UniCredit SpA said it will use a get-out clause to avoid paying the Italian government’s bank windfall tax, while lifting its full-year target for revenue for a third straight quarter.

Italy’s second-biggest bank now sees 2023 net revenue at more than €22.2 billion ($23.7 billion), up from an earlier forecast of €21.5 billion, led by higher than expected net interest income. UniCredit also revised its target for capital generation and risk-weighted assets, while confirming its annual targets on profit and investor returns.

UniCredit will allocate €1.1 billion as non-available reserves for 2024 instead of paying the levy, which was announced earlier this year. The step is the first such announcement among major Italian lenders and could shape the broader response to the law.

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Net income for the third quarter beat estimates, coming in at €2.32 billion.

Since taking charge at Italy’s second-biggest bank almost two years ago, Chief Executive Officer Andrea Orcel has exited businesses, cut jobs in non-core locations and sought to focus on more lucrative products and capital-light activities. Those efforts have been given a tailwind by the European Central Bank’s campaign of inflation-fighting rate hikes.

UniCredit said last month it would front-load a €2.5 billion tranche of its 2023 share buyback program. Under Orcel, the lender has lifted its distribution target twice this year.

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--With assistance from Chiara Remondini.