UniCredit's capitalization exceeded 60 billion euros

UniCredit's market capitalization crossed the 60 billion euro threshold yesterday, the Italian banking group becoming one of the four banks in the euro zone that crossed this threshold, reports Bloomberg.

UniCredit shares rose as much as 3.6% yesterday, hitting their highest level in 13 years, after the Italian bank reported better-than-expected quarterly results. The improvement in market capitalization brought UniCredit into a select group of banks with a market value of more than 60 billion euros, a group that also includes BNP Paribas SA, Banco Santander SA and Intesa Sanpaolo SpA.

UniCredit is one of the main beneficiaries of the rapid increase in interest rates implemented by the European Central Bank in the last two years, notes Agerpres. This effect is likely to dissipate as the ECB is expected to ease monetary policy starting in June. In addition to this, the general director Andrea Orcel placed UniCredit at the head of shareholder reward programs, given that starting from 2021 and until now, the Italian bank has returned almost 18 billion euros to shareholders through share buybacks and dividends.

Under these conditions, UniCredit shares increased by almost 46% in 2024, recording some of the best performances recorded by European banks. UniCredit shares are now worth nearly four times what they were three years ago when Orcel was appointed CEO.

According to the results communicated yesterday by UniCredit, in the first quarter of this year, the banking group made a net profit of 2.6 billion euros, up 24% compared to the same period last year, as well as net revenues of 6.3 billion euro, up 7%, with net interest income of euro 3.6 billion and commissions of euro 2.1 billion, thanks to a robust growth in commercial activity, supported by customer focus and continuously fueled by new products.

UniCredit is one of the largest banking groups in Central and Eastern Europe, where it makes approximately 16% of its revenues. In Romania, the UniCredit Group is present through UniCredit Bank, UniCredit Consumer Financing, UniCredit Leasing Corporation, UniCredit Insurance Broker, UniCredit Leasing Fleet Management and UniCredit Services.