Commerzbank AG lifted its guidance for profit this year and outlined more job cuts as Chief Executive Officer Bettina Orlopp steps up her defense against a hostile takeover attempt by UniCredit SpA. Profit for the full year will reach at least €3.4 billion ($4 billion), the German lender said Friday, raising an earlier guidance of more than €3.2 billion. Commerzbank also outlined new mid-term targets, including 3,000 job cuts that should help it double profit by 2030 and achieve a net return on tangible equity of about 21%.
"We are growing more strongly than expected, and our new targets through 2030 reflect this,” Orlopp said in the statement. “Every alternative must be measured against this."
Orlopp's almost two-year fight for independence is entering a critical stage after UniCredit this week took its offer directly to Commerzbank shareholders. The CEO has so far managed to keep the Italian rival at bay by boosting profitability and shareholder payouts, pushing Commerzbank's stock higher and making a deal more expensive.
| Key metrics in € | 1Q 2026 | 1Q 2026 est | 1Q 2025 |
| Revenue | 3.22b | 3.24b | 3.07b |
| Net interest income | 2.05b | 2.07b | 2.07b |
| Credit provisions | 142m | 158m | 123m |
| Net income | 913m | 866m | 834m |
| CET1 ratio (%) | 14.5 | 14.7 | 15.1 |
Shares of the German lender have more than doubled in value since Orlopp took over in October of 2024, shortly after UniCredit announced that it had taken a large stake. The Italian bank owns around 27% of the shares and controls an additional 9% through financial instruments, according to Commerzbank.
UniCredit argues it can increase Commerzbank's profitability through savings in areas such as strategy, finance, risk management, compliance and IT. It targets 5,000 job cuts if Commerzbank remains independent and adopts its plan. A further 2,000 reductions are envisaged in the event of a combination, which would bring the total to 7,000.
Its takeover offer, which runs through June 16, is unlikely to be taken up by a large number of investors, with the terms implying a purchase price below Commerzbank's current market value. The bid is designed to push UniCredit's holding just above 30% without immediately securing full control. Crossing the threshold would otherwise trigger a mandatory takeover offer.
The German government, which opposes the deal, owns more than 12%. However, it has few legal options to stop the Italian bank if it presents a compelling takeover offer. Some lawmakers have floated the idea that the government should consider expanding its holding in Commerzbank to thwart a potential acquisition by UniCredit.
Commerzbank has warned of significant client attrition and severe job cuts in the event that UniCredit succeeds with its takeover attempt. It argues Orcel is trying to dismantle the successful business model of a competitor, criticising UniCredit's approach as “hostile tactics” and its characterizations of the German lender as "misleading."
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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