 Debt securities in issue
61
-
7,217
21
31
40
C.4 Other financial liabilities
-
-
-
-
-
-
D. Other liabilities
4
-
224
13
4
24
E. Financial derivatives
- Options
+ Long positions
5
-
116
0
10
68
+ Short positions
988
-
116
343
10
300
- Other derivatives
+ Long positions
5,560
0
117,342
434
8,020
53,115
+ Short positions
5,675
950
114,547
1,086
12,570
53,804
Total assets
6,149
2
131,443
1,072
12,490
54,814
Total liabilities
7,171
952
130,936
1,492
12,799
55,006
Difference (+/-)
(1,022)
(950)
507
(420)
(309)
(192)
2. Internal models and other methodologies for sensitivity analysis
Reference is made to the paragraph “2.Internal models and other methodologies for sensitivity analysis” of the Consolidated financial statements of
UniCredit group, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential
consolidated perimeter, 2.2 Market risk, 2.2.3 Exchange rate risk, Quantitative information, which is herewith quoted entirely.
Credit spread risk and Stress test
Reference is made to the paragraphs “Credit spread risk” and “Stress test” of the Company financial statements of UniCredit group, Notes to the
consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.2
Market risk, 2.2.3 Exchange rate risk, which is herewith quoted entirely.
Below, end of year Stress test results.
Stress Test on Trading book
27 December 2024
Scenario
(€ million)
2024
RECESSION SCENARIO
GEOPOLITICAL & TRADE SHOCKS
SCENARIO
UniCredit S.p.A.
-38
-21
1008
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
Section 3 - Derivative instruments and hedging policies
3.1 Trading financial derivatives
A. Financial derivatives
A.1 Trading financial derivatives: end-of-period notional amounts
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
OVER THE COUNTER
ORGANISED
MARKETS
OVER THE COUNTER
ORGANISED
MARKETS
UNDERLYING ACTIVITIES/TYPE OF DERIVATIVES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL
COUNTERPARTIES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL
COUNTERPARTIES
WITH NETTING
AGREEMENT
WITHOUT
NETTING
AGREEMENT
WITH NETTING
AGREEMENT
WITHOUT
NETTING
AGREEMENT
1. Debt securities and interest rate indexes
5,225,982
1,300,235
20,573
119,433
44,632
188,910
23,361
3,046
a) Options
-
306,786
7,288
47,025
-
16,981
6,212
-
b) Swap
5,225,982
993,449
13,280
-
44,632
171,929
14,349
-
c) Forward
-
-
-
-
-
-
-
-
d) Futures
-
-
5
72,408
-
-
2,800
3,046
e) Other
-
-
-
-
-
-
-
-
2. Equity instruments and stock indexes
-
59,662
2,786
-
-
12,119
22
-
a) Options
-
59,662
2,786
-
-
12,119
22
-
b) Swap
-
-
-
-
-
-
-
-
c) Forward
-
-
-
-
-
-
-
-
d) Futures
-
-
-
-
-
-
-
-
e) Other
-
-
-
-
-
-
-
-
3. Gold and currencies
-
283,972
3,790
-
-
43,287
2,774
-
a) Options
-
3,243
1,189
-
-
5,668
612
-
b) Swap
-
201,176
463
-
-
10,467
69
-
c) Forward
-
79,553
2,138
-
-
27,152
2,093
-
d) Futures
-
-
-
-
-
-
-
-
e) Other
-
-
-
-
-
-
-
-
4. Commodities
-
7,011
437
-
-
5,991
559
-
5. Other
-
-
-
-
-
-
-
-
Total
5,225,982
1,650,880
27,586
119,433
44,632
250,307
26,716
3,046
1009
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.2 Trading financial derivatives: positive and negative gross fair value - breakdown by product
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
OVER THE COUNTER
ORGANISED
MARKETS
OVER THE COUNTER
ORGANISED
MARKETS
TYPE OF DERIVATIVES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL
COUNTERPARTIES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL
COUNTERPARTIES
WITH NETTING
AGREEMENT
WITHOUT
NETTING
AGREEMENT
WITH NETTING
AGREEMENT
WITHOUT
NETTING
AGREEMENT
1. Positive fair value
a) Options
-
4,886
201
-
-
838
29
-
b) Interest rate swap
122,008
28,236
111
-
1,382
4,883
60
-
c) Cross currency swap
-
7,412
5
-
-
992
-
-
d) Equity swap
-
-
-
-
-
-
-
-
e) Forward
-
1,681
47
-
-
310
29
-
f) Futures
-
-
-
-
-
-
4
4
g) Other
-
336
57
-
-
678
139
-
Total
122,008
42,551
421
-
1,382
7,701
261
4
2. Negative fair value
a) Options
-
3,983
56
-
-
246
129
-
b) Interest rate swap
125,508
24,177
325
-
1,979
4,735
557
-
c) Cross currency swap
-
5,472
2
-
-
987
9
-
d) Equity swap
-
-
-
-
-
-
-
-
e) Forward
-
1,406
23
-
-
252
19
-
f) Futures
-
-
-
-
-
-
3
12
g) Other
-
361
31
-
-
802
16
-
Total
125,508
35,399
437
-
1,979
7,022
733
12
1010
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.3 OTC trading financial derivatives: notional amounts, positive and negative gross fair value by counterparty
(€ million)
AMOUNTS AS AT 31.12.2024
UNDERLYING ACTIVITIES
CENTRAL
COUNTERPARTIES
BANKS
OTHER FINANCIAL
COMPANIES
OTHER ENTITIES
Contracts not included in netting agreement
1) Debt securities and interest rate indexes
- Notional amount
X
80
206
20,287
- Positive fair value
X
-
1
152
- Negative fair value
X
1
2
359
2) Equity instruments and stock indexes
- Notional amount
X
1,896
109
781
- Positive fair value
X
6
135
-
- Negative fair value
X
-
-
13
3) Gold and currencies
- Notional amount
X
330
427
3,033
- Positive fair value
X
-
8
62
- Negative fair value
X
-
-
31
4) Commodities
- Notional amount
X
-
-
437
- Positive fair value
X
-
-
57
- Negative fair value
X
-
-
31
5) Other
- Notional amount
X
-
-
-
- Positive fair value
X
-
-
-
- Negative fair value
X
-
-
-
Contracts included in netting agreement
1) Debt securities and interest rate indexes
- Notional amount
5,225,982
1,237,984
37,034
25,217
- Positive fair value
122,008
30,487
276
269
- Negative fair value
125,508
26,173
367
249
2) Equity instruments and stock indexes
- Notional amount
-
50,901
8,761
-
- Positive fair value
-
1,455
600
-
- Negative fair value
-
741
592
-
3) Gold and currencies
- Notional amount
-
265,086
9,064
9,822
- Positive fair value
-
8,301
296
529
- Negative fair value
-
6,535
232
147
4) Commodities
- Notional amount
-
3,723
717
2,571
- Positive fair value
-
170
7
161
- Negative fair value
-
225
49
89
5) Other
- Notional amount
-
-
-
-
- Positive fair value
-
-
-
-
- Negative fair value
-
-
-
-
1011
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.4 OTC financial derivatives - residual life: notional amounts
(€ million)
UNDERLYING/RESIDUAL MATURITY
UP TO 1 YEAR
OVER 1 YEAR UP TO
5 YEARS
OVER 5 YEARS
TOTAL
A.1 Financial derivative contracts on debt securities and interest rates
2,124,752
2,365,591
2,056,447
6,546,790
A.2 Financial derivative contracts on equity securities and stock indexes
8,010
51,884
2,554
62,448
A.3 Financial derivative contracts on exchange rates and hold
92,240
130,541
64,981
287,762
A.4 Financial derivative contracts on other values
6,416
1,032
-
7,448
A.5 Other financial derivatives
-
-
-
-
Total
31.12.2024
2,231,418
2,549,048
2,123,982
6,904,448
Total
31.12.2023
113,026
142,152
66,477
321,655
B. Credit derivatives
No data to be disclosed.
3.2 Hedging policies
Qualitative information
Hedging transactions are used to manage the exposure to market risks and volatility of financial outcomes that arise as part of our normal business
operations and are executed in accordance with internal policies.
Derivatives are mainly used to manage the banking book interest rate risk with the following goals:
• to reduce banking book interest rate risk profile according to Risk Appetite Framework approved by the Board of Directors and limits defined by
relevant Committees or risk functions. Within Risk Appetite Framework, the banking book exposure to interest rate risk is defined either in terms of
Net Interest Income Sensitivity or Economic Value Sensitivity;
• to optimise the natural hedge between the risk profile of assets and liabilities using derivatives to manage the mismatch, even temporary, between
the volume and the rates of assets and liabilities with different repricing schedules;
• to minimise the net exposure of derivatives used as economic hedges of the most stable portion of either assets or liabilities subject to hedge
accounting, thereby reducing the associated transaction cost.
A. Fair value hedging activities
The objective of fair value hedge on assets/liabilities is to hedge the exposure to changes in fair value coming from the embedded risk factor subject
to a hedging transaction.
The fair value hedge is applied both for identified financial instruments (securities, debt issues, loans, borrowings) and for portfolios of financial
instruments (in particular, fixed rate loans/mortgages and non-maturity deposits or other fixed rate liabilities).
The hedging relationship is qualified at the inception of the hedge by identifying the portion and type of risk to be hedged (partial term hedge), the
hedging strategy, the hedging instrument, and the methods used to assess the effectiveness of the hedging relationship.
The hedging strategy on identified financial instruments classified as Held-to-Collect (HTC) and Held-to-Collect & Sell (HTCS) considers the
contractual features of each instrument and relevant risk management & business intent.
The hedging strategy on portfolios of financial instruments refers to the amounts of money contained in the portfolio of interest rate exposures that
are not already subject to "micro/specific" hedging and mirrors to the nominal amount and financial conditions of hedging derivatives.
The objective of fair value hedge on assets/liabilities denominated in foreign currency could refer to hedge the exposure to changes in fair value by
converting to Euro denominated assets/liabilities.
The hedging instruments used mainly consist of interest-rate swaps, basis swaps, caps, floors, and cross-currencies swaps.
1012
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
B. Cash flow hedging activities
The objective of cash flow hedge on assets/liabilities is to hedge the exposure to changes in cash flows from borrowings/lending that bear a floating
interest rate or provide for a variable FX countervalue amount.
The hedging relationship is qualified at the inception of the hedge by identifying the portion and type of risk to be hedged (partial term hedge), the
hedging strategy, the hedging instrument, and the methods used to assess the effectiveness of the hedging relationship.
Cash flow hedges are particularly used to hedge interest rate risk on floating-rate assets and liabilities, including rollovers, and foreign exchange
risks on highly probable forecast of foreign currency cost/revenue streams.
The hedging instruments used mainly consist of interest-rate swaps, caps, floors, cross-currency swaps with a maturity up to 20 years for some
commercial hedged assets.
C. Foreign net investments hedge activities
The objective of net investment hedging on entities that have different functional currency from the Bank is to reduce the impact of fluctuations in
exchange rates on the Group’s capital adequacy ratios.
The management of this risk embeds the annual definition of hedging strategies in compliance with the EBA guidelines on the treatment of Structural
Foreign Exchange risk (EBA/GL/2020/09), and its continuous monitoring to remain within the relevant Risk Appetite Framework thresholds.
The hedging instruments used mainly consist of foreign exchange options. At consolidated level these derivatives qualify as Net Investment Hedge,
in relationship with the investment. The effective component (intrinsic value) of the hedging instruments is deferred into Other Comprehensive
Income - booked to sub-item “Foreign Investments Hedge” of Valuation Reserves-, offsetting the “FX differences” of the related hedged item.
However, at Bank level, a FVH relationship of the controlling stake is recognised.
Furthermore, the Bank put in place some economic hedges on forecasted foreign currency revenues stemming from those entities. The objective of
the economic hedge is to reduce the volatility on the Income statement coming from the foreign exchange risks. FX risk on forecasted foreign
currency revenues is continuously monitored and hedging strategies are periodically assessed.
The derivatives used mainly consist of currency options. These derivatives may not or should not qualify for hedge accounting even though achieve
substantially the same economic results. The impact of economic hedges is accounted in Item “80 - Net gains (losses) on trading”.
In general term, both the hedging strategies and the percentage to be hedged is defined considering, inter-alia, the diversification effect and taking
into account the volatility and correlation in the FX rates.
D. Hedging instruments and E. Hedging elements
Prospective hedge effectiveness is established by the fact that all derivatives must, at inception, have the effect of reducing interest rate (or other
identified) risk in term of Economic Value Sensitivity (Fair Value Hedge) or Net Interest Income Sensitivity (Cash Flow Hedge) in the specific/portfolio
of hedged underlyings.
Retrospectively the hedge effectiveness is quarterly measured by referring to the most stable portion of assets/liabilities using a portfolio hedge
approach or by referring to the portion of risk being hedged using a micro/specific approach.
Sources of ineffectiveness comes from (i) the Euribor vs Eonia/€STER basis for hedging derivatives transactions subject to a collateral agreement,
(ii) Credit/Debit Value and Funding Value adjustment impacting derivative transactions fair values, (iii) shortfall arising in the underlying’s specifically
associated with that hedge in term of nominal or reverse sensitivity due to prepayment or default on commercial assets or withdrawals on liabilities
included such as commercial non-maturity deposits and are presented in item “90. Net gains (losses) on hedge accounting”.
1013
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
Quantitative information
A. Cash flow hedging derivatives
A.1 Hedging financial derivatives: end-of-period notional amounts
(€ million)
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
OVER THE COUNTER
ORGANISED
MARKETS
OVER THE COUNTER
ORGANISED
MARKETS
UNDERLYING ACTIVITIES/TYPE OF DERIVATIVES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL
COUNTERPARTIES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL
COUNTERPARTIES
WITH NETTING
AGREEMENT
WITHOUT
NETTING
AGREEMENT
WITH NETTING
AGREEMENT
WITHOUT
NETTING
AGREEMENT
1. Debt securities and interest rate indexes
289,034
2,283
-
70,069
2,121
403,547
88,993
-
a) Options
-
690
-
4,000
-
21,882
4,000
-
b) Swap
289,034
1,593
-
-
2,121
381,665
-
-
c) Forward
-
-
-
-
-
-
-
-
d) Futures
-
-
-
66,069
-
-
84,993
-
e) Other
-
-
-
-
-
-
-
-
2. Equity instruments and stock indexes
-
-
-
-
-
-
-
-
a) Options
-
-
-
-
-
-
-
-
b) Swap
-
-
-
-
-
-
-
-
c) Forward
-
-
-
-
-
-
-
-
d) Futures
-
-
-
-
-
-
-
-
e) Other
-
-
-
-
-
-
-
-
3. Gold and currencies
-
16,966
-
-
-
24,222
-
-
a) Options
-
3,112
-
-
-
3,064
-
-
b) Swap
-
13,854
-
-
-
21,158
-
-
c) Forward
-
-
-
-
-
-
-
-
d) Futures
-
-
-
-
-
-
-
-
e) Other
-
-
-
-
-
-
-
-
4. Commodities
-
-
-
-
-
-
-
-
5. Other
-
-
-
-
-
-
-
-
Total
289,034
19,249
-
70,069
2,121
427,769
88,993
-
A.2 Hedging financial derivatives: positive and negative gross fair value - breakdown by product
(€ million)
AMOUNT AS AT 31.12.2024
AMOUNT AS AT 31.12.2023
AMOUNT AS AT
AMOUNT AS AT
POSITIVE AND NEGATIVE FAIR VALUE
POSITIVE AND NEGATIVE FAIR VALUE
OVER THE COUNTER
ORGANISED
MARKETS
OVER THE COUNTER
ORGANISED
MARKETS
31.12.2024
31.12.2023
TYPE OF DERIVATIVES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL COUNTERPARTIES
CENTRAL
COUNTERPARTIES
WITHOUT CENTRAL COUNTERPARTIES
CHANGES IN VALUE USED TO
CALCULATE HEDGE
INEFFECTIVENESS
WITH NETTING
AGREEMENT
WITHOUT NETTING
AGREEMENT
WITH NETTING
AGREEMENT
WITHOUT NETTING
AGREEMENT
1. Positive fair value
a) Options
-
17
-
-
-
62
1
-
-
-
b) Interest rate swap
5,910
77
-
-
42
9,059
-
-
-
-
c) Cross currency
swap
-
457
-
-
-
1,598
-
-
-
-
d) Equity swap
-
-
-
-
-
-
-
-
-
-
e) Forward
-
-
-
-
-
-
-
-
-
-
f) Futures
-
-
-
-
-
-
80
-
-
-
g) Other
-
-
-
-
-
-
-
-
-
-
Total
5,910
551
-
-
42
10,719
81
-
-
-
2. Negative fair value
a) Options
-
7
-
-
-
117
1
-
-
-
b) Interest rate swap
7,134
146
-
-
7
11,296
-
-
-
-
c) Cross currency
swap
-
163
-
-
-
406
-
-
-
-
d) Equity swap
-
-
-
-
-
-
-
-
-
-
e) Forward
-
-
-
-
-
-
-
-
-
-
f) Futures
-
-
-
-
-
-
123
-
-
-
g) Other
-
-
-
-
-
-
-
-
-
-
Total
7,134
316
-
-
7
11,819
124
-
-
-
1014
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.3 OTC hedging financial derivatives: notional amounts, positive and negative gross fair value by counterparty
(€ million)
AMOUNTS AS AT 31.12.2024
UNDERLYING ACTIVITIES
CENTRAL
COUNTERPARTIES
BANKS
OTHER FINANCIAL
COMPANIES
OTHER ENTITIES
Contracts not included in netting agreement
1) Debt securities and interest rate indexes
- Notional amount
X
-
-
-
- Positive fair value
X
-
-
-
- Negative fair value
X
-
-
-
2) Equity instruments and stock indexes
- Notional amount
X
-
-
-
- Positive fair value
X
-
-
-
- Negative fair value
X
-
-
-
3) Gold and currencies
- Notional amount
X
-
-
-
- Positive fair value
X
-
-
-
- Negative fair value
X
-
-
-
4) Commodities
- Notional amount
X
-
-
-
- Positive fair value
X
-
-
-
- Negative fair value
X
-
-
-
5) Other
- Notional amount
X
-
-
-
- Positive fair value
X
-
-
-
- Negative fair value
X
-
-
-
Contracts included in netting agreement
1) Debt securities and interest rate indexes
- Notional amount
289,034
1,632
651
-
- Positive fair value
5,910
58
27
-
- Negative fair value
7,134
75
71
-
2) Equity instruments and stock indexes
- Notional amount
-
-
-
-
- Positive fair value
-
-
-
-
- Negative fair value
-
-
-
-
3) Gold and currencies
- Notional amount
-
15,674
1,292
-
- Positive fair value
-
419
47
-
- Negative fair value
-
168
2
-
4) Commodities
- Notional amount
-
-
-
-
- Positive fair value
-
-
-
-
- Negative fair value
-
-
-
-
5) Other
- Notional amount
-
-
-
-
- Positive fair value
-
-
-
-
- Negative fair value
-
-
-
-
1015
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
A.4 OTC hedging financial derivatives - residual life: notional amounts
(€ million)
UNDERLYING/RESIDUAL MATURITY
UP TO 1 YEAR
OVER 1 YEAR UP TO
5 YEARS
OVER 5 YEARS
TOTAL
A.1 Financial derivative contracts on debt securities and interest rates
86,587
94,787
109,943
291,317
A.2 Financial derivative contracts on equity securities and stock indexes
-
-
-
-
A.3 Financial derivative contracts on exchange rates and gold
4,428
7,509
5,029
16,966
A.4 Financial derivative contracts on other values
-
-
-
-
A.5 Other financial derivatives
-
-
-
-
Total
31.12.2024
91,015
102,296
114,972
308,283
Total
31.12.2023
187,730
210,091
121,063
518,884
B. Hedging credit derivatives
No data to be disclosed.
C. Non hedging instruments
Note that, as provided by the Circular 262 of 22 December 2005 of Banca d’Italia (and subsequent amendments) the present table is not disclosed
as the Group has exercised the option to continue applying the existing IAS39 hedge accounting requirements for all its hedging relationships until
the IASB completes the project on accounting for macro-hedging.
1016
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
D. Hedging instruments
Note that the Group has exercised the option to continue applying the existing IAS39 hedge accounting requirements for all its hedging relationships
until the IASB completes the project on accounting for macro-hedging.
In this context the following table provides the required information about hedged instruments.
Micro hedging and macro hedging: breakdown by hedged item and risk type
(€ million)
AMOUNT AS AT 31.12.2024
MICRO HEDGE:
CARRYING AMOUNT
MACRO HEDGE:
CARRYING AMOUNT
A) Fair value hedge
1. Assets
1.1 Financial assets measured at fair value through other comprehensive income
32,040
-
1.1.1 Interest rate
32,040
X
1.1.2 Equity
-
X
1.1.3 Foreign exchange and gold
-
X
1.1.4 Credit
-
X
1.1.5 Other
-
X
1.2 Financial assets measured at amortised cost
31,432
(47)
1.2.1 Interest rate
31,432
X
1.2.2 Equity
-
X
1.2.3 Foreign exchange and gold
-
X
1.2.4 Credit
-
X
1.2.5 Other
-
X
2. Liabilites
2.1 Financial liabilities measured at amortised costs
-
(684)
2.1.1 Interest rate
-
X
2.1.2 Equity
-
X
2.1.3 Foreign exchange and gold
-
X
2.1.4 Credit
-
X
2.1.5 Other
-
X
B) Cash flow hedge
1. Assets
-
X
1.1 Interest rate
-
X
1.2 Equity
-
X
1.3 Foreign exchange and gold
-
X
1.4 Credit
-
X
1.5 Other
-
X
2. Liabilites
-
X
2.1 Interest rate
-
X
2.2 Equity
-
X
2.3 Foreign exchange and gold
-
X
2.4 Credit
-
X
2.5 Other
-
X
C) Hedge of net investments in foreign operations
-
X
D) Porftolio - Assets
X
(855)
E) Porftolio - Liabilities
X
(3,974)
Note:
It should be noted that the column “Macro hedge: carrying amount” reports the revaluation recognised with reference to the hedged item.
Additionally, it should be noted that there are fair value hedge relationships of controlling investments for €1,556 million.
E. Effects of hedging policy at equity
This table has to be filled in only by entities that apply IFRS9 hedge accounting rules.
1017
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
3.3 Other information on derivatives instruments (trading and hedging)
A. Financial and credit derivatives
A.1 OTC financial and credit derivatives: net fair value by counterparty
(€ million)
AMOUNTS AS AT 31.12.2024
CENTRAL
COUNTERPARTIES
BANKS
OTHER FINANCIAL
COMPANIES
OTHER ENTITIES
A. Financial derivatives
1) Debt securities and interest rates
- Notional amount
5,515,016
-
-
-
- Positive net fair value
-
-
-
-
- Negative net fair value
4,724
-
-
-
2) Equity instruments and stock indexes
- Notional amount
-
-
-
-
- Positive net fair value
-
-
-
-
- Negative net fair value
-
-
-
-
3) Gold and currencies
- Notional amount
-
-
-
-
- Positive net fair value
-
-
-
-
- Negative net fair value
-
-
-
-
4) Commodities
- Notional amount
-
-
-
-
- Positive net fair value
-
-
-
-
- Negative net fair value
-
-
-
-
5) Other
- Notional amount
-
-
-
-
- Positive net fair value
-
-
-
-
- Negative net fair value
-
-
-
-
B. Credit derivatives
1) Protection buyer's contracts
- Notional amount
-
-
-
-
- Positive net fair value
-
-
-
-
- Negative net fair value
-
-
-
-
2) Protection seller's contracts
- Notional amount
-
-
-
-
- Positive net fair value
-
-
-
-
- Negative net fair value
-
-
-
-
UniCredit S.p.A. applied for the first time in 2024 accounting offsetting according to IAS32.
1018
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
Section 4 - Liquidity risk
Qualitative information
As at 31 December 2024, the amount of material outflows due to deterioration of own credit quality, included in the components of the Liquidity
Coverage Ratio, is equal to €1,864 million.
For further information, reference is made to the paragraph “A. General aspects, operational processes and methods for measuring liquidity risk” of
the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts, Part E - Information on risks and related hedging
policies, Section 2 - Risks of the prudential consolidated perimeter, 2.4 Liquidity risk, Qualitative information, which is herewith quoted entirely.
