UniCredit delivers record earnings, raises 2025 outlook
The Milan-based lender posted a record net profit of €3.3 billion in the second quarter of 2025, lifting its first-half earnings to €6.1 billion.
Earnings per share surged to €2.16, up 34% year-on-year and well ahead of the €1.55 forecast.
Core revenue rose 1.3% annually to €5.9 billion in the quarter.
According to the bank, these results are transforming what was meant to be a "transitional year into the best year ever."
'UniCredit has achieved outstanding financial results, with a record-breaking Q2 contributing to the best H1 in the bank's history,' said Chief Executive Officer Andrea Orcel.
'We are protected for the future as our low cost of risk, strong asset quality and unmatched overlays safeguard against potential macroeconomic downturns,' he added.
Upgraded outlook and investor payouts
In a further sign of confidence, UniCredit raised its full-year 2025 net profit guidance to approximately €10.5 billion, up from a prior target of more than €9.3 billion. The bank also lifted its net revenue outlook to above €23.5 billion and upgraded its return on tangible equity (ROTE) forecast to around 20%, from previously over 17%.
Longer-term projections were also improved, with 2027 earnings now expected to reach at least €11 billion, up from circa €10 billion. The bank raised its distribution guidance to equal to or above €9.5 billion for 2025, including a cash dividend of at least €4.75 billion. An interim cash dividend of about €2.1 billion is envisaged, representing a 46% increase year-on-year, with the ex-dividend date set for 24 November.
In addition, a €3.6 billion share buy-back programme is slated to commence following the second-quarter results.
Goldman Sachs analyst Chris Hallam praised UniCredit's 'beat and raise' performance, highlighting the bank's continued earnings momentum and shareholder-friendly capital distribution.
Balance sheet resilience and strategic clarity
UniCredit's gross non-performing exposure (NPE) ratio remained stable at 2.6%, while the cost of risk stayed at a low nine basis points in the first half—underscoring the group's asset quality and prudent provisioning.
Separately, UniCredit withdrew its offer for Banco BPM, citing unresolved conditions linked to Italy's golden power regulations.
Orcel noted that the ongoing uncertainty surrounding the authorisation process did not benefit shareholders or the bank, prompting the decision to pull the deal.
While progress had been made with the Italian Administrative Tribunal (TAR), the European Commission's Directorate-General for Competition and the Italian government, the bank concluded that the timeline for resolving the regulatory hurdle exceeded the offer window.
Market reaction and sector momentum
Investors responded positively to the results and upgraded guidance.
UniCredit shares rallied 2.6% in early Wednesday trading to €59.60, bringing year-to-date gains to 54%. The stock surged 56% in 2024 and 85% in 2023, making it one of Europe's best-performing financials.
The Euro STOXX Banks index advanced 1.4%, outperforming the broader Euro STOXX 600, which rose 0.9%.
Peers including Deutsche Bank, Banco Bilbao Vizcaya and Nordea Bank each gained 1.5%, while BNP Paribas rose 1.1% ahead of its second-quarter earnings release on Thursday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
17 minutes ago
- Euronews
Albanese: 'Sanctions against me? An attack on the heart of multilateralism'
Two conferences, one in the lower house on Tuesday and another in the Senate on Thursday - were held to discuss the UN Rapporteur's latest report, titled 'From an Economy of Occupation to an Economy of Genocide.' The initiative was led by the Parliamentary Intergroup for Peace between Palestine and Israel, composed mostly of opposition parties. Francesca Albanese, in a months-long investigation, documents what she calls "the logic of profit", one of the reasons why, she says, "the genocide in Gaza continues". "It is on this theme that I shed light in my latest report," Albanese tells Euronews. "It shows how 48 companies, illustrative of a system, having supported the economy of the Israeli occupation - which has completely deflated the possibility for Palestinians to exist, as a people in a state or as individuals with fundamental rights - now profit from what has become an economy of genocide. And the idea that there are those who profit economically from this is absolutely unbearable", she adds. Albanese, in a conference at the Senate, explained why, in her opinion, Italy is complicit. Justice and the defence of international law, she stressed, have no political affiliation. "The law is crystal clear. In January 2024, the International Court of Justice recognised the risk of genocide", Albanese said, "from there the responsibilities of the Italian government are triggered" "Italy is not a state like the others in Europe: a state silent in the face of genocide. The government', she added, 'and I am sorry to say this as an Italian, is one of the most assiduous voices in defence of its partnership with the State of Israel'. The military industry is under the spotlight in Albanese's investigation.'There is an Italian company like Leonardo,' Albanese told Euronews, 'but in reality, there are also Italian universities and other entities I am investigating.' The Rapporteur also referred to what she describes as 'a crisis of credibility among companies.'She argues that claiming to follow due diligence is 'a promise made to the public, but one that is often not backed up by facts. It's an inconsistency that goes far beyond a moral issue'. Opposition parties call the government's attitude unacceptable, as it has chosen not to take a stand against one of its own citizens, a victim of sanctions. Despite this Albanese reiterates her will to continue his work. "I have just finished an investigation that is costing me a lot and that leaves me unmoved in the defence of legality. I have been - and I hope I will be the last - international official to suffer this punishment. It is an attack on the heart of multilateralism. And, given my southern origins, I know what makes this mafia logic win: silence'. The report also points the finger at companies in the technology sector that have sold products normally intended for civil purposes, but then used in military operations. To clarify responsibility and put an end to the genocide, the report says, the private sector is called to account and international law to ascertain the facts. Meanwhile the director of the Jewish Brigade Museum, Davide Romano, harshly criticised Francesca Albanese's participation in the conferences held in the House and Senate. Linking her presence to the attack that took place in Milan against two French citizens of Jewish origin, Romano called the decision to invite her 'an inappropriate gesture'. 'It seems crazy to me,' he said, 'her report fuels a climate of hatred'.
