Corrections & Amplifications
This headline was corrected at 0752 GMT to reflect that the word “revenue” was omitted from the original version.
By Giulia Petroni
UniCredit SpA said Wednesday that profit rose in the third quarter and raised its full-year guidance on the back of good commercial dynamics, a favorable interest rate environment and cost discipline.
The Italian bank’s net profit came in at 1.71 billion euros ($1.69 billion), up from EUR1.06 billion a year earlier and ahead of analysts’ estimates of EUR1 billion based on a company-compiled consensus.
Quarterly revenue increased to EUR4.83 billion from EUR4.44 billion during the same period a year earlier. Analysts had seen revenue at EUR4.51 billion, according to the same consensus.
UniCredit’s net interest income–the difference between what lenders earn from loans and pay for deposits, and a key profit driver for retail banks–was EUR2.48 billion, up 9.8% on year.
Third-quarter figures include Russia contribution.
In the full year, UniCredit said it now targets net profit above EUR4.8 billion and net interest income above EUR9.6 billion. Revenue is seen above EUR17.4 billion. Costs are expected to be under EUR9.4 billion, while the cost of risk is around 25 basis points. Guidance excludes Russia.
Write to Giulia Petroni at [email protected]