UniCredit SpA’s stock price rose by 5.2% on Tuesday, following the bank’s announcement of a record quarterly profit.

The bank reported a net income of €1.4 billion for the first quarter of 2023, exceeding market expectations. However, UniCredit SpA has decided to withdraw its takeover bid for Banco BPM, citing a lack of progress in negotiations.

The decision to abandon the takeover bid has shifted the focus back to Commerzbank, which is now under increased scrutiny from investors and analysts. Key factors influencing Commerzbank’s performance include its exposure to the European market and its plans for restructuring.

UniCredit SpA has also announced its intention to exit the Russian market by the first half of 2026, in line with the European Union’s sanctions against Russia. This move is expected to have a minimal impact on the bank’s overall performance.

The European stock market has seen a rise in recent days, driven by hopes of a trade deal between the US and the EU. Key indices, including the Euro Stoxx 50, have shown significant gains, with the Stoxx Europe 600 Banks index rising by 2.5% on Tuesday.

Key Developments:

• UniCredit SpA’s stock price rose by 5.2% on Tuesday
• The bank reported a record quarterly profit of €1.4 billion
• UniCredit SpA has withdrawn its takeover bid for Banco BPM
• The bank plans to exit the Russian market by the first half of 2026
• The European stock market has seen a rise in recent days, driven by hopes of a trade deal between the US and the EU