Italian banking giant UniCredit posted its highest-ever first-quarter profit in early 2025, driven by rising fee income and strong deal momentum. The bank also upgraded its full-year forecast as it eyes further expansion across Europe.
In the first quarter of 2025, UniCredit delivered a net profit of €2.8 billion—an increase of 8.3% compared to the same period last year. The bank described the results as the best in its history, marking the 17th straight quarter of profitable growth. Total net revenues climbed 2.8% to €6 billion, fueled by strong investment and financing fee income.
Fee Income Soars Despite Dip in Interest Earnings
A key driver of the performance was an 8.2% rise in fee income, which reached €2.3 billion. These gains helped offset a 4.8% drop in net interest income, which stood at €3.5 billion for the quarter.
Chief Executive Officer Andrea Orcel praised the performance, highlighting UniCredit’s lead over its European peers. “We have outperformed across all major indicators,” he said. “These results reflect consistent execution and a focus on profitable growth.”
2025 Forecast Raised: UniCredit Aims for €9.3 Billion Profit
Following its strong start to the year, UniCredit raised its full-year forecast. The bank now expects a net profit of over €9.3 billion in 2025, with revenues nearing €23 billion.
Executives noted that market conditions could open up more growth opportunities, adding that the bank will continue to focus on delivering value to all stakeholders. Orcel emphasized that the improved outlook reflects not just financial strength, but also the success of the bank’s digital and strategic initiatives.
Growing Across Europe: Strategic Deals and Digital Push
UniCredit’s strategy includes a larger footprint across the European banking sector. The bank recently completed its acquisition of Aion Bank and Vodeno—two fast-growing players in the digital finance sector. These moves are expected to enhance UniCredit’s capabilities in digital banking and offer broader service options to its customers across Europe.
The CEO explained that these deals are part of a broader strategy to lead in both traditional and digital finance. “We’re investing where we see long-term value for our clients and shareholders,” he said.
Banco BPM Deal Moves Forward
In a major development, the European Central Bank (ECB) has approved UniCredit’s bid to acquire Italian lender Banco BPM SpA. Bank officials are expected to meet with government representatives in Rome to finalize terms.
The deal, once completed, would further cement UniCredit’s position as a top player in Italy and improve its market share significantly.
Commerzbank Stake Increases: Acquisition Rumors Grow
In addition to Banco BPM, UniCredit has also received ECB approval to raise its stake in Commerzbank to 29.9%. Analysts say this move could signal a larger plan to acquire the German bank in the future.
While no official merger has been announced, the increase in shares has already sparked speculation in the financial world. A potential UniCredit-Commerzbank deal would mark one of the most significant cross-border banking mergers in Europe in recent years.
Share Buyback Program Expanded
To return value to investors, the ECB has authorized a €3.6 billion second tranche of UniCredit’s 2024 share buyback program. The bank confirmed the approval in a statement on Friday and expects to begin the repurchase shortly.
This latest buyback brings UniCredit’s total capital return plan for 2024 to one of the largest among European banks.
Strong Momentum and Strategic Growth Ahead
With record profits, major acquisitions, and a bold expansion strategy, UniCredit is entering 2025 with strong momentum. As one of Europe’s leading banks, it continues to combine solid financial results with a forward-thinking approach to digital finance and cross-border integration.
The developments signal UniCredit’s growing influence in shaping the future of European banking—and its commitment to long-term growth.
