Revenue and Net Interest Income
UniCredit is set to release its third-quarter results on Tuesday, and analysts are predicting positive numbers. The Italian bank is expected to report a revenue of €5.74 billion, a significant increase from last year’s €4.83 billion.
Net interest income is also expected to show a strong performance with an estimated €3.5 billion for the quarter, compared to €2.48 billion in the same period a year ago.
Net Profit
Analysts are optimistic about UniCredit’s net profit as well, forecasting a figure of €1.92 billion, up from €1.71 billion last year.
What to Keep an Eye On
Guidance: Experts believe that Italy’s banking sector will post positive results overall for the third quarter. However, the focus will be on net interest income guidance for 2024 and 2025, along with any potential impacts from the Italian government’s windfall tax on banks. Deutsche Bank analyst Giovanni Razzoli highlights the importance of these factors in a recent research note.
Financial Conditions: Equita Sim analyst Andrea Lisi predicts a slight decline in loans due to worsened financial conditions. However, deposits are expected to show a moderate contraction. On the bright side, asset quality is not expected to deteriorate, with defaults staying at low levels. Investors are particularly interested in assessing the trajectory of banks’ return on tangible equity, indicating an increasing focus on asset quality.
As UniCredit prepares to release its third-quarter results, market watchers are hopeful for positive figures across various metrics.
