The Italian bank UniCredit, which in the past was the main owner of Bank Pekao, boasted on Tuesday the highest quarterly profits in history. They exceeded analysts' expectations.
“UniCredit's net profit for the period January-March increased by 16%. year-on-year, reaching EUR 3.2 billionsignificantly exceeding analysts' forecasts of EUR 2.7 billion,” reports Reuters.
The bank said it supported revenues dividends tripled from financial investments made as part of a multi-faceted merger and acquisition strategy, which offset the negative impact of lower interest rates.
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UniCredit also stated that the transfer of life insurance activities to the bank's structure also contributed to the increase in revenues.
UniCredit does not give up on its plans to take over Commerzbank
The good times are not going to end there. UniCredit raised its forecast for the whole year. It currently assumes net profit of EUR 11 billion.
At the same time, it announced an offer to take over its German competitor, Commerzbank. However, this is where the government stands in Italy's way. As Reuters reports, takeover offer for Commerzbank worth EUR 35 billion aims to increase UniCredit's share in the German bank above 30%. Under German takeover rules, this would allow UniCredit to further increase its share through stock exchange purchases from next year.
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The agency notes that: Commerzbank rejected this proposal and has the support of the German government in its fight to remain independent.
UniCredit operates internationally
UniCredit is a large European banking group based in Milan, operating mainly in Western and Central and Eastern European countries. It serves both individual clients and companies – from small businesses to large corporations.
The bank offers a wide range of financial services: accounts, loans, investments, corporate banking and solutions for international trade. It is distinguished by a pan-European approach – it connects local markets into one network, which facilitates servicing customers operating in several countries.
UniCredit also focuses on the development of digital banking and simplifying services, while using the resources of a large, stable financial institution.
