UniCredit boosts full-year guidance on bumper first quarter

The Milan-based bank said total revenues in the three months to March end had risen 18% year-on-year to €5.9bn.

Within that, net interest income was down 3% quarter-on-quarter but ahead 44% year-on-year, at €3.3bn. Fee income fell 2% against the first quarter a year previously, to €2bn, but strengthened 11% against the fourth quarter.

Net profits were €2.1bn, compared to €274m a year previously and €1.6bn in the fourth quarter. They were also well ahead of expectations.

UniCredit said it had been its best first quarter on record.

Andrea Orcel, chief executive, said: "For the ninth consecutive quarter, UniCredit delivered excellent financial results, improving its profitability and distribution rate as we continue to unlock the intrinsic value of our franchise.

"We are making significant progress in the execution of our strategic plan, and are in the second phase of our ongoing industrial transformation."

Looking to the full year, the bank said it now expected net profits to be more than €6.5bn - from an earlier forecast for around €5.2bn - on net revenues of more than €12.6bn.

As at 1130 BST, shares in UniCredit were trading 5% higher.

Jefferies, which has a ‘buy’ on the stock, said: "Upgraded guidance implies more than 15% upside to prevailing consensus profit expectations for the 2023 full year, driving mainly by strong NII…while profit in quarter was around 60% ahead of consensus."