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1. Company Snapshot

1.a. Company Description

Unicaja Banco, S.A. provides various banking products and services to individuals and companies in Spain and internationally.It offers accounts, payments, and debit and credit cards; mortgages and personal loans; deposit products, stock exchange, pension plans, investment funds and portfolios, and savings insurance policies; and life, home, car, accident, health, and agricultural insurance, as well as SME and retail damage, and corporate liability insurance products.The company also provides cash management, short term and long-term financing, and investment services, as well as remote and mobile banking services.


In addition, it engages in the property development and renewable energies activities; and invests in assets, securities, and financial companies.As of December 31, 2021, it had a network of 1,368 branches in Spain and 1 correspondent office in the United Kingdom.Unicaja Banco, S.A. was founded in 1991 and is headquartered in Málaga, Spain.

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1.b. Last Insights on UNI

Unicaja Banco, S.A. has benefited from the European market's resilience, driven by a potential EU-U.S. trade deal and the European Central Bank's steady interest rate stance. The bank's strong fundamentals and reliable dividend yield make it an attractive proposition for investors seeking stability and income. Additionally, the easing of geopolitical tensions and potential economic stimuli from Germany have created a favorable environment for the bank's operations.

1.c. Company Highlights

2. Unicaja's Q3 2025 Earnings: A Strong Performance

Unicaja's financial performance in the first nine months of 2025 was robust, with a net profit of EUR 503 million, 11.5% above the same period in 2024. The bank's revenue growth was driven by a 4% increase in gross margin, while total provisions fell 19%. Earnings per share (EPS) came in at EUR 0.06, in line with analyst estimates. The bank's return on tangible equity (ROTE) improved to 10% in September 2025, or 12% when adjusted for excess capital. The bank's net interest income was stable in the quarter, growing by 0.2% due to lower cost of deposits and wholesale funding compensating for loan repricing.

Publication Date: Nov -11

📋 Highlights
  • Net Profit Growth:: Net profit rose to EUR 503 million in the first 9 months of 2025, a 11.5% increase compared to the same period in 2024.
  • Solvency Strengthening:: CET1 ratio improved to 16.1%, up 27 basis points, with a MREL ratio of 29.6% reflecting robust capital adequacy.
  • Cost of Risk Reduction:: Cost of risk dropped to 24 basis points in Q3 2025, below initial guidance, with full-year 2025 guidance revised to below 30 basis points.
  • ROTE Improvement:: Return on tangible equity reached 10% in September 2025, rising to 12% when adjusted for excess capital, signaling enhanced efficiency.
  • Fee Growth and Guidance:: Total fees grew 2.8% YoY, driven by non-banking fees, with updated 2025 guidance for net interest income above EUR 1.470 billion.

Revenue Growth Drivers

The bank's revenue growth was supported by a 2% year-on-year improvement in commercial activity, driven by stable loans and deposits and a 24% growth in off-balance sheet funds. Total fees were stable in the quarter and grew 2.8% year-on-year, mainly due to higher income from non-banking fees. As Pablo Gonzalez Martin noted, "non-banking fees will continue to grow, while banking fees will be challenging in 2026 but improve from that point onwards."

Asset Quality and Solvency

Unicaja's asset quality remains strong, with a cost of risk of 24 basis points in the quarter, below initial guidance. The bank's solvency metrics also show a strong position, with a CET1 ratio of 16.1% and a MREL ratio of 29.6%. The bank's liquidity metrics are also robust, with a loan-to-deposit ratio of 70%, an NSFR of 159%, and an LCR of 295%.

Valuation

Using the bank's current price-to-tangible book value (P/TBV) ratio of 0.92, we can infer that the market is pricing in a relatively modest growth outlook. The bank's dividend yield of 6.45% is attractive, suggesting that the stock may be appealing to income investors. Analysts estimate next year's revenue growth at 1.1%, which may be a conservative estimate given the bank's strong performance in the first nine months of 2025.

Outlook

The bank's guidance for the year was updated, with net interest income expected to be above EUR 1.470 billion, and the cost of risk expected to be below 30 basis points for the full year. While the bank's net interest income may decline in the coming quarters due to repricing in the mortgage book, it is expected to improve in the longer term. The bank's focus on developing internal capabilities and exploring new platforms and agreements in areas like private banking and consumer lending may also drive future growth.

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Retail Banking

Expected Growth: 5.0%

Unicaja Banco's 5.0% growth in Retail Banking is driven by its strong brand recognition, expanded branch network, and digital transformation efforts. Additionally, its focus on customer-centric services, competitive pricing, and innovative product offerings have contributed to increased customer acquisition and retention. Furthermore, the bank's strategic partnerships and investments in fintech have enhanced its operational efficiency and risk management capabilities.

7. Detailed Products

Personal Banking

Unicaja Banco's personal banking services provide individuals with a range of financial products and services, including current and savings accounts, credit cards, personal loans, and investment products.

Business Banking

Unicaja Banco's business banking services provide businesses with a range of financial products and services, including business accounts, loans, credit facilities, and cash management solutions.

Corporate Banking

Unicaja Banco's corporate banking services provide large corporations with a range of financial products and services, including corporate lending, treasury management, and risk management solutions.

Private Banking

Unicaja Banco's private banking services provide high net worth individuals with personalized financial advice, investment management, and wealth planning solutions.

Mortgage Loans

Unicaja Banco's mortgage loans provide individuals and businesses with financing solutions for purchasing or refinancing properties.

Credit Cards

Unicaja Banco's credit cards provide individuals and businesses with a convenient and flexible payment method, with rewards and benefits.

Investment Products

Unicaja Banco's investment products provide individuals and businesses with a range of investment solutions, including mutual funds, pension plans, and insurance products.

Insurance Products

Unicaja Banco's insurance products provide individuals and businesses with protection against risks, including life insurance, home insurance, and business insurance.

8. Unicaja Banco, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Unicaja Banco, S.A. is medium due to the presence of alternative financial institutions and digital payment systems.

Bargaining Power Of Customers

The bargaining power of customers for Unicaja Banco, S.A. is low due to the lack of negotiating power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Unicaja Banco, S.A. is medium due to the presence of multiple suppliers of technology and services.

Threat Of New Entrants

The threat of new entrants for Unicaja Banco, S.A. is high due to the increasing trend of fintech companies and digital banking platforms.

Intensity Of Rivalry

The intensity of rivalry for Unicaja Banco, S.A. is high due to the presence of multiple competitors in the banking industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.77%
Debt Cost 8.76%
Equity Weight 53.23%
Equity Cost 8.76%
WACC 8.76%
Leverage 87.86%

11. Quality Control: Unicaja Banco, S.A. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Unicaja Banco

A-Score: 7.1/10

Value: 7.5

Growth: 3.4

Quality: 7.1

Yield: 8.1

Momentum: 10.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
FinecoBank

A-Score: 7.0/10

Value: 3.6

Growth: 7.8

Quality: 8.8

Yield: 6.9

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Banca Sondrio

A-Score: 6.8/10

Value: 6.7

Growth: 4.9

Quality: 6.1

Yield: 8.8

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
BPER Banca

A-Score: 6.7/10

Value: 6.6

Growth: 5.2

Quality: 6.2

Yield: 8.1

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Mediobanca

A-Score: 6.7/10

Value: 5.5

Growth: 5.1

Quality: 7.1

Yield: 10.0

Momentum: 6.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Oberbank

A-Score: 5.2/10

Value: 4.1

Growth: 7.0

Quality: 4.8

Yield: 2.5

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.63$

Current Price

2.63$

Potential

-0.00%

Expected Cash-Flows