MILAN (Reuters) – UniCredit raised its full-year forecast on Wednesday after reporting quarterly results that beat expectations.
The Italian bank raised its profit forecast for 2023, aiming for more than 6.5 billion euros, after guiding in February to a profit of more than 5.2 billion euros.
On the Milan Stock Exchange, the UniCredit title took 6% to 18.67 euros at 07:34 GMT.
Net profit for the first three months was 2.06 billion euros, well above analysts’ average forecast of 1.3 billion euros according to a consensus provided by the bank, thanks to an annual increase in income by 18%.
With eurozone interest rates at a 15-year high, UniCredit said it expects to pocket more than 12.6 billion euros in 2023 thanks to the spread between the rates charged to borrowers and those paid to raise money.
The bank said it would return 5.75 billion euros or more to shareholders through dividends and share buybacks on 2023 results. In February, UniCredit embarked on one of the plans most ambitious capital distribution schemes in Europe.
The strong results of the Italian bank prove the resilience of a sector where a series of bankruptcies this year has shaken investor confidence. Regulators consider UniCredit as a financial player of global systemic importance.
Net interest income for the quarter also beat analysts’ expectations, rising 43.6% year-on-year to 3.3 billion euros.
(Report by Valentina Za, Dina Kartit, edited by Kate Entringer)
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