For 2023, the bank sees net income growth to around 7 billion thanks to "significant increase" in operating income with solid revenue growth driven by net interest, seen at over 13 billion euros.

The stock jumped immediately after the release of the quarterly accounts and the announcement of the guidance hike, and at 12:30 p.m. it was up 3.39 percent, double that of the FTSE Mib.

Net income for the quarter came in at 1.965 billion, above analysts' expectations of 1.54 billion.

Net operating income rose 6.9 percent quarter-on-quarter and 11.9 percent year-on-year to just over 6 billion, thanks to net interest rising 6.2 percent quarter-on-quarter and 66.3 percent year-on-year, while net fee and commission income fell 3.8 percent and 6.6 percent, respectively.

Also noteworthy is the 19% decline in operating expenses quarter-on-quarter, almost all due to lower personnel expenses, while they remain essentially stable year-on-year.

On the capital side, Cet1 at full-year is at 13.7% without taking into account the approximately 125 cents of a point benefit from Dta absorption. Confirmed target of Cet1 above 12% over the 2022-25 plan timeframe according to Basel III/Basel 4 with targets at about 14.5% pre-Basel 4 and 14% post-Basel 4 in 2025.

The bank confirms the cash payout ratio of 70% on consolidated net income for each year of the plan and that it will evaluate year by year any further distribution.

Further decline for exposure to Russia by about 70% (over EUR 2.5 billion) compared to end-June 2022, down to 0.2% of total customer loans. Cross-border loans to Russia are largely performing and classified Stage 2.

(Gianluca Semeraro, reporting by Sabina Suzzi)