MILAN, May 12 (Reuters) - Italy's second-biggest bank UniCredit (CRDI.MI), opens new tab strengthened its 2025 outlook on Monday after posting a surprise increase in first-quarter profit, and said it would pursue deals only if they further improved its "unmatched standalone case".
CEO Andrea Orcel has placed UniCredit at the heart of the consolidation wave sweeping Italian finance, with a 14 billion euro ($16 billion) all-share offer for rival Banco BPM and a 6.7% stake in insurer Generali (GASI.MI), opens new tab, which UniCredit has said is a financial investment, the same as its 28% stake in Commerzbank (CBKG.DE), opens new tab.
However, the offer for BPM hangs in the balance after Italy's government imposed strict conditions to clear it, which UniCredit said could be harmful to the bank.
Plans for a Commerzbank takeover face strong opposition from the new German government and the strategy over Generali remains unclear.
UniCredit said fee and trading income, as well as lower costs, drove net profit 8% higher to 2.77 billion euros ($3.14 billion) during the January-March period, above a 2.36 billion euro average analyst consensus gathered by the bank.
It said it now expected its 2025 net profit to surpass 9.3 billion euros, above last year's result net of tax credits, while it had previously said it would broadly match it.
Orcel said in a statement that UniCredit was confident it could improve its profit and distribution guidance for 2025.
($1 = 0.8914 euros)
Reporting by Valentina Za, editing by Giulia Segreti and Rashmi Aich
Source: Reuters