Yahoo Finance UniCredit Jumps Past €60 Billion Market Cap to Join Elite Club
(Bloomberg) -- UniCredit SpA’s market capitalization rose above €60 billion ($64.6 billion) on Tuesday, making it one of four euro area banks to exceed that threshold.
Most Read from Bloomberg
The bank’s shares jumped as much as 3.5% to the highest level in almost 13 years after it reported first-quarter profit that topped analyst estimates. The resulting increase in valuation made it a member of the bloc’s exclusive club of banks with market capitalizations above that level, which also includes BNP Paribas SA, Banco Santander SA and Intesa Sanpaolo SpA.
UniCredit is a key beneficiary of the rapid interest rate hikes implemented by the European Central Bank over the past two years. That effect is likely to taper off eventually as the institution is expected to ease monetary policy starting in June.
In addition, Chief Executive Officer Andrea Orcel has led the way in European banking on investor payouts, returning almost €18 billion to shareholders through buybacks and dividends since 2021. Orcel also raised guidance for payouts earlier on Tuesday.
The bank’s shares have soared about 46% this year, one of the best performers among European lenders. The stock is up almost fourfold since Orcel took over about three years ago.
--With assistance from Sonia Sirletti.
Most Read from Bloomberg Businessweek
A New Kind of Power Company Will Put a Battery in Every Home
Chris Dixon’s Campaign to Overhaul Crypto’s Grifty Reputation
Boom Times Are Over for Food Startups, But That’s a Good Thing
©2024 Bloomberg L.P.
