UniCredit has today posted a much higher than expected quarterly profit and raised its 2025 outlook, a day after ditching a takeover bid for rival Banco BPM which had led Italy's second biggest bank to clash with the government.
UniCredit said last night it was withdrawing the offer, blaming government meddling for altering the process and depriving Banco BPM shareholders, as well as Italy's economy, of a good opportunity.
UniCredit said net profit in the three months to June totalled €2.9 billion net of one-off items and €3.3 billion when including those. That is well above a €2.5 billion forecast in a company-gathered analyst consensus, and up from €2.7 billion a year ago.
UniCredit forecast a net profit in the full year of around €10.5 billion, improving on a previous guidance for a net profit above €9.3 billion.
It said it would pay out to shareholders at least €30 billion in 2025-2027, of which at least half in cash dividends and the rest through share buybacks, depending on potential acquisitions.
Chief executive Andrea Orcel has turbocharged UniCredit's profits in recent years by taking advantage of higher rates and slashing costs, generously rewarding investors to drive up the share price.
The ambitious expansion strategy of the veteran dealmaker, however, has so far failed to yield a target.
Orcel in 2021 walked away from a deal with Italy's government to buy Monte dei Paschi and in recent months clashed with Germany over plans to buy Commerzbank.