Quantitative information
1. Time breakdown by contractual residual maturity of financial assets and liabilities
(€ million)
ITEMS/MATURITY
AMOUNT AS AT 31.12.2024
ON DEMAND
1 TO 7 DAYS
7 TO 15 DAYS
15 DAYS TO ONE
MONTH
1 TO 3 MONTHS
3 TO 6 MONTHS
6 MONTHS TO 1
YEAR
1 TO 5 YEARS
OVER 5 YEARS
INDEFINITE
MATURITY
A. On-balance sheet assets
34,721
7,516
2,900
7,727
16,789
14,003
23,503
111,628
79,922
2,012
A.1 Government securities
11
40
16
71
1,003
715
4,314
29,625
26,310
-
A.2 Other debt securities
69
1
23
63
884
793
593
16,719
13,916
50
A.3 Units in investment funds
3,106
-
-
-
-
-
-
-
-
-
A.4 Loans
31,535
7,475
2,861
7,593
14,902
12,495
18,596
65,284
39,696
1,962
- Banks
17,850
2,554
168
1,179
1,820
1,823
1,701
4,189
39
1,946
- Customers
13,685
4,921
2,693
6,414
13,082
10,672
16,895
61,095
39,657
16
B. On-balance sheet liabilities
196,602
18,240
7,610
5,016
8,303
5,429
4,680
34,619
19,158
-
B.1. Deposits and current accounts
175,703
1,155
1,865
1,687
1,436
824
351
1
1
-
- Banks
2,170
728
1,250
746
198
67
17
-
-
-
- Customers
173,533
427
615
941
1,238
757
334
1
1
-
B.2 Debt securities
11
368
552
342
1,533
3,527
3,118
32,155
16,774
-
B.3 Other liabilities
20,888
16,717
5,193
2,987
5,334
1,078
1,211
2,463
2,383
-
C. Off-balance sheet transactions
C.1 Financial derivatives with capital swap
- Long positions
2,378
6,207
8,128
10,012
22,717
26,325
34,568
137,578
68,897
-
- Short positions
7,920
6,207
8,145
9,900
20,403
20,017
32,441
136,089
75,532
-
C.2 Financial derivatives without capital swap
- Long positions
153,650
134
185
487
1,335
1,898
3,007
-
-
-
- Short positions
151,937
134
-
487
1,335
1,898
3,007
-
-
-
C.3 Deposits and loans to be received
- Long positions
-
18,044
-
718
305
398
200
-
-
-
- Short positions
28
15,011
406
1,322
522
961
400
1,016
-
-
C.4 Commitments to disburse funds
- Long positions
219
6,627
530
-
491
211
416
1,905
1,636
-
- Short positions
11,884
2
-
-
-
-
150
-
-
-
C.5 Financial guarantees given
-
-
-
40
2
2
21
27
1
-
C.6 Financial guarantees received
-
-
-
-
-
-
-
-
-
-
C.7 Credit derivatives with capital swap
- Long positions
-
-
-
-
-
-
-
-
-
-
- Short positions
-
-
-
-
-
-
-
-
-
-
C.8 Credit derivatives without capital swap
- Long positions
-
-
-
-
-
-
-
-
-
-
- Short positions
-
-
-
-
-
-
-
-
-
-
1019
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
1. Time breakdown by contractual residual maturity of financial assets and liabilities - Currency: euro
(€ million)
ITEMS/MATURITY
AMOUNT AS AT 31.12.2024
ON DEMAND
1 TO 7 DAYS
7 TO 15 DAYS
15 DAYS TO ONE
MONTH
1 TO 3 MONTHS
3 TO 6 MONTHS
6 MONTHS TO 1
YEAR
1 TO 5 YEARS
OVER 5 YEARS
INDEFINITE
MATURITY
A. On-balance sheet assets
30,847
7,147
2,571
7,296
15,637
13,667
22,239
105,786
71,204
2,005
A.1 Government securities
8
40
15
69
684
658
3,408
26,939
19,305
-
A.2 Other debt securities
69
1
9
59
464
673
543
14,918
12,640
43
A.3 Units in investment funds
2,980
-
-
-
-
-
-
-
-
-
A.4 Loans
27,790
7,106
2,547
7,168
14,489
12,336
18,288
63,929
39,259
1,962
- Banks
15,647
2,554
163
1,178
1,817
1,823
1,697
4,064
7
1,946
- Customers
12,143
4,552
2,384
5,990
12,672
10,513
16,591
59,865
39,252
16
B. On-balance sheet liabilities
190,175
17,444
6,204
3,657
8,049
5,219
4,478
31,818
14,606
-
B.1. Deposits and current accounts
171,954
684
902
891
1,195
770
314
1
1
-
- Banks
1,059
293
327
6
63
55
17
-
-
-
- Customers
170,895
391
575
885
1,132
715
297
1
1
-
B.2 Debt securities
11
368
552
342
1,520
3,371
2,953
29,354
12,222
-
B.3 Other liabilities
18,210
16,392
4,750
2,424
5,334
1,078
1,211
2,463
2,383
-
C. Off-balance sheet transactions
C.1 Financial derivatives with capital swap
- Long positions
2,325
3,229
3,660
3,988
13,170
14,580
13,752
49,167
28,219
-
- Short positions
7,819
2,427
2,828
4,003
5,727
8,505
12,945
48,719
33,410
-
C.2 Financial derivatives without capital swap
- Long positions
143,351
112
172
446
1,207
1,699
2,675
-
-
-
- Short positions
138,935
112
-
446
1,207
1,699
2,675
-
-
-
C.3 Deposits and loans to be received
- Long positions
-
18,044
-
715
300
398
200
-
-
-
- Short positions
28
15,011
406
1,319
517
961
400
1,016
-
-
C.4 Commitments to disburse funds
- Long positions
219
6,627
530
-
491
209
416
1,905
1,542
-
- Short positions
11,790
-
-
-
-
-
150
-
-
-
C.5 Financial guarantees given
-
-
-
39
2
2
21
27
1
-
C.6 Financial guarantees received
-
-
-
-
-
-
-
-
-
-
C.7 Credit derivatives with capital swap
- Long positions
-
-
-
-
-
-
-
-
-
-
- Short positions
-
-
-
-
-
-
-
-
-
-
C.8 Credit derivatives without capital swap
- Long positions
-
-
-
-
-
-
-
-
-
-
- Short positions
-
-
-
-
-
-
-
-
-
-
1020
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
1. Time breakdown by contractual residual maturity of financial assets and liabilities - Currency: other currencies
(€ million)
ITEMS/MATURITY
AMOUNT AS AT 31.12.2024
ON DEMAND
1 TO 7 DAYS
7 TO 15 DAYS
15 DAYS TO ONE
MONTH
1 TO 3 MONTHS
3 TO 6 MONTHS
6 MONTHS TO 1
YEAR
1 TO 5 YEARS
OVER 5 YEARS
INDEFINITE
MATURITY
A. On-balance sheet assets
3,874
369
329
431
1,152
336
1,264
5,842
8,718
7
A.1 Government securities
3
-
1
2
319
57
906
2,686
7,005
-
A.2 Other debt securities
-
-
14
4
420
120
50
1,801
1,276
7
A.3 Units in investment funds
126
-
-
-
-
-
-
-
-
-
A.4 Loans
3,745
369
314
425
413
159
308
1,355
437
-
- Banks
2,203
-
5
1
3
-
4
125
32
-
- Customers
1,542
369
309
424
410
159
304
1,230
405
-
B. On-balance sheet liabilities
6,427
796
1,406
1,359
254
210
202
2,801
4,552
-
B.1. Deposits and current accounts
3,749
471
963
796
241
54
37
-
-
-
- Banks
1,111
435
923
740
135
12
-
-
-
-
- Customers
2,638
36
40
56
106
42
37
-
-
-
B.2 Debt securities
-
-
-
-
13
156
165
2,801
4,552
-
B.3 Other liabilities
2,678
325
443
563
-
-
-
-
-
-
C. Off-balance sheet transactions
C.1 Financial derivatives with capital swap
- Long positions
53
2,978
4,468
6,024
9,547
11,745
20,816
88,411
40,678
-
- Short positions
101
3,780
5,317
5,897
14,676
11,512
19,496
87,370
42,122
-
C.2 Financial derivatives without capital swap
- Long positions
10,299
22
13
41
128
199
332
-
-
-
- Short positions
13,002
22
-
41
128
199
332
-
-
-
C.3 Deposits and loans to be received
- Long positions
-
-
-
3
5
-
-
-
-
-
- Short positions
-
-
-
3
5
-
-
-
-
-
C.4 Commitments to disburse funds
- Long positions
-
-
-
-
-
2
-
-
94
-
- Short positions
94
2
-
-
-
-
-
-
-
-
C.5 Financial guarantees given
-
-
-
1
-
-
-
-
-
-
C.6 Financial guarantees received
-
-
-
-
-
-
-
-
-
-
C.7 Credit derivatives with capital swap
- Long positions
-
-
-
-
-
-
-
-
-
-
- Short positions
-
-
-
-
-
-
-
-
-
-
C.8 Credit derivatives without capital swap
- Long positions
-
-
-
-
-
-
-
-
-
-
- Short positions
-
-
-
-
-
-
-
-
-
-
1021
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
Section 5 - Operational risk
Qualitative information
A. General aspects, operational processes and methods for measuring operational risk
Reference is made to the paragraph “A. General aspects, operational processes and methods for measuring operational risk” of the Consolidated
financial statements of UniCredit group, Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 -
Risks of the prudential consolidated perimeter, 2.5 Operational risks, Qualitative information, which is herewith quoted entirely.
B. Risks arising from legal disputes
Reference is made to the paragraph “B. Legal risks” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.5 Operational risks,
Qualitative information, which is herewith quoted entirely.
C. Risks arising from employment law cases
Reference is made to the paragraph “C. Risks arising from employment law cases” of the Consolidated financial statements of UniCredit group,
Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated
perimeter, 2.5 Operational risks, Qualitative information, which is herewith quoted entirely.
D. Risks arising from tax disputes
Reference is made to the paragraph “D. Risks arising from tax disputes” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.5
Operational risks, Qualitative information, which is herewith quoted entirely.
E. Other claims by customers
Supporting the business structures, the Compliance function oversees the regulatory environment evolution relating to banking services and
products in areas like transparency, financial and investment services and anti-usury. Compliance, as control function, develops rules, checks
processes and procedures and monitors complaints trends. The Compliance function, along with the Legal one, also supports analysis and
evaluation stages of adequacy of potential "customer care" actions or other initiatives designed to compose particular situations in which UniCredit
S.p.A. might be involved in order to define them.
Considering the regulatory complexity and interpretations not always homogeneous, UniCredit S.p.A. time-to-time assesses the accounting of
provisions for risk and charges, aimed at facing costs, deemed probable, in a contest that has increased the litigiousness at baking system level.
Concerning the financing of consumer credit, the EU Directive 2008/48 establishes that “the consumer shall be entitled at any time to discharge fully
or partially his obligations under a credit agreement. In such cases, he shall be entitled to a reduction in the total cost of credit, such reduction
consisting of the interest and the costs for the remaining duration of the contract”.
Following the decision of the European Court of Justice in September 2019 (judgment C-383/18 referring to the “Lexitor” case) and the
communication of the Banca d’Italia issued in December 2020, UniCredit S.p.A. proceeded to adapt to the most recent interpretation of this
legislation. Therefore, in the event of a request for early repayment of the loan, the consumer is entitled to pay off his debt net of costs not yet
accrued on the repayment date.
In consideration of the above, as well as the interpretations prior to the aforementioned communication of Banca d’Italia, the Bank noted the
guidelines issued by the Authority and by decision of Constitutional Court of 22 December 2022 adapting to the framework outlined, and has carried
out the appropriate assessments, also to preserve the quality of the customers relationship.
1022
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
Diamond offer
Over the years, within the diversification of investments to which the available assets are addressed and also considering in this context those
investments with the characteristics of the so-called “safe haven” with a long-term horizon, several UniCredit S.p.A. customers have historically
invested in diamonds through a specialised intermediary company, with which the Bank has stipulated, since 1998, a collaboration agreement as
“Introducer”, in order to regulate the "reporting" methods of the offer of diamonds by the same company to UniCredit S.p.A. customers.
Since the end of 2016, the liquidity available on the market to meet the requests of customers who intended to divest their diamond assets has
contracted to a certain extent until it became nil, with the suspension of the service by the brokerage company.
In 2017 UniCredit S.p.A. started a “customer care” initiative which envisaged the availability of the Bank to intervene for the acknowledgement
towards the customer of the original cost incurred for the purchase of precious items and the consequent withdrawal of the stones, upon certain
conditions. The initiative has been adopted by the Bank assessing the absence of responsibility for its role as “Introducer”; nevertheless, the AGCM
ascertained the responsibility of UniCredit S.p.A. for unfair commercial practice (confirmed in appeal by the Administrative Regional Court in the
second half of 2018), imposing, in 2017, a fine of €4 million paid in the same year. The Bank has filed an appeal to the Council of State. With a
sentence of 11 March 2021, the Council of State accepted the appeal brought by UniCredit S.p.A. against the fine imposed by reducing the amount
of the fine to €2.8 million and sentenced AGCM to return 1.2 million, amount reimbursed in June 2021.
For the sake of completeness, it should be noted that on 8 March 2018, a specific communication was issued from Banca d'Italia concerning the
“Related activities exercisable by bank”", in which large attention was given to the reporting at the bank branches of operations, purchase and sale
of diamonds by specialised third-party companies.
As at 31 December 2024, UniCredit S.p.A. received reimbursement requests for a total amount of about €417 million (cost originally incurred by the
Clients) from No.12,494 Customers; according to a preliminary analysis, such requests fulfill the requirements envisaged by the "customer care"
initiative; the finalization of the reimbursement requests is currently carried out, aimed at assessing their effective compliance with the "customer
care" initiative, and then proceed with the settlement where conditions recur; with reference to the scope outlined above (€417 million), reimbursed
No.12,147 customers for about €410 million (equivalent value of original purchases), equal to about 98% of the reimbursement requests said above.
In order to cope with the probable risks of loss related to the repurchases of diamonds, a dedicated Provision for risks and charges was set up; its
quantification was also based on the outcome of an independent study (commissioned to a primary third company) aiming at evaluating the
diamonds' value.
Finally, in line with a strategy that envisages its disposal in the short term, the gems purchased are recognised for about €39 million in item “120.
Other assets” of the Balance sheet.
On 19 February 2019, the Court of Milan issued an interim seizure order against UniCredit S.p.A., freezing €33 million for aggravated fraud and €72
thousand for self-laundering. Investigations were ongoing under article 25-octies of Legislative Decree 231/2001 for the Bank’s administrative liability
in self-laundering.
On 2 October 2019, UniCredit and certain employees received notice of the conclusion of investigations confirming allegations of fraud and self-
laundering, with the latter forming a basis for the Bank’s potential liability. In September 2020, new allegations were made against individuals, but
only for fraud, leaving the overall investigative framework unchanged.
In June 2021, the public prosecutor requested indictments against some employees. The case, transferred to Trieste following jurisdictional
challenges, returned to the investigation stage, and the interim seizures were lifted.
In February 2023, the Trieste Prosecution Office dismissed the case against the Bank for self-laundering, with approval from the General Prosecutor
at the Court of Appeal. The Judge for the Preliminary Investigations formally closed the case against the Bank.
The fraud case against individuals was sent back to Milan. In May 2024, the Public Prosecutor filed a motion to dismiss the case in line with
defendants’ requests. The court now awaits potential objections, which would trigger a hearing before the Judge for the Preliminary Investigations. If
no objections arise, the final dismissal by the Judge will be awaited.
1023
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
Quantitative information
Reference is made to the paragraph “Quantitative information” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.5
Operational risks, which is herewith quoted entirely.
“Employment practices” is not shown in the chart since it has a positive impact in the reference period due to the effects of recoveries and releases
of funds.
In 2024, the main source of operational risk is the category “clients, products and business practices”, which includes losses arising from the non-
fulfilment of professional obligations towards clients or from the nature or characteristics of the products or services provided.
The second largest contribution is “errors in process management execution and delivery”, due to operational or process management shortfalls.
There were also, in decreasing order, losses stemming from “external fraud” (for this purpose, the positive effect, due to a relevant release of
provisions on an external fraud case, has not been considered), “business disruption and technology system failures”, “internal fraud” and “damage
to physical assets”.
19,3%
61,0%
14,9%
1,5%
2,1%
1,2%
Operational losses Full Year 2024 divided by risk category
Process execution
Business practices
External fraud
Employment practices
Internal fraud
Business disruption and technology
system failures
Damage to physical assets
1024
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part E - Information on risks and related hedging policies
Section 6 - Other risks
Other risks included in Economic capital
Reference is made to the paragraph “Other risks included in Economic Capital” of the Consolidated financial statements of UniCredit group, Notes to
the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.6
Other risks, which is herewith quoted entirely.
Reputational risk
Reference is made to the paragraph “Reputational risk” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.6 Other risks,
which is herewith quoted entirely.
Top and emerging risks
Reference is made to the paragraph “Top and emerging risks” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.6 Other risks,
which is herewith quoted entirely.
The climate-related and environmental risks
Reference is made to the paragraph “The climate-related and environmental risks” of the Consolidated financial statements of UniCredit group,
Notes to the consolidated accounts, Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated
perimeter, 2.6 Other risks, which is herewith quoted entirely.
1025
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part F - Shareholders’ equity
Part F - Shareholders’ equity
Section 1 - Shareholders’ equity
A. Qualitative information
Reference is made to the paragraph “A. Qualitative information” of the Consolidated financial statements of UniCredit group, Notes to the
consolidated accounts, Part F - Consolidated shareholders’ equity, Section 1 - Consolidated Shareholders’ Equity, which is herewith quoted entirely.
B. Quantitative information
B.1 Company shareholders' equity: breakdown
(€ million)
AMOUNT AS AT
ITEMS/VALUES
31.12.2024
31.12.2023
1. Share capital
21,368
21,278
2. Share premium reserve
23
23
3. Reserves
23,899
23,944
- from profits
20,305
17,191
a) legal
1,618
1,618
b) statutory
16,053
13,917
c) treasury shares
-
-
d) other
2,634
1,656
other(*)
3,594
6,753
4. Equity instruments
4,958
4,863
5. Treasury shares
-
(1,727)
6. Revaluation reserves
815
658
Equity instruments designated at fair value through other comprehensive income
48
(192)
Hedge accounting of equity instruments designated at fair value through other comprehensive income
-
-
Financial assets (different from equity instruments) at fair value through other comprehensive income
26
148
Property, plant and equipment
711
729
Intangible assets
-
-
Hedges of foreign investments
-
-
Cash flow hedges
33
(16)
Foreign investments hedging
-
-
Exchange differences
-
-
Non-current assets and disposal groups classified as held for sale
5
3
Financial liabilities designated at fair value through profit or loss (own creditworthiness changes)
(70)
(80)
Actuarial gains (losses) on defined benefit plans
(215)
(211)
Changes in valuation reserve pertaining to equity method investments
-
-
Special revaluation laws
277
277
7. Advanced dividends
(1,440)
-
8. Net profit (loss)
8,106
11,264
Total
57,729
60,303
Note:
The sub-item "Reserves - other" includes a part of the "Legal reserve" (€2,738 million) also constituted, as resolved by the approval of the Ordinary Shareholders' Meeting of 11 May 2013, 13 May 2014, 14 April 2016 and 15
April 2021, with the withdrawal from the "Share premium reserve".
Shareholders’ equity as at 31 December 2024, additionally to the changes in capital explained in detail in the Notes to the accounts, Part B -
Balance sheet - Liabilities, Section 12 - Shareholders’ equity, reflects, among the others, the changes resulting from the Shareholders’ Meeting
resolutions of 12 April 2024 and the Board of Director of 5 November 2024 which involved:
• the payment of a cash dividend to shareholders for a total amount of €3,015 million from allocation of the 2023 net profit;
• the payment of the interim dividend for a total amount of €1,440 million based on the results of the 2024 financial year;
• he distribution of €30 million in favor of UniCredit Foundation for social, charity and cultural initiatives from allocation of the 2023 net profit;
• the establishing of a specific Reserve for windfall tax (1,125 million);
• the allocation to the Reserve for social, charity and cultural initiatives (€5 million), to the reserve connected to the medium-term incentive plan for
Group personnel (€100 million), and to the Statutory reserve (6,989 million) from allocation of the 2023 net profit;
1026
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part F - Shareholders’ equity
• the elimination of negative reserves for €445 million, partly by use of the IFRS3 Business Combination Reserve (270 million) to cover the reserve
relating to the payment of AT1 coupons (263 million) and the reserve relating to payments of the Equity Settled Share Based Payments plans
settled in cash (7 million), partly by use of the Statutory Reserve to cover the reserve deriving from payments connected to the usufruct contract
related to the “Cashes” financial instruments (175 million);
• the establishment of a specific reserve restricted of 3,085 million for the execution of the 2023 Buy-Back Program and of 1,700 million for the
execution of the first part of the 2024 Buy-Back Program, with withdrawal from the statutory reserve;
• the cancellation of the shares purchased in execution of the buyback programs (completion of Buyback 2022 and Buyback 2023, Buyback 2024
first tranche) carried out on 16 January 2024, 26 March 2024, 26 June 2024 and 18 December 2024 using the reserve earmarked for the buyback
to eliminate the item Treasury shares for a total of 7,598 million.
B.2 Revaluation reserves of financial assets at fair value through other comprehensive income: breakdown
(€ million)
ASSETS/VALUES
AMOUNTS AS AT 31.12.2024
AMOUNTS AS AT 31.12.2023
POSITIVE RESERVE
NEGATIVE RESERVE
POSITIVE RESERVE
NEGATIVE RESERVE
1. Debt securities
167
(141)
213
(65)
2. Equity securities
268
(220)
82
(274)
3. Loans
-
-
-
-
Total
435
(361)
295
(339)
B.3 Revaluation reserves of financial assets at fair value through other comprehensive income: annual change
(€ million)
CHANGES IN 2024
ASSETS/VALUES
DEBT SECURITIES
EQUITY SECURITIES
LOANS
1. Opening balance
148
(192)
-
2. Positive changes
562
306
-
2.1 Fair value increases
311
208
-
2.2 Net losses on impairment
12
X
-
2.3 Reclassification through profit or loss of negative reserves: following disposal
231
X
-
2.4 Transfers to other comprehensive shareholders' equity (equity instruments)
-
75
-
2.5 Other changes
8
23
-
3. Negative changes
(684)
(66)
-
3.1 Fair value reductions
(406)
(60)
-
3.2 Recoveries on impairment
(2)
-
-
3.3 Reclassification throught profit or loss of positive reserves: following disposal
(264)
X
-
3.4 Transfers to other comprehensive shareholders' equity (equity instruments)
-
(6)
-
3.5 Other changes
(12)
-
-
4. Closing balance
26
48
-
B.4 Revaluation reserves to defined benefit plan: annual changes
(€ million)
CHANGES IN
ITEMS/VALUES
2024
2023
1. Net opening balance
(211)
(212)
2. Positive changes
3
29
2.1 Fair value increase
3
29
2.2 Other changes
-
-
3. Negative changes
(7)
(28)
3.1 Fair value reductions
(7)
(28)
3.2 Other changes
-
-
4. Closing balance
(215)
(211)
1027
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part F - Shareholders’ equity
Section 2 - Own funds and regulatory ratios
Transitional Own Funds and capital ratios
DESCRIPTION
AS AT
31.12.2024
31.12.2023
Common Equity Tier 1 Capital (€ million)
40,971
42,721
Tier 1 Capital (€ million)
45,899
47,553
Total Own Funds (€ million)
52,356
55,330
Total RWEA (€ million)
166,114
164,162
Common Equity Tier 1 Capital ratio
24.66%
26.02%
Tier 1 Capital ratio
27.63%
28.97%
Total Capital ratio
31.52%
33.70%
Notes:
Transitional own funds and capital ratios including all transitional adjustments according to the yearly applicable percentages.
It should be noted that UniCredit S.p.A. decided to not apply the IFRS9 transitional approach as reported in article 473a of the Regulation 575/2013/EU (CRR).
The individual net profit as at 31 December 2024 is equal to €8,106 million.
As at 31 December 2024, the amount of the individual net profit to be included in the Own Funds is equal to €2,211 million; the reduction for €5,895
million is related to the approval by the UniCredit S.p.A. Board of Directors of the following items:
(i) cash dividend for €2,286 million that, summed up with €1,440 million interim dividend previously approved by the Board of Directors and paid in
November 2024, stands at 40% of Net Profit116, as per 2024 Dividend Policy;
(ii) ordinary share buy-back for €3,574 million (additional to the €1,700 million Share Buy-back already executed), classified as foreseeable charge
as of 31 December 2024, in line with the EBA Q&A #6887;
(iii) allocation for €35 million to support social, cultural and charity initiatives.
For information on the regulatory ratios of UniCredit S.p.A. at the reference date and for the comparison with the previous periods, refer to the own
funds disclosure reported into the publication of UniCredit group disclosure (Pillar III) as at 31 December 2024.
116 Defined as accounting net profit rectified for tax-losses carried forward sustainability test results, potentially adjusted for one-offs related to strategic items.
1028
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part G - Business combinations
Part G - Business combinations
Section 1 - Business combinations completed in the year
1.1 Business combinations
Business combinations with counterparties outside the Group are performed using the “purchase method” as required by IFRS3 “Business
Combinations”, cited in the disclosure of accounting policies, part A.2 - Main items of the accounts.
In 2024 the Bank did not carry out any business combinations outside or within the Group.
With reference to business combination transactions within the Group, during the 2024 financial year, the following business unit transfer
transactions were carried out as part of the broader Group reorganization process, aimed at simplifying the structure and governance and better
enhancing operational, administrative and corporate synergies:
• on 15 July 2024, the transfer of the securities and financial derivatives portfolio on interest rates was completed through the sale by UniCredit
Bank GMBH to UniCredit S.p.A. This transfer is part of a broader project to transfer the entire business unit relating to the Trading business, aimed
at centralizing its management in UniCredit S.p.A., with the consequent centralization of the related risk mainly in UniCredit S.p.A. and review of
the Client Risk Management business model. The transfer of the brokerage business followed on 18 November 2024. The project includes the
transfer of additional portfolios to be completed during 2025 and 2026;
• on 1 November 2024, the transfer by UniCredit Services GmbH to UniCredit S.p.A. of the business unit represented by the management and
supply of information and infrastructure systems to UniCredit Bank Austria and the legal entities of the Group in the Central External Europe
perimeter became effective with the aim of homogenising the Digital operating model, rationalising technological solutions, simplifying the
organization and optimizing operating expenses to support broader investments in the business.
Section 2 - Business Combinations completed after year-end
No business combinations have been completed after year end.
Section 3 - Retrospective adjustments
No retrospective adjustments have been applied in 2024 on business combinations completed in previous years.
1029
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part H - Related-party transactions
Part H - Related-party transactions
Introduction
Refer to the paragraph “Introduction” of the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts, which is
herewith quoted entirely.
1. Details of Key management personnels’ compensation
Details of key management personnel’s 2024 remuneration are given below pursuant to IAS24 and to the Circular 262 dated 22 December 2005 of
Banca d’Italia (and subsequent amendments) requiring that also the Statutory Auditors’ compensation be included.
Key management personnel are persons having authority and responsibility for planning, directing, and controlling UniCredit’s activities, directly or
indirectly. This category includes the Chief Executive Officer and the other members of the Board of Directors, the Statutory Auditors, the Chief Audit
Executive and the Group Executive Committee (GEC) members, body that reports directly to the Chief Executive Officer, excluding the Heads of
Group Strategy & ESG, Group Stakeholder Engagement and, starting from April 2024, Group Legal.
Remuneration paid to key management personnel (including directors)
(€ million)
YEAR 2024
YEAR 2023
a) short-term employee benefits
20
21
b) post-retirement benefits
1
1
of which: under defined benefit plans
-
-
of which: under defined contribution plans
1
1
c) other long-term benefits
-
-
d) termination benefits
3
-
e) share-based payments
11
10
Total
35
32
The information reported above include the compensation paid to Directors (€9 million), Statutory Auditors (€0.3 million) and other Managers with
strategic responsibilities (€10 million), as shown in the document "Information Tables Pursuant Art.84-quarter “Annual Report - Section II” of the
Regulation 11971 Issued by Consob" attached to the “2024 Group Remuneration Policy”, and about €15 million relating to other costs (the company
share of social security contributions, accruals to severance pay funds and share-based payments using UniCredit and its subsidiaries’ equity
instruments).
The compensation paid shows an increase compared to fiscal year 2023, mainly in relation to the payment of benefits related to the termination of
employment relations during the year.
1030
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part H - Related-party transactions
2. Related-party transactions
The following table sets out the assets, liabilities, guarantees and commitments, for each group of related parties, pursuant to IAS24.
Related-party transactions: balance sheet items
(€ million)
AMOUNTS AS AT 31.12.2024
CONTROLLED
JOINT
VENTURES
ASSOCIATED
COMPANIES
KEY
MANAGEMENT
PERSONNEL
OTHER
RELATED
PARTIES
TOTAL
% ON
ACCOUNTS
ITEM SHAREHOLDERS
% ON
ACCOUNTS
ITEM
Cash and cash balances
466
-
-
-
-
466
3.52%
-
-
Financial assets at fair value through profit
or loss
42,109
-
47
-
9
42,165
80.13%
-
-
a) Financial assets held for trading
38,910
-
4
-
-
38,914
84.11%
-
-
b) Financial assets designated at fair
value
-
-
-
-
-
-
-
-
-
c) Other financial assets mandatorily at
fair value
3,199
-
43
-
9
3,251
52.22%
-
-
Financial assets at amortised cost
34,793
-
336
-
-
35,129
15.39%
-
-
a) Loans and advances to banks
16,024
-
-
-
-
16,024
42.75%
-
-
b) Loans and advances to customers
18,769
-
336
-
-
19,105
10.02%
-
-
Hedging derivatives (assets)
356
-
-
-
-
356
64.61%
-
-
Non-current assets and disposal groups
classified as held for sale
-
-
6
-
-
6
15.38%
-
-
Other assets
226
-
44
-
-
270
3.47%
-
-
Total assets
77,950
-
433
-
9
78,392
22.91%
-
-
Financial liabilities at amortised cost
15,200
-
210
13
11
15,434
5.40%
-
-
a) Deposits from banks
14,916
-
-
-
-
14,916
40.41%
-
-
b) Deposits from customers
219
-
210
13
11
453
0.22%
-
-
c) Debt securities in issue
65
-
-
-
-
65
0.14%
-
-
Financial liabilities held for trading and
designated at fair value
32,238
-
-
-
-
32,238
66.71%
-
-
Hedging derivatives (liabilities)
179
-
-
-
-
179
56.65%
-
-
Other liabilities
98
-
14
-
-
112
1.42%
1
0.01%
Total liabilities
47,715
-
224
13
11
47,963
14.01%
1
-
Guarantees given and commitments
15,070
-
1,660
-
86
16,816
10.54%
-
-
Note:
Shareholders and related companies holding more than 2% of voting shares in UniCredit.
Other assets mandatory at fair value include UniCredit Bank GmbH’s Additional Tier 1 issuances, subscribed by UniCredit S.p.A. in October 2020,
for a nominal amount of €1,700 million and evaluated at year end €1,738 million, with a revaluation of €121 million into Profit & Loss and UniCredit
Bank Austria AG’s Additional Tier 1 issuances, subscribed by UniCredit S.p.A. in December 2021, for a nominal amount of €600 million and
evaluated at year end €590 million, with a revaluation of €75 million.
The value of the percentage on accounts Item, referred to “Commitments and guarantees given”, has been calculated on the total of the tables “1.
Commitments and financial guarantees given (different from those designated at fair value)” and “2. Others commitments and others guarantees
given” in Notes to the accounts, Part B - Balance sheet, Liabilities, Other information.
1031
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part H - Related-party transactions
The following table sets out the impact of transactions, for each group of related parties, on Income statements, pursuant to IAS24.
Related-party transactions: profit and loss items
(€ million)
AMOUNTS AS AT 31.12.2024
CONTROLLED
JOINT
VENTURES
ASSOCIATED
COMPANIES
KEY
MANAGEMENT
PERSONNEL
OTHER
RELATED
PARTIES
TOTAL
% ON
ACCOUNTS
ITEM SHAREHOLDERS
% ON
ACCOUNTS
ITEM
10. Interest income and similar revenues
3,537
-
11
-
-
3,548
23.59%
1
0.01%
20. Interest expenses and similar
charges
(2,966)
-
(5)
-
-
(2,971)
33.49%
-
-
30. Net interest margin
571
-
6
-
-
577
9.35%
1
0.02%
40. Fees and commissions income
135
-
787
-
-
922
18.43%
15
0.30%
50. Fees and commissions expenses
(53)
-
-
-
-
(53)
6.66%
-
-
60. Net fees and commissions
82
-
787
-
-
869
20.66%
15
0.36%
70. Dividend income and similar
revenues
-
-
-
-
-
-
-
-
-
190. Administrative expenses
(71)
-
(311)
(1)
(4)
(387)
6.60%
(4)
0.07%
a) Staff costs
(4)
-
1
(1)
-
(4)
0.11%
-
-
b) Other administrative expenses
(67)
-
(312)
-
(4)
(383)
17.08%
(4)
0.18%
230. Other operating expenses/income
843
-
(37)
-
-
806
63.02%
-
-
Note:
Shareholders and related companies holding more than 2% of voting shares in UniCredit.
