Commerzbank reports profit surge as it fends off UniCredit bid
The lender's revenues increased by 12% to €3.1 billion, while net interest income was slightly less than a year ago, standing at €2.07bn at the end of the first quarter of 2025. Meanwhile, the net commission income, driven by a strong securities business, grew by 6% to €1bn in the same period.
'We achieved the highest quarterly profit since 2011, demonstrating that we can grow even in economically challenging times,' Commerzbank CEO Bettina Orlopp said. 'We are progressing with the implementation of our strategy 'Momentum'. We plan to return more capital to our shareholders in the coming years.'
Commerzbank completed a share buyback programme of €1bn starting from November 2024, and it also proposes to pay a dividend of €0.65 per share, which will be decided at the Annual General Meeting on 15 May 2025.
The better-than-expected results are coming at a time when the German bank is making efforts to fend off Italian banking group Unicredit's takeover advances.
Related
Commerzbank to cut jobs and boost profits in bid to fend off UniCredit
Italy's UniCredit beats profit estimate as it continues takeover drive
Unicredit has recently acquired a large stake in Commerzbank, raising its stake to 29.9%, just short of the 30% threshold at which Unicredit is required to make a public offer for the entire bank.
In February, Commerzbank announced cost-cutting measures, including job cuts of about 10% of the bank's workforce, to fend off any takeover bid by the Italian bank.
The German lender's employee representatives are also organising a protest against a possible takeover, scheduled just hours before Commerzbank's annual general meeting on 15 May.
The German bank said that this year it expects a higher net result of around €2.4bn for the full year, after restructuring expenses.
The bank set aside €40m for restructuring expenses in the first quarter, for an early partial retirement programme, which the bank will offer later this year. It is part of the job reductions, the lender is currently negotiating with the employee representative committees.
Furthermore, to preserve profitability, Commerzbank reduces its dependence on net interest income –the difference between what it earns from loans and pays for deposits–as interest rates fall.
The return on tangible equity improved to 11.1% from last year's 10.5% in the first quarter, which is seasonally strong. 'We are on track to reach our full-year target of around 9.6%,' Commerzbank CFO Carsten Schmitt said. 'At the same time, we are reducing our dependency on net interest income. We confirm our outlook for 2025.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hamilton Spectator
3 hours ago
- Hamilton Spectator
They did their renos over 20 years, so all the home's features seem new
As the owner of a home staging/decorating business , Susan Crema-Martin stages homes where the look lasts only until the house sells. For her own home in East Gwillimbury, she and husband, Michael, took a long-term approach, thoughtfully planning renovations and executing them in stages over two decades. As a result, the 1998 home they purchased 22 years ago has timeless appeal, with older and newer improvements blending seamlessly. 'It's always good practice when you buy a property, to wait, live in it and feel it (before making major changes),' Crema-Martin says. The improvements she and Michael have made over time, starting with the kitchen, and, recently, to the basement, were planned to maximize function and flow. She's 'not a trendy designer person' and her home reflects traditional transitional style, combining classic style and modern elegance. Over the years, improvements have been carried out to make the kitchen the hub of the home, update bathrooms for their son and daughter, accommodate her staging business inventory, and create flow to the backyard oasis with its deck, pool, hot tub and lush gardens. Function has been the priority for each reno, such as creating direct access from the outdoor hot tub through the tiled floor laundry room to the powder room. Now that Crema-Martin's business inventory is stored at another site, the basement has been transformed into a secondary suite, adding value to the home if the Martins ever decide to sell. Crema-Martin's family is Italian, and her visits to Italy influenced her love for timeless design. That's why her kitchen cabinetry is off-white, a colour that never goes out of style, and her kitchen countertops are honed marble, a stone that's been desirable for centuries. Although some people shy away from marble because they fear it's too soft, Crema-Martin points out that Italy's historic piazzas are paved with marble that has endured for centuries. Many of the furnishings in the home are mid-century modern. It is possible to add updated or fun touches to a home without breaking the bank, says Crema-Martin. The master bedroom in her family home got a minor refresh with a feature wall created with boldly patterned peel-and-stick wallpaper, and a new light fixture. The Martins' home was featured in June on the CFUW Aurora/Newmarket Home & Garden Tour, and Crema-Martin was amused when several people complimented the 'new' kitchen reno, when it's actually 20 years old. Even though their two kids are grown and living elsewhere, the empty-nester Martins have no plans to move elsewhere, Crema-Martin says. 'We love our house. It's open. It's bright. It's our happy place.'
