Stock Markets February 9, 2026

UniCredit Raises Profit Target After 2025 Beat, Cites Stake Investments and Tax Credits

Bank lifts near-term profit ambition as stakes in rival lenders and one-off tax benefits bolster reported earnings

By Hana Yamamoto
UniCredit Raises Profit Target After 2025 Beat, Cites Stake Investments and Tax Credits

UniCredit said it now targets net profit of 11 billion euros for this year after reporting quarterly results above analyst expectations. Management pointed to earnings support from investments in rival banks and a tax-credit boost, and reiterated longer-term ambitions to reach 13 billion euros by 2028 with average annual growth of 7% from 2026 to 2028.

Key Points

  • UniCredit raised its net profit target to 11 billion euros for this year after reporting results that beat the bank-gathered average analyst forecast.
  • Management cited earnings contributions from stakes in rival banks and 336 million euros in tax credits from past losses as drivers of the quarterly outperformance.
  • The bank reiterated longer-term ambitions of reaching 13 billion euros in net profit by 2028, targeting average annual growth of 7% in 2026-2028; UniCredit has sizable operations across Germany, Austria and eastern Europe.

UniCredit announced an updated profit ambition after reporting quarterly numbers that exceeded analyst expectations. The bank said it is aiming for net profit of 11 billion euros this year, following a 2025 performance that topped a bank-gathered average forecast. Management attributed part of the outperformance to returns tied to stakes acquired in other lenders and to tax credits applied against past losses.

Previously, UniCredit had guided for a net profit of 10 billion euros in 2027. On Monday the bank said it has an ambition to reach 13 billion euros in 2028, describing an "exceptional" average growth rate of 7% a year over the 2026 to 2028 period. Those targets sit alongside a strategy under CEO Andrea Orcel that has used the bank's large excess cash reserves to acquire sizeable positions in other banks.

UniCredit has spent billions of euros to become the main shareholder in Commerzbank of Germany and in Alpha Bank of Greece, while stopping short of pursuing full takeovers of those institutions. The bank has also taken positions, occasionally on a temporary basis, in additional financial groups as part of what Mediobanca Securities analysts called a "game of stakes."

The group, which operates extensively in Germany, Austria and eastern Europe, posted net profit of 2.17 billion euros for the fourth quarter. That result was supported by 336 million euros of tax credits arising from past losses, which helped the bank exceed the average analyst forecast of 1.96 billion euros collected by banks.

UniCredit's announcement combines the immediate boost from one-off tax relief and gains related to ownership stakes with an elevated multi-year growth ambition. The bank's updated near-term and longer-term profit targets reflect both the use of excess liquidity for strategic stakes and management's public growth aspirations for the remainder of the decade.


Financial conversion note: ($1 = 0.8450 euros).

Risks

  • Reliance on earnings related to stakes in other banks may expose future results to changes in the value or divisibility of those investments - this primarily affects the banking and financials sector.
  • Part of the reported fourth-quarter uplift came from 336 million euros of tax credits from past losses, a one-off effect that may not recur and could affect future comparability of results - this impacts investors assessing bank profitability.
  • Ambitious profit targets, including the 13 billion euro ambition for 2028 and the 7% average annual growth goal for 2026-2028, carry execution risk if market conditions or strategic outcomes differ from management expectations - this concerns capital markets and banking sector forecasts.

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