The “Other related-parties IAS” category includes:
• close family members of key management personnel (i.e., those family members who, as is expected, may influence, or be influenced by, the
person in question);
• companies controlled (or jointly controlled) by key management personnel or their close family members;
• Group employee post-employment benefit plans.
With reference to the description of main transactions with related parties related to UniCredit S.p.A., reference is made to the corresponding
paragraph “Part H - Related-party transactions” of the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts,
which is herewith quoted entirely.
1032
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part I - Share-based payments
Part I - Share-based payments
A. Qualitative information
1. Description of payment agreements based on own equity instruments
For the part that concern the delivery of UniCredit shares reference is made to the paragraph “1. Description of payment agreements based on own
equity instruments” of the Consolidated financial statements of UniCredit group, Notes to the consolidated accounts, Part I - Share-based payments,
Qualitative information, which is herewith quoted.
B. Quantitative information
1. Annual changes
Reference is made to the paragraph “1. Annual changes” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts, Part I - Share-based payments, Quantitative information, which is herewith quoted.
2. Other information
All Share-Based Payment granted after 7 November 2002 whose vesting period ends after 1 January 2005 are included within the scope of the
IFRS2.
Financial statement presentation related to share based payments
(€ million)
2024
2023
TOTAL
VESTED PLANS
TOTAL
VESTED PLANS
(Costs)/Revenues
(45)
(44)
- connected to equity-settled plans
(45)
(44)
- connected to cash-settled plans
-
-
Debts for cash-settled plans
-
-
-
-
Note:
The sub-item "connected to equity-settled plans" include costs for €4.5 million related to golden parachute.
1033
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part L - Segment reporting
Part L - Segment reporting
Segment reporting of UniCredit S.p.A., parent company of the UniCredit banking group, in the light of faculty granted by IFRS8 Principles, is
provided to the paragraph “Part L - Segment reporting” of the Consolidated financial statements of UniCredit group, Notes to the consolidated
accounts.
1034
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part M - Information on leases
Part M - Information on leases
Section 1 - Lessee
Qualitative information
The Bank in conducting its business, signs lease contracts for which accounts for rights of use that mainly relate to the following type of tangible
assets:
• buildings;
• others (e.g., cars).
These contracts are accounted for in accordance with rules set in accounting standard IFRS16 further detailed in Part A - Accounting policies, A.2 -
Main items of the accounts, 15. Other Information.
The rights of use deriving from these lease contracts are mainly used to provide for services or for administrative purposes and accounted for
according to the cost method. If these rights of use are sub-leased to third parties, a financial or operating lease contract is booked based on their
characteristics.
It is worth to specify that, as allowed by the accounting standard, the Bank has decided not to account for rights of use or lease liabilities in case of:
• short-term leases, lower than 12 months; and
• lease of low value assets. In this regard, an asset is considered as low value if its fair value when new is equal to or lower than €5 thousand. This
category mainly includes office machines (PCs, monitors, tablets, etc.) as well as fixed and mobile telephony devices.
As a result, the lease payments deriving from this type of activity are booked in item “160. Administrative expenses” on an accrual basis.
Quantitative information
The book value of the rights of use arising from lease contracts are exposed in the Section 8 - Property, plant and equipment of the Notes to the
accounts, Part B - Balance sheet, Assets.
During the year, these rights of use resulted in the recognition of depreciations for €162.6 million of which:
• €156.4 million relating to buildings;
• €6.2 million relating to the other category (eg. cars).
In addition, impairment for €7.5 million has been booked.
With reference to leasing liabilities, the related book value is shown in the paragraph Section 1 - Financial liabilities at amortised cost of the Notes to
the accounts, Part B - Balance sheet, Liabilities refer to this section.
During the year, these lease liabilities led to the recognition of interest expenses shown in the Section 1 - Interests - Item 10 e 20 of the Notes to the
accounts, Part C - Income statement.
With reference to short-term leases and leases of low value assets, it should be noted that during the year, rentals were accounted for €50.2 million.
It should be noted that such amount also includes VAT on rentals which is not included in the lease liability calculation.
For the purposes of determining the lease term, the Bank considers the non-cancellable period established by the contract, during which the lessee
has the right to use the underlying asset as well as any renewal options where the lessee has reasonable expectation to proceed with the renewal.
In particular, with reference to contracts that provide the lessee with the option to automatically renew the lease at the end of a first period, the lease
term is determined considering elements such as the duration of the first period, the existence of any plan leading to the disposal of the asset leased
as well as any other circumstance indicating the reasonable certainty of renewal.
Therefore, the amount of cash flows, not reflected in the calculation of the lease liability, to which the Bank is potentially exposed, is essentially due
to the possible renewal of lease contracts and the subsequent extension of the lease term not included in the original calculation of the lease
liabilities taking into account the information available and expectations existing as at 1 January 2019 (date of initial application of IFRS16) or on the
starting date of the lease.
1035
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part M - Information on leases
Section 2 - Lessor
Qualitative information
The Bank carries out financial leasing activities associated with the sublease of properties both to other Group’s companies and to third parties.
These contracts are exposed through the recognition of a credit for financial leases recognised in item “40. Financial assets at amortised cost”, the
booking of the related income on an accrual basis in item "10. Interest income and similar revenues" and of the impairment for the expected credit
loss in item “130.Net losses/recoveries on credit impairment”.
Operating leases activities, on the other hand, are essentially attributable to the leasing of owned properties.
These contracts are represented through the recognition, on an accrual basis, of the rentals received in item “200. Other operating
expenses/income”.
Quantitative information
1. Balance sheet and Income statement information
With reference to financial lease contracts, the book value of credit for financial leases is shown in Section 4 - Financial assets at amortised cost of
the Notes to the accounts, Part B - Balance sheet, Assets.
Such loans determined, during the year, interest income shown in Section 1 - Interests - Items 10 and 20 of Notes to the accounts, Part C - Income
statement.
With reference to operating lease contracts, it should be noted that the book value of the owned assets granted under operating lease is composed
as follows:
• Land: €68.6 million;
• Buildings: €147.2 million.
Rentals recognised on an accrual basis during the year for leasing of these activities are shown in Section 14 - Other operating expenses/income of
these Notes to the accounts, Part C - Income statement.
2. Financial leases
2.1 Classification for time bucket of Payments to be received and Reconciliation with Lease Loans booked in the Assets
(€ million)
TIME BUCKET
31.12.2024
31.12.2023
PAYMENTS TO BE RECEIVED FOR
LEASE
PAYMENTS TO BE RECEIVED FOR
LEASE
Up to 1 year
16
15
1 year to 2 years
17
17
2 year to 3 years
16
16
3 year to 4 years
14
15
4 year to 5 years
11
13
Over 5 years
12
19
Total Payments to be received for lease
86
95
RECONCILIATION WITH LOANS
Unpaid Financial Profits (-)
5
9
Not guaranteed Residual Amount (-)
-
-
Lease Loans
81
86
The value shown in the table represents the gross exposure. This value is decreased by impairment, equal to €1 million, leading to the amount of
€80 million shown among in Section 4 - Financial assets at amortised cost of Notes to the accounts, Balance sheet, Assets.
1036
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Notes to the accounts
Part M - Information on leases
2.2 Other information
With regard to financial leases, the credit risk associated with the contract is managed according to what is stated in Section 1 - Credit risk of the
Notes to the accounts, Part E - Information on risks and related hedging policies.
The classification of the contract as a finance lease is determined by the fact that the risks and rewards of the leased right of use are transferred to
the lessee mainly through contract durations substantially aligned with the useful life of the related right.
3. Operating leases
3.1 Classification for time bucket of Payments to be received
(€ million)
TIME BUCKET
31.12.2024
31.12.2023
PAYMENTS TO BE RECEIVED FOR
LEASE
PAYMENTS TO BE RECEIVED FOR
LEASE
Up to 1 year
6
6
1 year to 2 years
6
5
2 year to 3 years
5
5
3 year to 4 years
5
5
4 year to 5 years
5
5
Over 5 years
17
19
Total
44
45
3.2 Other information
There is no further significant information to report compared to the above.
1037
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Notes to the accounts
Part M - Information on leases
1038
UniCredit 2024 Annual Reports and Accounts
1038
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Certification
Annual Financial Statements certification pursuant to Art.81-ter of Consob
regulation No.11971/99, as amended
1. The undersigned Andrea Orcel (as Chief Executive Officer) and Bonifacio Di Francescantonio (as the Manager charged with preparing the
financial reports) of UniCredit S.p.A., also in compliance with Art.154-bis, (paragraphs 3 and 4) of Italian Legislative Decree No.58 of 24 February
1998, hereby certify:
• the adequacy in relation to the Legal Entity’s features, and
• the actual application of the administrative and accounting procedures employed to draw up the 2024 Annual Financial Statements.
2. The adequacy of the administrative and accounting procedures employed to draw up the 2024 Annual Financial Statements has been evaluated
by applying a model developed by UniCredit S.p.A., in accordance with the “Internal Control - Integrated Framework (CoSO)” and the “Control
Objective for IT and Related Technologies (Cobit)”, which represent generally accepted international standards for internal control system and for
financial reporting in particular.
3. The undersigned also certify that:
3.1 the 2024 Annual Financial Statements:
a) were prepared in compliance with applicable international accounting standards recognised by the European Community pursuant to
European Parliament and Council Regulation No.1606/2002, of 19 July 2002;
b) correspond to the results of the accounting books and records;
c) are suitable to provide a fair and correct representation of the economic and financial situation of the issuer;
3.2 the Report on Operations includes a reliable analysis of the operating trend and results as well as of the situation of the issuer, together with
a description of the main risks and uncertainties they are exposed to.
Milan, 20 February 2025
Andrea ORCEL
Bonifacio DI FRANCESCANTONIO
Certification
1039
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
1040
UniCredit 2024 Annual Reports and Accounts
1040
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Report and resolutions
Report of the Audit Committee
Report and resolutions
Report of the Audit Committee
(English translation of the Italian original document)
AUDIT COMMITTEE’S REPORT
TO THE SHAREHOLDERS MEETING OF 27 MARCH 2025
(PURSUANT TO ART.153, PAR. 1 OF ITALIAN LEGISLATIVE DECREE 58/1998)
Dear Shareholders,
the Audit Committee (hereinafter, also “Committee”, “AC”, “Audit Committee”) is called to report to the Shareholders’ Meeting of UniCredit S.p.A.
(hereinafter, also “Bank”, “Parent Company”, “UniCredit”) on the oversight activity performed during the year and on any detected omissions and
censurable facts, pursuant to Art.153, paragraph 1 of Italian Legislative Decree 58/1998 (Consolidated law on finance TUF). This report provides the
information required by CONSOB Communication 1025564/2001 as amended and/or supplemented.
During the financial year 2024, the Committee performed its institutional duties in compliance with the Italian Civil Code, Italian Legislative Decree
385/1993 (Consolidated law on banking TUB), 58/1998 (TUF) and 39/2010 and subsequent amendments and/or additions, the provisions of the
Articles of Association and those issued by the Authorities that exercise supervisory and control activities.
1. Appointment and activities of the Audit Committee
The Extraordinary Shareholders’ Meeting, held on 27 October 2023, approved the adoption of the one-tier corporate governance system, which
provides for the appointment within the Board of Directors of an Audit Committee performing control functions, effective upon the first renewal of the
corporate bodies, which was resolved by the 12 April 2024 Shareholders’ Meeting.
On 12 April 2024, therefore, the Shareholders' Meeting of UniCredit S.p.A. provided to appoint the Audit Committee, by appointing its members in
the persons of Mr. Marco Rigotti (Chair), Ms. Paola Camagni, Ms. Julie Galbo, Mr. Gabriele Villa, who remain in the position for the term of office of
the Board of Directors in which they were elected (expiry with the approval of the financial statements for the financial year 2026).
The Audit Committee also performs the Supervisory Body’s duties in accordance with the Legislative Decree 231 of 8 June 2001, as per the
resolution adopted by the Board of Directors on 12 April 2024 (such as further tasks pursuant to Art.2409 - octiesdecies of the Italian Civil Code and
Art.26 paragraph 1 of the Articles of Association).
In May 2024, in order to implement the new governance model, the Board of Directors approved the Board and Board Committees Regulation,
setting forth the rules pursuant to which UniCredit Board of Directors, Audit Committee and other Board Committees are established and operate, in
order to establish sound internal governance arrangements and practices consistent with the applicable provisions of laws and regulations of the
UniCredit’s Articles of Association as well as with the principles and recommendations of the Italian Corporate Governance Code. The provisions
concerning the Audit Committee were approved by the Committee itself, as also specifically requested by the Supervisor (ECB - European Central
Bank, JST- Joint Supervisory Team).
Since its assignment, the Committee has continued to refine the methods of performing its role, in order to allow the Bank to fully seize the
opportunities offered by the one-tier administration and control model, taking into account the legislative, regulatory, statutory context and the best
practices, as well as the main reasons underlying the adoption of the one-tier system. In particular, great significance is given to the role of the
Committee in supporting the Board of Directors’ activity and not only to its role as a Control Body, similar to the one of the Board of Statutory
Auditors, within the traditional governing model.
In this regard, particular attention was paid to the dialogues among the Audit Committee and the other Board Committees. With reference to the Risk
Committee, whose role assumes a strategic relevance in the banking industry, a working group, consisting of the Chairs and the Secretariat Offices
of the two Committees, by enhancing the different perspective of these Committees even where common areas of attention are present, has
developed some principles and criteria in order to adequately coordinate its activity, particularly:
a) subject specialisation, intended, for example, as regards the Audit Committee, with reference to areas relating to controls, processes,
organisational structure, financial and non-financial reporting, and the external audit process;
b) topics relevance to define the single work agendas by competence or specialisation or legislative-regulatory provision (e.g. relevance of controls
versus risk topics in the preliminary examination of policies within the competence of the Board of Directors).
Furthermore, significant importance was given to the cooperation and functioning forms, facilitated by the appointment, within the Risk
Committee, of the Chair of the Audit Committee, as well as through:
• interactions between the Chairs of the Audit Committee and of the Risk Committee and between their respective Secretariat Offices (i.e. through
information exchanges);
• prior sharing with the other Committee’s members of the agendas for each Committee’s meetings;
1041
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Report and resolutions
Report of the Audit Committee
• information of the Audit Committee’s Chair on the activities performed by each Committee, conveyed during the meetings of the other Committee,
with mutual exchange of information flows;
• reliance on what performed/examined by other Board Committee (also in the form of what reported in the Board of Directors by the Chairs of the
Committees).
• joint meeting between Audit Committee and Risk Committee in order to facilitate and make efficient the interactive analysis on topics of common
interest (with different analysis focuses); dealing together with matters through joint sessions increases, in the interaction between the two
Committees, the knowledge of common matters without undermining the clarity of the roles and the responsibility of each Committee, which
remains unaffected.
On the other hand, the Audit Committee, as Control Body, performs its functions independently of the other members of the Board of Directors and
has full autonomy in the organisation of its functioning and in the performance of its activities.
Thus, the aforementioned “Board and Board Committees Regulation” provides and modulates appropriate safeguards with specific reference to the
Audit Committee, such as, for example, relationships with Management on matters relating to the Bank’s activities and on the participation of the
Management itself in the Committee’s meetings.
Furthermore, in terms of collaboration among Committees, the Audit Committee receives the letter of call of the other Board Committees’ meetings
also in order to allow each Audit Committee’s member to request to be able to participate in specific meetings of these Committees also with
reference only to single items on the agenda, after having coordinated with the Chair of the Audit Committee and informed the Chair of the other
Committee.
Lastly, the Audit Committee reports to the Board of Directors at each meeting on its activities and opinions, also with reference to topics not included
in the agenda of the Board itself.
The Committee members, as Directors, participated to the permanent induction program for the members of the Board of Directors, based on three-
year cycles linked to the Board’s mandate. The induction program and recurrent training respectively include sessions aimed at facilitating the
inclusion of new Directors and training sessions in order to preserve over time the skills necessary to perform their role with awareness.
In 2024, the training initiatives dedicated to the entire Board concerned topics related to corporate governance, strategy, business, data protection
and artificial intelligence, digital technology, cyber security, risk management including ESG matters and legislative and regulatory insights, as well
as the overall internal controls system, with the aim of ensuring knowledge and awareness of the risk profile undertaken by the Group.
In 2024, on its own initiative, in addition to the ordinary meetings, the Audit Committee held specific focus sessions, with the competent
Management, on topics considered of specific interest to the Committee members, such as IFRS9 and Overlays, Russia - Accounting topics, DTA
and subsidiaries’ impairment.
2. Oversight of compliance with the law and the Articles of Association and compliance with the principles of proper management
During 2024, starting from its appointment, the Committee held No.20 meetings with an average duration of approximately 3 hours and 20 minutes
in ordinary session and No.7 meetings held in session acting as 231 Supervisory Body with an average duration of approximately 1 hour. During
2025 and until the date of this Report, the Committee met No.9 times (of which No.7 in ordinary session and No.2 acting as 231 Supervisory Body).
Overall, from its assignment until the date of issue of this Report, the Committee has met No.27 times in ordinary session and No.9 times in
sessions with the function of 231 Supervisory Body.
Through direct participation in the decision-making processes of the Board of Directors, typical of the one-tier model, the supervisory role of the
members of the Audit Committee has been fully enhanced.
As part of its functions, the Committee acknowledges that it has supervised on the compliance with the law and the Articles of Association.
During 2024, the Directors who are members of the Committee, attended all meetings of the Board of Directors.
The directors who are members of the Committee, as stated in paragraph 1, also attended some meetings of the Board Committees.
In short, in 2024:
• the AC’s Chair Mr. Rigotti attended, as member, all meetings of the Risk Committee;
• the AC’s Chair Mr. Rigotti attended No.2 meetings of the Governance and Sustainability Committee, No.1 meeting of the Nomination Committee
and No.1 meeting of the Related Parties Committee;
• the director Camagni attended No.3 meetings of the Risk Committee in joint session with the Audit Committee, No.1 meeting of the Governance
and Sustainability Committee and No.2 meetings of the Related Parties Committeee;
• the director Galbo attended No.3 meetings of the Risk Committee in joint session with the Audit Committee and No.4 meetings of the Risk
Committee;
• the director Villa attended No.3 meetings of the Risk Committee in joint session with the Audit Committee and No.1 meeting of the Risk
Committee.
1042
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Report and resolutions
Report of the Audit Committee
During 2024, No.3 joint session meetings were held with the Risk Committee (one in July and two in December), concerning: DORA (Digital
Operational Resilience Act) Program and DORS (Digital Operational Resilience Strategy); LoDs - Line of Defense Combined Dashboard as at 30
June 2024 (control topics, processes and related issues with the second and third level Control Functions: Compliance - Risk Management - Internal
Audit) and topics related to the trends in transnational payment flows of the Russian subsidiary and the related controls. On this latter topic, in 2025
and until the date of this Report, a further joint session update was held.
In relation to the Group activities development operations and other corporate transactions described in the Consolidated Report on Operations
among which the initiatives of securitization of non-performing portfolios, to which reference is made, the Committee considered adequate the
information provided by the Directors in the Report on Operations.
Based on the analyses carried out, the attendance at the Board of Directors’ meetings and the examination of the related documentation and based
on the information available, the Committee can reasonably consider the transactions themselves compliant with the law and the Bank’s Articles of
Association and not manifestly imprudent, reckless, contrary to the resolutions of the Shareholders’ Meeting, or such as to compromise the integrity
of the corporate assets.
The financial statements report, the information received during the Board of Directors’ meetings and the information provided by the Chair, the
Chief Executive Officer, the Management, the Head of Internal Audit, the direct subsidiaries’ boards of statutory auditors, and the External Auditor
revealed no atypical or unusual transactions, performed with third parties, related parties or intragroup.
In 2024, the Group recorded a stated net profit of €9,719 million, compared to €9,507 million in 2023.
The Group’s net profit (Group net accounting result net of DTA write-up or cancellations on losses carried forward deriving from the update of
sustainability tests) on the other hand, stands at €9,314 million, increasing by €700 million compared to the previous financial year (8.1% at current
exchange rates, 9.1% at constant exchange rates).
Based on the Board of Directors’ approval of the financial results as at 31 December 2024, disclosed to the market on 11 February 2025, the Board
of Directors of UniCredit S.p.A., in its meeting held on 20 February 2025, approved the Draft Company's Financial Statements and the Consolidated
Financial Statements as at 31 December 2024, recording a net profit equal to €8,106 million for UniCredit S.p.A. and a net profit equal to €9,719
million at Consolidated level.
3. Oversight of the adequacy of the organizational structure
The Audit Committee examined the Annual Report prepared by the competent Group Organisational, People Analytics and Group Functions P&C
Strategic Partner structure, which deemed the UniCredit S.p.A.’s organisational structure to be adequate, due to the robustness of the overall
regulatory framework that ensures clear responsibility, accountability, and delegation of powers items, with regard to managerial committees and
company structures.
Organisational structure
UniCredit adopts an organisational and business model that, while guaranteeing the autonomy of countries/local banks on specific activities in order
to ensure greater proximity to customers and efficient decision-making processes, maintains: (i) A central governance of business/products as well
as (ii) Global control over Digital & Information and Operation functions, and (iii) Functions in charge of steering, coordinating and controlling, for
their area of competence, the management of activities and related risks of the Group, as a whole, and of the single Legal Entities, including
communication coordination, stakeholders’ and Group’s strategic initiatives and activities management.
During 2024, the Audit Committee observed with the competent Function, the Group's organisational structure, with a focus on local/central
reporting, also dwelling over topics related to tone from the top, as part of the overall culture of the Group itself, over the distribution of
responsibilities and accountability between the Parent Company and single Legal Entities, over the “mirroring” of homogeneous organisational
structures to be implemented at local level.
The Audit Committee then examined the organisational structure’s development, whose overall review had begun with the appointment of the new
Top Management in April 2021, noting that the adjustments made, in continuity with previous years, focused on simplifying the operating and
business model while strengthening it, at the same time; in this perspective, organisational updates were therefore brought in several areas:
• Italy Division, with the “buddy R-Evolution” project aimed at strengthening and widening the commercial offer;
• Group Client Solutions with the simplification of the trading activity framework with the centralisation from UC Bank GmbH to UniCredit S.p.A. and
the creation of the Group Insurance structure for the steering and coordination of insurance products offer;
• Group Digital & Information Division with further organisational refinements, in particular in terms of first reporting line;
• Group Chief Operating Office - Group COO by creating a new Service Line - Group Products COO - to steer a robust “End to End” product
process and operating model, including the Group process framework, based on the renewed Guidelines for the Group Process Management
activities;
• Group Legal and Group Finance, with organisational reviews and simplifications.
1043
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Report and resolutions
Report of the Audit Committee
The Audit Committee has specifically deepened the organisational review design of the Group Finance which is based, inter alia, on the following
pillars: centres of excellence and transversal functions with maximisation of economies of scope and scale; optimisation of processes/activities, with
simplification of current processes and reduction of overlap; data & tools development in order to encourage automation in the medium/long term,
considering it appropriate to monitor its developments during 2025, moreover in view of the expected evolutions also related to the planned
investments in IT transformation.
The Audit Committee deemed the overall UniCredit S.p.A.’s organisational structure adequate in its design and implementation to date, as well as
consistent with the Company’s size and complexity, the nature and manner of pursuing the corporate purpose as well as other Company’s
characteristics and the context in which it works and will keep on monitoring the progressive maturation of the entire organisational structure itself
and its suitability and operational effectiveness.
With particular reference to the Control Functions, from the organisational profile:
• Internal Audit
The Audit Committee, in compliance with regulatory requirements, discussed for UniCredit S.p.A. the 2025 Annual Audit Plan, which is part of the
Long-Term Audit Plan, the latter defined, on an ongoing basis, following a detailed risk assessment process, definition of risk drivers and
identification of Group Audit Guidelines, to ensure in a 5-year period (2025-2029), a proper coverage of the Bank’s processes mapped in the audit
universe. The two plans were subsequently approved by the Board of Directors in January 2025.
The Audit Committee examined the budget and the resource plan of the Internal Audit Function and verified that, in both respects, the 2025 planning
is broadly in line with the one for the previous year.
The Audit Committee obtained updates on the planned initiatives to strengthen the IT equipment of the Function and on the continuation of the
recruiting activity of specialised resources to cover the residual, limited deficiencies present in specific areas. The Audit Committee therefore agreed
with the adequacy assessment declared by Internal Audit, with regard to both the budget and the 2025 resource plan defined in order to complete
the planned audit activities.
Based on the information acquired and considering the continuation of the recruitment activity, the Audit Committee considered the size and
capacity of the Function to be adequate to fulfil its tasks.
• Group Risk Management
The Audit Committee examined, in compliance with regulatory requirements, the GRM and Internal Validation Plan for 2025, approved by the Board
of Directors in January 2025, which is split in the GRM’s framework pillars: Credit Risk, Financial Risk, Non-Financial Risks further to other relevant
cross-cutting activities. In addition to the initiatives related to the strengthening of the risk culture and the risk policies framework, the Plan examined
the main trend expected for 2025 for each risk pillar, regulatory evolution, supervisory expectations and issues that emerged during 2024 and listed
the related planned actions in terms of control activities and project initiatives, in accordance with the RAF and functional to effective steering and
monitoring of the overall risk profile, organically assessed within the ICAAP/ILAAP framework.
With regard to the Group Internal Validation (GIV) activities planned for 2025, the Audit Committee noted that all the main planned validation
activities were covered.
Based on the information acquired, the Audit Committee deemed appropriate the size and capacity of the GRM function to fulfill its tasks.
• Compliance Function
The Audit Committee examined, in compliance with regulatory requirements, the 2025 Group Compliance Plan (approved by the Board of Directors
in January 2025).
The Plan is based on the identification of the main non-compliance risks emerging from internal and external drivers, including:
- anti-financial crime, in view of the intensified and complex context of Financial Sanctions and the expected regulatory developments in the AML
scope;
- conduct & market integrity, given the growing requirement and expectations of Regulators in this area;
- data protection, in view of the attention required by the fast development of artificial intelligence and new technologies;
- risks arising from the strengthening of certain business areas or from the entry into new ones.
The Audit Committee acknowledged that the initiatives included in the Group Compliance Plan contribute to covering current activities ("run the
Bank"), the most significant ongoing projects within the Group and compliance culture initiatives, including training, education, Tone from the Top
and Tone from the Middle. The Audit Committee noted that as provided for in the Compliance Plan is coherent with the 2025 budget and that the
same has been shared, according to the harmonised approach envisaged, with the Group’s Legal Entities.
Based on the information acquired, the Audit Committee deemed adequate the Function’s capacity to fulfill its tasks.
The Audit Committee keep on monitoring the evolution of the organisational structure, the capacity of the Control Functions, as well as their
independence.
1044
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Report and resolutions
Report of the Audit Committee
4. Oversight of the adequacy of the internal control
The internal control system in the UniCredit Group, in its ordinary governance structure, is based on:
• control bodies and functions, particularly involving, each for their respective remits, the Board of Directors, the Risk Committee, the Chief
Executive Officer, the Audit Committee as Control Body, as well as the managerial functions and committees with specific duties in this regard;
• information flows and methods of coordination among the parties involved in the internal control and risk management system;
• Group governance mechanism.
As stated in the “Report on Corporate Governance and Ownership Structures”, the types of control at UniCredit, in compliance with current law and
drawing inspiration from international best practices, are structured on three levels:
• line controls (so-called first-level controls), in charge of the corporate functions responsible for business/operating activities, devoted to ensuring
the proper operations’ functioning;
• risk and compliance controls (so-called second-level controls), in charge of the Group Compliance and Group Risk Management Functions, each
regarding the matters in their sphere of competence;
• internal audit (so-called third-level controls), in charge of the Internal Audit Function.
The Group Compliance, Group Risk Management and Internal Audit Functions are separated and hierarchically independent from the corporate
functions that carry out the activities subject to their control. The Board of Directors resolves, with exclusive competence, in relation to the
appointment and removal of the Heads of said functions, by coordinating, where appropriate, with the Board Committees involved.
As per Banca d’Italia Circular 285/2013, corporate control functions also include the anti-money laundering and internal validation functions set up
via Group Compliance and Group Risk Management, respectively.
In addition to the corporate control functions, in line with the regulatory provisions, also the functions having control duties as per regulations or self-
regulations are part of the Control functions (e.g. the Manager in charge of preparing the company’s financial reports).
The Audit Committee stated having performed a regular and constant exchange of relevant information with the above-mentioned control functions
during the reference period. It also stated that the above-mentioned control functions have fulfilled their information obligations towards the Audit
Committee itself.
