UniCredit’s Beat Fails to Sway Investors as Italy Bank Tax Looms

UniCredit SpA’s higher profit and revenue in third-quarter failed to impress investors, underscoring the challenges for Chief Executive Officer Andrea Orcel after his unsuccessful bid for Banco BPM SpA.

Net income rose 4.8% from a year earlier, driven by income from trading, higher dividends from strategic investments as well as lower-than-expected costs and provisions for bad loans. While the results beat analysts’ estimates, UniCredit shares fell along with other Italian banks, as investors focused on weaker net interest income and the prospect of higher bank contributions to the country’s budget.