Yahoo
5 hours ago
- Yahoo
Bayern Munich's Adam Aznou scheduled for Everton medical this weekend
Everton should be able to wrap up a purchase of Bayern Munich fullback Adam Aznou soon. Sport Bild reports that the 19-year-old has indeed lodged a transfer request with his Bundesliga club. Earlier this week, Kicker confirmed that Bayern's previous negotiations with Getafe CF had produced nothing but a busted deal, Fabrizio Romano now reports that the German and English club have reached full agreement on the transfer. Romano confirms numbers originating in a report from The Athletic earlier today. Bayern shall receive a base-transfer-fee for their young talent. An additional €3m in bonuses have beeb tacked on. Aznou, per Romano, will undergo his Everton medical this weekend. Aznou was recalled by Bayern Munich early from his recent loan stint with Real Valladolid in order to participate in the recent club World Cup. The teenager nevertheless wasn't able to take advantage of the opportunity accorded to him. Aznou logged only eight minutes as a substitute in Bayern's opening group stage fixture. GGFN |
New York Post
19 hours ago
- New York Post
Trump's tariff plan seems to be working — proving all the naysayers wrong
For all the 'sky-is-falling' cries over President Donald Trump's tariffs, it looks like his strategy may be working — just as his Aug. 1 deadline nears. In the past week, the Trump folks struck deals with Japan, Indonesia and the Philippines — and may be on the verge of a deal with Europe: On Friday, the prez cited a 50-50 chance of reaching an agreement with the European Union. These developments — on top of previous deals with Vietnam, the United Kingdom and a framework on rare-earth exports and tech restrictions with China — go a long way toward standing up Trump's vision for the international economy, with better terms for America. And at least so far, no catastrophic fallout. Heck, the nation looks poised to benefit enormously on several fronts. Trump's deals in Asia, for starters, reopen US access to cheap markets, sidestepping China, our greatest economic and military rival. Indonesia and the Philippines will pay 19% tariffs on their exports to the United States and levy 0% tariffs on more than 99% of US goods. Japan will see 15% tariffs and invest more than half a trillion dollars into the US economy. Washington will also slap fewer restrictions on Indonesian, Filipino and Japanese goods, everything from cars and clothes to electronics and rubber. And now EU officials are signaling their support for a deal that would mirror the one Trump made with Japan — reciprocal tariffs of 15%. Notably, the EU includes 27 countries in a shared common market, representing the largest singular trading bloc for the United States. The EU deal would clearly benefit US consumers looking to buy, say, French wines or German cars, and also US producers seeking wider access to the European markets. Keep up with today's most important news Stay up on the very latest with Evening Update. Thanks for signing up! Enter your email address Please provide a valid email address. By clicking above you agree to the Terms of Use and Privacy Policy. Never miss a story. Check out more newsletters Meanwhile, the resolution of trade issues with so many countries will calm markets and bring confidence and stability to the business community. As for the predicted inflation, it's nowhere to be seen: June's consumer price index came in at a reasonable 2.7%. Recall it hit 9% under Joe Biden. That's partially because corporations, unsure of whether high tariffs will remain permanent and nervous about hiking prices, have absorbed most of the tariffs' costs, at least for now. More good news: The tariffs brought in $64 billion in revenue for the government in just the first three months since Trump's April 2 'Liberation Day' announcement. He's suggested issuing 'rebates' based on that haul, but far better to use the new revenue to pay down the runaway national debt. Yes, there's plenty more to do: Team Trump needs to finalize agreements with Canada, India and Mexico, along with the EU, and numerous smaller countries, before the president's across-the-board reciprocal tariffs hit Aug. 1. So considerable uncertainty remains. But clearly the signs are good, at least so far — despite all the doomy predictions.
