LONDON, May 5 Reuters European banks counted the rising cost of war in Ukraine on Thursday as France39;s Societe Generale, Credit Agricole and Italy39;s UniCredit upped provisions for the conflict without shattering investors39; confidence in their prospects.

The Italian lender, one of Europe39;s banks most exposed to Russia where it runs AO UniCredit Bank, surprised the market by saying it would soon start a 1.6 billion euro 1.7 billion share buyback even as Russiarelated provisions drove firstquarter profit down 70. 

UniCredit shares jumped 6 as investors cheered the news and the fact the bank confirmed cash dividends on its 2021 results.

France39;s Societe Generale, which recently wrote off roughly 3.1 billion euros for the sale of its Russian arm Rosbank also saw its shares rise, about 2.5, despite announcing additional costs due to the war impacting risks on loans.

SocGen now expects its cost of risk, reflecting bad loan provisions, to reach 30 to 35 basis points in 2022, up from below 30 basis points as originally planned.

France39;s thirdbiggest listed bank nonetheless beat firstquarter earnings expectations as its domestic retail arm prospered and trading improved, sending its share price about 2higher.

On Tuesday, shares in BNP Paribas surged after it reported a strong net income beat as trading boomed even if it had to book a 159 million euro impairment on its 60 stake in Ukrainian lender Ukrsibbank.

Credit Agricole SA on the other hand disappointed…