By Steve Goldstein
Shares of UniCredit /zigman2/quotes/200769686/delayed IT:UCG +0.88% rose as much as 12% on Thursday after Italy’s largest bank targeted €16 billion ($18 billion) in capital returns through 2024.
At its strategy day presentation , the bank set out a target of €4.5 billion in net profit in 2024, ahead of the €4 billion consensus, as it said it also is forecasting faster revenue growth and higher cost reduction than estimates.
Analysts at Citi said the €16 billion capital return target was higher than the €10 billion it had estimated. “We expect the market to have an initial strong positive reaction to the plan as the group has increased capital return well above market expectation, and net profit seems broadly realistic at about 5% higher than our estimates, but 15% higher than consensus,” they said.
While UniCredit rallied, Deutsche Bank /zigman2/quotes/207242873/delayed XE:DBK +4.38% slipped 2% after The Wall Street Journal reported the Justice Department thinks German bank may have violated a previous settlement by not disclosing a whistleblower’s allegation at its fund management arm.
The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.65% slipped 0.2% to 476.66 in afternoon trade, as did the German DAX /zigman2/quotes/210597999/delayed DX:DAX +0.42% , French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.60% and U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.13% .
Of other stocks on the move, Dr. Martens /zigman2/quotes/224328095/delayed UK:DOCS -9.03% dropped 6% as the U.K. footwear and clothing brand warned shipping delays would continue into next year in the U.S. Its pretax profit in the half-year to Sept. 30 jumped 46% on 16% revenue growth.
Neste /zigman2/quotes/202009726/delayed FI:NESTE -3.98% dropped 5% as the oil refiner’s CEO, Peter Vanacker, announced he will resign by June at the latest. Neste said it will begin a search for his successor.