Record Quarter for UniCredit as It Prepares to Acquire Commerzbank

The Italian bank UniCredit recorded its 21st consecutive quarter of profitable growth and the best quarter in the history of the Group in the first quarter, according to a report published on Tuesday. The Group’s net profit increased by 16.1 percent year-on-year, reaching a record €3.2 billion, while earnings per share (EPS) rose by 19.7 percent to €2.15. Total revenues increased to €6.9 billion, up five percent, driven by strong dynamics across all business segments.

Particularly noteworthy is the growth in fee income and net insurance, which rose by eight percent to €2.5 billion, achieving the strategic goal set for 2028 ahead of schedule. Despite inflationary pressures, operating costs were reduced by one percent to €2.3 billion, resulting in the best cost-to-income ratio in the class at 33.4 percent.

Asset quality remains high with a net non-performing exposure (NPE) ratio of 1.4 percent and a risk cost of only 17 basis points, in line with the planned targets for 2026. The CET1 ratio remains strong at 14.2 percent, significantly above the management target, despite shareholder payouts and strategic investments in Commerzbank and Alpha Bank.

Thanks to exceptional results, UniCredit has raised its net profit estimate for the entire year of 2026 to an amount equal to or greater than €11 billion.

Andrea Orcel, CEO of UniCredit, stated that UniCredit has recorded another record set of quarterly results, demonstrating the strength of our model and disciplined execution of strategy. – Although geopolitical and macroeconomic prospects are complex, our transformation and unique strength prepare us for the future in all environments – emphasized Orcel.

The record quarterly results come at a time when the Italian bank is preparing to acquire the German Commerzbank. UniCredit shareholders on Monday gave the green light to increase the bank’s capital, paving the way for the submission of an official offer to acquire Commerzbank.

Shareholders approved a capital increase of approximately €6.7 billion, valid until December 31, 2027. This will allow UniCredit to issue up to 470 million new shares. This move enables the bank to present a formal offer for the acquisition of all shares of Commerzbank on Tuesday, as previously announced by Andrea Orcel.

The initial acceptance period for the offer would be four weeks, and it could be extended by another two weeks if adjustments were made, Orcel said last week to the German daily Frankfurter Allgemeine Zeitung.

It is worth noting that UniCredit began increasing its stake in Commerzbank two years ago and has been steadily increasing it since, currently holding approximately 29 percent of the shares, making it the largest shareholder. Exceeding a stake of 30 percent legally obliges UniCredit to make an offer to acquire the remaining shareholders.