Rome (AFP) – Italy’s second largest bank, UniCredit, beat analyst expectations on Wednesday with record third-quarter profits as higher commissions and cost-cutting measures outweighed lower interest income. The 4.7-percent gain in net profit to 2.6 billion euros ($3.0 billion) easily outstripped the consensus forecast of just under 2.4 billion euros compiled by Bloomberg. Over the first nine months of the year, UniCredit’s net profits rose by 12.9 percent to 8.7 billion euros.
The bank confirmed its 2025 net profit target of 10.5 billion euros, excluding measures to boost future performance, and its medium-term target of surpassing 11 billion euros in 2027. “We are on track to deliver our best year ever,” said chief executive Andrea Orcel. UniCredit stated it “continues to unlock opportunities from recent strategic initiatives, which are expected to further strengthen recurring earnings and capital generation” in 2026 and 2027.
UniCredit surprised markets last year by announcing in September that it had built up a nine-percent stake in its German rival, Commerzbank. Last month, Orcel said the stake would rise to around 30 percent by the end of the year, bringing it closer to a possible takeover, which has provoked uproar in Germany. If the stake rises above 30 percent, UniCredit would be obliged to launch a public share offer.
UniCredit shares fell 2.3 percent in morning trading while Milan stocks were down 0.8 percent overall.
© 2024 AFP
