Analysis of UniCredit share price

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The banking sector currently generates more revenue than other sectors overall and one of its main advantages lies in the share prices of the major European and international banks round the world on the stock markets. This is particularly the case with Unicredit, which we will be looking at today and whose securities are particularly popular with investors. Find out more about its business and how best to analyse its share price with the essential information you need to know.  

Elements that can influence the price of this asset:

Analysis N°1

In 2017 the Unicredit Group implemented a new strategic plan named ‘Transformer 2019’. This totally new strategic plan had the objective of boosting the competitiveness of this company. It is therefore recommended to monitor the progress of this plan.

Analysis N°2

Another opportunity that the Unicredit Group could benefit from regards the rise in clients’ deposits. We note the current significant increase in these deposits in Italy and indeed throughout Europe. It is clear this could greatly assist Unicredit to rebalance its financial results.

Analysis N°3

We also note the strong aptitude of this group in regard to international expansion with numerous efforts made to penetrate new markets.

Analysis N°4

However we know that the current economic situation in Italy is not particularly favourable to the financial services sector especially with the current crisis and its accompanying decrease in consumption and the level of household debt. It this situation persists then this will negatively impact the financial results of Unicredit.

Analysis N°5

Finally, we also know that the European Union is increasingly demanding and strict regarding financial institutions. Therefore, Unicredit must make significant efforts to face the strengthening of these banking regulations that of course lead to a rise in costs for the majority of European banks.

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General presentation of the Unicredit Company:

Unicredit is an Italian Group that is one of the leaders in the European banking sector. Its activities touch several banking activities including individual and corporate banking, investments, market financing and wealth management. Another part of its revenue is generated by its activities in Poland as well as Central and Eastern Europe.

With no less than 9,000 agencies throughout the world Unicredit manages over 400 billion Euros in deposits and 500 billion Euros in outstanding loans.


Know the competition to Unicredit shares:

Unicredit is still the largest Italian bank and continues its efforts to expand throughout Europe. However it has to face stringent competition from other large banks in this area. Here is a list of the major Italian banking groups that we strongly recommend you learn more about before starting to trade in Unicredit shares online in order to refine your fundamental analysis regarding the Italian banking sector.


Strategic alliances implemented by the Unicredit Group:

Unicredit continues to pursue its development in Italy as well as abroad, notably through strategic alliances with different companies. Here are details on some of the more significant partnerships the group has implemented in recent years.


Introduction and quotation of the Unicredit share price:

As it is quoted on the Italian stock markets, the share price of the Unicredit Company is included in the calculation of the MIB FTSE index.


Economic history

Here are a few events that you should be aware of to be able to correctly analyse the historical stock market charts and thereby make pertinent conclusions and decisions.


The advantages and strong points of Unicredit shares as stock market assets:

Firstly, it should be remembered that the Unicredit group has an advantageous position in its activity sector, which is that of banking. At present this banking group is still the largest in Italy which confers a certain stability against its national competitors.  However Unicredit also benefits from a positive position in Europe itself, outside of its native Italy. This means that this banking group is one of the European leaders in the financial services sector which is obviously a major advantage.

Unicredit also benefits from a strong and recognisable brand name in Italy and indeed throughout Europe. This reputation has contributed to a brand image that has grown stronger over time and has even become a point of reference in certain consumer groups.

From a geographical point of view, it should be noted that the Unicredit Group has successfully expanded its operations throughout Europe and indeed even in other countries worldwide.  Unicredit currently employs no less than 170,000 people in 22 different countries.

To conclude, investors and shareholders in this asset are also equally reassured by the particularly healthy financial situation of the Unicredit Company, whereas the majority of banks face criticism on this point and appear to have trouble respecting the current European standards. We can particularly note as a strong point this bank’s ability to continue decreasing its operating costs over recent successive years.


The disadvantages and weak points of Unicredit shares as stock market assets:

Firstly, although the Unicredit group is renowned as being one of the major financial groups in Europe we also note that the assets it holds are fairly weak in quality which weighs heavily on the investors attitude and means that the company is often criticised and found wanting by analysts.

Concerning the revenue of this group, here we find another major weak point. In fact, the figures relating to the remuneration of this banking group are insufficient and fairly weak relative to the expectations of specialists. The operating profits from the company notably show signs of weakness and display a consistent fall over recent successive years despite the particularly well managed operating costs. Unicredit therefore needs to increase their efforts to achieve a more balanced profitability level.

Despite the recent overhaul of the company’s financial situation, Unicredit continues to experience repercussions of its preceding ill luck. In fact, in 2015 this banking group found itself unable to satisfy the requirements of the SREP regarding funds. This event caused many problems for the company and led to a significant decrease in its share price on the stock markets. Although the situation is more positive and optimistic nowadays numerous investors are still wary regarding this bank. This sanction by the markets was boosted by the announcement regarding the performance for the 2016 financial year. During the course of this year the group displayed signs of weakness with a performance that was generally much weaker than the average shown by the EBA. Still in 2016, the group recorded extremely high non recurring expenses in its annual financial returns.

Frequently Asked Questions

What is the return and profit of Unicredit shares?

Currently, and for the 2019 financial year, the return per share of the Unicredit Company is 7.51%. It was 8.02% in 2018 and the provisional return for 2020 is estimated at 7.87% at present. Relating to the net profit per share it was decided to pay €1.60 per share to shareholders for the 2019 financial year and the profit per share is estimated to be €1.69 for 2020. We note that for 2018 this figure was €1.46 per share.

Where can you find the financial results and information on the Unicredit Group?

If you wish to know the most recent financial data available regarding the Unicredit Group as well as publications, pertinent news and events and announcements or historical financial information then we recommend you visit the investors’ section of the company website. Among the information you can discover here you will notably find the fixed calendar of expected publications and announcements as well as complete and precise annual and quarterly financial results.

What is the annual performance of Unicredit shares?

Over the last year, in 2019, the lowest price of Unicredit shares was €6.42 and the highest share price was €14.44. The average trading volume of this asset per month was 38,749,706 at an average price of €9.27. Of course, this information is likely to change over time and we recommend you stay up to date using the charts directly available from your broker.

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Trade the UniCredit share!
76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.