In order to ensure the continuous and prompt information flow with Internal Audit, the person in charge of the Internal Audit Function (Chief Audit
Executive, or CAE) is permanently invited to the Audit Committee’s meetings; the CAE reports, directly or through the Audit Committee, to the Board
of Directors at least once a year and, in case of important topics, to the first available meeting, about the adequacy, effectiveness and actual
functioning of the internal control system.
The Committee promptly started a dialogue with the Internal Audit Function, in order to define the most effective and efficient ways to convey the
flows relating to the planning, methodology, guidelines and results of the Function's activities, including the related periodic reporting and the results
of individual audit engagements. The Audit Committee approved the approach proposed by Internal Audit which, from an overall simplification
perspective, foresees the discussion, for the flows most significant or with particular criticalities, at the Committee’s meeting and, for the remaining
ones, the distribution to the Chair only, who has the power to decide, on a case-by-case basis, whether to submit them to the Committee.
In addition to the above-mentioned planning of the Function activities (refer to the above paragraph 3. Oversight of the adequacy of the
organisational structure), during the period of reference of this Report, the Audit Committee examined and discussed with the CAE the following:
• an introductory overview of the Function, which includes as follows: mission, scope, strategy, organisation, governance, resources, budget, areas
of intervention, quality assurance, progress of internal transformation and evolution projects, training, innovation;
• an in-depth analysis of Internal Audit activities performed within the ICAAP - Internal Capital Adequacy Assessment Process/RAF, in terms of
regulatory background, capital risk governance, coverage of the Function's controls and summary of the results of the assessments performed for
the last financial years;
• the mid-term review of the 2024 Audit Plan;
• the 2025 top risk drivers identified by Internal Audit and the guidelines for the planning of the audit activities.
The Audit Committee also deepened the impacts of the new Global Internal Audit Standards (GIAS), in force since January 2025, on the Internal
Audit Function framework. The Audit Committee found the outcome of the specific self-assessment performed by the Function, which highlighted the
limited impacts deriving from the introduction of the new standards on current processes and procedures, without significant changes in the
engagement methodologies. In this regard, the AC verified that the Internal Audit Function is already compliant with the essential conditions required
by the GIAS in relation to the independence of its positioning and the authorisations and oversight required by the Board of Directors. The Audit
Committee then examined the Global Policy “Internal Audit Group Framework”, which was reviewed to implement some updates requested by the
new GIAS standards and in line to the one-tier corporate governance model.
1045
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Report and resolutions
Report of the Audit Committee
The Audit Committee examined the methodological updates introduced by Internal Audit, also following a recommendation made in the context of an
ECB inspection, regarding the evaluation criteria of audit reports and related ratings as well as the criteria for classifying the single findings included
in the audit reports and the related ratings. Such changes, through a more objective and quantitative approach to the classification of audit findings
and reports, will make it possible to ensure: (i) the enhancement of transparency for stakeholders; (ii) the standardisation and harmonisation of audit
outcomes across the Competence Line; (iii) a clearer representation of the risk impacts deriving from audit results.
Based on the activities performed and the information acquired during 2024, in its annual report (Integrated Audit Report 2024), the Internal Audit
Function evaluated the internal control system as “mostly adequate”, with reference to both UniCredit S.p.A. and the Group.
In the observed period, the Committee examined, time to time, the outcomes of the checks performed by Internal Audit (selected according to the
above-described criteria), and the related remediation plans, by deepening specifically, those that are most significant in terms of the severity of the
single findings and/or the overall rating. In this context, the following topics are mentioned, inter alia, for which the Committee has discussed and
deepened the root causes of the identified deficiencies with the Function and has obtained information on the content and timing of completion of the
defined remedial actions:
• in the ICT/ICT Security area (whose overall evaluation was Partially Adequate): software obsolescence, strong authentication solutions; ICT
cartography; applications in the P&C area;
• export advances and import finance management process;
• overall supervision of the staff travel protection;
• governance and execution of first-level controls in the AML and MiFID area.
The Audit Committee has ascertained, in all cases, the efficacy of the mitigation actions put in place and agreed with the reasonableness of the
remediation plan and related deadlines, sometimes asking for updates on the implementation of specific remedial actions, with the involvement of
the Functions receiving the findings.
With regard to first-level controls, whose crucial importance had been stressed on several occasions by the previous Control Body, the Committee
focused on the ongoing activities, about the maintenance of the related control system and its evolution in order to keep it constantly adherent with
the needs of the activities really carried out, as well as the necessary homogenisation within the Group. In relation with this specific context of
greater simplification and harmonisation, the Committee welcomed the establishment of the Group Products COO service line, referred to in
paragraph 3 above, although the need remains for a systematic review of the first-level controls area at Group level, including the controls catalogue
and relationships with second level functions.
Framework ICT e ICT Security
In compliance with the regulatory requirements, during the period covered by this Report, the Committee held a number of meetings with the Group
Digital & Information (GD&I) Function in order to monitor, for the competence profiles, the evolution of the Group’s ICT and ICT Security framework.
In the context of these meetings, with an approach focused primarily on processes and controls, the Committee, considering in any case the results
of the evaluations performed by Internal Audit, noted the following:
• in continuity with previous years, the strengthening of the Group’s level of maturity in relation to ICT Security continued at almost all Legal Entities,
because of the initiatives included in the Security Roadmap;
• the ongoing strengthening of the Security Strategy, in line with the Business evolution and digital priorities;
• the continuation of the downward trend of the Major ICT security incidents;
• the “security awareness” initiatives aimed at both inside and outside the Group.
The Committee examined with GD&I Function the principles and milestones of the EU Artificial Intelligence Act (AI Act), which came into force from
August 2024, and took note of the cross-functional program dedicated to creating a responsible AI governance framework and ensuring compliance
with the regulatory deadlines set out in the AI Act, with a gradual, progressive, and risk-based approach.
Preparatory to the entry into force, as of 17 January 2025, of the European Regulation DORA (Digital Operational Resilience Act), an EU regulation
aimed at strengthening the ICT resilience of financial institutions and their core ICT providers, the AC met on two occasions with the GD&I Function
and the other competent Functions, in a joint session with the Risk Committee. In this context, the Committee:
• discussed and deepened the objectives and pillars of the regulation, as well as the main focus areas (cybersecurity, IT operational resilience and
supervision of IT vendors);
• received information on the DORA Program, a specific cross-functional initiative led by GD&I, launched by UniCredit in 2023 and led by an
Executive Steering Committee, whose objective is to ensure compliance with DORA's requirements;
• obtained updates on the progress of the initiatives included in the DORA Program and noted that they were in line with the deadlines;
• acknowledged that, in agreement with ECB, some activities will continue beyond the DORA go-live date, in particular certain activities requiring
negotiation with third parties;
• examined the UniCredit Digital Operational Strategy (DORS), which was subsequently approved by the Board of Directors on 12 December 2024:
the Committee acknowledged that the DORS specifies how the Bank will be able to ensure, refine and monitor its IT operational integrity after go-
live;
1046
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Report and resolutions
Report of the Audit Committee
• noted that the DORA Program, as a whole, should lead to a structural strengthening of governance, steering and monitoring of the area;
• took note of the mostly adequate results of the project assurance performed by Internal Audit in relation to the DORA Program;
• agreed with the Risk Committee to continue the joint monitoring of the DORA Program even after its entry into force and asked to be promptly
updated in the event of emerging issues.
The Committee examined the update of the Global Policy - Group Security and the latest available version of the Summary Report on ICT adequacy
and costs of UniCredit S.p.A. and noted the UniCredit favorable positioning compared to Italian and European peers, in terms of both IT efficiency
and IT intensity.
Lastly, the Committee received updates from the External Audit Firm experts on the audit activities relating to the controls on the Bank and Group
information systems (ISAE 3402 KPMG’s Report), their design and operational effectiveness.
With regard to topics related to outsourcing, the Committee examined:
• the update of the Group Policy “Third-party risk management for Outsourcing and Non-Outsourcing arrangements”;
• the results of the Annual Internal Audit Report on “Outsourcing of activities - 2024” provided for by Circular 285 of Banca d’Italia. This Report
summarises the critical issues that emerged, with specific reference to the difficulties of accessing certain external providers in order to perform the
audit activities provided for by specific contractual clauses. The Committee has taken note of the initiatives already launched by the Management
in this regard and has requested follow-up due to the identified gaps.
Compliance
In relation to the compliance with regulatory areas, the Audit Committee, within the scope of its functions, has regularly met the person in charge of
Group Compliance with whom discussed, among other things, the ICR (Integrated Compliance Report) on a quarterly basis as well as the UniCredit
Group Annual Compliance Report 2024 which, based on the activities performed by Group Compliance and the other information collected,
includes the assessments of this Function with regard to the residual compliance risks for each area and for each of the Group’s main Legal Entities.
In particular, as part of these reports, the Group Compliance Function illustrated the activities performed, as well as the weaknesses identified at
Group level and the measures to be taken to overcome them, as well as regarding the completeness, adequacy, effectiveness, and reliability of the
internal control system, within the scope of the Function's responsibilities.
Taking into account the outcomes of the non-compliance risk assessment and the second-level controls carried out, the activities completed in
accordance with the provisions of the 2024 Compliance Plan, including the internal quality assessment review, the Committee found the overall
“mostly adequate” opinion given by the Group Compliance Function regarding the non-compliance risk management, both for UniCredit S.p.A. and
the Group’s Companies.
During the year, the Audit Committee focused on the following FS/AML (Financial Sanctions, Anti-Money Laundering) topics, requiring specific in-
depth analysis:
• Financial sanctions with specific reference to the financial sanctions introduced due to the Russia-Ukraine conflict and the related controls relating
to the transnational payments of the subsidiary AO Bank;
• AML (Anti-Money Laundering) area showing an inherent “medium-high” risk, with an increase compared to 2023, due to the increased risk of
circumvention of the above-mentioned Financial Sanctions; for risk reduction purposes, further compliance investigations were performed by the
competent function and the internal control system was strengthened;
• EU Delegated Regulation 758/2019 (“Reg 758”), implementing which, additional measures were introduced in relation to subsidiaries having their
registered office in Russia; in particular, also following the Banca d’Italia impulse in the context of horizontal sector supervision, the AC supported
the Board of Directors in the suitability assessment regarding the implementation of additional controls and other mitigation measures. In this
regard, the Committee considers that stringent monitoring of the controls’ results, in the coming months, is necessary before being able to draw
definitive conclusions in terms of adequacy and, in 2025, the Internal Audit Function will perform an inspection to verify the coherence of the
actions taken, in compliance with the request of Banca d'Italia;
• AML first-level controls catalogue (1LC): the Committee examined the “partially adequate” results of an audit engagement performed by the
Internal Audit Function carried out in the second half of 2024 with regard to the effective implementation of the cooperation model between the first
and second line of defence, finding some shortcomings at governance level (e.g. need to strengthen the overall system of first-level controls) as
well as gaps in the design, execution and reporting of first-level controls in some companies of the UniCredit Group; no critical issues noted with
reference to the Italian perimeter, the corrective actions are performed by UniCredit’s central structures also in order to ensure homogeneity and
effectiveness of action throughout the Group;
• Banca d’Italia inspection on outsourced activities and related processes: some shortcomings in the KYC (Know Your Customer) area were
highlighted in relation to the remote customer on-boarding process. The relevant remediation plan was submitted to the Board of Directors,
supported by the Audit Committee. The AC also examined the engagement performed by the Internal Audit Function, which was rated “adequate”,
aimed at verifying the adequacy of the corrective measures implemented in execution of the above-mentioned remedial plan.
1047
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Report and resolutions
Report of the Audit Committee
The Committee also examined:
• the progress of the Compliance Next Program, the development plan to reorganise the Group’s Compliance Function’s target operating model,
approved by the Board of Directors in September 2021, which showed No.83 initiatives closed out of No.89; with regard to the remaining No.6
initiatives, mostly related to the planned replacement, in No.11 Group companies, of a transaction monitoring tool due to the expected
decommissioning by the external provider, gradual closure is expected by the first quarter of 2027;
• the contents of the Report on the overall state of complaints received by UniCredit S.p.A. in 2024, which showed a number of written complaints
received in 2024 amounting to No.39,507 (in line with 2023, amounting to No.39,574).The main reasons for the complaints received related to the
following issues: Monetics, Cards and POS, Salary-Backed Loans ("CQS"), General Complaints and Mortgages and Other Loans and accounted
for 55% of the total written complaints. The complaints accepted with refunds in 2024 gave rise to reimbursements for a total of €8.1 million
(decreasing compared to 2023) with the main disbursement item relating to Monetics - Cards increasing due to refunds on unauthorised
transactions. The operational issues that arise from the complaints’ analysis are the subject of periodic discussion and in-depth analysis both
within the Complaints Discussion Group organized by the Compliance Function, and within the Permanent Work Group (PWG) for the mitigation of
operational risks, with the monitoring of the related complaints and corrective actions shared and implemented by the competent Bank’s Functions;
• in the GDPR (Global Data Protection Regulation) context, the contents of the Data Protection Officer (DPO) Report of UniCredit S.p.A., for 2024,
which summarised the actions put in place to protect personal data and to manage the data breaches risks as well as to guarantee proper staff
training. As part of its Report, the DPO assessed the residual risk as “medium-low”, according to the current internal methodology. In this regard,
the Committee welcomed that the risk evaluation were managerially increased to “medium-high” during the last quarter of 2024, to mirror (i) the
results of the thematic review that the DPO has carried out on the process of employee access to customer banking data to assess the
effectiveness of the implementation of the “Garante 192/2011 provision” requirements (regarding the circulation of information referring to
customers within the banking groups and traceability), (ii) the more stringent scrutiny by the Supervisory Authority on employees’ access to
customer banking data, also in the light of an incident of suspected breach of the need-to-know principle at another Italian bank. In this regard,
based on the spirit of enhancing the lesson learnt also in relation to episodes concerning other banks, a Working Group has been created with the
aim of assessing possible areas of improvement within UniCredit S.p.A., with regard to measures of implementation of the above-mentioned
Garante 192 provision requirements. Regarding personal data breach (the so-called GDPR relevant data breaches) the Audit Committee noted
that the DPO detected No.142 cases in 2024, No.8 of them requiring the notification to the competent Italian Data Protection Authority and No.7 of
them were also notified to the interested parties. The Committee was informed by the competent Function that on 10 December 2024, the Bank
was subject to inspection by the Italian Data Protection Authority regarding the circulation of customer banking data and the tracking of such
information via log and alert. The inspection activities lasted two days and, on 10 January 2025, UniCredit provided the Italian Data Protection
Authority with a clarification note requested during the inspection. As of the date of this report, no further requests have been made by the
Authority nor has any reply been received with reference to the above-mentioned note sent;
• the so-called “whistleblowing” ("wb") reports, regularly received in its function as 231 Supervisory Body of UniCredit S.p.A. which are taken over
by the Audit Committee, supported by the competent Compliance and People & Culture structures, whenever the reports may involve issues of
misconduct/unlawful conduct, regardless of their significance pursuant to Legislative Decree 231/2001; in this regard, the Committee requested
and obtained several in-depth analysis on the matter. The Committee then noted the detailed information on the misconduct reporting included in
the “Report on the whistleblowing process in 2024 UniCredit S.p.A.” In detail, in 2024 UniCredit S.p.A. received No.99 reports (No.115 ones in
2023), of which No.82 were considered Real WB - reports containing sufficient elements to start the relevant investigation (No.100 ones in 2023).
The Report also includes additional information on harassment, sexual misconduct, bullying and retaliation matters, regulated by a specific internal
regulation issued by the Group People & Culture Function, according to which employees can report directly to the Group People & Culture
misconducts strictly related to those issues, on which, moreover, the Committee's attention is particularly high. Lastly, the Committee examined the
various initiatives, including training, and campaigns implemented in 2024 and scheduled for 2025, aimed at strengthening the awareness of all
employees and stakeholders about the process itself as part of the promotion of a wider speak-up culture.
In addition to what has already been reported on the 2025 activities’ planning of the Group Risk Management and Group Internal Validation
Functions (see paragraph 3 above), the Committee met the person in charge of Group Risk Management to discuss the matters falling under its
competence, with a predominant focus on the area of controls performed by the Function acting as a second line of defence.
In this context, the Committee examined and discussed with the Function the periodic reporting related to the second-level controls performed on
the Credit Risk, Financial Risk and Non-Financial Risk areas, the Group Internal Validation activities, and the update on the status of the activities
included in the 2024 plan.
With particular reference to the second-level controls framework relating to Credit Risk (2LC - second-level control framework), the Committee
favourably noted both the positive results of the assessment performed in this regard, respectively, by ECB and Internal Audit, the latter with a multi-
location audit involving both UniCredit S.p.A. and the other Group’s banks, as well as some further corrective actions, which are already in the
execution process with completion expected by the end of 2025.
The Committee took note of the controls results performed by the Group Risk Management Function regarding the credit processes (underwriting
and monitoring), and the corrective actions in place at some Group’s companies, constantly monitored and, lastly, noted the completion of (i) the
activities for compliance with the ECB guidelines on Climate & Environmental management and (ii) the roadmap for "behavioural" models.
1048
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Report and resolutions
Report of the Audit Committee
The Audit Committee examined regularly during the year the reporting LoDs (Line of Defence) Combined Dashboard, drawn up jointly by the
three Control functions and the Manager in charge of preparing the company’s financial reports, and aimed at emphasising the major points of
attention at cross level and the relevant mitigating/remedial actions.
The Audit Committee also examined, for 2024, the “Annual investment services Report” prepared by Group Internal Audit ("Mostly Adequate" rated),
which reports a general compliance with MiFID requirements, including the adequate definition of the related controls and the correct execution of
internal validation activities on algorithmic trading systems and the detailed “Report on the methodology of carrying out investment services and
activities, ancillary services and the distribution of financial products issued by insurance companies or banks” prepared by Group Compliance,
pursuant to CONSOB Resolution 17297 of 28 April 2010.
Lastly, the Committee, also through periodic meetings with the Group Regulatory Affairs Function, has examined, as regards the topics falling within
its competence, the results of the inspections performed by the Supervisory Authorities once the relevant action plans have been agreed with the
same and jointly with them, recommending constant attention to the implementation of the identified remedial actions, requesting to be periodically
informed of potential significant changes in the content or timing.
In particular, the Committee paid specific attention to the results of the supervisory activities managed by ECB in the ICT/ICT Security area,
specifically with regard to the Business Continuity, Digitization and Cyber Resilience matters.
In this context, the Committee noted, time to time, the UniCredit’s progress in the implementation of the ECB recommendations, the close monitoring
of the related action plans progress and the high managerial attention on the execution of the new IT/Digital Strategy with related KPIs. The
Committee will continue to pay particular attention to this area, also in line with the ECB’s inclusion, among the supervisory priorities for the three-
year period 2025-2027, of the challenges coming from digital transformation and new technologies.
To conclude, the Audit Committee did not identify any critical situations or facts which would lead to the conclusion that the overall internal control
system is deemed not adequate, even if situations have risen, which required the planning and targeting of specific remedial actions, promptly
addressed, and activated by the Management, in some cases still ongoing.
With specific reference to the assignment to the Audit Committee of the functions of the Supervisory Body pursuant to Italian Legislative
Decree 231/2001 (“OdV 231”), the AC has adopted, over time and on an ongoing basis, specific operational practices in order to make its ordinary
role synergic with its role as 231 Supervisory Body, also with the aim to rationalise and systematise appropriate information flows from the
structures.
The Audit Committee, charged with functions of 231 Supervisory Body, reported to the Board of Directors every six months on the activities carried
out on the implementation of the Organisational and Management Model adopted by UniCredit S.p.A. pursuant to the above-mentioned Legislative
Decree (“the Model”) at the meetings held on 19 September 2024 and 20 February 2025, respectively.
The Supervisory Body regularly oversaw the functioning and compliance with the 231 Model. The verification and control activity carried out for this
purpose, based on the information collected, was functional in pursuing the objectives of the effective implementation of 231 Model. The OdV 231
pursued these objectives using the collaboration of Internal Audit and Group Compliance without substituting, replacing, or duplicating the control
tasks institutionally attributed to these Functions.
5. Oversight of the external audit activity and on the independence of the External Auditors
The Company financial statements of UniCredit S.p.A. and the Consolidated financial statements of UniCredit Group as at 31 December 2024 are
audited by the External Auditors KPMG S.p.A. (hereinafter, also “KPMG”) pursuant to Legislative Decree 39 of 27 January 2010, as amended, in
execution of the resolution passed by the Shareholders’ Meeting held on 9 April 2020, being appointed as the External Auditor for the 2022-2030
financial years.
The financial statements of the other Group’s Companies are audited by the External Auditor KPMG S.p.A. itself or other companies of the KPMG
network, with the exception of Russia, where the KPMG network is no longer present, and the Group companies are audited by another auditing firm
with which KPMG maintains appropriate information exchanges, deemed adequate by the same.
Pursuant to Art.19 of Italian Legislative Decree 309/2010, the Audit Committee, in its capacity as Control and Auditing Committee, from the time of
its appointment and until the date of this Report to the Shareholders’ Meeting, has an in-depth monitoring process of the activity carried out by the
External Audit Firm. The start of monitoring activities was preceded by a preliminary operational meeting, also useful for mutual knowledge, held in
April 2024.
Specifically, the Audit Committee held a series of specific meetings during the various audit phases, during which it examined, inter alia:
• the Transparency Report for the financial year ending 30 September 2024.
• the 2024 Audit Plan, including:
- the resources and hours budgeted for the 2024 external audit;
- the audit activities related to Corporate and Sustainability Reporting;
- the scope of work, materiality, and significant risk 2024;
- the 2024 Group Audit timeline.
1049
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Report and resolutions
Report of the Audit Committee
The Audit Committee also analysed the methodology adopted by the External Auditor and acquired the necessary information during the task, with
constant interaction on the audit approach used for the different significant areas of the financial statements, sharing the issues related to corporate
risks, as well as receiving updates on the audit progress and on the key matters examined by the External Auditor.
In July 2024, the Audit Committee examined the “Management Letter - UC Group Overview”, finding the main suggestions and recommendations
made by the External Auditor to the Group’s Management for the year ending 31 December 2023, aimed at improving the Group’s control system
and accounting and administrative policies, shared with the Management and the relevant structures, and already addressed for prompt resolution.
In November and December 2024, the Audit Committee met in two separate sessions with the Partners of the KPMG Network, in charge of the
audits of the Italian subsidiaries UniCredit Factoring S.p.A. and UniCredit Leasing, as well as of the subsidiaries UniCredit Bank GmbH (Germany),
UniCredit Bank Austria AG, and the banks based in Croatia, Czech Republic, Slovakia, Bulgaria, Romania, Serbia, Bosnia and Herzegovina
Republic, Hungary, Slovenia. The main subject of the meetings was an update on the scenario development in the various countries and on the
main results of the auditing activities.
The Audit Committee examined the following reports of the External Auditor KPMG S.p.A., whose activity supplements the general framework of the
control functions required by the regulations regarding financial information process:
• the auditing reports issued on 24 February 2025, pursuant to Art.14 of Legislative Decree 39/2010 and Art.10 of EU Regulation 537/2014;
• the additional report issued on 24 February 2025, pursuant to Art.11 of the above-mentioned Regulation, to the Audit Committee in its capacity as
Internal Control and Auditing Committee;
• the annual confirmation of independence, issued on 24 February 2025, pursuant to Art.6, par.2), subpar. a) of the above-mentioned Regulation
and pursuant to paragraph 17 of ISA Italia 260.
The aforementioned reports on the audit of the Company financial statements of UniCredit S.p.A. and the Consolidated financial statements of the
UniCredit Group highlight that they both provide a truthful and correct representation of the equity and financial situation of UniCredit S.p.A. and of
the UniCredit group at 31 December 2024, as well as of the economic performance and cash flow for the financial year ended on that date, in
accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board and endorsed by
the European Union, as well the Italian regulations implementing Art.9 of Legislative Decree 38/2005 and of Art.43 of Legislative Decree 136/2015.
Furthermore, in the opinion of the External Auditor, the Consolidated report on operations and some specific information contained in the Report on
Corporate Governance and Ownership Structures indicated in Art.123-bis, paragraph 4, of Italian Legislative Decree 58/1998 (TUF) are consistent
with the financial statements of UniCredit S.p.A. and with the consolidated financial statements of the UniCredit group at 31 December 2024, and
are prepared pursuant to the law. With reference to the possible identification of significant errors in the Management Report (Art.14, paragraph 2,
subparagraph e-ter of Italian Legislative Decree 39/2010), the External Auditor declared that he had nothing to report.
The reports on the auditing of the financial statements of UniCredit S.p.A. and the consolidated financial statements show the key matters that,
according to the professional opinion of the External Auditor, were more significant in the accounting audit of the Company and consolidated
financial statements for the year under review [ISA Italy 701]:
• measurement of loans and receivables with customers recognised under financial assets at amortised cost;
• measurement of financial assets and liabilities at fair value levels 2 and 3;
• trading Centralisation project.
As regards the above-mentioned key matters, where the External Auditor’s reports illustrate the related audit procedures adopted, the External
Auditor does not express a separate opinion, as the same have been dealt within the audit, and in the assessment of the financial statements as a
whole. The above-mentioned key matters were subject to in-depth analysis updating during the periodic meetings that the Audit Committee held with
the External Audit Firm.
The above-mentioned reports also contain the External Auditor’s assessment of the compliance with the provisions of the Delegated Regulation
2019/815 (EU) regarding the preparation of the financial statements and consolidated financial statements.
The External Auditor, regularly met by the Audit Committee, as required by Art.150, paragraph 3, of Italian Legislative Decree 58/1998 (TUF) for a
mutual exchange of information, did not highlight censurable actions or facts nor irregularities which would have required specific reporting under
Art.155, paragraph 2, of Italian Legislative Decree 58/1998 (TUF).
Considering the foregoing, the Audit Committee deems the process of interaction with the External Audit Firm to be adequate and transparent.
With regard to the oversight on the independence of the External Audit Firm, during the 2024 financial year, the Audit Committee performed its
verification and monitoring activities, pursuant to Art.19 of Italian Legislative Decree 39/2010 and pursuant to Articles 10, 10-bis, 10-ter, 10-quater
and 17 of the aforementioned decree and Art.6 of the Regulation (EU) 537/2014 dated 16 April 2014 (the “Regulation”), specifically with regard to
the provision of services other than auditing (so-called “non-audit services”) to the audited entity. Furthermore, as previously stated, the Audit
Committee received by KPMG S.p.A. the declaration confirming its independence.
1050
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Report and resolutions
Report of the Audit Committee
In order to ensure the correct application of the Regulation, the Bank has already adopted in 2018 an internal Global Operational Regulation (GOR),
entitled “Principles and rules for the management of contractual relationships with the External Audit Firm” including operating instructions
addressed to all the Companies of UniCredit Group so that they may submit each single non-audit assignment in advance for the assessment and
approval of the Internal Control Body of each Group company (audit committee, board of statutory auditors or equivalent body) and, subsequently, to
the Audit Committee of UniCredit S.p.A. for the issuance, by the latter, of the final binding prior opinion (binding opinion).
In 2024, the Audit Committee issued 18 binding opinions on proposals for non-audit assignments relating in favor of the S.p.A. (No.4) or of the
Group’s Companies (No.14).
Furthermore, the Audit Committee noted the information concerning non-audit services prepared through a preventive and half-yearly flow by the
competent Function: pursuant to this process, all the UniCredit Group’s companies contributed to the transmission of the data requested and
required by internal regulations, to enable the accurate monitoring of the costs of the services provided by the External Auditor and by all entities
belonging to the KPMG S.p.A. Network.
Based on the 2024 final data, the value of the services provided to the UniCredit Group’s companies by the Group’s External Auditor and the
companies belonging to its Network amounts to approximately €28.4 million, of which €18.2 million for audit services, €9.9 million to
verification/attestation services and €0.3 million referred to other non-audit services. At Group level, the costs of other non-audit services assigned to
the Group’s External Auditors and the Companies belonging to its network increased by €4.4 million compared to 2023 (increase mainly due to new
assignment for Limited Assurance on 2024 Sustainability Reporting according to CSRD).
With reference to the information concerning the Parent Company only, provided in the statement relating to the “Publication of the remuneration -
UniCredit S.p.A. - 2024 financial year - KPMG network”, the Audit Committee noted that the costs of the services assigned to the External Auditor,
compared to the costs of services assigned in the financial year 2023 increased by €1.6 million with a total cost of €7.3 million, of which €3.8 million
for audit services, €3.4 million for verification/attestation services and €0.1 million for other non-audit services.
The ratio between the cost of non-audit services provided by the Parent Company’s Auditor KPMG, and the audit services’ costs referred to the first
three years of its appointment, amounted to 12% for 2024, below the 70% limit set by the internal regulations adopted by the Bank and the
applicable external regulations (“fee cap”).
With regard to the planning of non-audit services for 2025, KPMG S.p.A. is expected to be assigned services (relevant for the cap calculation) with a
total equivalent value of approximately €1.6 million, with a forecast ratio of 38%. It should be noted that, according to the regulations, non-audit
services required by national or European Union rules, or those representing a charge for the benefit of a certain discipline, are not significant for
determining the ratio.
