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UniCredit has hailed its “best quarter in history” as it reported record net profits but signalled it would be selective in its dealmaking as the Italian banking industry stands on the cusp of a wave of consolidation.
The lender said on Monday it had made a net profit of €2.8bn in the three months to March, beating analyst estimates and prompting the bank to increase its full-year guidance.
Net commissions were also higher than expected at €2.3bn while net interest income was €3.47bn, slightly lower than anticipated by analysts.
UniCredit, led by industry veteran Andrea Orcel, is at the heart of a wave of attempted consolidation in the industry in Italy and Germany, though it has faced several setbacks including resistance from the countries’ governments.
The bank said on Monday that mergers and acquisitions offered “interesting possibilities” but that it would only pursue deals if they improved its “standalone case” as a business.
Its pending takeover of crosstown rival Banco BPM is in limbo after the Italian government imposed a series of conditions on any approval of the deal.
Meanwhile, Berlin has voiced opposition to its attempted takeover of Commerzbank in which the Milanese lender built a 29 per cent stake last year. UniCredit has also built a stake in insurer Generali.
