UniCredit Raises 2023 Outlook as 1Q Earnings Rose

By Pierre Bertrand

UniCredit on Wednesday said that it upgraded its 2023 outlook as its revenue and earnings rose in the first quarter helped by net interest income growth.

The Italian bank posted a quarterly net profit of 2.06 billion euros ($2.27 billion), compared with EUR247 million a year ago when its earnings were affected by Russia-related loan-loss provisions.

Revenue grew in the quarter to EUR5.93 billion, compared with EUR5.01 billion in the first quarter of 2022 and that this was helped by net interest income which increased 44% on-year to EUR3.3 billion.

The result compares with analysts' expectations of EUR1.31 billion in stated net profit and EUR5.29 billion in quarterly revenue, according to an average of analysts' estimates provided by the bank.

Loan-loss provisions came to EUR93 million in the quarter and the bank said that its common equity tier 1 ratio, a measure of banks' capital strength, came in at 16.05% at the end of the first quarter, compared with 16% at the end of 2022.

UniCredit said that it increased its 2023 guidance and that it now expects more than EUR6.5 billion in net profit, more than EUR20.3 billion in net revenue, more than EUR12.6 billion in net interest income and a higher shareholder distribution of at least EUR5.75 billion.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

May 03, 2023 02:14 ET (06:14 GMT)

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