6. Oversight of the suitability of the administrative-accounting system
The UniCredit Group’s Consolidated financial statements and UniCredit S.p.A. financial statements as at 31 December 2024 were drafted in
accordance with the IAS/IFRS international accounting standards, in compliance with the instructions of Banca d’Italia with the Circular 262 of 22
December 2005 (and subsequent amendments) and include the certification of the Chief Executive Officer and the Manager in charge of preparing
the company’s financial reports pursuant to Art.81-ter of CONSOB Regulation 11971/99 as amended. The Audit Committee noted the Statement of
compliance with IFRS issued by the International Accounting Standards Board (IASB) to prepare UniCredit’s financial statement and the
Consolidated financial statement.
As stated in the financial statements, Directive 2004/109/EC (the “Transparency Directive”) and Delegated Regulation (EU) 2019/815 introduced the
obligation for issuers of securities listed on regulated markets in the European Union to draw up the annual financial report in the XHTML language,
based on the European Single Electronic Format (ESEF) approved by ESMA.
The administrative and accounting procedures for drafting the half-yearly report and the separate and consolidated financial statements and all other
financial information were set up under the responsibility of the Manager in charge of preparing the company’s financial reports who, together with
the Chief Executive Officer, certifies their adequacy and effective application.
For the purposes of overseeing the financial reporting processes, the Audit Committee, in addition to the above-mentioned in-depth analysis
performed with the External Audit Firm which did not reveal significant critical issues of the internal control system concerning the financial reporting
process, carried out the planned and periodic meetings with the CFO (Chief Financial Officer), with the Manager in charge of preparing the
company’s financial reports and the competent Accounting and Group Finance structures.
The in-depth meetings (with examination, inter alia, of the Key Accounting Topics) were held in preparation of the quarterly, half-yearly periodic
reports and end-of-year financial statements and prior to their approval by the Board of Directors, to which the Committee, in the exercise of its
functions, timely reported on the matter.
1051
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Report and resolutions
Report of the Audit Committee
During the above-mentioned periodic meetings, the Manager in charge of preparing the company’s financial reports did not report any significant
shortcomings in the operating and control processes that could undermine the judgment on the actual implementation of the procedures and on the
adequacy, overall, of the administrative - accounting procedures, necessary to correctly represent the economic, capital, and financial aspects of
the accounting events in compliance with international accounting standards.
The Audit Committee has also previously examined:
• the annual updates to the “Manual on Group Accounting Rules and Principles”, approved by the Board of Directors at its meeting held on 28
January 2025, mainly aimed at providing clarification in the application of accounting standards in specific areas;
• the “Report on the status of the Internal Control System on Financial Reporting - Management Report” regarding the certification campaign
pursuant to the Law 262/05 of the consolidated and individual financial statements as at 31 December 2024, submitted to the Board of Directors at
its meeting held on 20 February 2025. Compared to a total of No.312 companies fully consolidated, based on the criteria defined in the internal
regulations, the companies subject to the 262-certification campaign amounted to No.36 covering 98.4% of the Group Total Aggregated Assets
(GTAA). To point out that Alpha Bank Romania of which UniCredit S.p.A. has acquired control since the month of November 2024, will be included
in the “262” certification scope during 2025, being part of the additional program 262 as at 31 December 2024.
The certification campaign pursuant to Law 262/05 as at 31 December 2024, which for UniCredit S.p.A. involved No.488 processes that undergo
No.1,644 key controls, and No.1,848 processes relating to the other Group’s companies on which there were total of No.3,710 key controls, ended
with the issuance of all the so-called “internal certifications” to the Manager charged with preparing the financial reports of UniCredit S.p.A. by the
other Group’s companies subject to the campaign.
The Committee has noted in particular: (i) the continuation of the so-called “additional program” (introduced by the 2023 certification campaign),
which provides for the involvement of the Group’s legal entities outside the 262/05 perimeter, selected according to specific qualitative/quantitative
criteria (including the presence of at least one significant item in the balance sheet or income statement in light of the criteria established by the
relevant internal policy); (ii) the reduction of the number of key processes and controls included in the perimeter, mainly as a result of the
rationalisation/review of processes for simplification or reallocation of activities; (iii) the inclusion, among the significant topics evaluated during
2024 by the Structure of the Manager in charge of preparing the company’s financial reports, of aspects related to the TEC Project (Trading
Engine Centralisation) started in 2023 and currently ongoing, which involves the centralisation of trading activities previously carried out by
UniCredit Bank GmbH in Unicredit S.p.A.; (iv) With reference to the certification process of administrative-accounting procedures and IT General
Controls, the lack of issues relevant to the financial results YE2024;
• the Accounting Report referred to the fourth quarter 2024, detailing the main accounting items and their treatment in the financial statements as
at 31 December 2024. The Audit Committee considered this document to be particularly appropriate and suitable for presenting the accounting
facts fully and correctly.
The Audit Committee also intended to carry out an examination, with the competent Company Functions, of the processes and systems underlying
the production of the Financial Reporting with an ”as is” comparison with its evolution in the coming 3/5 years. The AC was informed that in this time
frame, in UniCredit, the evolution of IT tools and processes dedicated to the processing of accounting data, also driven by external driver including
IFRS18 (Presentation and disclosure in the financial statements) and IReF (Integrated Reporting Framework), will have, as its guidelines, the further
harmonisation within the Group and the strengthening of transparency and comparability of financial reporting, for the benefit of stakeholders.
In view of the information received, and the analyses performed, as mentioned below, the Audit Committee deemed the current administrative-
accounting system, overall, adequate to the provisions of the current reference regulations and suitable for correctly representing the management
events.
7. Oversight of Sustainability Reporting
The Italian Legislative Decree 6 September 2024 transposed into the Italian law the provisions of EU directive 2022/2464 (CSRD, Corporate
Sustainability Reporting Directive) which reforms the discipline on corporate sustainability reporting.
In compliance with this directive, starting from 31 December 2024, the Sustainability Report, prepared on a consolidated basis with the same
perimeter as the financial statements, is part of the Consolidated Report of the financial statements, together with the certification of the
Sustainability Report required by Art.154-bis of Legislative Decree 58/1998, paragraph 5-ter.
Within the scope of UniCredit S.p.A. governance model, on the topic of sustainability, an articulated intervention and connection among the various
corporate bodies is envisaged:
• the Board of Directors: (i) defines the overall strategy of the Bank and the Group, of which the Group’s ESG Environmental, Social, Governance
Strategy and its associated KPIs (Key Performances) are an important pillar, and oversees its implementation over time, (ii) cares for the
formalization of the policies to govern the risks to which the Group may be exposed, the risks targets and the tolerance thresholds, as well as their
periodical review in order to ensure their effectiveness over time, and the monitoring of the actual functioning of the management and control of the
risks process, in compliance with applicable legal and regulatory provisions, (iii) approves the Group Risk Appetite Framework (RAF), which
establishes the desired risk profile vis-à-vis short-and long-term strategic objectives and the plan, for monitoring purposes, dedicated Climate Risk
KPIs are included in the Risk Appetite Framework, enabling the Bank to oversee the evolution of transition and physical risks it is exposed to;
1052
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Report and resolutions
Report of the Audit Committee
• the Risk Committee supports the Board of Directors in risk management related matters, performing all the activities instrumental and necessary
for the Board to make a correct and effective determination of the Risk Appetite Framework and of the risk management policies;
• the Governance and Sustainability Committee provides advice and support to the Board of Directors on matters related to corporate governance
and in fulfilling its responsibilities, while pursuing sustainable success as an integral component of the Group’s business strategy and long-term
performance. In particular, the Committee supports the Board on sustainability, on ESG-related matters (with the exception of all risk-related ESG
components, which fall, as stated above, under the remit of the Risk Committee). To this purpose, the Committee, upon the evaluation of its Chair
and the Chief Executive Officer, carries out preliminary evaluations, analyses and submits proposals regarding the sustainability and ESG
framework, policies, and guidelines;
• lastly, the Audit Committee assesses the suitability of periodic financial and non-financial information to correctly represent the Company’s
strategy and its sustainability, also with reference to the ESG factors, also examining in detail the issued related to the corresponding internal
control system.
The Bank, in continuity with the "One Report" project, has promptly launched the "CSRD Compliance" project, aimed at achieving compliance with
the new regulatory framework.
The Audit Committee, in the wake of what had already been started by the previous Control Body, carefully examined the various phases of
implementation of the project in question, also given the complexity and number of related matters.
Therefore, the Committee specifically examined the progress of the project in question, focusing in particular on the design and implementation of
the internal control system on Sustainability Reporting (ICSSR), finding that it is substantially consistent with the "262" model already adopted and
effectively tested (in terms of adequate administrative and accounting procedures for the preparation of the financial statements and consolidated
financial statements.as well as any other financial communication) and requiring, however, in light of the first implementation, to check the set-up
itself during 2025.
In detail, the internal control system on sustainability foresees the application of a common methodological framework , based on: (i) the use of a
consistent and centrally-developed internal control system model inspired by internationally-acknowledged standard issued by Committee of
Sponsoring Organization of Treadway Commission" (CoSO) and updated in March 2023 by introducing the so-called "Internal Control over
sustainability reporting" that recalls the “Internal Control-Integrated Framework” referred to the financial reporting; (ii) the update and cascading
within the Group on the basis of parameters established at central level.
Consequently, the Audit Committee receives, for the purposes of its activities on the effectiveness of the internal quality control and risk
management systems relating to sustainability reporting, a periodic reporting relating to the update and to the report on the internal control system
under the sustainability statement, including a description of the results and the progress of possible remedial actions identified.
Up to the date of this Report, the Audit Committee has held specific meetings with the External Auditor (KPMG) as part of their respective duties
arising from the relevant legislation as well as with the Sustainability Reporting Manager in charge of issuing the attestation with reference to the
2024 financial year, appointed by the Bank by resolution of the Board of Directors on 10 February 2025 based upon the positive opinion issued by
the Audit Committee itself.
Therefore, the Audit Committee:
• having examined the documentation made available, also taking into account Assonime Circular 21 of 7 November 2024 ("The new regulation on
corporate reporting and disclosure obligations on sustainability”);
• having taken note of the attestation of the Manager appointed for this purpose, specifically competent in sustainability reporting, that the
sustainability reporting included in the management report has been drawn up in compliance with the reporting standards applied pursuant to
Directive 2013/24/EU of the European Parliament and of the Council of 26 June 2013, and the Legislative Decree adopted in accordance with
Art.13 of the Law 15 of 21 February 2024 and with the specifications adopted pursuant to Art.8 paragraph 4 of Regulation (EU) 2020/852 (EU
Taxonomy Regulation);
• having taken note of the contents of the Report by the External Audit Firm on the Sustainability Statements of UniCredit Group for the year ended
31 December 2024 which, on the basis of the established limited audit engagement, states that no evidence has come to its attention that would
suggest that:
- the Sustainability Report of the UniCredit Group had not been prepared, in all material respects, in accordance with the reporting standards
endorsed by the European Commission pursuant to Directive 2013/34/UE (the European Sustainability Reporting Standards, “ESRS”);
- the information presented in the disclosure, pursuant to Art.8 of Regulation 2020/852 of the consolidated sustainability statement has not been
prepared, in all material respects, in accordance with the above-mentioned Art.8,
certifies that, during its examination of Sustainability Reporting, non-compliance elements and/or breach of the relevant regulatory provisions have
not come to its attention.
8. Oversight on the concrete implementation of the corporate governance rules
In the performance of its duties, the Audit Committee exercised oversight on the concrete implementation of the corporate governance rules
contained in the codes of conduct that UniCredit S.p.A. declares to abide by.
1053
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Report and resolutions
Report of the Audit Committee
In particular, the Bank complies with the Corporate Governance Code (hereinafter referred to as “the Code”) approved by the Corporate Governance
Committee promoted by ABI, ANIA, Assogestioni, Assonime, Confindustria and Borsa Italiana, and has prepared, pursuant to Art.123-bis of Italian
Legislative Decree 58/1998 (TUF), the annual “Report on Corporate Governance and Ownership Structures”.
The Corporate Governance Committee has the task of periodically monitoring the application status by listed companies that declare to adhere to it
and proceeds on an annual basis to send specific recommendations to all listed companies aimed at strengthening the credibility of adherence to
the Code as a quality signal of corporate governance practices actually implemented.
The improvement areas most recently identified in the letter of recommendations of the Chair of the Corporate Governance Committee in its meeting
held on 17 December 2024, and examined by the Audit Committee at its meeting held on 24 January 2025, concerned the following aspects, which
the Bank responded to in the Report on Corporate Governance and Ownership Structures, approved by the Board of Directors at its meeting held on
20 February 2025:
• completeness and timeliness of the pre-meeting information;
• transparency and effectiveness of the remuneration policy;
• executive role of the Chair.
The Audit Committee paid particular attention to the promptness and to the pre-meeting information matter, with related in-depth analysis on several
occasions, at the end of which it presented its opinions to the Board of Directors held on 28 January 2025.
The Committee recognised the importance of ensuring the information confidentiality, the various actions put in place by the Bank to avoid the risk of
leakage and the importance of Directors adhering to best practices in the data security area.
On the other hand, the Committee noted that pre-meeting information, even where the applicable legal principles are met, is crucial to foster a richer
and more productive discussion, strengthening the role of the Board and the relationship with the Management, and that the internal process can be
susceptible to further improvements.
9. Oversight on the relationships with the subsidiaries
The Audit Committee exercised oversight on the adequacy of the instructions given to subsidiaries pursuant to Art.114, paragraph 2 of Italian
Legislative Decree 58/1998 (TUF).
The Audit Committee exchanged half-yearly information and, upon request, with the Boards of Statutory Auditors of the directly controlled
companies, as required by Art.151ter, paragraphs 1 and 4 of Legislative Decree 58/1998 (TUF) and by the Supervisory Instructions of Banca d’Italia,
in order to receive reports on any critical issues relating to the administration and control systems and the general performance of the company's
activities. Furthermore, the Audit Committee has scheduled a meeting with the Chairs of the Boards of Statutory Auditors of the Group's main Italian
companies for March 2025, to further develop mutual knowledge and dissemination of information useful for carrying out their respective activities.
With regard to the foreign subsidiaries, according with the Committee and in agreement with the Chair of the Board of Directors and the Chief
Executive Officer of UniCredit S.p.A., in the second half of 2024, the Chair of the Audit Committee initiated specific meetings with the Chairs of the
Audit Committees of the main Group companies, in this first phase as first knowledge, in order to then lay the foundations for a systematic
information flow on topics of common interest, of mutual benefit also in support of orderly and active Group steering and governance actions.
10. Oversight on related parties transactions
UniCredit S.p.A. has adopted the Global Policy “Transactions with related parties, associated persons and Corporate Officers ex Art.136 TUB”,
containing provisions to be observed in the management of: (i) Transactions with related parties pursuant to the CONSOB Regulation; (ii)
Transactions with associated persons pursuant to the Banca d’Italia Regulation; (iii) The obligations of bank representatives pursuant to Art.136 of
Legislative Decree 385/1993.
The above-mentioned Policy, subject to annual evaluation, was reviewed and approved in December 2024 by UniCredit’s Board of Directors with the
preliminary positive opinion of the Related-Parties Committee and the Audit Committee in order to bring-in limited reviews aimed at taking in full
account certain specific updating needs arisen during the current financial year, while waiting for the execution of a wider review, once the CONSOB
Interpretation Communication is published.
The reviews concerned: (i) The need to adapt the text of the Global Policy to reflect the change in the governance model with the adoption, by
UniCredit, of the one-tier administration and control system; (ii) In the light of the application experience, it was found appropriate to introduce some
clarifications concerning the discipline of the so-called cumulation of transactions and two cases of exemption, namely the one for small transactions
and the one relating to the remuneration of delegated bodies and key managers.
The Global Policy regulates the information flows to the Audit Committee, in accordance with applicable regulations.
With reference to paragraph 8 of Art.5 “Public information on transactions with related parties” of CONSOB Regulation containing provisions relating
to transactions with related parties (adopted by CONSOB with Resolution 17221 of 12 March 2010, as subsequently amended by Resolution 21624
of 10 December 2020), it should be noted that:
a) according to the Global Policy “Transactions with related parties, associated persons and Corporate Officers ex art.136 TUB” updated by the
Board of Directors of UniCredit S.p.A. on 12 December 2024, and published on the website www.unicreditgroup.eu, during 2024 the Bank’s Presidio
Unico received no reports of transactions of greater relevance ended in the period;
1054
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Report and resolutions
Report of the Audit Committee
b) during 2024, no transactions with related parties as defined by Art.2427, paragraph 22-bis of the Italian Civil Code were conducted, under
different conditions from normal market conditions and materially affecting the Group’s financial and economic situation;
c) during 2024, there were no changes or developments in the individual transactions with related parties already described in the latest annual
report that had a material effect on the Group’s financial position or results during the reference period.
The Audit Committee certifies that it oversaw that the transactions undertaken with persons with administrative, managerial or control functions were
always conducted incompliance with Art.136 TUB and Supervisory Instructions.
11. Detected censurable facts. Undertaken actions.
Complaints
In the period between the date of the appointment of the Audit Committee (12 April 2024) and the date of this Report, a communication was
received, qualified by the Shareholder as complaint pursuant to Art.2408 paragraph 1 of the Italian Civil Code:
• Mr. Marco Bava: e-mail dated 13 April 2024, addressed also to CONSOB. The Shareholder, with reference to the Shareholders’ Meeting of 12
April 2024, reported his complaint in relation to: (i) the failure to admit, among the items under discussion and voting, its own individual proposal for
resolution; (ii) the lack of answer to some questions raised pursuant to Art.127-ter of Italian Legislative Decree 58/1998 (TUF).
With regard to the communication of Mr. Bava, the Committee promptly performed appropriate in-depth analysis, obtaining the information
necessary to examine and assess the case submitted with the support of the Bank’s competent structures. The Committee, having verified the
possible grounds for the facts reported, agreed with the reasonable conclusions proposed by these structures. Therefore, because of the checks
performed, no irregularities were identified to be reported to the Shareholders’ Meeting.
For completeness, it is worth mentioning that, in relation to a complaint pursuant to Art.2408 paragraph 1 of the Italian Civil Code received from Mr.
Francesco Santoro on 16 March 2024, the previous Control Body (Board of Statutory Auditors) reported to the Shareholders’ Meeting on 12 April
2024, as stated in the related minutes published on the Bank’s website, confirming the legitimacy of the Company's actions with regard to the
procedures for carrying out the aforementioned Shareholders' Meeting.
Lastly, it should be noted that, in the same period, the Committee received three communications which could be qualified as complaints to the
Supervisory Authorities. These communications were analysed in depth by the Committee, which obtained from the competent structures the
information needed to examine and assess the cases submitted. The analyses performed did not highlight any cases worthy of mention and, to date,
no follow-up has been received from the Authorities concerned.
12. Issued opinions
During the financial year, the Audit Committee, in addition to what has already been specifically stated in other parts of this Report, issued its
opinions, and expressed the observations that the current regulations and supervisory provisions for banks assign to its responsibility.
In particular, it is recalled the positive opinion issued in May 2024 pursuant to Art.2389, paragraph 3, of the Italian Civil Code, on the proposal of the
remuneration for Directors holding particular offices in accordance with the Articles of Association and the following positive opinions issued to the
Board of Directors held on 20 February 2025 in relation to:
• Remuneration Evolution: To point out that the Audit Committee’s opinion came at the end of a process started in December 2024, during which
the Committee requested that numerous in-depth studies be carried out, also through the involvement of external advisors and other additional in-
depth work by the other relevant Board Committees (Remuneration Committee and Related Parties Committee);
• 2024 performance assessment, bonus payout and execution of previous years’ plans for the Chief Executive Officer, the Heads of di Control
Functions, and the Manager in charge of preparing the company’s financial reports.
• 2025 Group Incentive System, Goal Setting and Compensation review for the Chief Executive Officer, the Heads of di Control Functions, and the
Manager in charge of preparing the company’s financial reports.
13. Self-assessment
Upon the appointment of its members, during the meeting held on 6 May 2024, the Audit Committee ascertained the compliance with the
independence requirements for the Directors, who are members of the Committee itself, based on the declaration made by themselves and on
information available to the Company, as well as the correspondence between the qualitative-quantitative composition deemed to be optimal “2024
Qualitative and quantitative composition of the UniCredit S.p.A. Board of Directors - 2024 Theoretical profile of the Board” made available to the
Shareholders before the Shareholders’ Meeting called to resolve about the renewal of the Board of Directors itself, and the effective one that results
from the appointment process.
During the financial year, the Audit Committee deepened, in various meetings, the topics relating to its functioning, focusing inter alia on: (i)
participation in the Board Committees, (ii) modality of information flows to the Board of Directors, (iii) extension of the invitation to attend the
Committee meetings to other Directors, if interested, based on the items on the agenda.
1055
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Report and resolutions
Report of the Audit Committee
The Audit Committee performed a self-assessment of its composition and functioning, also taking note of the analysis carried out and the
suggestions made by the external advisor in charge of supporting the self-assessment process of the Board of Directors and its Committees.
Representatives of the external advisor also attended an Audit Committee’s meeting, in order to draw evaluation elements with independent
judgment. Therefore, at its meeting held on 19 February 2025, the AC considered its composition as adequate and suitable collectively, also in light
of the diversity of skills, competences, and gender.
Conclusions
The Audit Committee highlights that UniCredit’s Directors observed that during 2024 the geopolitical tensions between Russian Federation and
Ukraine and in the Middle East persisted.
Such events determined a relevant uncertainty in the macroeconomic outlook, in terms of GDP, inflation rates and interest rates.
The Directors assessed such circumstances, and concluded, with reasonable certainty, that the Bank will be able to operate profitably in the
foreseeable future and as a result, in accordance with the provisions of IAS1, the Company reports of UniCredit S.p.A. and the Consolidated reports
of UniCredit Group as at 31 December 2024, were prepared on a going concern basis.
The measurement criteria adopted are therefore consistent with this assumption and with the principles of accrual-based accounting, the relevance
and materiality of accounting information, and the prevalence of economic substance over legal form.
These criteria have not changed with respect to the previous financial year.
The oversight activity of the Audit Committee revealed no censurable actions, omissions or irregularities requiring to be noted in this Report.
During the meetings of the Board of Directors, during which the most significant economic, financial and equity transactions of UniCredit S.p.A. and
its subsidiaries were examined, the Audit Committee received the information pursuant to Art.150, paragraph 1, of Italian Legislative Decree 58/1998
(TUF) and to Art.23, paragraph 4 of UniCredit’s Articles of Association.
In compliance with the regulations and customary practices, the Audit Committee’s members met with ECB, acting as Supervisor Authority of the
Parent Company, also on specific issues explained in this Report.
Based on the information acquired through its oversight activity, the Audit Committee did not become aware of any transaction performed during the
financial year to which this report refers to, not in compliance with the principles of proper management, resolved and carried out not in compliance
with the law and the Articles of Association, not in the UniCredit S.p.A.’s interest, not in accordance with Shareholders’ resolutions, manifestly
imprudent or risky, lacking the necessary information where Directors’ interests were involved, or prejudicial to the Company’s assets.
Having regard to the foregoing, the Audit Committee, having examined the content of the reports drawn up by the External Auditors, having noted
the joint certifications issued by the Chief Executive Officer and the Manager in charge of preparing the company’s financial reports, does not find in
the areas under its remit any impediment to the approval of the proposal for financial statements as at 31 December 2024 and of the Shareholders’
remuneration proposal submitted by the Board of Directors.
Milan, 24 February.2025
For the Audit Committee
The Chair
Marco Rigotti
1056
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Report and resolutions
Report of the Audit Committee
UniCredit 2024 Annual Reports and Accounts
1057
1057
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Report and resolutions
Report of the Audit Committee
1058
UniCredit 2024 Annual Reports and Accounts
1058
UniCredit 2024 Annual Reports and Accounts
KPMG S.p.A.
Revisione e organizzazione contabile
Via Vittor Pisani, 25
20124 MILANO MI
Telefono +39 02 6763.1
Email it-fmauditaly@kpmg.it
PEC kpmgspa@pec.kpmg.it
(This independent auditors’ report has been translated into English solely for the convenience of
international readers. Accordingly, only the original Italian version is authoritative.)
Independent auditors’ report pursuant to article 14 of Legislative
decree no. 39 of 27 January 2010 and article 10 of Regulation (EU) no.
537 of 16 April 2014
To the shareholders of
UniCredit S.p.A.
Report on the audit of the separate financial statements
Opinion
We have audited the separate financial statements of UniCredit S.p.A. (the “bank”), which comprise the
balance sheet as at 31 December 2024, the income statement and the statements of comprehensive
income, changes in equity and cash flows for the year then ended and notes thereto, which include
material information on the accounting policies.
In our opinion, the separate financial statements give a true and fair view of the financial position of
UniCredit S.p.A. as at 31 December 2024 and of its financial performance and cash flows for the year
then ended in accordance with the International Financial Reporting Standards issued by the
International Accounting Standards Board and endorsed by the European Union, as well as the Italian
regulations implementing article 9 of Legislative decree no. 38/05 and article 43 of Legislative decree
no. 136/15.
Basis for opinion
We conducted our audit in accordance with the International Standards on Auditing (ISA Italia). Our
responsibilities under those standards are further described in the “Auditors’ responsibilities for the audit
of the separate financial statements” section of our report. We are independent of the bank in
accordance with the ethics and independence rules and standards applicable in Italy to audits of financial
statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Ancona Bari Bergamo
Bologna Bolzano Brescia
Catania Como Firenze Genova
Lecce Milano Napoli Novara
Padova Palermo Parma Perugia
Pescara Roma Torino Treviso
Trieste Varese Verona
Società per azioni
Capitale sociale
Euro 10.415.500,00 i.v.
Registro Imprese Milano Monza Brianza Lodi
e Codice Fiscale N. 00709600159
R.E.A. Milano N. 512867
Partita IVA 00709600159
VAT number IT00709600159
Sede legale: Via Vittor Pisani, 25
20124 Milano MI ITALIA
KPMG S.p.A. è una società per azioni di diritto italiano e fa parte del
network KPMG di entità indipendenti affiliate a KPMG International
Limited, società di diritto inglese.
1059
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
UniCredit S.p.A.
Independent auditors’ report
31 December 2024
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in the
audit of the separate financial statements of the current year. These matters were addressed in the
context of our audit of the separate financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
Measurement of loans and receivables with customers recognised under financial assets at
amortised cost
Notes to the accounts “Part A - Accounting policies”: paragraph A.2.3 “Financial assets at amortised
cost”
Notes to the accounts “Part B - Balance sheet - Assets”: section 4 “Financial assets at amortised cost”
Notes to the accounts “Part C - Income statement”: section 8 “Net losses/recoveries on credit
impairment”
Notes to the accounts “Part E - Information on risks and related hedging policies”: section 1 “Credit risk”
Key audit matter
Audit procedures addressing the key audit matter
Lending to customers is one of the bank’s core
activities. Loans and receivables with customers
recognised under financial assets at amortised cost
totalled €190,726 million at 31 December 2024,
accounting for 48% of total assets.
Net impairment losses on loans and receivables with
customers recognised in profit or loss during the year
totalled €410 million.
For classification purposes, the directors make
analyses that are sometimes complex in order to
identify those positions that show evidence of both a
significant increase in credit risk and impairment after
disbursement. To this end, they consider both internal
information about the performance of exposures and
external information about the reference sector or the
borrowers’ overall exposure to banks.
Measuring loans and receivables with customers is a
complex activity, with a high degree of uncertainty and
subjectivity, with respect to which the directors apply
internal valuation models that consider many
quantitative and qualitative factors, including historical
collection flows, expected cash flows and related
estimated collection dates, the existence of any
indicators of impairment, an assessment of any
guarantees, the impact of macroeconomic variables,
future scenarios and risks of the sectors in which the
bank’s customers operate.
The complexity of the directors’ estimation process is
affected by the heightened geopolitical uncertainties,
Our audit procedures included:
•
gaining an understanding of the bank’s processes
and IT environment in relation to the disbursement,
monitoring, classification and measurement of
loans and receivables with customers;
•
assessing the design and implementation of
controls and performing procedures to assess the
operating effectiveness of material controls,
especially in relation to the identification of
exposures with indicators of impairment and the
calculation of impairment losses;
•
analysing the classification criteria used for
allocating loans and receivables with customers to
the IFRS 9 categories (staging);
•
analysing the individual and collective impairment
assessment policies and models used and
checking the reasonableness of the main
assumptions and variables included therein, as
well as the adjustments made as a result of the
financial effects of the geopolitical situation. We
carried out these procedures with the assistance of
experts of the KPMG network;
•
selecting a sample of exposures tested collectively,
checking the application of the measurement
models applied and checking that the impairment
rates applied complied with those provided for in
such models;
1060
UniCredit 2024 Annual Reports and Accounts
UniCredit S.p.A.
