UniCredit SpA lifted its full-year targets for a second straight quarter after surging income from lending boosted profit.
The Milan-based lender now sees 2023 adjusted profit at least at €7.25 billion ($8 billion), up from an earlier forecast of more than €6.5 billion, and investor returns at equal to or higher than €6.5 billion. Key performance metrics for the period — including net income — were all better than expected. In the three months ending June, net income increased to €2.31 billion, better than the €1.9 billion expected by analysts.
Since taking charge at Italy’s second-biggest bank in 2021, Chief Executive Officer Andrea Orcel has trimmed costs and shifted focus to better performing businesses. While higher European Central Bank rates are boosting interest margins, the bank plans an additional €500 million in cost cuts in an effort to offset higher-than-expected inflation, Bloomberg reported earlier this month.
