UniCredit reports the best first half in its history

UniCredit SpA, Italy's second-largest bank, reported yesterday a net profit above expectations for the second quarter and also improved its estimates for 2025, AFP reports, according to Agerpres.

In the period April-June 2025, UniCredit achieved a net profit of 3.3 billion euros, up 20.7% compared to the first quarter and 24.8% at an annual rate. This is a higher net result compared to the estimates of analysts interviewed by Bloomberg, who were betting on a net profit of 2.5 billion euros. In contrast, quarterly turnover was 6.12 billion euros, slightly below the estimates of analysts who were betting on a result of 6.17 billion euros, down 3.3% at an annual rate.

In the first six months of this year, UniCredit's net profit was 6.1 billion euros, "transforming a year of transition into the best year in its history," the banking group said in a press release.

"UniCredit achieved excellent financial results, with a record second quarter contributing to the best first half of the bank's history," said CEO Andrea Orcel, noting: "This exceptional performance allows us to revise upwards our objectives for 2025 and our ambitions for 2027, estimating that we will distribute at least 30 billion euros to shareholders, of which at least 15 billion euros in dividends between 2025 and 2027. We look to the future with confidence."

For the full year, UniCredit expects a net profit of 10.5 billion euros, compared to 9.3 billion euros previously.

The record results were announced a day after UniCredit decided to withdraw its takeover bid for Banco BPM, due to constraints imposed by the Italian government, which resorted to the so-called "golden share” to oppose the takeover.

In April, UniCredit had obtained the approval of the European Central Bank (ECB) for the takeover of Banco BPM, a transaction estimated at 14 billion euros. Before the withdrawal of the offer, in an interview with the Italian newspaper La Repubblica, Andrea Orcel stated that UniCredit would continue to try to overcome the obstacles of the Italian government, but if it fails to resolve the problems, the bank would withdraw. The UniCredit official stressed that UniCredit had done everything possible to meet the conditions set by the authorities in Rome for the completion of the transaction, including giving up its activities in Russia, something that the European Central Bank also requested, "but this is not an easy task.”

"We have done more than the ECB asked,” the UniCredit chief said, adding that no other bank had scaled back its Russian operations as much as UniCredit, and none of the buyer offers were acceptable "neither from Russia nor from the West.”

UniCredit has set aside capital to cover potential losses if its Russian assets are nationalized, Orcel explained.

The bid for Banco BPM was one of several hostile takeover bids in Italy's banking sector. Under CEO Andrea Orcel, a veteran of mergers and acquisitions, UniCredit has pursued an aggressive expansion strategy, acquiring a 28 percent stake in German group Commerbank AG and launching a takeover bid for Italian rival Banco BPM. It has also taken a 6.7 percent stake in Generali SpA, Italy's largest insurer, according to Reuters.

The offer for Commerzbank was rejected by the Berlin government and the German bank, and Orcel said that for now the Italian group would remain an investor and would closely follow "Commerzbank's transformation model.”