UniCredit raises its annual forecasts after its quarterly profits grew by 24%, exceeding expectations

The UniCredit Group, the second largest bank in Italy, raised its expectations for the full year, after recording profits in the third quarter that exceeded expectations, with an annual increase of 24 percent, at a time when it is preparing to take the reins of defining the strategy at the German Commerzbank.

After a low-value takeover bid that closed in July, and a deliberate use of financial derivatives, UniCredit CEO Andrea Ursel, a veteran M&A banker, succeeded in securing a stake close to 50 percent of the voting rights in Germany's second-largest bank, according to Reuters.

After the takeover bid received approval from the European Central Bank in October, UniCredit said on Monday that it expects to complete the remaining regulatory procedures by the end of November. Orcel told analysts that these measures are proceeding much faster than initially expected.

Regarding the opportunities to enhance banking integration in the Italian market, following the French bank Credit Agricole’s proposal to merge its local unit with Banco BBM, Orcel reiterated that UniCredit is currently only monitoring developments, having previously studied the acquisition of both Monte dei Paschi di Siena and BBM, before withdrawing from the two deals.

The bank's move in the local market was limited to investing billions of euros in the insurance company Generali, while it focused its efforts on Commerzbank and its Polish unit MBank, in addition to its investment in the Greek Alpha Bank.

A 90 percent annual increase in dividends generated from investment shares formed by Orcel contributed to boosting the bank’s revenues by 12 percent during the quarter.

A plan to boost Commerzbank's profits

UniCredit said in a statement that the first quarter of 2027 is the expected date for approving a new governance structure and starting the implementation of the Commerzbank Unlocked plan, which is a plan aimed at enhancing profits by repeating the strategy that made UniCredit, according to its description, the best in the sector during the five years in which Orcel led the group.

JP Morgan analysts believed that this date comes a little later than expectations, after Orcel previously indicated the possibility of starting implementation of the plan in January.

But UniCredit said that the merger of Commerzbank with its local German unit, HPB, may take place earlier than expected, allowing it to achieve “significant additional value.”

Orcel told CNBC that UniCredit seeks to establish a strong and constructive relationship with the German government, and that it is showing flexibility in this regard, but will not make advance commitments regarding Berlin’s request to maintain Commerzbank’s listing on the Frankfurt Stock Exchange.

UniCredit had indicated that the merger would not take place before 2028, explaining that it first wanted to allow the new management to implement changes within Commerzbank, of which the German government still owns a 13.3 percent stake.

To replace the bank's current CEO, Bettina Orlop, UniCredit must call a shareholder vote and appoint a supervisory board at Commerzbank. Orcel said that the group will take these steps “immediately” after obtaining all necessary approvals.

Orlop had strongly opposed UniCredit's offer, but last week she spoke positively about the possibility of a deal.

UniCredit's net profits rose during the period from July to September to 3.3 billion euros ($3.7 billion), exceeding analysts' expectations of 2.8 billion euros, according to average estimates compiled by the company.

The group now expects its profits for 2026, before taking into account exceptional items, to far exceed the level it had previously expected at about 11.5 billion euros.

Flynas, the Saudi low-cost air carrier, received two new Airbus A320neo aircraft, as part of its plan to enhance its fleet, support growth and expansion plans, continue developing the travel experience and raise fuel efficiency.

The two aircraft belong to the new generation of cabin-equipped aircraft that Flynas launched in early 2026, as part of its drive to modernize its fleet and improve the passenger experience.

Airbus A320neo aircraft are characterized by higher fuel efficiency and lower levels of emissions and noise, compared to previous models. Thanks to its modern technologies and more efficient engines, in addition to its spacious cabin and advanced equipment, including the latest entertainment systems.

In conjunction with receiving the two aircraft, flynas completed the removal of the last four Airbus A320ceo aircraft from its fleet, making it composed of 64 Airbus A320neo aircraft and two wide-body Airbus A330 aircraft, bringing its total fleet to 66 aircraft. This reflects the company's trend towards relying on newer, more fuel-efficient aircraft, which supports its growth plans.

Modernizing the fleet contributes to the company’s efforts to reduce the environmental impact of its operations and reduce carbon dioxide emissions, despite the increase in the number of flights, by improving fuel efficiency, raising seat density, and developing operating methods and routes.

A report by Cirium, which specializes in aviation sector research, indicated that these practices are among the most important factors contributing to improving fuel efficiency and reducing emissions in the sector.

In July 2026, during the Farnborough International Air Show, flynas announced the confirmation of an order to purchase 25 aircraft from Airbus, including five wide-body A330neo aircraft and 20 A321neo aircraft. Thus, its total confirmed orders for Airbus aircraft rise to 235 aircraft, in addition to 45 purchase options, bringing the total number of aircraft included in the orders and options to 280 aircraft.

Flynas continues to implement its plans for growth and expansion under the slogan “We connect the world to the Kingdom,” in line with the objectives of the National Civil Aviation Strategy aimed at strengthening the Kingdom’s position as a global aviation hub, connecting it to 250 international destinations, accommodating 330 million passengers, and hosting 150 million tourists annually by 2030, in addition to supporting the objectives of the program for serving the guests of God and facilitating access to the Two Holy Mosques.

The business confidence index in Saudi Arabia continued to record levels that reflect optimism during October 2026, despite its decline to 55.5 points, compared to 56.6 points in September, a decrease of 1.1 points, according to the index data.

The continuation of the index above the level of 50 points, which represents the neutral limit, indicates the continued levels of optimism among businesses, in light of their confidence in the stability of economic activity and continued growth across the various non-oil sectors.

At the sector level, the business confidence index in the construction sector recorded the highest level among the three sectors during October, at 56.1 points, although it decreased by one point, compared to 57.1 points in September.

The data attributed this decline to lower levels of confidence associated with sales and input costs.

In the industrial sector, the index reached 55.4 points, declining by 0.9 points, compared to 56.3 points in the previous month. The data attributed this decline to a decline in levels of confidence related to sales and input costs during the month.

As for the services sector, the business confidence index recorded 54.2 points in October, a decrease of 1.2 points, compared to 55.4 points in September, with declining levels of confidence related to sales and input costs.

The general index recorded a monthly decline of 1.9 percent during October, according to the monthly changes table, compared to a decline of 0.2 percent during September, when the index reached 56.6 points. The index had recorded 56.7 points in August, and 56.5 points in July, before falling to 55.5 points in October.

The Business Confidence Index is one of the economic indicators that measures the level of optimism of establishments regarding current business conditions and their future expectations, based on a monthly survey that includes a sample of establishments operating in various non-oil economic activities, according to the Unified National Classification of Economic Activities (ISIC4).

The index reading ranges between zero and 100 points, while the level of 50 points represents the neutral limit. Higher readings indicate optimism and high business confidence, while lower readings reflect pessimism.