Common Equity Tier 1 (CET1) ratio of UniCredit 2014-2023

The Common Equity Tier 1(CET1) ratio of UniCredit improved overall from 2014 to 2023, despite with some fluctuations. CET1 ratio of UniCredit increased sharply between 2016 and 2017, growing from 8.15 percent to 13.73 percent. After a small decrease in 2018, the value increased again until when it reached more than 16.6 percent in 2022. As of 2023, CET1 ratio of UniCredit stood at 16.14 percent, with a minor decrease when compared to previous year.

Common Equity Tier 1 (CET1) ratio

The CET1 ratio measures a bank’s capital against its risk-weighted assets and it is an instrument used to gauge a bank's capital strength. The higher the CET1 ratio a bank has, the greater the level of unexpected losses it can absorb before becoming insolvent. In 2018 and 2019, the European Central Bank published its guidelines to improve the continent’s banking system’s resilience and ensure higher stability in the sector. In both years, the minimum requirement for the CET1 ratio was set to 10.6 percent.

UniCredit

Headquartered in Milan, UniCredit ranked as the second largest bank in the country in terms of market capitalization after Intesa San Paolo, Unicredit's largest competitor.