UniCredit announced its best-ever quarterly performance in Q1 2025, reporting a net profit of €2.8 billion—an 8.3% increase from the same period last year. The Italian banking giant also raised its full-year forecast, expecting annual profits to surpass €9.3 billion. Revenues rose 2.8% to €6 billion, driven by an 8.2% increase in fees, while net interest income fell 4.8% to €3.5 billion. CEO Andrea Orcel called it the “best quarter in history” and praised the 17th consecutive quarter of profits. He said the bank had exceeded all expectations and was gaining ground on competitors across Europe.
Strong Q1 Boosts Confidence for 2025
Following the strong first-quarter performance, UniCredit raised its financial outlook for the rest of the year. Executives now expect total revenues to reach €23 billion by year-end.
The bank is focusing on expanding its operations in Europe. Its strategy includes both organic growth and acquisitions. Leadership said they aim to deliver more value to clients and shareholders while strengthening UniCredit’s long-term position across the continent.
“This performance gives us the confidence to accelerate our ambitions,” said CEO Andrea Orcel. He added that the results show how well the bank is positioned in a changing economic environment.
Revenue Growth Driven by Fees
In Q1 2025, UniCredit’s total revenues grew by 2.8%, reaching €6 billion. A major part of this rise came from an 8.2% jump in fees, totaling €2.3 billion.
These gains were led by stronger investment and financing fees, showing healthy client activity in advisory and deal-making services.
However, net interest income dropped by 4.8% to €3.5 billion. This was expected due to changing interest rates and market dynamics. Still, the bank managed to balance the decline with growth in other areas, keeping its overall performance strong.
Takeover Talks Signal Expansion Plans
UniCredit is now preparing to move forward with its plan to take over Banco BPM, one of Italy’s key banking players. Talks are ongoing with Italian regulators to set conditions for the deal.
The European Central Bank (ECB) has already given its approval for UniCredit to pursue this domestic acquisition. If successful, it could reshape the competitive landscape of Italy’s banking sector.
In addition to Banco BPM, UniCredit has also made bold moves in the digital space. It recently bought Aion Bank and Vodeno, two fintech companies aimed at boosting its digital banking capabilities.
Commerzbank Stake Raises Eyebrows
UniCredit has also increased its investment in Germany’s Commerzbank, now holding 29.9% of the company. The ECB approved this move, and some analysts believe it could be the first step toward a full takeover.
While UniCredit has not confirmed such plans, the decision aligns with its growth-focused strategy across Europe. Gaining a larger foothold in the German market would support its broader goal of becoming a top-tier pan-European bank.
These moves also come as part of a wider expansion strategy in Western and Central Europe, targeting long-term returns and market leadership.
Share Buyback Programme Continues
Alongside its strong earnings, UniCredit is also rewarding investors. The ECB approved the second part of UniCredit’s 2024 share buyback plan, allowing the bank to repurchase shares worth up to €3.6 billion.
This move is expected to support the bank’s stock price and increase shareholder value. The buyback also reflects UniCredit’s strong capital position and ability to return profits to investors while still funding growth.
With a record-breaking quarter behind it, UniCredit appears well-positioned for 2025. The bank has maintained 17 straight quarters of profitability and is targeting further expansion across Europe.
Its strategy includes smart acquisitions, increased market share, and improved services through digital transformation. As UniCredit moves ahead with takeover plans and a rising profit forecast, the banking sector is watching closely.