UniCredit CEO Orcel: "Beyond Challenging Phase, Focused on Growth and Consolidation"

UniCredit CEO Andrea Orcel has declared the bank has moved beyond a challenging phase and is now focused on growth and investments. The bank aims to enhance performance and support families and businesses, with investments in Italy set to accelerate from Q3. Orcel also discussed acquisitions and the bank's insurance joint ventures, with the possibility of distribution partnerships remaining open. UniCredit's stakes in Commerzbank and Alpha Bank are delivering returns exceeding share buybacks. The bank has EUR5 billion available for distributions, acquisitions, or similar operations.

UniCredit CEO Andrea Orcel has declared that the bank has moved beyond a challenging phase and is now focused on growth and investments. The bank aims to enhance performance and support families and businesses, with investments in Italy set to accelerate from the third quarter. Orcel also discussed acquisitions and the bank's insurance joint ventures, with the possibility of distribution partnerships remaining open. UniCredit's stakes in Commerzbank and Alpha Bank are delivering returns exceeding share buybacks. The bank has EUR5 billion available for distributions, acquisitions, or similar operations.

In an exclusive interview with Milano Finanza, Orcel spoke following the withdrawal of the public exchange offer (OPS) for Banco BPM and after the release of the bank's first-half 2025 results. The withdrawal, which was due to the Italian government's golden power, has allowed UniCredit to focus on other key areas and investments. Orcel expressed optimism for the future, stating that in a single quarter, UniCredit earns more than Banco BPM does in four quarters [1].

The bank has provided an additional EUR7.5 billion in lending to small and medium-sized enterprises, demonstrating its commitment to supporting businesses. Orcel was non-committal about a future offer for BPM, stating that the situation would need to change significantly for such an offer to be considered [1].

UniCredit's second quarter and first half of 2025 results were excellent, with net profit at EUR3.3 billion and EUR6.1 billion, respectively. The bank's core revenue grew by 1.3% year on year, and the cost-income ratio improved to below 36% [2]. The bank's strong asset quality was confirmed by a stable gross NPE ratio at 2.6% and a continued low cost of risk of 9 basis points in the first half of 2025 [2].

The bank's equity consolidation of Commerzbank and Alpha Bank further enhances results from 2026. UniCredit continues to execute on its ESG strategy, which is integral to its strategic plan. The bank aims to boost revenue and net profit through the internalization of life insurance and the equity consolidation of Alpha Bank and Commerzbank [2].

UniCredit has EUR5 billion available for distributions, acquisitions, or similar operations. The bank's interim FY25 cash dividend is expected to be around EUR2.1 billion, with the ex-dividend date on November 24, 2025, and the payment date on November 26, 2025 [2]. The bank's FY25 net revenue guidance is upgraded to above EUR23.5 billion, with cost of risk guidance confirmed to around 15 basis points [2].

References:
[1] https://www.marketscreener.com/news/ops-withdrawal-on-bpm-for-orcel-unicredit-sheds-a-burden-ce7c5cd2db8bff22
[2] https://www.unicreditgroup.eu/en/press-media/press-releases-price-sensitive/2025/july/unicredit--2q25-and-1h25-group-results-.html