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UniCredit, Italy’s second-largest bank, announced a significant increase in its second-quarter profit on Wednesday, despite a drop in revenue.
This news comes just a day after the bank retracted its offer to acquire smaller rival Banco BPM, citing government interference.
For the second quarter, UniCredit reported a net profit of €3.3 billion, a nearly 25% rise from €2.68 billion in the same period last year.
Excluding one-off items, net profit was €2.9 billion, an 8% increase that surpassed analysts’ average estimates of €2.5 billion.
However, revenues for the quarter fell by 3.3% to €6.13 billion, impacted by hedging costs related to UniCredit’s stake in Commerzbank.
Looking ahead, UniCredit has raised its net income outlook for 2025 to € 10.5 billion, up from its earlier projection of € 9.3 billion.
The bank described 2025 as a “transitional year” that has turned into its “best year ever.” UniCredit also stated it would initiate a €3.6 billion share buyback “as soon as practicable.”
The withdrawal of its bid for Banco BPM was announced on Tuesday, with UniCredit blaming the Italian government’s “golden power” restrictions.
The bank called the abandoned acquisition a “missed opportunity” for shareholders, ending a prolonged struggle since November between UniCredit, Banco BPM, and the opposing Italian government.
