UniCredit Raises 2023 Guidance as Net Interest Income Drives 3Q Earnings

By Pierre Bertrand

UniCredit reported a rise in earnings, exceeding analyst expectations, as its third-quarter was again driven by net interest income leading it to raise its 2023 guidance.

The Italian bank said on Tuesday that it made 2.32 billion euros ($2.48 billion) in net profit for the period, compared with EUR1.71 billion a year prior, on revenue that grew 24% on year to EUR5.97 billion.

Net interest income, rose in the quarter by 2.9% compared with the second quarter and by 45% on year to EUR3.6 billion, UniCredit said.

The result compares with expectations of EUR1.92 billion in net profit, EUR3.5 billion in net interest income and EUR5.74 billion in revenue, according to a bank-provided consensus of analysts' average expectations.

UniCredit said that its operational costs in the quarter were flat in 3Q compared with 2Q and had declined 2.3% on year.

UniCredit raised its 2023 guidance for net interest income to at least EUR13.7 billion from at least EUR13.2 billion previously. It said it sees 2023 net revenue at above EUR22.2 billion from above EUR21.5 billion previously.

It added that it guides for net profit of at least EUR7.25 billion and a shareholder distribution of at least EUR6.5 billion for 2024.

Write to Pierre Bertrand at [e-mail]

(END) Dow Jones Newswires

October 24, 2023 02:00 ET (06:00 GMT)

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