UniCredit has posted a surprising jump in profits for the second quarter of 2025, leading the bank to raise its earnings forecast for the full year. The profit boost comes despite its decision to withdraw its bid for Banco BPM, a move that was influenced by government intervention, which UniCredit claimed distorted the bidding process. This decision, while disappointing for some, has allowed the bank to reorient its strategy and prioritise shareholder value.
The bank’s net profit for Q2 stood at €2.9 billion, excluding one-off items, which exceeded analysts’ expectations of €2.5 billion. When including these one-off items, the profit increased to €3.3 billion, compared to €2.7 billion during the same period last year. This strong performance has allowed UniCredit to revise its profit projection upwards, now anticipating a full-year net profit of around €10.5 billion, up from a previous forecast of €9.3 billion.
Looking ahead, UniCredit is committed to distributing at least €30 billion to shareholders between 2025 and 2027 through a combination of cash dividends and share buybacks, contingent on the outcome of any future acquisitions. The bank has made clear that despite the setbacks in merger and acquisition efforts, such as its failed bids for Monte dei Paschi and Commerzbank, it remains focused on delivering value to its investors.
CEO Andrea Orcel has led the bank through this period of transition, focusing on cost-cutting measures and benefiting from the rising interest rates across Europe. While his high-profile M&A deals have yet to materialise, the bank’s ability to grow profits through strategic cost control has reinforced its position as a leading player in the European banking landscape.
