The logo of Italian international banking group UniCredit stands on the facade of the group headquarters, located in the Porta Nuova district, as seen from the viewpoint of Palazzo Lombardia on September 29, 2023 in Milan, Italy.
- Shares of Italian bank Unicredit hit their highest level since 2015 Monday, after announcing that it would return 8.6 billion euros ($9.2 billion) to investors.
- The payout plans come after the Milan-based bank reported fourth-quarter profit of 1.9 billion euros, almost three times analysts' expectations.
- Shares of the stock were up 10% by 10 a.m. London time.
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WATCH HEREShares of Italian bank UniCredit hit their highest level since 2015 on Monday, after announcing it would return 8.6 billion euros ($9.2 billion) to investors on the back of higher-than-expected profit.
The Milan-based lender shared details of the planned payout after reporting fourth-quarter profit of 1.9 billion euros, almost three times analysts' expectations.
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Shares of the stock were up 10% by 11 a.m. London time.
The payout, which will be delivered through a combination of buybacks and dividends, follows a strong year for the bank, which has been buoyed by higher interest rates.
Money Report
UniCredit added that it would adopt a 90% payout policy from this year. The company's "stated" net income in the October-December period came in at 2.8 billion euros, more than double a 1.2 billion euro average analyst consensus forecast provided by the bank.
Revenue also surpassed expectations, while UniCredit booked lower-than-forecast costs and provisions against loan losses.
Italy's second-largest lender has tripled its value since Chief Executive Andrea Orcel took the reins in 2021, leading gains among European banks.