Independent auditors’ report
31 December 2024
Key audit matter
Audit procedures addressing the key audit matter
which have worsened current economic conditions and
the outlook for future macroeconomic scenarios and
have had a strong impact on the energy market, supply
chains, inflationary pressure and its effect on monetary
policies, leading central banks to raise interest rates in
the main economies, and the property market’s trends
and indicators. This required the directors to revisit the
valuation processes and methods.
For the above reasons, we believe that the
measurement of loans and receivables with customers
recognised under financial assets at amortised cost is a
key audit matter.
•
selecting a sample of exposures tested individually
and checking the reasonableness of the indicators
of impairment identified and of the assumptions
about their recoverability, including considering the
guarantees received;
•
analysing the significant changes in the loan and
receivable categories and in the related impairment
rates compared to the previous years’ figures and
discussing the results with the relevant internal
departments;
•
assessing the appropriateness of the disclosures
about loans and receivables with customers
recognised under financial assets measured at
amortised cost.
Measurement of financial assets and liabilities at fair value levels 2 and 3
Notes to the accounts “Part A – Accounting policies”: paragraphs A.2.1 “Financial assets at fair value
through profit or loss”, A.2.2 “Financial assets at fair value through other comprehensive income”, A.2.4
“Hedge accounting”, A.2.12 “Financial liabilities held for trading”, A.2.13 “Financial liabilities designated at
fair value” and A.4 “Information on fair value”
Notes to the accounts “Part B - Balance sheet - Assets”: sections 2 “Financial assets at fair value through
profit or loss”, 3 “Financial assets at fair value through other comprehensive income” and 5 “Hedging
derivatives”
Notes to the accounts “Part B - Balance sheet - Liabilities”: sections 2 “Financial liabilities held for
trading”, 3 “Financial liabilities designated at fair value” and 4 “Hedging derivatives”
Notes to the accounts “Part C - Income statement”: sections 4 “Gains (losses) on financial assets and
liabilities held for trading”, 5 “Fair value adjustments in hedge accounting” and 7 “Net gains (losses) on
financial assets/liabilities at fair value through profit or loss”
Notes to the accounts “Part E - Information on risks and related hedging policies”: sections 2 “Market
risks” and 3 “Derivative instruments and hedging policies”
Key audit matter
Audit procedures addressing the key audit matter
Trading and holding financial instruments are two of the
bank’s core activities. The separate financial
statements at 31 December 2024 include financial
assets and financial liabilities at fair value totalling
€92,986 million and €48,640 million, respectively.
These financial assets and liabilities comprise assets
and liabilities measured at fair value of €52,454 million
and €46,422 million, respectively, for which there is no
quoted price on an active market and which the bank’s
directors have classified at levels 2 and 3 of the fair
value hierarchy.
Our audit procedures included:
•
gaining an understanding of the bank’s processes
and IT environment in relation to the trading,
classification and measurement of financial
instruments;
•
assessing the design and implementation of
controls and performing procedures to assess the
operating effectiveness of material controls,
especially in relation to the measurement of
financial instruments with fair value levels 2 and 3,
1061
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
UniCredit S.p.A.
Independent auditors’ report
31 December 2024
Key audit matter
Audit procedures addressing the key audit matter
Measuring fair value levels 2 and 3 financial
instruments requires a high level of judgement given
the complexity of the models and parameters used.
Such complexity is affected by the heightened
geopolitical uncertainties and their impact on the main
economic and financial variables.
For the above reasons, we believe that the
measurement of financial assets and liabilities at fair
value levels 2 and 3 is a key audit matter.
also in the light of the financial effects of the
geopolitical situation;
•
for a sample of financial instruments with fair value
levels 2 and 3, assessing the reasonableness of
the parameters used by the directors for their
measurement, also in the light of the financial
effects of the geopolitical situation; we carried out
these procedures with the assistance of experts of
the KPMG network;
•
analysing the changes in the composition of the
financial instrument portfolios compared to the
previous year end and discussing the results with
the relevant internal departments;
•
assessing the appropriateness of the disclosures
about financial instruments and related fair value
levels.
Trading centralisation project
Notes to the accounts “Part B - Balance sheet - Assets”: section 2 “Financial assets at fair value through
profit or loss”
Notes to the accounts “Part B - Balance sheet - Liabilities”: section 2 “Financial liabilities held for trading”
Notes to the accounts “Part C - Income statement”: sections 4 “Gains (Losses) on financial assets and
liabilities held for trading” and 5 “Fair value adjustments in hedge accounting”
Notes to the accounts “Part G - Business combinations”: section 1 “Business combinations completed in
the year”
Key audit matter
Audit procedures addressing the key audit matter
During the accounting period ended as at 31 December
2024, the group launched the TEC (trading engine
centralisation) project.
The project aims to transfer the entire business unit
related to the trading of financial instruments from
UniCredit Bank GmbH to UniCredit S.p.A., thereby
centralising the management of trading business and
the related risks with UniCredit S.p.A. and revising the
Client Risk Management department’s business model.
The project envisages the transfer of both financial
assets and liabilities and business units from UniCredit
Bank GmbH to UniCredit S.p.A. in waves from 2024 to
2026.
Accordingly, the securities and interest rate derivatives
portfolio and the brokerage business were transferred
on 15 July 2024 and 1 November 2024, respectively.
Our audit procedures included:
•
gaining an understanding of the transaction and
assessing compliance with applicable regulations
and the correct application of the relevant
standards;
•
analysing the contract documents relating to the
transaction;
•
assessing the effects of the transaction on the
bank’s processes and internal controls; we carried
out these procedures with the assistance of
experts of the KPMG network;
•
assessing the design and implementation of
controls and testing the operating effectiveness of
material controls, especially checking whether the
1062
UniCredit 2024 Annual Reports and Accounts
UniCredit S.p.A.
Independent auditors’ report
31 December 2024
Key audit matter
Audit procedures addressing the key audit matter
The project involves the transfer of additional portfolios
in 2025 and 2026.
During our audit, we paid particular attention to the
legal and accounting aspects of the transaction, as well
as the 2024 asset and liability transfer process. This
was necessary given the operating complexity of the
process and the possible impact on the consolidated
financial statements of the potential risk of incomplete
and inaccurate migration of the assets and liabilities
transferred in 2024.
transferred financial instruments had been correctly
and accurately recognised in the accounting and
management records;
•
checking the completeness and accuracy of the
accounting records prepared by the bank at the
date of the transfer, including the reconciliation with
the closing balances prepared by UniCredit Bank
GmbH and UniCredit Bank GmbH - Milan branch
and with management records;
•
assessing the appropriateness of the disclosures
about the transaction.
Responsibilities of the bank’s directors and audit committee for the separate financial
statements
The directors are responsible for the preparation of separate financial statements that give a true and fair
view in accordance with the International Financial Reporting Standards issued by the International
Accounting Standards Board and endorsed by the European Union, as well as the Italian regulations
implementing article 9 of Legislative decree no. 38/05 and article 43 of Legislative decree no. 136/15
and, within the terms established by the Italian law, for such internal control as they determine is
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
The directors are responsible for assessing the bank’s ability to continue as a going concern and for the
appropriate use of the going concern basis in the preparation of the separate financial statements and for
the adequacy of the related disclosures. The use of this basis of accounting is appropriate unless the
directors believe that the conditions for liquidating the bank or ceasing operations exist, or have no
realistic alternative but to do so.
The audit committee is responsible for overseeing, within the terms established by the Italian law, the
bank’s financial reporting process.
Auditors’ responsibilities for the audit of the separate financial statements
Our objectives are to obtain reasonable assurance about whether the separate financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISA Italia will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these separate financial statements.
As part of an audit in accordance with ISA Italia, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
1063
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
UniCredit S.p.A.
Independent auditors’ report
31 December 2024
•
identify and assess the risks of material misstatement of the separate financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control;
•
obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the bank’s internal control;
•
evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors;
•
conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the bank’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to
the related disclosures in the separate financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors’ report. However, future events or conditions may cause the bank to cease to continue as a
going concern;
•
evaluate the overall presentation, structure and content of the separate financial statements,
including the disclosures, and whether the separate financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance, identified at the appropriate level required by ISA
Italia, regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with the ethics
and independence rules and standards applicable in Italy and communicate with them all relationships
and other matters that may reasonably be thought to bear on our independence, and where applicable,
the measures taken to eliminate those threats or the safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the separate financial statements of the current year and are,
therefore, the key audit matters. We describe these matters in our auditors’ report.
Other information required by article 10 of Regulation (EU) no. 537/14
On 9 April 2020, the bank’s shareholders appointed us to perform the statutory audit of its separate and
consolidated financial statements as at and for the years ending from 31 December 2022 to 31
December 2030.
We declare that we did not provide the prohibited non-audit services referred to in article 5.1 of
Regulation (EU) no. 537/14 and that we remained independent of the bank in conducting the statutory
audit.
1064
UniCredit 2024 Annual Reports and Accounts
UniCredit S.p.A.
Independent auditors’ report
31 December 2024
We confirm that the opinion on the separate financial statements expressed herein is consistent with the
additional report to the audit committee prepared in accordance with article 11 of the Regulation
mentioned above.
Report on other legal and regulatory requirements
Opinion on the compliance with the provisions of Commission Delegated Regulation
(EU) 2019/815
The bank’s directors are responsible for the application of the provisions of Commission Delegated
Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single
electronic reporting format (ESEF) to the separate financial statements at 31 December 2024 to be
included in the annual financial report.
We have performed the procedures required by Standard on Auditing (SA Italia) 700B in order to express
an opinion on the compliance of the separate financial statements with Commission Delegated
Regulation (EU) 2019/815.
In our opinion, the separate financial statements at 31 December 2024 have been prepared in XHTML
format in compliance with the provisions of Commission Delegated Regulation (EU) 2019/815.
Opinion and statement pursuant to article 14.2.e)/e-bis)/e-ter) of Legislative decree
no. 39/10 and article 123-bis.4 of Legislative decree no. 58/98
The bank’s directors are responsible for the preparation of the reports on operations and on corporate
governance and ownership structure at 31 December 2024 and for the consistency of such reports with
the related financial statements and their compliance with the applicable law.
We have performed the procedures required by Standard on Auditing (SA Italia) 720B in order to:
•
express an opinion on the consistency of the report on operations and certain specific information
presented in the report on corporate governance and ownership structure required by article 123-
bis.4 of Legislative decree no. 58/98 with the separate financial statements;
•
express an opinion on the consistency of the report on operations and certain specific information
presented in the report on corporate governance and ownership structure required by article 123-
bis.4 of Legislative decree no. 58/98 with the applicable law;
•
issue a statement of any material misstatements in the report on operations and certain specific
information presented in the report on corporate governance and ownership structure required by
article 123-bis.4 of Legislative decree no. 58/98.
In our opinion, the report on operations and the specific information presented in the report on corporate
governance and ownership structure required by article 123-bis.4 of Legislative decree no. 58/98 are
consistent with the bank’s separate financial statements at 31 December 2024.
Moreover, in our opinion the report on operations and the specific information presented in the report on
corporate governance and ownership structure required by article 123-bis.4 of Legislative decree no.
58/98 have been prepared in compliance with the applicable law.
1065
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
UniCredit S.p.A.
Independent auditors’ report
31 December 2024
With reference to the above statement required by article 14.2.e) of Legislative decree no. 39/10, based
on our knowledge and understanding of the entity and its environment obtained through our audit, we
have nothing to report.
Milan, 24 February 2025
KPMG S.p.A.
Bruno Verona
Director of Audit
1066
UniCredit 2024 Annual Reports and Accounts
UniCredit 2024 Annual Reports and Accounts
1067
1067
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
1068
UniCredit 2024 Annual Reports and Accounts
1068
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Report and resolutions
Ordinary Shareholders’ Meeting resolution
Ordinary Shareholders’ Meeting resolution
The Shareholders' Meeting of UniCredit S.p.A., held in Milan on 27 March 2025, resolved in Ordinary session on the following resolutions.
Approval of the 2024 Financial Statements
The Shareholders' Meeting has approved the Financial Statements of UniCredit S.p.A as at 31 December 2024, along with the Reports of the Board
of Directors, the External Auditors and the Audit Committee.
Allocation of the net profit of the year 2024
The Shareholders' Meeting, in reference to the decisions taken upon approval of the 2024 Financial Statements of UniCredit S.p.A., and on the
basis of the result for the year 2024 of €8,106,471,808.10, resolved to allocate the net profit as follows:
• to cover the interim dividend on the 2024 results paid on 20 November 2024, to the Shareholders holding the outstanding ordinary shares at the
record date of 19 November 2024 for a total amount of €1,440,000,000.00;
• to the Shareholders, a dividend of €1.4764 for each outstanding share and entitled to dividend at payment date, for a maximum amount of
€2,285,538,000.00;
• in favor of UniCredit Foundation an amount of €30,000,000.00 for social, charity and cultural initiatives;
• to the Reserve for social, charity and cultural initiatives aimed at the social and labour inclusion of young people, the promotion of education and
support to communities most impacted by the energy transition, an amount equal to €5,000,000.00;
• to the Reserve related to the medium-term incentive program for Group Staff for an amount of €90,000,000.00;
• to the Statutory Reserve the remaining amount.
Notice of dividend payment
The Dividend will be paid, in accordance with the applicable laws and regulations, on 24 April 2025 with the "ex-dividend date" (coupon n.10) on 22
April 2025, through the Intermediaries participating in the Monte Titoli centralized settlement service. Pursuant to Art.83-terdecies of Legislative
Decree n.58/1998, the shareholders entitled to receive the dividend will be those with evidenced ownership at the end of the accounting day of 23
April 2025 (record date).
Elimination of negative reserves for the components not subject to change by means of their definitive coverage
The Shareholders' Meeting approved the coverage of the negative reserves for a total of €698,553,470.03 through use of the Statutory Reserve for
i) €246,588,541.68 to cover the negative reserve from the payments related to the right of use (usufrutto) contract connected to the Cashes financial
instruments, ii) €194,067,451.68 to cover the negative reserves related to the coupon payments of the Additional Tier 1 instruments and iii)
€257,897,476.67 to cover the negative difference resulting from the early repayment of an Additional Tier 1 instrument in US Dollars and its book
value at the historical exchange rate.
Authorisation to purchase treasury shares aimed at remunerating the shareholders. Consequent and inherent resolutions
The Shareholders' Meeting authorised the Board of Directors, pursuant to Articles 2357 of the Italian Civil Code and 132 of the TUF, to make
purchases, also in part and/or in instalments, for a maximum number of shares of the Company equal to 110,000,000, subject to authorisation by the
ECB.
The purchases of UniCredit shares may be carried out and therefore completed within the earliest of: (a) the term of 18 (eighteen) months from the
date of this shareholder's meeting resolution; and (b) the date of the shareholders' meeting which will be called to approve the financial statements
for the year ending on 31 December 2025.
The purchases of UniCredit shares must be carried at a price that will be determined on a case-by-case basis, in compliance with Italian and
European Union rules, also with regulatory requirements, in force from time to time, it being understood that the purchase price cannot diverge
downwards or upwards by more than 10% from the official price registered by the UniCredit share in the trading session of Euronext Milan,
organized and managed by Borsa Italiana S.p.A., on the day prior to the execution of each individual purchase transaction.
The authorisation of treasury shares is part of the initiatives outlined by the Company functional to implement its shareholders' remuneration policies.
Integration of the Board of Directors
The Shareholders' Meeting has resolved to the integrate the administrative body, as proposed by the Board of Directors, by appointing Ms. Doris
Honold as member of the Board of Directors, different from the members of the Audit Committee, who will hold the office until the expiration of the
current Board of Directors and, therefore, until the Shareholders' Meeting called to approve the 2026 financial statements.
In the candidacy, Ms. Honold declared to be independent pursuant to Legislative Decree no.58/1998 and Article 2399 of the Italian Civil Code, to the
Ministry of Economy and Finance Decree no.169/2020, as well as to the Italian Corporate Governance Code.
There is no available information on any shares held by the Director Ms. Honold.
The curriculum of the new Director will be made available on the Governance section/Corporate Bodies of the Company's website
(www.unicreditgroup.eu).
1069
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Report and resolutions
Ordinary Shareholders’ Meeting resolution
2025 Group Remuneration Policy
The Shareholders' Meeting approved the 2025 Group Remuneration Policy which defines the principles and standards which UniCredit applies in
designing, implementing and monitoring the Group compensation practices, plans and systems.
Remuneration Report
The Shareholders' Meeting approved the Remuneration Report which provides Group compensation-related detailed information on the
remuneration policies, practices and outcomes.
2025 Group Incentive System
The Shareholders' Meeting approved the adoption of the 2025 Group Incentive System which, as required by national and international Authorities,
provides for the allocation of an incentive in cash and/or UniCredit ordinary shares to be granted, subject to the achievement of specific performance
conditions over a multi-year period to a selected group of UniCredit Group employees.
1070
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Report and resolutions
Ordinary Shareholders’ Meeting resolution
UniCredit 2024 Annual Reports and Accounts
1071
1071
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Report and resolutions
Ordinary Shareholders’ Meeting resolution
1072
UniCredit 2024 Annual Reports and Accounts
1072
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Annexes
Annex 1 - Reconciliation between reclassified balance sheet and
income statement accounts and mandatory reporting schedules
Annexes
Annex 1 - Reconciliation between reclassified balance sheet and income statement accounts and mandatory reporting schedules
A reconciliation of the reclassified Balance sheet and profit and loss account to the mandatory reporting schedules, is provided below.
An explanation for the restatement of comparative figures is provided in the previous sections.
Balance sheet
(€ million)
AMOUNTS AS AT
ASSETS
31.12.2024
31.12.2023
Cash and cash balances
13,223
12,301
Item 10. Cash and cash balances
13,223
12,301
Financial assets held for trading
46,265
15,384
Item 20. Financial assets at fair value through profit or loss: a) Financial assets held for trading
46,265
15,384
Loans to banks
19,843
17,908
Item 40. Financial assets at amortised cost: a) Loans and advances to banks
37,486
34,249
less: Debt securities
(17,632)
(16,324)
less: Leasing assets IFRS16
(11)
(17)
Loans to customers
159,558
172,661
Item 40. Financial assets at amortised cost: b) Loans and advances to customers
190,726
207,576
less: Debt securities
(31,296)
(35,051)
less: Leasing assets IFRS16
(69)
(68)
+ Loans (from Item 20 c)
196
204
Other financial assets
137,322
131,294
Item 20. Financial assets at fair value through profit or loss: b) Financial assets designated at fair value
132
132
Item 20. Financial assets at fair value through profit or loss: c) Other financial assets mandatorily at fair
value
6,225
5,752
less: Loans
(196)
(204)
Item 30. Financial assets at fair value through other comprehensive income
39,813
31,636
Item 70. Equity investments
42,341
42,517
+ Debt securities (from Item 40 a)
17,632
16,324
+ Debt securities (from Item 40 b)
31,296
35,051
+ Leasing assets IFRS16 (from Item 40 a)
11
17
+ Leasing assets IFRS16 (from Item 40 b)
69
68
Hedging instruments
(351)
8,887
Item 50. Hedging derivatives
551
10,843
Item 60. Changes in fair value of portfolio hedged items (+/-)
(902)
(1,956)
Property, plant and equipment
3,632
3,730
Item 80. Property, plant and equipment
3,632
3,730
Goodwill
-
-
Item 90. Intangible assets of which: goodwill
-
-
Other intangible assets
1,707
1,580
Item 90. Intangible assets net of goodwill
1,707
1,580
Tax assets
8,502
9,714
Item 100. Tax assets
8,501
9,714
Non-current assets and disposal groups classified as held for sale
39
299
Item 110. Non-current assets and disposal groups classified as held for sale
39
299
Other assets
7,771
8,352
Item 120. Other assets
7,771
8,353
Total assets
397,510
382,110
1073
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Annexes
Annex 1 - Reconciliation between reclassified balance sheet and
income statement accounts and mandatory reporting schedules
continued: Balance sheet
(€ million)
AMOUNTS AS AT
LIABILITIES AND SHAREHOLDERS' EQUITY
31.12.2024
31.12.2023
Deposits from banks
36,909
32,584
Item 10. Financial liabilities at amortised cost: a) Deposits from banks
36,913
32,608
less: Leasing liabilities IFRS16
(4)
(24)
Deposits from customers
201,008
206,660
Item 10. Financial liabilities at amortised cost: b) Deposits from customers
201,766
207,558
less: Leasing liabilities IFRS16
(758)
(898)
Debt securities issued
47,061
46,557
Item 10. Financial liabilities at amortised cost: c) Debt securities in issue
47,061
46,557
Financial liabilities held for trading
38,052
14,311
Item 20. Financial liabilities held for trading
38,052
14,311
Other financial liabilities
11,034
8,182
Item 30. Financial liabilities designated at fair value
10,271
7,260
+ Leasing liabilities IFRS16 (from Item 10 a)
4
24
+ Reclassification of leasing liabilities IFRS16 from Deposits from customers - Item 10 b)
758
898
Hedging instruments
(4,341)
4,547
Item 40. Hedging derivatives
316
11,950
Item 50. Value adjustment of hedged financial liabilities (+/-)
(4,658)
(7,403)
Tax liabilities
9
2
Item 60. Tax liabilities
9
2
Liabilities included in disposal groups classified as held for sale
-
-
Item 70. Liabilities associated with assets classified as held for sale
-
-
Other liabilities
10,050
8,964
Item 80. Other liabilities
7,882
6,950
Item 90. Provision for employee severance pay
289
330
Item 100. Provisions for risks and charges
1,878
1,682
Shareholders' equity:
57,729
60,303
- Capital and reserves
49,622
49,039
Item 110. Valuation reserves
815
658
Item 120. Redeemable shares
-
-
Item 130. Equity instruments
4,958
4,863
Item 140. Reserves
23,899
23,945
Item 145. Advanced dividends (-)
(1,440)
-
Item 150. Share premium
23
23
Item 160. Share capital
21,368
21,278
Item 170. Treasury shares (-)
-
(1,727)
- Stated net profit (loss)
8,106
11,264
Item 180. Profit (Loss) for the period (+/-)
8,106
11,264
Total liabilities and shareholders' equity
397,510
382,110
1074
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Annexes
Annex 1 - Reconciliation between reclassified balance sheet and
income statement accounts and mandatory reporting schedules
Income statement
(€ million)
YEAR
2024
2023
Net interest
6,052
5,822
Item 30. Net interest margin
6,169
5,922
less: Net interest from trading book instruments
(64)
(87)
+ Interest on DBO/TFR/Jubilee (from Item 160 a)
(12)
(15)
+ Derivatives instruments - Economic Hedges - Others - Interest component (from Item 80)
(41)
3
Dividends and other income from equity investments
5,054
3,069
Item 70. Dividend income and similar revenue
5,090
3,086
less: Dividends on equity investments, shares and equity instruments mandatorily at fair value
(35)
(17)
less: Dividends on equity investments - Other
(1)
-
Net fees and commissions
4,371
4,045
Item 60. Net fees and commissions
4,206
3,934
less: Amounts related to credit card distribution agreements
4
-
less: discount associated with services on agreements for credit card distribution and payment services
(11)
-
+ Structuring and mandate fees on issued or placed certificates by the Group and connected derivatives (from Item 80)
(3)
(2)
+ Structuring and mandate fees on issued or placed certificates by the Group (from Item 110)
111
52
+ Mark-up fees on client hedging activities (from Item 80)
64
61
Trading income
502
648
Item 80. Net gains (losses) on trading
837
502
less: Derivatives instruments - Economic Hedges - Others - Interest component
41
(3)
less: Structuring and mandate fees on issued or placed certificates by the Group and connected derivatives
3
2
less: Mark-up fees on client hedging activities
(64)
(61)
Item 90. Net gains (losses) on hedge accounting
(402)
5
Item 100. Gains (Losses) on disposal and repurchase of: b) financial assets at fair value through other comprehensive income
70
147
Item 100. Gains (Losses) on disposal and repurchase of: c) financial liabilities
2
65
Item 110. Net gains (losses) on other financial assets/liabilities at fair value through profit or loss
(50)
(112)
less: Structuring and mandate fees on issued or placed certificates by the Group
(111)
(52)
less: Net Result on Financial Assets mandatorily at fair value - Debt securities related to non-performing loans, included securitizations
50
-
+ Gains (Losses) on disposal and repurchase of financial assets at amortised cost - debt securities (from Item 100 a)
27
50
+ Dividends on equity investments, shares and equity instruments mandatorily at fair value (from Item 70)
35
17
+ Net interest from trading book instruments (from Item 30)
64
87
Other expenses/income
789
893
Item 200. Other operating expenses/income
1,278
1,229
less: Integration costs
4
3
less: Recovery of expenses excluded amounts related to credit card distribution agreements
(542)
(485)
less: Net value adjustments/write-backs on leasehold improvements on non-separable assets
27
27
less: Gain (Losses) on commodities held with a trading intent and on precious stones
10
6
less: Other operating income other - reversal of invoices to be received related to tangible assets
-
(7)
+ Gains (Losses) on disposal and repurchase of financial assets at amortised cost - performing loans (from Item 100 a)
3
138
+ Amounts related to credit card distribution agreements (from item 60)
(4)
-
+ Amounts related to credit card distribution agreements (from item 160)
(6)
-
+ Net provision for risks and charges - Penalties (from Item 170 b)
20
(17)
Ricavi
16,769
14,477
HR costs
(3,136)
(3,052)
Item 160. Administrative expenses: a) staff costs
(3,619)
(3,519)
less: Integration costs
471
452
less: Interest on DBO/TFR/Jubilee
12
15
Non HR costs
(1,500)
(1,539)
Item 160. Administrative expenses: b) Other administrative expenses
(2,243)
(2,385)
less: Contributions to Resolution Funds (SRF), Deposit Guarantee Schemes (DGS), Bank Levy, Life Insurance Guarantee Fund and
Guarantee fees for DTA
255
457
less: Integration costs
23
10
less: Amounts related to credit card distribution agreements
6
-
less: Variable portion of the outsourced NPE recovery costs not recovered from the clients
31
4
+ Net value adjustments/write-backs on leasehold improvements on non-separable assets (from Item 200)
(27)
(27)
+ Tax recovery (from Item 200)
446
402
+ Discount associated with services on agreements for credit card distribution and payment services (from item 60)
11
-
Recovery of expenses
97
84
+ Recovery of expenses excluded amounts related to credit card distribution agreements and Tax recovery (from Item 200)
97
83
Amortisation and depreciation
(691)
(685)
Item 180. Net value adjustments/write-backs on property, plant and equipment
(316)
(369)
less: Impairment/write backs of right of use of land and buildings used in the business
8
36
less: Integration costs
1
2
Item 190. Net value adjustments/write-backs on intangible assets
(420)
(436)
less: Integration costs
36
75
+ Other operating income other - reversal of invoices to be received related to tangible asset (from Item 200)
-
7
Operating costs
(5,229)
(5,192)
GROSS OPERATING PROFIT (LOSS)
11,539
9,285
1075
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Annexes
Annex 1 - Reconciliation between reclassified balance sheet and
income statement accounts and mandatory reporting schedules
YEAR
2024
2023
GROSS OPERATING PROFIT (LOSS)
11,539
9,285
Loan Loss Provisions
(486)
(181)
Item 100. Gains (Losses) on disposal and repurchase of: a) financial assets at amortised cost
(60)
202
less: Gains (Losses) on disposal and repurchase of financial assets at amortised cost - performing loans
(3)
(138)
less: Gains (Losses) on disposal and repurchase of financial assets at amortised cost - debt securities
(27)
(50)
Item 130. Net losses/recoveries on credit impairment relating to: a) financial assets at amortised cost
(414)
(199)
less: Net losses/recoveries on impairment relating to: a) financial assets at amortised cost - debt securities
3
2
Item 130. Net losses/recoveries on credit impairment relating to: b) financial assets at fair value through other comprehensive income
(15)
(11)
less: Net losses/recoveries on credit impairment relating to: b) financial assets at fair value through other comprehensive income - debt
securities
15
11
Item 140. Gains/Losses from contractual changes with no cancellations
10
7
Item 170. Net provisions for risks and charges: a) commitments and financial guarantees given
35
1
+ Variable portion of the outsourced NPE recovery costs not recovered from the clients (from item 160)
(31)
(4)
NET OPERATING PROFIT (LOSS)
11,054
9,104
Other charges and provisions
(243)
(478)
Item 170. Net provisions for risks and charges: b) other net provisions
31
(38)
less: Net provision for risks and charges - Penalties
(20)
17
+ Contributions to Resolution Funds (SRF), Deposit Guarantee Schemes (DGS), Bank Levy, Life Insurance Guarantee Fund and Guarantee
fees for DTA (from Item 160 b)
(255)
(457)
Integration costs
(534)
(541)
+ Administrative expenses - staff costs - integration costs (from Item 160 a)
(471)
(452)
+ Administrative expenses - other administrative expenses - integration costs (from Item 160 b)
(23)
(10)
+ Other operating income/expenses - integration costs (from Item 200)
(4)
(3)
+ Net value adjustments/write-backs on property, plant and equipment on tangible assets - integration costs (from Item 180)
(1)
(2)
+ Net value adjustments/write-backs on intangible assets - Integration costs (from Item 190)
(36)
(75)
Net income from investments
(669)
3,815
Item 220. Profit (Loss) of equity investments
(557)
3,889
Item 230. Net gains (losses) on tangible and intangible assets measured at fair value
(25)
(20)
Item 250. Gains (Losses) on disposal of investments
(1)
-
+ Net losses/recoveries on impairment relating to financial assets at amortised cost - debt securities (from Item 130 a)
(3)
(2)
+ Net losses/recoveries on impairment relating to financial assets at fair value through other comprehensive income - debt securities (from
Item 130 b)
(15)
(11)
+ Impairment/write backs of right of use of land and buildings used in the business (from Item 180)
(8)
(36)
+ Gain (Losses) on commodities held with a trading intent and on precious stones (from Item 200)
(10)
(6)
+ Net Result on Financial Assets mandatorily at fair value - Debt securities related to non-performing loans, included securitizations (from
item 110)
(50)
-
PROFIT (LOSS) BEFORE TAX
9,607
11,900
Income tax
(1,500)
(636)
Item 270. Tax expenses (income) from continuing operations
(1,500)
(636)
Profit (Loss) from non-current assets held for sale after tax
-
-
Item 290. Profit (Loss) after tax from discontinued operations
-
-
NET PROFIT (LOSS) FOR THE PERIOD
8,106
11,264
Goodwill impairment
-
-
Item 240. Goodwill impairment
-
-
STATED NET PROFIT (LOSS)
8,106
11,264
Item 300. Net profit (loss) for the period
8,106
11,264
1076
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Annexes
Annex 2 - Audit fees and other non-audit services
Annex 2 - Audit fees and other non-audit service s
(pursuant to article 149-duodecies, CONSOB Regulation No.11971/99, as supplemented)
(€ million)
DISCLOSURE OF EXTERNAL AUDITORS' FEES - UNICREDIT S.p.A. - FINANCIAL YEAR 2024 - KPMG NETWORK
As prescribed by art.149-duodecies of the Consob Issuers Regulation, the following table gives fees paid in 2024 for audit services rendered by the Auditor and firms in its network.
