UniCredit Lifts FY26 Profit View After Higher Q3; Plans Control Of Commerzbank; Stock Gains

(RTTNews) - Shares of UniCredit S.p.A. were gaining around 5 percent in Italian trading after the bank on Monday raised fiscal 2026 outlook after reporting strong growth in third-quarter profit and revenues. The Italian lender, which is in the process of full consolidation of Commerzbank AG, further said it is heading into 2027 with strong momentum, while confirming profit targets for fiscal 2028 and fiscal 2030.

Regarding Commerzbank, the company noted that all remaining regulatory approvals, after the recent European Central Bank approval, to acquire control of Commerzbank are expected by late November.

Upon settlement of the offer, the Group will take control of Commerzbank, and the new governance will be in place in the first quarter of fiscal 2027.

The execution of "Commerzbank Unlocked" and related value creation is expected to commence shortly thereafter.

Regarding the results, UniCredit noted that it has already delivered 85 percent of its fiscal 2026 net profit ambition in the first nine months of 2026, with net profit reaching €9.4 billion. The firm exceeded its profitability target with a RoTE of 24.3 percent versus the original ambition of above 20 percent.

In the third quarter, UniCredit's net profit climbed 24 percent to 3.261 billion euros from 2.631 billion euros last year.

Net operating profit was 4.431 billion euros, up 17.6 percent year-over-year.

Loan Loss Provisions climbed 85.3 percent to 210 million euros from 113 million euros a year ago.

Total revenues were 6.902 billion euros, up 11.8 percent from 6.173 billion euros last year, driven by core revenues.

Net interest income grew 8.2 percent from last year to 3.831 billion euros, supported by high-quality volume growth and disciplined deposit pricing.

Fees and net insurance result was 2.391 billion euros, up 10.7 percent year-over-year driven by strong growth across markets and product categories.

Further, UniCredit announced higher interim dividend of 3.0034 euros per share, with record date of November 24 and payment date of November 25.

Looking ahead, the Group said it remains firmly on track to deliver a compelling standalone growth trajectory, with net profit ambition improved to well above 11.5 billion euros pre-extraordinary charges in fiscal 2026.

UniCredit previously expected fiscal 2026 net profit to be well above 11 billion euros, or circa 11.5 billion euros when excluding integration costs.

UniCredit continues to aim for a fiscal 2028 net profit well above 13 billion euros and fiscal 2030 well above 15 billion euros. The performance is expected to support around 15 percent earnings per share growth each year through 2028.

Following the full consolidation of Commerzbank, the Group expects to deliver fiscal 2028 earnings per share well above €10 and fiscal 2028 distributions per share well above €8, accretive versus standalone scenario, further stepping up in 2029 and beyond.

In Milan, UniCredit shares were trading at 80.85 euros, up 5.27 percent.

On XETRA in Germany, Commerzbank shares were at 39.55 euros, up 3.51 percent.

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