UniCredit reported a net profit of €907m in the first quarter, up 40 per cent year on year and beating consensus on stronger core revenues, and improved asset quality and capital.
Revenues at the lender came to €4.8bn, up 3 per cent year on year. Costs fell 3 per cent year on year.
Italy’s largest bank by assets, which raised €13bn in new equity this year, said its fully loaded core tier 1 ratio rose to 11.5 per cent driven by retained earnings and disposals.
Chief Executive Jean Pierre Mustier said: “We confirm our 2017 net interest income objective of €10.2bn and an end of year fully loaded CET1 ratio of above 12 per cent.”
Citi analyst Azzurra Guelfi said: “We expect the stock to have an initial positive initial reaction to this set of results that delivered improving trends: progress on core revenues, further de-risking on asset quality and solid capital trends.”