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UniCredit hikes profit outlook after stakes in rivals, tax credits help 2025 income
| USA | economy

UniCredit hikes profit outlook after stakes in rivals, tax credits help 2025 income

#UniCredit #Andrea Orcel #Commerzbank #Profit Outlook #Banking Consolidation #Eurozone #Tax Credits

📌 Key Takeaways

  • UniCredit has raised its 2025 net income forecast to over €9 billion, exceeding previous market expectations.
  • The profit boost is driven by strategic stakes in Commerzbank and Alpha Bank alongside utilization of tax credits.
  • CEO Andrea Orcel is pursuing an aggressive expansion and consolidation strategy within the Eurozone banking sector.
  • The bank plans to maintain strong shareholder returns through a combination of dividends and share buyback programs.

📖 Full Retelling

UniCredit CEO Andrea Orcel announced an upgraded profit outlook for the 2025 fiscal year during an investor presentation in Milan on Tuesday, following the bank's strategic acquisition of stakes in rival lenders and the effective utilization of deferred tax credits. The Italian banking giant raised its net income goal to over €9 billion, up from a previous estimate of approximately €8.5 billion, as it maneuvers to strengthen its market position across Europe. This optimistic revision comes as the financial institution leverages its high interest rate environment gains and aggressive expansion strategy to reassure shareholders of its long-term growth trajectory. The improved guidance is heavily supported by UniCredit’s recent tactical investments in Commerzbank and Alpha Bank, which have diversified its income streams beyond traditional domestic lending. By acquiring a significant stake in Germany’s Commerzbank, UniCredit has positioned itself for a potential full-scale takeover, a move that would create one of the largest banking entities in the Eurozone. Furthermore, the bank’s ability to tap into nearly €1 billion in value from tax assets has provided a substantial buffer against market volatility and shifting regulatory requirements. Market analysts suggest that Orcel’s aggressive approach reflects a broader trend of consolidation within the European financial sector, where scale is increasingly seen as the primary defense against global competition. In addition to the organic growth within its core operations in Italy and Germany, the bank is focusing on returning capital to investors through buybacks and dividends. The 2025 outlook assumes that interest rates will remain relatively favorable, allowing the bank to maintain high net interest margins while continuing to optimize its operating costs through digital transformation and workforce restructuring.

🏷️ Themes

Finance, Banking, Corporate Strategy

📚 Related People & Topics

UniCredit

UniCredit

International banking group

UniCredit S.p.A. (formerly UniCredito Italiano S.p.A.) is an Italian multinational banking group headquartered in Milan. It is a systemically important bank (according to the list provided by the Financial Stability Board in 2022) and the world's 34th largest by assets. It was formed through the mer...

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Commerzbank

Commerzbank

European commercial bank

The Commerzbank Aktiengesellschaft (shortly known as Commerzbank AG or Commerzbank [kɔˈmɛʁtsˌbaŋk]) is a European banking institution headquartered in Frankfurt am Main, Hesse, Germany. It offers services to private and entrepreneurial customers as well as corporate clients. The Commerzbank Group al...

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Andrea Orcel

Andrea Orcel

Italian investment banker (born 1963)

Andrea Orcel (Italian: [anˈdrɛːa orˈtʃɛl]; born May 14, 1963) is an Italian investment banker who is CEO of UniCredit. He was the president of UBS Investment Bank from November 2014 to September 2018. He was poised to take on the role of Chief Executive of Banco Santander from September 2018 to Jan...

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📄 Original Source Content
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry As Claude disrupts stock market, Anthropic researcher warns ’world is in peril’ Gold, silver prices rise amid U.S.-Iran tensions, blowout January payrolls data Dow halts three-day win streak as blowout jobs data curbs rate cut bets Citi pushes back Fed rate cuts to May after blowout January jobs report (South Africa Philippines Nigeria) UniCredit hikes profit outlook after stakes in rivals, tax credits help 2025 income Stock Markets Published 02/09/2026, 02:01 AM Updated 02/09/2026, 02:06 AM UniCredit hikes profit outlook after stakes in rivals, tax credits help 2025 income 0 CBKG -2.01% ACBr -3.69% IT000565462=MI 0.04% By Valentina Za MILAN, Feb 9 - Italy’s second-largest bank UniCredit said it aimed to lift its profit to 11 billion euros ($13 billion) this year, after topping analysts’ forecasts for 2025 with earnings boosted by stakes in rivals bought under CEO Andrea Orcel’s expansion strategy. UniCredit, which had previously guided for a net profit of 10 billion euros in 2027, said on Monday it had an ambition to get to 13 billion euros in 2028 with "exceptional" average growth of 7% a year in 2026 to 2028. UniCredit has spent billions of euros from its large excess cash reserves to become the main shareholder in Germany’s Commerzbank and Greece’s Alpha Bank , though it has stopped short of full takeovers. Under the leadership of Orcel, a veteran dealmaker, UniCredit has also invested, sometimes temporarily, in other financial institutions in what Mediobanca Securities analysts have dubbed a "game of stakes". The bank, which also has large operations in Germany, Austria and eastern Europe, posted a net profit of 2.17 billion euros for the fourth quarter, benefiting from 336 million euros of tax credits from past losses to surpass a bank-gathered average analyst forecast of 1.96 billion euros. ($1 = 0.8450 euros) UniCredit hikes profit outlook after stakes in rivals, tax credits help 2025 income 0 Latest ...

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