UniCredit posted record quarterly profit of €3.2bn in Q1 2026, a 16% jump from the previous year and beating analyst estimates. Italian lender benefited from a tripling in dividend income from stakes in rival European banks, including Germany's Commerzbank and Greece's Alpha Bank. The €408mn in dividend income helped offset declining interest income, which fell 2% year-on-year.

UniCredit pressed ahead with its €35bn bid for Commerzbank despite facing staunch opposition in Germany. Chancellor Friedrich Merz accused the Italian bank of using "hostile" tactics in pursuing the lender. UniCredit has amassed a 29% stake in Commerzbank through share purchases and derivatives, stopping just shy of the 30% threshold that would trigger a mandatory takeover under German law.

The robust performance came as CEO Andrea Orcel defended the acquisition strategy, saying Commerzbank had "consistently underperformed" and risked becoming unfit for a rapidly changing banking environment. With HypoVereinsbank already in its portfolio, acquiring Commerzbank would transform UniCredit into a major force in Europe's largest economy.