Despite the war in Ukraine, the past year has seen UniCredit operating with more of the purpose and commitment that international banks in central and eastern Europe too often lack.
This is largely thanks to the new strategic objectives that group chief executive Andrea Orcel announced in late 2021. UniCredit’s central and eastern Europe divisions saw an increase in group capital allocation compared with Italy and greater use of revenue growth as a lever to improve profitability. Costs are also less of a focus than they are in markets such as Germany.
The strategy appears to be working. UniCredit’s central and eastern Europe divisions boast net profit for 2022 of €1.7 billion and €750 million respectively, while the divisions’ respective returns on allocated capital were 14.3% and 19.3%. Net operating profit rose by 25% in eastern Europe and by 60% in central Europe.
“Our results confirm that we are on the right path,” says Teodora Petkova, head of central and eastern Europe.