Banks kick off the year in high gear: earnings up 8%

(Alliance News) - Italy's five largest banks closed the first quarter of 2026 with aggregate net profits rising 7.8%, climbing from EUR6.75 billion to EUR7.28 billion.

As highlighted by Corriere della Sera on Monday, the sector continues to be driven by UniCredit, which saw its profit jump 16% to EUR3.2 billion, followed by Intesa Sanpaolo with EUR2.76 billion, a 5.6% increase. Both institutions report highly balanced revenue streams between net interest income and fees, while supporting share prices through substantial dividends and stock buybacks.

Among the major players, BPER also stood out with earnings rising 17% to EUR518 million, bolstered by the acquisition of Banca Popolare di Sondrio. The situation differed for Banco BPM and Monte dei Paschi, which recorded declines of 6% and 26% respectively, primarily attributed to a higher tax burden. Despite this, both confirmed operational resilience and long-term targets.

MPS, while reporting a lower net profit, showed a 19% increase in gross results, while pro-forma figures including Mediobanca indicate further improvement. In the coming days, several banks are set to distribute generous dividends: in the case of MPS, the yield is approaching 10%, among the highest on Piazza Affari.

The credit outlook also remains positive, as none of the 'Big Five' reduced lending to customers. Total loans rose to EUR1,253 billion, an increase of approximately EUR23.5 billion compared to a year ago, despite high interest rates and macroeconomic uncertainty.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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