UniCredit Sidesteps Bank Windfall Tax, Lifts Revenue Goals
- Bank uses get-out clause to boost reserves instead of paying
- UniCredit lifts full year revenue target, posts higher profit
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UniCredit SpA said it will use a get-out clause to avoid paying the Italian government’s bank windfall tax, helping to preserve its plans to return capital to investors and laying the groundwork for peers to follow suit.
UniCredit will allocate €1.1 billion ($1.2 billion) as non-available reserves for 2024 instead of paying the levy, the bank said while releasing third quarter earnings on Tuesday. Italy’s second-biggest lender lifted its full-year revenue target for the third quarter in a row, and posted better-than-expected net income.