By Cristina Roca

 

UniCredit SpA will return at least 16 billion euros ($18.15 billion) to its shareholders by 2024, it said Thursday, as it set targets for the next three years.

The bank, Italy's second-largest by assets, said it will aim to grow net revenue by about 2% a year.

Return on tangible equity, a key profitability measure for banks, should be around 10% in 2024, UniCredit said. Cost-income ratio should be about 50% the same year.

UniCredit said that, for 2021, it will pay a cash dividend of about 30% of underlying net profit and top it up with share buybacks. Cash dividend will be about 35% of net profit the year after, and thereafter it will be at least 35% of net profit, with share buybacks to top up dividend distributions.

The bank also said it will invest EUR2.8 billion in digital and data capabilities over the span of the plan.

 

Write to Cristina Roca at cristina.roca@wsj.com

 

(END) Dow Jones Newswires

December 09, 2021 04:40 ET (09:40 GMT)

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