Five Banks Set New Records as Profits Soar to EUR26 Billion

(Alliance News) - Net profits are up 14% for Italy's five largest banks, rising from EUR22.8 billion in 2024 to EUR26.05 billion in the most recent fiscal year.

As highlighted by Corriere della Sera on Monday, UniCredit leads the rankings with over EUR10 billion in profit—an 11% year-on-year increase—followed by Intesa Sanpaolo with EUR9.3 billion. Generous dividends and share buyback plans remain central to their strategies, serving as key tools to support share prices and strengthen shareholder support.

On the stock market, both banks now exceed EUR100 billion in capitalization, ranking among Europe's top institutions: a dramatic shift from nine years ago, when Italian banks lagged behind in terms of solidity and profitability.

The sector is undergoing rapid transformation. The MPS-Mediobanca deal has reshaped the financial landscape, but consolidation is not over, and new mergers could be completed in the coming months in a country where savings remain a key driver.

Financial results are at record highs: UniCredit has logged its twentieth consecutive quarter of growth, Intesa has exceeded its business plan targets, BPER has increased profits by 29% and now commands a market capitalization 30% higher than Banco BPM, which itself has outperformed its own guidance. MPS has strengthened its solidity—with a CET 1 ratio at 16.2%—and is distributing a total dividend of EUR2.6 billion.

Key trends include a drastic reduction in NPLs, which are now quickly offloaded to specialized operators, lightening balance sheets, although a possible uptick is forecast for 2026. Interest income is declining, offset only partially by growth in fee income, as banks expand their range of services.

While Banco BPM and BPER have improved operating income, UniCredit and Intesa have seen a slight, though contained, decline.

The outlook remains positive. BPER has increased its market value tenfold since 2022, Intesa will distribute over EUR6.5 billion in cash in 2025, MPS is offering a 10% dividend yield, and Banco BPM has boosted lending by 33%. Under Andrea Orcel's leadership, UniCredit has undergone a profound transformation, with ambitious strategic plans and an aggressive approach that has strengthened its accounts, though it has also opened up complex political and international challenges.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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