UNICREDIT S.P.A. 
The stock market hailed these results and the improved outlook for the year by rewarding the stock, which is up 3.2 percent after hitting a high since August 2011 at 36.05 euros.
Jefferies notes that "net income was 20 percent above consensus with all key sectors above expectations" while in its daily Equita writes that the bank led by Andrea Orcel "confirms excellent management of operating costs."
The first three months of the year ended with a profit of 2.6 billion, above the 2.3 billion consensus provided by the company and up about 24 percent from the first quarter of 2023.
Net revenues of 6.3 billion were also above consensus at 5.94 billion and up 7 percent from the same period a year earlier, with net interest income of 3.6 billion and fees of 2.1 billion.
The cost of risk is described in the bank's note as "very low" at 10 bp, while the allocation provision of 2.6 billion was more than offset by continued strong organic capital generation of 3.4 billion.
UniCredit said it would match the distribution this year. Setting a 90 percent payout target for 2024 suggests that the bank expects net income to reach about 9.6 billion euros or pay out some of its excess capital reserves.
The Cet1 ratio rose to 16.2 percent from 15.9 percent at the end of last year, exceeding expectations. Risk-weighted assets declined in the quarter, partly due to the reduction in loans, but also due to the risk transfer transactions the bank undertakes to free up capital.
Orcel, formerly of Ubs who arrived at UniCredit in 2021, focused on activities that maximize returns on capital employed, ensuring attractive payments to shareholders primarily through buybacks.
Responding during an interview this morning to a question about Unicredit's potential interest in the spinoff announced days ago by partner Azimut holding, the banker merely replied that Pietro Giuliani's company is an excellent partner but will do what it wants to do.
(Stefano Bernabei, editing Francesca Piscioneri)
