UniCredit, the Italian bank, announced on Wednesday that it has raised its 2023 guidance, driven by impressive second-quarter profit and revenue. The bank’s net profit for the quarter reached €2.31 billion ($2.55 billion), surpassing the €2.01 billion recorded in the same period last year.
The strong performance was attributed to a 25% increase in revenue, which totaled €5.97 billion. The main contributor to this growth was net interest income, which soared 41% to €3.50 billion, benefiting from higher interest rates.
Analysts’ expectations were exceeded, with consensus estimates predicting net profit of €1.66 billion and revenue of €5.62 billion.
Buoyed by the favorable interest-rate environment, UniCredit revised its guidance for 2023. The new targets include a net profit of at least €7.25 billion, net interest income of no less than €13.2 billion, and revenue exceeding €21.5 billion. Additionally, the bank plans to distribute at least €6.5 billion to shareholders.
UniCredit also hinted that the profit and shareholder returns for 2024 are expected to be in line with the projections for 2023.
With these impressive results, UniCredit solidifies its position as a leading player in the banking industry.