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Commerzbank has been reporting its biggest quarterly profit for over a decade, boosting German banks to try to remain independent amid the acquisition from Italian Unicredit.
Germany’s second-largest lender said on Friday that net income rose 12% annually to 834 million euros in the first quarter, significantly surpassing analysts’ 698 million euros forecast.
Total revenues reached €3.1 billion, from 12%, due to stronger interest than expected and committee revenue. The loan clause was just 123 million euros, far below analysts’ forecast of 162 million euros. Analysts were expecting a stronger increase after economic upheaval following the US tariff announcement.
“We have achieved our highest quarterly profits since 2011 and demonstrated that we can grow even in economically challenging times,” said the chief executive of Betina Aurop, who took over in October.
The result is that Commerzbank is trying to step up its lawsuit to remain independent after pressure from UnicRedit. The Italian lender accumulated 28% stake in Commerzbank, including derivatives, and received clearance last month from both German antitrust authorities and the European Central Bank to increase its direct shares to just under 30%.
Commerzbank’s stock has skyrocketed by over 70% over the past 12 months, increasing investors’ confidence in the bank’s outlook, reflecting the acquisition of speculation.
In February, Orlopp outlined a standalone strategy aimed at dodging Unicredit’s advances, including plans to cut 3,900 jobs and increase profitability by 2028 compared to 2024 levels.
On Friday, management said talks with labor directors over employment cuts are “going well” after unions called for demonstrations in support of bank independence ahead of next week’s annual general meeting.
Commerzbank staff and management have expressed strong resistance to Unicredit. The German government, which still holds 12% stake after the bank’s bailout during the financial crisis, has yet to approve the transaction.
UnicRedit has indicated that it will seek approval from Berlin before pursuing a formal acquisition. Individual bids for Italy’s Piabangco BPM are stagnant amid new conditions imposed by Rome.
