UniCredit Raises Outlook After BPM Bid Withdrawal

UniCredit reported a net profit of €3.3 billion for the second quarter of 2025, exceeding expectations and driven in part by one-off gains and strong core revenues despite a slight revenue dip. The bank raised its full-year net profit guidance to approximately €10.5 billion, up from more than €9.3 billion previously. UniCredit also upgraded its 2025 shareholder payout target to at least €9.5 billion, now including a new share buyback program, and increased its 2027 profit guidance to €11 billion. The strong results follow UniCredit's withdrawal of its takeover bid for Banco BPM, citing Italian government interference that complicated the acquisition. CEO Andrea Orcel stated the bank would focus on consolidating existing investments and enhancing shareholder returns as M&A ambitions face regulatory challenges. These developments highlight ongoing consolidation trends and regulatory hurdles in European banking.