UniCredit, Italy's second-largest bank, reported a significant increase in profits for the first nine months of 2023, attributing the success to its industrial and cultural transformation. The Milan-based bank saw a 67.7% year-on-year growth in profits, reaching €6.7 billion ($7.1 billion). This upward trend was reflected across all regions.
The third quarter was particularly strong, contributing €2.3 billion to the total profits, marking a 36% year-on-year net profit increase. The bank also exceeded expectations with Q3 net revenues hitting €5.8 billion, a 23.1% YoY increase. This was driven by higher rates and effective deposit management that boosted net interest income to €3.6 billion, a remarkable 45% YoY increase.
Despite these strong results and upward revision of revenue predictions, UniCredit maintained its full-year profit guidance at €7.25 billion. CEO Andrea Orcel attributed the success to the bank's transformation from a network of disparate institutions into one unified group.
On Tuesday, UniCredit's shares climbed as much as 2.1% before settling at a 1.4% increase, while the Italian bank index barely shifted from Monday's close. This comes despite UniCredit's annual surge of 98%, significantly outperforming the index's yearly rise of 48.3%.
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