EXTERNAL AUDITING
SERVICE PROVIDER
SUBSIDIARY ASSIGNING
THE SERVICE
DESCRIPTION OF SERVICE
FEES(*)
NAME OF AUDITING FIRM
COMPANY NAME
Auditing Firm
KPMG S.p.A.
UniCredit S.p.A.
Audit of Company and Consolidated accounts and First Half Report,
accounting checks and foreign branches
3.8
Auditing Firm Total
3.8
External Auditing Total
3.8
CHECKING FOR THE
PURPOSES OF OTHER
OPINIONS
SERVICE PROVIDER
SUBSIDIARY ASSIGNING
THE SERVICE
DESCRIPTION OF SERVICE
FEES(*)
NAME OF AUDITING FIRM
COMPANY NAME
Auditing Firm
KPMG S.p.A.
UniCredit S.p.A.
Limited Assurance on sustainability statement 2024 according to
CSRD, Limited review on Q1 2024 and Q3 2024 Company and
Consolidated Reports, Comfort Letter for the inclusion of year-end
net profit in Common Equity Tier 1 Capital, Assurance Engagement
ISAE 3402, Issuing Comfort Letters concerning bond issues,
Supervisory Fees ECB ISA 805, ISAE 3000R Reasonable
Assurance on Mifid II, Opinion Interim dividend
3.3
Auditing Firm Total
3.3
Network Auditing Firm(s)
KPMG Huazhen LLP, KPMG
Autitores SL, KPMG Audit SRL,
KPMG Česká republika Audit,
s.r.o, KPMG Audyt Sp. z o.o.
UniCredit S.p.A.
Statutory audit of foreign branches Shanghai (liquidated), Madrid,
Bucharest, Prague and Szczecin financial statements according to
local regulations
0.1
Network Auditing Firm(s) Total
0.1
Data Checking Total
3.4
OTHER NON-AUDITING
SERVICES
SERVICE PROVIDER
SUBSIDIARY ASSIGNING
THE SERVICE
DESCRIPTION OF SERVICE
FEES(*)
NAME OF THE AUDITING
FIRM
COMPANY NAME
TYPE
Auditing Firm
KPMG S.p.A.
UniCredit S.p.A.
AUP on quarterly calculation foreign exchange
risk of CIUs, AUP on contributions to the Single
Resolution Fund, AUP on Servicing Report
Capital Mortgages and OBG I
Other services
0.1
Auditing Firm Total
0.1
Network Auditing Firm(s)
Other services
0.0
Network Auditing Firm(s)
0.0
Other Non-Auditing Services
Total
0.1
Grand Total
7.3
Notes:
(*) Excluding VAT and expenses.
1077
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Annexes
Annex 3 - Internal pension funds: statement of changes in the year
and final accounts
Annex 3 - Internal pension funds: statement of changes in the year and final accounts
Internal Pension Funds
As at 31 December 2024 with regard to internal pension funds UniCredit S.p.A. does not maintain commitments to the funds set up for the
employees.
1078
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Annexes
Annex 4 - Securitisation - qualitative tables
Annex 4 - Securitisations - qualitative tables
With specific regard to UniCredit S.p.A. as Originator, reference is made to the Annexes, Annex 3 - Securitisations, qualitative tables of
Consolidated financial statements of UniCredit group, which is herewith quoted entirely.
1079
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Company Report
Company financial statements | Annexes
Annex 5 - Sales of financial assets to investment funds, receiving as
consideration units issued by the same funds - qualitative tables
Annex 5 - Sales of financial assets to investment funds, receiving as consideration units issued by the same funds - qualitative tables
With specific regard to UniCredit S.p.A. as Originator, reference is made to the Annexes, Annex 4 - Sales of financial assets to investment funds,
receiving as consideration units issued by the same Funds, qualitative tables of Consolidated financial statements of UniCredit group, which is
herewith quoted entirely.
1080
UniCredit 2024 Annual Reports and Accounts
Company financial statements | Annexes
Annex 5 - Sales of financial assets to investment funds, receiving
as consideration units issued by the same funds - qualitative tables
UniCredit 2024 Annual Reports and Accounts
1081
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
UniCredit 2024 Annual Reports and Accounts
1081
Company Report
Incorporations of qualitative information by reference
1082
UniCredit 2024 Annual Reports and Accounts
Setting
the benchmark
for excellence
See our microsite for more
information on how we have
progressed against our
UniCredit Unlocked plan
across our key focus areas
1082
UniCredit 2024 Annual Reports and Accounts
Incorporations of qualitative information by reference
Incorporations of qualitative information by reference
The following is the list of the incorporations of qualitative information by reference made by the Consolidated financial statements to the Company
financial statements:
PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS WHERE A
REFERENCE IS PRESENT
DESCRIPTION OF THE PART OF THE COMPANY FINANCIAL STATEMENTS WHERE IS DETECTABLE
THE QUALITATIVE INFORMATION INCORPORATED BY REFERENCE
Notes to the consolidated accounts,
Part B - Information on consolidated
balance sheet - Assets, Section 2 -
Financial assets at fair value through
profit or loss - Item 20
The paragraphs “Information about the units of Atlante Fund and Italian Recovery Fund” and “Schema
Volontario” (Voluntary Scheme) are incorporated by reference to Part B - Balance sheet - Assets, Section 2 -
Financial assets at fair value through profit or loss - Item 20 of the Notes to the accounts.
Notes to the consolidated accounts,
Part B - Information on consolidated
balance sheet - Assets, Section 3 -
Financial assets at fair value through
other comprehensive income - Item 30
The paragraph “Information about the shareholding in Banca d'Italia” is incorporated by reference to
Part B - Balance sheet - Assets, Section 3 - Financial assets at fair value through other comprehensive
income - Item 30 of the Notes to the accounts.
Notes to the consolidated accounts,
Part B - Information on consolidated
balance sheet - Assets, Section 11 -
Tax assets and tax liabilities - Item 110
(Assets) and Item 60 (Liabilities)
The qualitative disclosure of deferred tax assets and liabilities of the Parent Company is incorporated by
reference to Part B - Information on Balance sheet - Assets, Section 10 - Tax assets and tax liabilities - Item
100 (Assets) and Item 60 (Liabilities) of the Notes to the accounts.
Notes to the consolidated accounts,
Part B - Information on consolidated
balance sheet - Liabilities, Section 13 -
Group shareholders’ equity - Items 120,
130, 140, 150, 160, 170 and 180
The paragraphs “12.1 Share capital and treasury shares": breakdown”, “12.2 Share capital - Number of
shares: annual changes”, “12.3 Capital: other information” and “12.5 Equity instruments; composition and
annual changes” are incorporated by reference to Part B - Information on Balance sheet - Liabilities, Section
12 - Shareholders’ equity - Item 110, 130, 140, 150, 160, 170 and 180 of the Notes to the accounts.
Notes to the consolidated accounts,
Part C - Information on consolidated
income statement, Section 21 - Tax
expenses (income) for the period from
continuing operations - Item 300
The qualitative disclosure of tax expenses (income) for the period of the Parent Company is incorporated by
reference to Part C - Income statement, Section 19 -Tax expenses (income) for the period from continuing
operations - Item 270 of the Notes to the accounts.
Notes to the consolidated accounts,
Part E - Information on risks and related
hedging policies, Section 2 - Risks of
the prudential consolidated perimeter,
2.1 Credit risk, Qualitative information
The qualitative disclosure with reference to the perimeter of UniCredit S.p.A., reporting specific credit risks
committees, is incorporated by reference to Part E - Information on risks and related hedging policies,
Section 1 - Credit Risk, Qualitative information, 2. Credit risk management policies, 2.1 Organisational aspects
of the Notes to the accounts.
Notes to the consolidated accounts,
Part E - Information on risks and related
hedging policies, Section 2 - Risks of
the prudential consolidated perimeter,
2.1 Credit risk, Quantitative information,
E. Prudential perimeter - Credit risk
measurement models
The quantitative information of UniCredit S.p.A. on Credit risk measurement model is incorporated by
reference to the paragraph in Part E - Information on risks and related hedging policies, Section 1 - Credit
Risk, Quantitative information, F. Credit risk measurement models of the Notes to the accounts.
Notes to the consolidated accounts,
Part E - Information on risks and related
hedging policies, Section 2 - Risks of
prudential consolidated perimeter,
Section 2.5 - Operational risks
The paragraph “E. Other claims by customers” and the sub-paragraph “Diamond offer” are incorporated by
reference to Part E - Information on risks and related hedging policies, Section 5 - Operational risks of the
Notes to the accounts.
Notes to the consolidated accounts,
Part G - Business combinations,
Section 1 - Business combinations
completed in the year
The paragraph “1.1 Business combinations” is incorporated by reference to Part G - Business combinations,
Section 1 - Business combinations completed in the year of the Notes to the accounts.
1083
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Other
Incorporations of qualitative information by reference
The following is the list of the incorporations of qualitative information made by reference by the Company financial statements to the Consolidated
financial statements:
PART OF THE COMPANY
FINANCIAL STATEMENTS
WHERE A REFERENCE IS
PRESENT
DESCRIPTION OF THE PART OF THE CONSOLIDATED FINANCIAL STATEMENTS WHERE IS DETECTABLE
THE QUALITATIVE INFORMATION INCORPORATED BY REFERRENCE
Report on operations, Results of
the year
The paragraph “Macroeconomic situation, banking and financial markets” is incorporated by reference to the Results
of the group of the Consolidated report on operations,
Report on operations, Results of
the year, Capital and value
management
The qualitative disclosure of “Principles of value creation and disciplined capital allocation” and “Capital
strengthening” is incorporated by reference to Capital and value management, Group results of the Consolidated
report on operations.
Report on operations, Other
information
The paragraph “Share information” is incorporated by reference to the corresponding paragraph in the Group and
UniCredit share historical data series of the Consolidated report on operations.
The paragraphs “Research and development projects”, “Group activities development operations and other corporate
transactions”, “Organisational model” and “Certifications and other communications”, are incorporated by reference to
the Other information of the Consolidated report on operations.
Report on operations,
Subsequent events and Outlook
The paragraph “Subsequent events” and “Outlook” are incorporated by reference to Subsequent event and outlook of
the Consolidated report on operations.
Notes to the accounts, Part A -
Accounting policies, A.2 Main
items of the accounts
The paragraphs relating to main items of the accounts, where applicable, are incorporated by reference to Part A -
Accounting policies, A.2 - Main items of the accounts of the Notes to consolidated accounts.
Notes to the accounts, Part A -
Accounting policies, A.4
Information on fair value
The paragraphs relating to information on fair value, where not otherwise specified, are incorporated by reference to
Part A - Accounting policies, A.4 - Information on fair value of the Notes to the consolidated accounts.
Notes to the accounts, Part B -
Balance sheet - Assets, Section
8 - Property, plant and
equipment - Item 80
The description of the “effects produced by update of appraisals” conducted for fair value evaluation is incorporated
by reference to the paragraph in Part B - Consolidated balance sheet - Assets, Section 9 - Property, plant and
equipment - Item 90 of the Notes to the consolidated accounts.
Notes to the accounts, Part C -
Income statement, Section 10 -
Other administrative expenses -
Item 160
The paragraphs “Contributions to Resolution and Guarantee Funds” and “Guarantee fees for DTA conversion” are
incorporated by reference to Part C - Consolidated income statement, Section 12 Administrative expenses - Item 190
of the Notes to consolidated accounts.
Notes to the accounts, Part E -
Information on risks and related
hedging policies, Introduction
The paragraph “Introduction” is incorporated by reference to the Part E - Information on risks and related hedging
policies of the Notes to consolidated accounts.
Notes to the accounts, Part E -
Information on risks and related
hedging policies,
Section 1 - Credit risk,
Qualitative information
Qualitative information relating to “1. General aspects”, “2. Credit risk management policies”, “3. Non-performing
credit exposure”, “4. Commercial renegotiation of financial assets and forborne exposures” is partially incorporated by
reference to the same paragraphs of Part E - Information on risks and related hedging policies, Section 2 - Risks of
prudential perimeter, 2.1 Credit risk, Qualitative information of the Notes to consolidated accounts.
Notes to the accounts, Part E -
Information on risks and related
hedging policies -
Section 1 - Credit risk,
Quantitative information
Regarding the classification of credit exposure, of loan commitments and financial guarantees given based on
internal and external ratings in force for the UniCredit group reference is made to the paragraph “A.2 Classification of
credit exposure, of loan commitments and financial guarantees given based on internal and external ratings”,
Part E - Information on risks and related hedging policies, Section 2 - Risks of the prudential consolidated perimeter
of the Notes to consolidated accounts.
The paragraph “D. Covered bond transaction” is incorporated by reference to Part E - Information on risks and related
hedging policies, Section 2 - Risks of the prudential consolidated perimeter, 2.1 Credit risk, Qualitative information,
D. Sales transactions of the Notes to consolidated accounts.
1084
UniCredit 2024 Annual Reports and Accounts
Incorporations of qualitative information by reference
PART OF THE COMPANY
FINANCIAL STATEMENTS
WHERE A REFERENCE IS
PRESENT
DESCRIPTION OF THE PART OF THE CONSOLIDATED FINANCIAL STATEMENTS WHERE IS DETECTABLE
THE QUALITATIVE INFORMATION INCORPORATED BY REFERRENCE
Notes to the accounts, Part E -
Information on risks and related
hedging policies,
Section 2 - Market risk
Qualitative information as introduction (“Risk management strategies and processes”, “Structure and organisation”,
“Risk measurement and reporting systems”, “Hedging policies and risk mitigation”, “Internal model for price, interest
rate and exchange rate risk of the Regulatory trading book”) is incorporated by reference to qualitative information of
Part E - Information on risks and related hedging policies, Section 2 - Risk of the prudential consolidated perimeter,
2.2 Market risk of the Notes to consolidated accounts.
Qualitative information of “2.1 Interest rate risk and price risk - Regulatory trading book”, “2.2 Interest rate and price
risk - Banking book” and “2.3 Exchange rate risk” is incorporated by reference to qualitative information of paragraphs
of Part E - Information on risks and related hedging policies, Section 2 - Risk of the prudential consolidated perimeter,
2.2 Market risk of the Notes to consolidated accounts.
Quantitative information of paragraph “3. Regulatory trading portfolio: internal models and other methods for
sensitivity analysis” of Interest rate risk and price risk - Regulatory trading book and of “2. Internal models and other
methodologies for sensitivity analysis” of Exchange rate risk is incorporated by reference to Part E - Information on
risks and related hedging policies, Section 2 - Risk of the prudential consolidated perimeter, 2.2 Market Risk of the
Notes to consolidated accounts.
Information on “Credit spread risk” and “Stress test” is incorporated by reference to Part E - Information on risks and
related hedging policies, Section 2 - Risk of the prudential consolidated perimeter, 2.2 Market risk of the Notes to
consolidated accounts.
Notes to the accounts, Part E -
Information on risks and related
hedging policies,
Section 4 - Liquidity risks
Qualitative information is incorporated by reference to various paragraphs of Part E Information on risks and related
hedging policies, Section 2 - Risk of the prudential consolidated perimeter, 2.4 Liquidity risk of the Notes to
consolidated accounts.
Notes to the accounts, Part E -
Information on risks and related
hedging policies,
Section 5 - Operational risk,
Qualitative information
The paragraph “A. General aspects, operational processes and methods for measuring operational risk” is
incorporated by reference to Part E - Information on risks and related hedging policies, Section 2 - Risk of the
prudential consolidated perimeter, 2.5 Operational risks of the Notes to consolidated accounts.
The paragraph “B. Risks arising from legal disputes” is incorporated by reference to Part E - Information on risks and
related hedging policies, Section 2 - Risk of the prudential consolidated perimeter, 2.5 Operational risks of the Notes
to consolidated accounts.
The paragraph “C. Risks arising from employment law cases” is incorporated by reference to Part E - Information on
risks and related hedging policies, Section 2 - Risk of the prudential consolidated perimeter, 2.5 Operational risks of
the Notes to consolidated accounts.
The paragraph “D. Risks arising from tax disputes is incorporated by reference to Part E - Information on risks and
related hedging policies, Section 2 - Risk of the prudential consolidated perimeter, 2.5 Operational risks of the Notes
to consolidated accounts.
Notes to the accounts, Part E -
Information on risks and related
hedging policies,
Section 5 - Operational risk,
Quantitative information
Quantitative information is incorporated by reference to the relevant paragraph in Part E - Information on risks and
related hedging policies, Section 2 - Risk of the prudential consolidated perimeter, 2.5 Operational risks of the Notes
to consolidated accounts.
Notes to the accounts, Part E -
Information on risks and related
hedging policies,
Section 6 - Other risks
Qualitative information of paragraphs “Other risks included in Economic capital”, “Reputational risk”, “Top and
emerging risks” and “The climate-related and environmental risks” is incorporated by reference to Part E - Information
on risks and related hedging policies, Section 2 - Risk of the prudential consolidated perimeter, 2.6 Other risks of the
Notes to consolidated accounts.
Notes to the accounts, Part F -
Shareholders’ equity
The paragraph “A. Qualitative information” is incorporated by reference to Part F - Consolidated shareholders’ equity
of the Notes to consolidated accounts.
1085
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Other
Incorporations of qualitative information by reference
PART OF THE COMPANY
FINANCIAL STATEMENTS
WHERE A REFERENCE IS
PRESENT
DESCRIPTION OF THE PART OF THE CONSOLIDATED FINANCIAL STATEMENTS WHERE IS DETECTABLE
THE QUALITATIVE INFORMATION INCORPORATED BY REFERRENCE
Notes to the accounts, Part H -
Related-party transactions
The paragraph “Introduction” and the qualitative information of paragraph “2. Related-party transactions” are
incorporated by reference to Part H - Related-party transactions of the Notes to consolidated accounts.
Notes to the accounts, Part I -
Share-based payments
The paragraph “1. Description of payment agreements based on own equity instruments” is incorporated by reference
to Part I - Shared base payments, A. Qualitative information of the Notes to consolidated accounts.
The paragraph “1. Annual changes” is incorporated by reference to Part I - Shared base payments, B. Quantitative
information of the Notes to consolidated accounts.
Annex 4 - Securitisations -
qualitative tables
Information is incorporated by reference to information in Annex 3 - Securitisations - qualitative tables of the
Consolidated financial statements.
Annex 5 - Sales of financial
assets to investment funds,
receiving as consideration units
issued by the same funds -
qualitative tables
Information is incorporated by reference to information in Annex 4 - Sales of financial assets to investment funds,
receiving as consideration units issued by the same funds - qualitative tables of the Consolidated financial
statements.
1086
UniCredit 2024 Annual Reports and Accounts
Incorporations of qualitative information by reference
UniCredit 2024 Annual Reports and Accounts
1087
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
UniCredit 2024 Annual Reports and Accounts
1087
Other
1088
UniCredit 2024 Annual Reports and Accounts
See our microsite for more
information on how we have
progressed against our
UniCredit Unlocked plan
across our key focus areas
Setting
the benchmark
for excellence
1088
UniCredit 2024 Annual Reports and Accounts
Glossary
Glossary
ITEM
DESCRIPTION
ABCP Conduits - Asset Backed
Commercial Paper Conduits
Asset Backed Commercial Paper Conduits are a type of “SPV - Special Purpose Vehicle” (refer to item) set up to securitise
various types of assets and financed by Commercial Paper.
Commercial Paper generally matures in 270 days, with payment of principal and interest depending on the cash flow
generated by the underlying assets.
ABCP Conduits may be single-sellers or multi-sellers according to the number of issues they make. Conduits generally
require several SPVs. The first-level vehicles issue the Commercial Paper and finance one or more second-level vehicles or
Purchase Companies (see item) which purchase the assets to be securitised.
An ABCP Conduit will have the following:
• issues of short-term paper creating a maturity mismatch between the assets held and the paper issued;
• liquidity lines covering the maturity mismatch; and
• security covering default risk in respect of both specific assets and the entire programme.
ABS - Asset Backed Securities
Debt securities, generally issued by an “SPV - Special Purpose Vehicle” (refer to item) guaranteed by assets of various
types such as mortgage loans, consumer credits, credit card receivables, etc. Principal and interest payments are subject to
the performance of the securitised assets and the existence of any further security guaranteeing the bond. ABSs are
divided into tranches (senior, mezzanine and junior) according to the priority with which principal and interest will be paid.
AC
Financial asset amortised at cost.
Acquisition finance
Finance for business acquisition operations. The most common form of Acquisition finance is the leveraged buy-out (refer to
item "Leveraged finance").
Allocated capital
It represents the amount of capital absorbed by the Group and the Divisions to perform their business activities and to cover
all the types of related risks. It is measured by Regulatory Capital obtained by multiplying (i) risk-weighted assets by (ii)
target Common Equity tier 1 ratio, plus certain regulatory deductions (e.g. shortfall and securitisations).
ALM - Asset & Liability Management Integrated management of assets and liabilities, designed to allocate resources in such a manner as to optimise the
risk/return ratio.
AMA - Advanced Measurement
Approach
Applying this methodology the operational risk requirement is obtained with calculation models based on operational loss
data and other evaluation elements collected and processed by the bank. Admittance threshold and specific suitability
requirements have been provided for the use of the standardised and advanced approaches. For the AMA approach the
requirements concern, beside the management system, also the measurement system.
Asset management
Activities of management of the financial investments of third parties.
Audit
Process of controlling a company's activities and accounting, carried out either by an internal body (internal audit) or by an
external firm of auditors (external audit).
Back-testing
Statistical technique which entails the comparison of model estimates of risk parameters with the ex-post empirical
evidences.
Bad Loans
Exposures to borrowers in a state of insolvency (even when not recognised in a court of law) or in an essentially similar
situation, regardless of any loss forecasts made by the bank (e.g. irrespective of the presence of any protection covering
the exposures).
Bank Levy
Charges applied at national level specifically to financial institutions, mainly based on balance sheet figures, or parts of it.
Banking Book
Portfolio that identifies the technical forms of lending and funding typical of the core business of the bank, including
consumer and residential loans, investments in securities, deposits, etc.
Basel 2
New international capital agreement redefining the guidelines for determining the minimum capital requirements for banks.
Such prudential regulation, which came into force in Italy in 2008, is based on three pillars.
Pillar 1
While the objective of a level of capitalization equivalent to 8% of the risk-weighted exposures remains unchanged, a new
set of rules has been defined for measuring the typical risks associated with banking and financial activities (credit risk,
counterparty risk, market risk and operational risk) which provides for alternative calculation methods characterised by
different levels of complexity, with the ability to use internally developed models subject to prior authorization by the
Regulatory Authority;
Pillar 2
This requires the banks to have processes and tools for determining the adequate level of total internal capital (Internal
Capital Adequacy Assessment Process - ICAAP) for covering all types of risk, including risks other than those covered by
the overall capital requirement (Pillar 1), within the framework of an evaluation of current and future exposure that takes
account of strategies and of changes in the reference context. It is the Regulatory Authority's task to examine the ICAAP
process, formulate an overall judgment and, where necessary, apply the appropriate corrective measures;
Pillar 3
It refers to the obligations to publish information concerning capital adequacy, exposure to risks, and the general
characteristics of the systems used for identifying, measuring and managing those risks.
Basel 3
As a consequence of the crisis that, since 2008 has hit the financial markets, the Basel Committee on Banking Supervision
has approved the substantial enhancement of the minimum capital requirements and the changes to the rules on the
liquidity of banks (Basel 3) by providing for the gradual introduction of the new prudential requirements as at 1 January
2014. These rules have been implemented at the European level through the CRD IV “Package”.
Best practice
Behaviour commensurated with the most significant experience and/or the best level of knowledge achieved in relation to a
given technical or professional field.
BRRD -Bank Recovery and
Resolution Directive
European Directive that introduced harmonised rules on the recovery and resolution of credit institutions and investment
firms.
1089
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Other
Glossary
ITEM
DESCRIPTION
CDS - Credit Default Swap
A derivative in which a seller of protection engages, for a fee, to pay the buyer of protection a fixed amount should a certain
event indicating a deterioration of the creditworthiness of a reference entity occur.
CGU - Cash Generating Unit
A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are clearly independent
of the cash inflows from other assets or groups of assets.
CIU - Collective Investment
Undertakings
Collective Investment Undertaking means an "UCITS - Undertakings for Collective Investment in Transferable Securities"
(refer to item) that may be constituted in accordance with contract law as common funds (managed by management
companies), trust law (as unit trusts), or statute as investment companies, AIF (Alternative Investments Fund) or non-EU
AIF.
Commodity risk
The risk that the value of the instrument decreases due to commodity prices (e.g. gold, crude oil) changes.
Common Equity Tier 1 Capital
Refer to the content reported in the UniCredit Group Disclosure (Pillar III) in the Own Funds chapter.
Common Equity Tier 1 Capital Ratio Refer to the content reported in the UniCredit Group Disclosure (Pillar III) in the Own Funds chapter.
Corporate
Customer segment consisting of medium to large businesses.
Cost of risk
Based on reclassified P&L and Balance Sheet, it is calculated as the annualised ratio between loan loss provisions and
average net volumes of loans and receivables with customers (including active repos, excluding debt securities and IFRS5
reclassified assets). It is one of the indicators of the bank assets’ level of risk: the lower the ratio, the less risky the bank
assets.
Cost/Income Ratio
The ratio between operating expenses and operating income. It is one of the main key performance indicators of the bank’s
efficiency: the lower the ratio, the more efficient the bank.
Counterparty Credit Risk
The risk that the counterparty to a transaction involving financial instruments might default prior to completing all agreed
cash-flows exchanges.
Covered bond
A bond which, as well as being guaranteed by the issuing bank, is also covered by a portfolio of mortgages or other high-
quality loans transferred, to this end, to a suitable SPV (refer to item).
CRD - Capital Requirement Directive Directives (EU) 2006/48 and 2006/49, incorporated into Banca d’Italia Circular No.263/2006 of 27 December 2006 as
amended.
The CRD IV “Package” has replaced the two aforementioned Directives and consists of the Directive (EU) 2013/36 on the
taking up of the business of credit institutions and prudential supervision and the Regulation (EU) 575/2013 on prudential
requirements, incorporated into Banca d’Italia Circular No.285 of 17 December 2013 as amended.
CRD V
Directive (EU) 2019/878 of 20 May 2019 amending Directive 2013/36/EU (CRD IV).
Credit Quality Step (or
creditworthiness)
Classification of counterparties used to assign risk weights under external rating based approaches for credit risk.