Euronews
an hour ago
- Euronews
Eurozone unemployment stays at a record low despite economic hurdles
The eurozone's seasonally adjusted unemployment rate was 6.2% in June, stable on May's reading and down from 6.4% in June 2024. According to Eurostat data released on Thursday, the EU's unemployment rate was 5.9% in June 2025, also stable compared with May 2025 and down from 6.0% in June 2024. In total, around 12.97 million people in the EU were unemployed this June, of whom 10.7 million were in the eurozone. Among member states, the jobless rate was lowest in Malta (2.5%), while the highest rate of 10.4% was seen in Spain. Job growth is nonetheless stronger in southern eurozone countries, compared to northern economies that have seen unemployment tick up in recent years. Joblessness decreased in Spain, Italy and Portugal, while the rate remained stable in Germany, France, Belgium and the Netherlands. Countries including Austria, Poland, Denmark, and Finland experienced increases. 'The eurozone economy is facing huge uncertainty now, but business surveys about activity and hiring actually don't look that bad,' said Bert Colijn, ING's chief economist in the Netherlands. 'This makes it likely that unemployment will continue to trend around the current all-time lows. Low unemployment dampens the impact of economic uncertainty on domestic demand, which contributes to our view of continued economic growth in the coming quarters.' Easing inflation Certain member states also released inflation data on Thursday. France's INSEE recorded annual consumer price inflation at 1% in July, unchanged compared to June's annual figure, while price pressures increased by 0.2% month-on-month in July. Italian inflation was unchanged from June's annual figure at 1.7% in July, according to Istat, slightly higher than expectations. On a monthly basis, CPI rose by 0.4%.
Fashion Network
2 hours ago
- Fashion Network
Serge Brunschwig leaves Jil Sander
A surprise announcement on the eve of the summer break. Serge Brunschwig's stint at OTB and Jil Sander has only lasted six months. Frenchman Brunschwig, who was named CEO of the German label owned by the Italian fashion group (alongside Diesel, Maison Margiela, Marni, etc.) in early February, and was also head of strategy for the group founded and directed by Renzo Rosso, has announced on LinkedIn he is leaving. 'Today is the last day of my mission for Jil Sander. I would like to thank the team for what we achieved, getting this beautiful brand ready for its next chapter,' he posted. In September, Jil Sander is expected to unveil its new aesthetic under Creative Director Simone Bellotti, who succeeded Lucie and Luke Meier in early 2025. The OTB group has thanked Brunschwig, who is leaving 'for personal reasons,' praising 'his commitment and the contribution he made during his tenure.' Ubaldo Minelli, CEO of OTB, who had been in charge of Jil Sander in the past, is replacing Brunschwig. A graduate of Paris' Ecole Polytechnique, of the Ecole Nationale Supérieure des Télécommunications, and of the Paris Institute of Political Studies, Brunschwig, 54, joined LVMH in 1995 as CEO of Louis Vuitton 's Asia-Pacific region. He was then CEO of Sephora Europe in 2000, and a director at Louis Vuitton in 2002. In 2006, Brunschwig took the helm of Céline, and then joined Christian Dior Couture in 2008 as COO, becoming also president of Dior Homme in 2015. In 2018, he succeeded Pietro Beccari as CEO of Fendi, where he remained until early 2025, when he joined OTB to take charge of Jil Sander.
