Italy's second-biggest bank UniCredit has strengthened its 2025 outlook after posting a surprise increase in first-quarter profit, and said it would pursue deals only if they further improved its "unmatched standalone case".
CEO Andrea Orcel has placed UniCredit at the heart of the consolidation wave sweeping Italian finance, with a €14 billion all-share offer for rival Banco BPM and a 6.7% stake in insurer Generali, which UniCredit has said is a financial investment, the same as its 28% stake in Commerzbank.
However, the offer for BPM hangs in the balance after Italy's government imposed strict conditions to clear it, which UniCredit said could be harmful to the bank.
Plans for a Commerzbank takeover face strong opposition from the new German government and the strategy over Generali remains unclear.
UniCredit said fee and trading income, as well as lower costs, drove net profit 8% higher to €2.77 billion during the January-March period, above a €2.36 billion average analyst consensus gathered by the bank.
It said it now expected its 2025 net profit to surpass €9.3 billion, above last year's result net of tax credits, while it had previously said it would broadly match it.
Orcel said in a statement that UniCredit was confident it could improve its profit and distribution guidance for 2025.
