UniCredit SpA recorded the highest increase in market capitalization among large European banks in the third quarter, a period marked by persistent global inflationary pressures and market volatility.

The market value of the Italian bank rose 12.11% to €21.15 billion in the three months to Sept. 30, making it the 15th largest bank in Europe by that measure, according to S&P Global Market Intelligence data.

UniCredit recently signaled optimism about its revenue prospects amid the economic downturn, with CEO Andrea Orcel saying the bank would substantially upgrade its 2022 guidance when it reports its third-quarter results in October. The lender already raised its outlook in July, projecting full-year revenues, excluding Russia, of at least €16.7 billion.

UniCredit, which aims to distribute more than €16 billion to shareholders by 2024, recently kicked off its second buyback for 2022 for up to €1 billion, having completed an earlier tranche worth €1.58 billion.

In the red

HSBC Holdings PLC remained the largest European bank by market cap even after registering the steepest decline in the sample of 12.01%. U.K.-based peers Standard Chartered PLC, Barclays PLC, Lloyds Banking Group PLC and NatWest Group PLC also fell in value.

Shares in British banks took a dive in September after the new British government unveiled a radical economic plan to slash £45 billion in taxes and increase borrowing. The announcement, which came as U.K. inflation hovered around 10%, sparked mayhem on financial markets and sent the pound to historic lows, prompting the government to abandon proposals to scrap the 45% income tax for high earners, a key part of the tax-cut plan.

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Shares in Spanish banks also took a hit during the quarter after the Spanish government announced plans to raise a total of €3 billion in tax revenues from lenders' 2022 and 2023 earnings. In the third quarter, the market cap of Banco Santander SA dropped nearly 11%, while CaixaBank SA's dipped 0.18%.

The market value of UBS Group AG also fell significantly in the third quarter. The Swiss bank recently warned about growing client risk aversion — particularly in Europe and Asia — amid the global economic slowdown, Reuters reported.

It also suffered a setback in early September after the collapse of its planned $1.4 billion acquisition of U.S. robo-adviser Wealthfront Corp., which was expected to fast-track its plans to penetrate the mass affluent market in the U.S.