Unicredit raises recommendations on profit leaving behind the “drag” of its application to BPM BPM

Primit Wednesday placed a sharp profit growth in the second quarter and raised their full recommendations, a day after the cancellation of the Italian peer absorption application Bank BPM Among the opposition from Rome.

The second largest bank of Italy report In the second quarter, in the second quarter, a hike by 25% a year to 3.3 billion euros revenue revenue by 4.7% compared to last year to 6 billion euros in July quarters.

The unicredit shares increased by 4.36% at 11:00 in London time (06:00 et), with the BPM BPM stock dropped 1.79%.

Speaking in front of Silvia Amaro CNBC on Wednesday, Director -General of Unicredit Andrea Orsel said CommerzbankAmong other subjects.

Other highlights of the second quarter included:

• Return to material capital reached 24.1% compared to 22% in the first quarter.
• CET 1 capital ratio, the bank’s solvency, amounted to 16.2%, against 16.1% in March.
• Pure Frozer Increase between income received on loans and interest paid on deposits-up to 3.5 billion euros, which is only 0.3% compared to January.

Unicredit said now expects a net income for the full year will reach 10.5 billion euros compared to The previous guide At 9.3 billion euros, it was issued in the first quarter. He further believes that his shareholders’ distributions reach EUR 9.5 billion for a full -fledged section, of which at least € 4.75 billion will be in cash.

The results of the bank come every other day after it announced that it is withdrawn by the Banco BPM purchase application, the proposal period was to end naturally on Wednesday. Unicredit said the attempted absorption was influenced by the Italian Government “Golden Power”, which allow Rome to intercede into transactions, which are believed to influence the national security – and which the Georgian government is carried out to impose a number of conditions for cleaning transactions.

This “prevented Unicredit to interact with BPM shareholders as a regular proposal process,” – said Unicredit on Tuesday.

Earlier, Italian and European regulators advocated that Unicredit refused Russia, which remains under wide sanctions since its full -scale invasion of Ukraine. Unicredit CEO Andrea Orsel signal that the sentence may allow that the opacity of Rome’s requirements can both reduce the transaction and expose the Italian lender of the punishment, which is approaching 20 billion euros.

“The first thing I remind everyone (is) as the CEO of this bank, I am not asked to do M&A, I am asked to create value. I am asked to strengthen the bank and make it a bullet for the future. M&A may or may not be a tool for that,” said Orsel CNBC on Wednesday.

“We drew a line under this (Banco BPM) deal. Honestly, it became a drag on us. We believe we accelerate further than they are, and value has changed,” added Boss Unicredit. “But most importantly, given the situation with the” golden force “,” there was no other place. And at some point you need to reduce your losses, eliminate dragging and focus on what you are managing. We control the future in Italy, and we manage them in the group, we move on, and all. “

The European Union is increasingly paying attention to the government’s obstacle for banking mergers under its umbrella, challenging Using the “golden states” of Rome for the acquisition of creditors and Criticizing Spain Bilbao Argentia intervention.

Unicredit came to the forefront of the M&A fever, which has increasingly swept into the European banking sector, making two separate from the end of last year. While its BPM BPM application is now left behind, the lender is still accessed to approximately 28% of Commerzbank shares through financial instruments – 20% were converted to capital. The German government also opposes this absorption.

Orcel said on Wednesday that Unicredit is now “being introduced for the success of the trade bank because their success is our success.”