Credit risk
The risk that a change in the creditworthiness of a counterparty, the value of the guarantees provided by it or the margins
used by it in the event of insolvency might produce an unexpected change in the value of the bank's credit position.
Creditworthiness (or Credit quality
step)
Refer to item "Credit quality step".
CRM
Credit Risk Mitigation is a set of techniques, contracts accessories to the loan or other instruments (e.g. securities,
guarantees), which allows a reduction of the credit risk capital requirements.
CRR - Capital Requirements
Regulation
Regulation (EU) 575/2013 of the European Parliament and of the Council of 26 June 2013, and subsequently amendment
in Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019 (CRR2), on prudential
requirements for credit institutions and investment firms and that amending Regulation (EU) 648/2012.
CRR2
Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019 (CRR2) amending Regulation
(EU) 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities,
counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings,
large exposures, reporting and disclosure requirements, and Regulation (EU) 648/2012 (refer also to CRR definition).
Currency risk
The risk that the value of the instrument decreases due to foreign exchange rates changes.
CVA - Credit Valuation Adjustment
Adjustment to the valuation of a portfolio of transactions reflecting the market value of the counterparties' credit risk.
Cyber security risk
Cyber security risk is the probability of exposure or loss resulting from a cyber-attack or data breach on the organization.
Daily VaR
It reflects the Value at Risk risk measures calibrated to a 1-day holding period to compare with the 99% confidence level
with its trading outcomes.
Default
A party's declared inability to honor its debts and/or the payment of the associated interest.
Duration
This is generally calculated as the weighted average of the maturities for payment of the interest and capital associated with
a bond, and represents an indicator of the interest rate risk to which a security or a bond portfolio is subject.
EAD - Exposure At Default
With reference to the on-balance and off-balance sheet positions, EAD is defined as the estimation of the future value of an
exposure at the time of the debtor’s default. Only banks that meet the requirements for adopting the "IRB - Internal Rating
Based" (refer to item) advanced approach are allowed to estimate EAD. Other banks are required to refer to regulatory
estimations.
Earnings at risk
The change in interest rates affects earnings by changing the net interest income and, depending on the accounting
treatment of the individual balance sheet items, it can be reflected directly in equity, following the change in their market
value.
EBA - European Banking Authority
The European Banking Authority is an independent EU Authority which works to ensure effective and consistent prudential
regulation and supervision across the European banking sector. Its overall objectives are to maintain financial stability in the
EU and to safeguard the integrity, efficiency and orderly functioning of the banking sector.
1090
UniCredit 2024 Annual Reports and Accounts
Glossary
ITEM
DESCRIPTION
ECB - European Central Bank
Central bank for Europe's single currency, the euro. The ECB's main task is to preserve the purchasing power of the single
currency thus ensuring the maintenance of price stability in the Euro area.
Economic capital
Measure of risk representing the estimate of the capital necessary to cover the unexpected losses (i.e., losses in excess of
the expected ones) that could occur with a certain confidence level and time horizon.
Economic value (interest rate risk)
In the interest rate risk the economic value can be viewed as the present value of expected cash flows stemming from
interests bearing assets and liabilities. Changes in the interest rates can impact their present value and, in turn, can cause
changes of the economic value.
EL - Expected Losses
Amount of credit risk exposures expected to be lost for a default event of the obligor in a time horizon of one year.
Eligible Collateral
Refers to collateral which allows a reduction of the credit risk capital requirements.
ELOR - Expected Losses on
Revenues
ELOR is a ratio estimated, for the Group and for the main legal entities, with a statistical model, based on the historical
losses time series, forward looking factors and the budget revenues.
EPS - Earnings Per Share
An indicator of a company’s profitability calculated as: Net Profit divided by Average total outstanding shares (excluding
treasury shares and shares held under a contract of usufruct).
Equity risk
The risk that the value of the instrument decreases due to stock or index prices changes.
ESG - Environmental, Social and
Governance
Refers to criteria used to measure the environmental, social and governance impact of the company and highlight the
sustainability of its initiatives.
EU Paris-aligned Benchmarks (PAB) Paris-aligned benchmarks are indices whose constituent companies are aligned with the Paris Agreement, which sees to
limit the rise in global temperatures to well below 2°C above pre-industrial levels, and to pursue efforts to keep the rise to
1.5°C. An EU Paris-aligned benchmark is made of underlying assets that are selected in such a manner that the resulting
benchmark portfolio’s greenhouse gases emissions are aligned with the long-term global warming target of the Paris
Climate Agreement and is also constructed in accordance with the minimum standards laid down in the delegated acts.
EU Taxonomy
The EU Taxonomy is a classification system, establishing a list of environmentally sustainable economic activities. The
Taxonomy Regulation was published in the Official Journal of the European Union on 22 June 2020 and entered into force
on 12 July 2020.
EVA - Economic Value Added
EVA indicates the value created by a company. It expresses the ability to create value in monetary terms and it is equal to
the difference between the Net Profit after AT1/Cashes (refer to item) and the cost of the Allocated Capital. A corrective
factor is applied to divisional Net Profit after AT1/Cashes where capitalization is higher than Group’s target.
Expected Shortfall
Risk measure representing the expected loss of a portfolio or a counterparty calculated in the scenarios of loss exceeding
the VaR.
Factoring
Contract for the sale without recourse (with credit risk borne by the buyer) or with recourse (with credit risk borne by the
seller) of commercial credits to banks or specialist companies, for the purposes of management and collection. It may be
associated with financing in favor of the seller.
Fair value
The sum for which, in a freely competitive market, an item can be exchanged or a liability extinguished between aware and
independent parties.
FINREP
Reporting framework with statistical and financial data defined from the European Banking Authority, an independent EU
Authority which works to ensure a consistent level of prudential regulation and supervision across the European banking
sector.The aim of FINREP is to gather data used from Supervisory Authorities and the European Central Banks for their
supervisory activities.
FL - Forward looking
IFRS9 adjustment that allows to reflect in the credit parameters the expectations about the future evolution of the economic
cycle.
Forbearance/Forborne exposures
According to EBA Implementing Technical Standards, forborne exposures consist of exposures to which forbearance
measures have been extended, i.e. concessions towards a debtor who is facing or about to face difficulties in meeting its
financial commitments (“financial difficulties”).
Forwards
Forward contracts on interest rates, exchange rates or share indices, generally traded on "OTC - Over-the-Counter" (refer
to item) markets, in which the conditions are fixed when the contract is agreed but execution will take place at a
predetermined future date, by means of the collection or payment of differentials calculated with reference to various market
parameters according to the subject of the contract.
FTE - Full Time Equivalent
The number of a company’s full-time employees. Employees not full-time (e.g. Part-time, maternity leave, etc.) are
considered on a pro-rata temporis basis.
Full Revaluation Approach
A methodology behind the historical simulation approach for VaR calculation, when the value of a portfolio is estimated by
the complete revaluation of its value according to the simulation results.
Funding
Provision, in various forms, of the funds necessary to finance business activities or particular financial transactions.
Futures
Standardised contracts whereby the parties undertake to exchange money, transferable securities or goods at a present
price at a future date. These contracts are traded on regulated markets, where their execution is guaranteed.
FVtOCI
Financial asset at Fair Value through Other Comprehensive Income.
FVtPL
Financial Assets at Fair Value through Profit and Loss.
GAR - Green Asset Ratio
Green asset ratio (GAR), which shows the proportion of exposures related to Taxonomy-aligned activities (Reg. (EU)
2020/852 supplemented by Reg. (EU) 2021/2178) compared to the total assets of those credit institutions.
GDP - Gross Domestic Product
Total market value of the products and services produced by Country residents in a given time frame.
GERMAS - Group Ermas
Group platform used to compute Interest Rate Risk (IRR) positions.
1091
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Other
Glossary
ITEM
DESCRIPTION
GHOS - Governors and Heads of
Supervision
This is the oversight body of the Basel Committee on Banking Supervision.
Goodwill
The additional sum paid for the acquisition of an equity interest, equal to the difference between the cost and the
corresponding share of net assets, for the portion not attributable to the identifiable assets of the acquired company.
GW BANKS
IRB calculation model - Group Wide model Financial Institution & Banks.
GW MNC
IRB calculation model - Group Wide Multinational Corporate.
Hedge Fund
Speculative mutual investment fund adopting hedging techniques which generally are not used by ordinary mutual funds, in
order to deliver a constant performance, which is only hardly linked to reference markets. Hedge Funds are distinguished by
a limited number of partners and require a high minimum level of investment.
HQLA - High Quality Liquid Assets
Assets that must: (i) be a property, right, entitlement or interest, held by a credit institution, that may provide cash within 30
days; (ii) not be issued by the credit institution itself or by other bodies such as investment firms, insurance undertakings or
financial holding companies; (iii) be able to have their value determined on the basis of easily available market prices; (iv)
be listed on a recognised exchange, or tradable by a direct sale or simple repurchase agreement.
IAS/IFRS
International accounting standards issued by the International Accounting Standard Board (IASB), a private international
body established in April 2001, involving representatives of the accounting professions of the principal countries and, as
observers, the European Union, IOSCO (International Organisation of Securities Commissions) and the Basel Committee.
This body is the successor of the International Accounting Standards Committee (IASC), set up in 1973 to promote
harmonisation of the rules for the preparation of company accounts. When the IASC became the IASB, it was decided,
among other things, to name the new accounting principles "International Financial Reporting Standards" (IFRS).
At international level, work is currently underway to harmonise the IAS/IFRS with the US GAAP - United States Generally
Accepted Accounting Principles (Accounting principles issued by the Financial Accounting Statement Board-"FASB",
generally accepted in the USA).
ICAAP - Internal Capital Adequacy
Assessment Process
The discipline of the so-called “Pillar 2” requires banks to implement processes and systems to determine the level of
internal capital adequate to face any type of risk, also different from those provided by the capital requirements (Pillar 1)
rules; in the scope of an assessment of the exposure, actual and future, that has to consider also the strategies and the
evolution of the reference environment.
ILAAP - Internal Liquidity Adequacy
Assessment Process
It requires the banks to have processes and tools for determining the adequate level of total internal liquidity (Internal
Liquidity Adequacy Assessment Process - ILAAP) for covering liquidity risk, within the framework of an evaluation of current
and future exposure that takes account of strategies and of changes in the reference context. It is the Regulatory Authority's
task to examine the ILAAP process, formulate an overall judgment and, where necessary, apply the appropriate corrective
measures.
ILC - Italian Large Corporate
IRB calculation model - Italian Large Corporate.
Impaired loans
Loans are subjected to periodic examination in order to identify those which, following events occurring after their entry in
the accounts (at the market value, normally equal to the disbursed amount including the transaction costs and revenues
directly attributable to the disbursement of the loan), show objective signs of a possible loss of value. This category includes
loans that have been classed as bad, doubtful, restructured or overdue, in accordance with Banca d’Italia rules consistent
with IAS/IFRS (refer to item).
Impairment
Within the framework of the IAS/IFRS (refer to item), this refers to the loss of value of a balance sheet asset, recorded when
the book value is greater than the recoverable value, i.e. the sum that can be obtained by selling or using the asset.
Interest rate risk - (IRR)
Interest rate risk expresses the exposure to unfavorable changes in interest rates on the economic value of the equity and
on the net interest income.
Investor
Any entity other than the "Sponsor" (refer to item) or Originator (refer to item) with exposure to a securitisation.
IRB - Internal Rating Based
Method for determining the capital needed to cover credit risk within the framework of Pillar 1 of "Basel 2" (refer to item).
The rules are applied to the exposures of the banking portfolio. Furthermore, in the IRB methods the risk weightings of the
assets are determined on the basis of the bank's own internal evaluations of the debtors (or, in some cases, of the
transactions). Using systems based on internal ratings, the banks determine the weighted risk exposure. The IRB methods
consist of a basic method and an advanced method, which differ in terms of the risk parameters that the bank must
estimate: in the basic method, the banks use their own estimates for "PD - Probability of Default” and the regulatory values
for the other risk parameters; in the advanced method, the banks use their own estimates for "PD - Probability of Default",
"LGD - Loss Given Default", "CCF - Credit Conversion Factor" and, where provided for, "M - Maturity" (refer to item). The
use of IRB methods for the calculation of capital requirements is subject to authorisation from Banca d’Italia.
IRC - Incremental Risk Charge
Incremental Risk Charge is a measure of potential losses arising from default and migration risks of unsecuritised credit
products over a 1-year capital horizon at a 99.9% confidence level, taking into account the liquidity horizons of individual
positions.
IRS - Interest Rate Swap
Refer to item "Swap".
Joint venture
Agreement between two or more companies for the conduct of a given economic activity, usually through the constitution of
a joint stock company.
Junior, Mezzanine and Senior
exposures
In a securitisation transaction, the exposures may be classified as follows:
• junior exposures are the last to be repaid, and consequently absorb the first loss produced by the securitisation
transaction;
• mezzanine exposures are those with medium repayment priority, between senior and junior;
• senior exposures are the first to be repaid.
1092
UniCredit 2024 Annual Reports and Accounts
Glossary
ITEM
DESCRIPTION
Ke
The cost of equity is the minimum return on investment required by the shareholder. It is the sum of a risk-free rate and an
additional spread remunerating the shareholder for the market risk and the volatility of the share price. The cost of capital is
based on medium/long term averages of market parameters.
KPI - Key Performance Indicators
Set of indicators used to evaluate the performance of a business activity or process.
LCR - Liquidity Coverage Ratio
Ratio of a credit institution’s liquidity buffer to its net liquidity outflows over a 30 calendar day stress period.
Leasing
Contract whereby one party (the lessor) grants to another party (the lessee) for a given period of time the enjoyment of an
asset purchased or built by the lessor at the choice and on the instructions of the lessee, with the latter having the option of
acquiring ownership of the asset under predetermined conditions at the end of the leasing contract.
Leverage ratio
Is a measure which allows for the assessment of institutions’ exposure to the risk of excessive leverage.
Leveraged finance/Leveraged buy-
out
Loans provided mainly to Private Equity funds in order to finance the acquisition of a company through a financial
transaction based on the cash flow generation capacity of such target company. This can result in a higher level of debt and
therefore a higher level of risk. Leveraged finance may be syndicated.
LGD - Loss Given Default
Expected value (which may be conditional upon adverse scenarios) of the ratio, expressed as a percentage, between the
loss giving rise to the default and the amount of exposure at the time of the default “EAD - Exposure At Default”, (refer to
item).
Liquidity risk
The risk of the company being unable to meet its payment commitments due to the inability to mobilise assets or obtain
adequate funding from the market (funding liquidity risk) or due to the difficulty/impossibility of easily liquidating positions in
financial assets without significantly and unfavourably affecting the price because of insufficient depth or temporary
malfunction of the financial market (market liquidity risk).
M - Maturity
The average, for a given exposure, of the residual contractual maturities, each weighted for the relevant amount.
Market risk
The effect that changes in market variables might have on the economic value of the Group's portfolio, where this includes
both the assets held in the Trading Book and those entered in the Banking Book, or the operations connected with the
characteristic management of the commercial bank and its strategic investment choices.
MDA - Maximum Distributable
Amount
Maximum Distributable Amount, i.e. a limit to the distributable profits in order to preserve the Combined Buffer
Requirement.
MREL - Minimum requirement for
eligible liabilities
Minimum requirements for own funds and eligible liabilities, is designed to ensure that there are sufficient resources to write
down or convert into equity relevant financial instruments if a bank or other financial institution is in crisis. This allows the
competent Authorities to intervene quickly in order to maintain the critical operations of that institution, without using tax
money.
Net Profit
Stated Net Profit adjusted for the impacts of the sustainability test on Deferred Tax Assets from tax loss carry forward.
Net Profit after AT1/Cashes
"Net Profit" (refer to item) adjusted for Additional Tier 1 (AT1) and Cashes charges. The result is used for cash dividend
accrual/total distribution, as well as for RoTE and RoAC calculation (refer to items).
NPE - Non-performing exposures
According to EBA Implementing Technical Standards, non-performing exposures are debt instruments and off-balance
sheet exposures which satisfy either or both of the following criteria: (i) material exposures which are more than 90 days
past-due; (ii) the debtor is assessed as unlikely to pay its credit obligations in full without realisation of collateral, regardless
of the existence of any past-due amount or of the number of days past due.
Operational risk
The risk of losses due to errors, infringements, interruptions, damages caused by internal processes or personnel, systems,
or caused by external events. This definition includes legal and compliance risks but excludes strategic and reputational
risk.
For example, losses arising from the following can be defined as operational: internal or external fraud, employment
practices and workplace safety, client claims, products distribution, fines and penalties due to regulation breaches,
damages to the company’s physical assets, business disruption and system failures, process management.
Option
The right, but not the commitment, acquired by the payment of a premium, to buy (call option) or sell (put option) a financial
instrument at a given price (strike price) by or at a determined future date (American option/European option).
Originator
The entity that originated or acquired from third parties the assets to be securitised.
OTC - Over The Counter
Over the counter (OTC) trading consists of the exchange of financial instruments such as shares, bonds, derivatives or
goods directly between two counterparties. The OTC markets do not have standardised contracts or buying/selling
procedures and are not associated with a set of rules (admissions, controls, obligations of information, etc.) like those that
govern the official markets.
Past Due
Problematic exposures that, at the reporting date, are more than 90 days past due on any material obligation, as required
by the relevant prudential regulation. Past due can be determined either at individual debtor or at single transaction level
according to the relevant local prudential regulation.
Payout ratio
It indicates the percentage of “Net Profit” (refer to iem) distributed or to be distributed to shareholders and is determined on
the basis of the company’s self-financing needs and of the return expected by shareholders. Within the "UniCredit
Unlocked" Strategic Plan, the Shareholders remuneration is defined as a combination of dividends and Share Buy-Backs
and the pay-out is computed also as share of the Organic Capital generation
PD - Probability of Default
Probability of a counterparty entering into a situation of "default" (refer to item) within a time horizon of one year.
PEPP - Pandemic Emergency
Purchase Programme
Massive stimulus package from the ECB to support the eurozone economy as a response to the Covid-19 (coronavirus)
crisis.
PIT - Point in time
Calibration type of the credit parameters on a horizon that considers the current economic situation.
1093
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Other
Glossary
ITEM
DESCRIPTION
POCI - Purchased Originated Credit
Impaired
Credit exposures that are already impaired on initial recognition.
Preference shares
Capital instruments that associate forms of remuneration tied to market rates with particularly pronounced subordination
conditions, such as non-recovery in subsequent years of the interest not paid by the bank and bearing a share of its losses
in the event that these produce a significant reduction in the capital requirements. The regulatory authorities set the
conditions under which preference shares may be counted among the core capital of banks and banking groups.
Private equity
Investments in the risk capital of companies, generally unlisted but with high growth potential and the ability to generate
constant cash flows. Investments in private equity include a wide range of operations that vary according to both the
development phase of the company concerned and the investment techniques used. These techniques include closed-end
private equity funds.
Purchase companies
"SPV - Special Purpose Vehicle" (refer to item) used by “ABCP Conduits - Asset Backed Commercial Paper Conduits”
(refer to item) to purchase the assets to be securitised and which are in turn financed by the Conduit vehicle issuing the
commercial papers.
RAF - Risk Appetite Framework
Within the ICAAP processes, RAF represents a managerial tool for ensuring the business evolution towards a sustainable
healthy growth and steering the long- and short-term strategy.
Rating
Evaluation of the quality of a company or its issues of debt securities on the basis of the company's financial soundness
and prospects. This evaluation is made either by specialist agencies or by the bank on the basis of internal models.
Reputational risk
Reputational risk is defined as the current or prospective risk to earnings and capital arising from the adverse perception of
the image of the financial institution on the part of customers, counterparties (including also debt-holders, market analysts,
other relevant parties), shareholders/investors, regulators or employees (stakeholders).
Reputational risk is a secondary risk generated as a "knock-on effect" from risk categories, such as credit, market,
operational and liquidity risks and all others risks types (e.g., business risk, strategy risk, ESG risk which considers the
environmental, social and governance aspects of responsible investments). Reputational risk could also be generated from
material events.
Retail
Customer segment consisting principally of private individuals, self-employed professionals, traders and artisans.
RIC
IRB calculation model - Integrated Corporate Rating.
RIP
IRB calculation model - Integrated Private Rating.
RISB
IRB calculation model - Rating Integrated Small Business (Small Business Integrate Rating).
RMBS
RMBS (Residential Mortgage-Backed Securities): Financial instruments created by bundling together residential mortgage
loans and selling interests in the pool to investors. RMBS provide investors with exposure to the cash flows generated by
mortgage payments made by homeowners.
RNIME - Risk Not in the Model
Engines
Framework that provides an estimate on the completeness of the risk factors included in VaR, SVaR and IRC.
ROA - Return On Assets
Return on assets calculated as ratio between Stated net profit and Total assets. In the interim situations, Stated net profit is
annualised, while period/year-end Total assets are used.
ROAC - Return On Allocated Capital Annualised ratio between the "Net Profit after AT1/Cashes" (refer to item) and the "average allocated capital" (refer to item).
It shows, in percentage terms, the earning capacity per allocated capital unit. A corrective factor is applied to divisional net
profit where capitalisation is higher than Group’s target.
RoTE - Return on Tangible Equity
Annualised ratio between the "Net Profit after AT1/Cashes" (refer to item) and the average "Tangible Equity" (refer to item)
net of Cashes components and deferred tax assets from tax loss carry forward
RWEA - Risk Weighted Exposure
Amounts
Risk Weighted Exposure Amounts of on-balance sheet assets and off-balance sheet items (credit derivatives and
guarantees) is calculated applying to all exposures, unless deducted from own funds, the risk weights in accordance with
the CRR and based on the exposure class to which the exposure is assigned and its credit quality in order to define the
capital requirements.
Scope 1 - Greenhouse Gases (GHG)
emissions
Emissions are direct emissions from owned or controlled sources.
Scope 2 - Greenhouse Gases (GHG)
emissions
Emissions are indirect emissions from the generation of purchased energy.
Scope 3 - Greenhouse Gases (GHG)
emissions
Emissions are all indirect emissions (not included in scope 2) that occur in the value chain of the reporting company.
Securitisation
Transfer of a portfolio of assets to an “SPV - Special Purpose Vehicle” (refer to item) and the issue of securities with various
levels of seniority to meet any default by the underlying assets.
Securitisations can be:
• traditional: method of securitisation whereby transfer of the assets is by means of sale of the portfolio to the “SPV - Special
Purpose Vehicle” (refer to item);
• synthetic: method of securitisation whereby the transfer of assets is by means of credit derivatives or similar security
enabling the risk of the portfolio to be transferred.
Sensitivity
The greater or lesser degree of sensitivity with which certain assets or liabilities react to changes in rates or other reference
parameters.
Sponsor
An entity other than the "Originator" (refer to item) and the "Investor" (refet to item) which sets up and manages an "ABCP
Conduits - Asset Backed Commercial Paper Conduits" (refer to item) programme or other securitisation scheme where
assets to be securitised are acquired from third parties.
1094
UniCredit 2024 Annual Reports and Accounts
Glossary
ITEM
DESCRIPTION
SPV - Special Purpose Vehicle
An entity, partnership, limited company or trust, set up to carry out a set object, such as isolating financial risk or obtaining
special regulatory or tax treatment for specific portfolios of financial assets.
SPV’s operations are accordingly limited by a set of rules designed for this purpose.
In general SPVs’ sponsors do not hold equity in them. The equity is held by other entities in order to ensure that there is no
shareholder relationship with the "Sponsor" (refer to item). SPVs are usually bankruptcy-remote, in that their assets cannot
be claimed by the creditors of the sponsor, even if the latter becomes insolvent.
Stated Net Profit
Net Profit as per Accounting statement
Stress Test
Assessment of bank’ vulnerabilities either in terms of capital or liquidity position in case of possible adverse events, both of
an idiosyncratic nature and related to macroeconomic scenarios.
Subprime (Residential Mortgages)
Although Subprime has no univocal definition, this category includes mortgages granted to borrowers who have had
repayment difficulties in the past, e.g. delayed installments, insolvency or bankruptcy, or who are more likely to default than
the average due to high loan-to-value and installment-to-income ratios.
SVaR - Stressed VaR
Stressed VaR is a quantification of exposures to particular extreme losses that can be inflicted to a Bank during market
tensions, by modeling the portfolio response conditional on historical data from a (continuous 12-month) period of significant
financial stress.
Swap
A transaction that generally consists of the exchange of financial streams between operators according to different
contractual arrangements.
In the case of an interest rate swap (IRS), the counterparties exchange payment streams that may or may not be linked to
interest rates, calculated on a notional principal amount (for example, one counterparty pays a stream on the basis of a
fixed rate, while the other does so on the basis of a variable rate).
In the case of a currency swap, the counterparties exchange specific amounts in two different currencies, with these
amounts being exchanged back in due course according to predefined arrangements that may concern both the capital
(notional) and the streams of interest payments.
Tangible Equity
Shareholders’ equity (including consolidated profit of the period) less intangible assets (goodwill and other intangibles,
including the ones in Discontinued operations), less AT1.
Tier 1 Capital
Refer to the content reported in the UniCredit Group Disclosure (Pillar III) in the Own Funds chapter.
Tier 1 Capital Ratio
Refer to the content reported in the UniCredit Group Disclosure (Pillar III) in the Own Funds chapter.
TLAC -Total Loss Absorbing
Capacity
TLAC represents the indicator of the Total Loss Absorbing Capacity, a new Pillar I requirement established by the
Regulation (EU) 2019/876 (CRR2), entered into force on 27 June 2019, for Global Systemically Important Banks (G-SIBs).
The TLAC standard requires G-SIBs, to hold a sufficient amount of highly loss absorbing liabilities.
TLTRO - Target Long Term
Refinancing operations
Target Long Term Refinancing operations. Non-regular open market operations conducted by the ECB. Operations that
provide financing to credit institutions for periods of up to four years. They offer long-term funding at attractive conditions to
credit institutions in order to further ease private sector credit conditions and stimulate bank lending to the real economy.
Total Capital Ratio
Refer to the content reported in the UniCredit Group Disclosure (Pillar III) in the Own Funds chapter.
Total own funds
Refer to the content reported in the UniCredit Group Disclosure (Pillar III) in the Own Funds chapter.
TSR - Total Shareholder Return
It is the full reward, in terms of capital gain and dividends, that a shareholder gets from holding one share.
TTC - Through the cycle
Calibration type of the credit parameters on a horizon that considers the entire economic cycle.
UCITS - Undertakings for Collective
Investment in Transferable Securities
This term covers open-end real estate investment funds, both Italian and foreign, and investment companies with variable
capital. The latter are joint stock companies that have the sole purpose of collective investment of the assets gathered
through a public offer of their own shares.
UGRM - UniCredit global Risk
Monitor
The pool of software applications, IT structure and database used by the Group for the financial risk analysis.
Unlikely to Pay
The classification in this category is the result of the judgment of the bank about the unlikeliness, without recourse to
actions such as realising collaterals, that the obligor will pay in full (principal and/or interest) its credit obligations. This
assessment should be carried out independently of the presence of any amount (or rate) past due and unpaid.
VaR - Value at Risk
A measure of the risk of potential loss, under a given level of confidence and time horizon, which could occur on a position
or a portfolio.
Warehousing
A preparatory phase of a securitisation transaction during which a “SPV - Special Purpose Vehicle” (refer to item) acquires
assets within a certain period of time until it reaches a sufficient amount to be able to issue an "ABS - Asset Backed
Securities" (refer to item).
1095
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Other
1096
UniCredit 2024 Annual Reports and Accounts
Setting
the benchmark
for excellence
See our microsite for more
information on how we have
progressed against our
UniCredit Unlocked plan
across our key focus areas
1096
UniCredit 2024 Annual Reports and Accounts
Contacts
Contacts
UniCredit S.p.A.
Head Office in Milan
Piazza Gae Aulenti 3 - Tower A
20154 Milan
+39 02 88 62.1
Media Relations:
E-mail: mediarelations@unicredit.eu
Investor Relations:
Tel. +39 02 88621028; e-mail: investorrelations@unicredit.eu
UniCredit S.p.A.
A joint stock company
Registered Office and Head Office: Piazza Gae Aulenti, 3 - Tower A - 20154 Milano, Italy
Share capital €21,453,835,025.48 fully paid in
Registered in the Register of Banking Groups and Parent Company of the UniCredit Banking Group, with cod. 02008.1
Cod. ABI 02008.1
Fiscal Code, VAT number and Registration number with the Company Register of Milan-Monza-Brianza-Lodi: 00348170101
Member of the National Interbank Deposit Guarantee Fund and of the National Compensation Fund
Stamp duty paid virtually, if due - Auth. Agenzia delle Entrate, Ufficio di Roma 1, No.143106/07 of 12.21.2007
1097
UniCredit 2024 Annual Reports and Accounts
Company Report
Other
Strategic Review
Financial Review
Consolidated Report
ESG Review
Other
unicreditgroup.eu