Our liquidity is solid, and our asset quality strong. The improved macro-outlook and rate environment, positive business trends and our continuing transformation and strengthened lines of defence have enabled us to increase our 2023 guidance across key metrics. We now expect net profit of over €6.5 billion and a higher shareholder distribution of at least €5.75 billion. The low Cost of Risk of 30-35 basis points for 2023, with potential tailwinds that could drive it lower, is a result of our solid credit portfolio, high coverage and significant overlays.
Thus far Europe has proven itself to be relatively resilient to exogenous shocks and periods of heightened uncertainty.
At UniCredit we anticipated a difficult macroeconomic scenario and prepared ourselves with strengthened lines of defence and preemptive actions to secure our future performance.