Tag is: Commerzbank

Commerzbank lays off 3,000 people to block UniCredit’'s takeover bid

by the Logistics TransportIn the the General Assembly

Commerzbank has announced plans to lay off 3,000 more people while sharply increasing its profit targets in direct response to UniCredit’'s takeover targets.

The Frankfurt-based lender announced on Friday that revenues are expected to rise to 16.8 billion Euro’ by 2030, while net profit is expected to reach 5.9 billion Euro’.

Bettina Orlopp, chief executive, said the new targets reflect “iddiali and at the same time reliable” growth, and “ added that any alternatives should be evaluated accordingly; This was a reference to the Italian bank's proposal.

Additional layoffs present approx. 38,000 jobs %8It will affect ’ini. The bank estimates that the cost of the restructuring will be around 450 million euros. According to Commerzbank’, the increase in the use of artificial intelligence will also help to make processes more efficient.

Why is this important?

UniCredit formally submitted its takeover offer this week, a voluntary share exchange offer for all outstanding shares of Commerzbank’, which has valued the German bank at just under 35 billion Euro’.

Since the Italian bank bought a large share from the German government in 2024 and then increased that share through market purchases to the point where it was legally necessary to make a formal offer under German takeover law, the Commerzbank revolves around ’.

UniCredit is currently in Commerzbank’ta %It has a direct stake of 26 percent and is approximated through total return swaps. %It has an additional stake of 4’. The proposal caused alarm bells to ring in Frankfurt and Berlin’, and Commerzbank fears the takeover will disrupt its business model.

The proposal caused alarm bells to ring in Frankfurt and Berlin’, and Commerzbank fears the takeover will disrupt its business model.

The Bank is the second largest private credit institution in ’, Germany, and an important source of financing for the country's famous Mittelstand’ (small and medium-sized enterprises that form the backbone of the German economy).

According to UniCredit’'s plans, a total of around 7,000 jobs could be terminated. Commerzbank does not consider a takeover necessary at the moment.

In the bank's opinion, the plans offered by UniCredit include “, which is unclear, and ”, which has significant implementation risks.

However, the bank said it would remain open to discussions in principle, provided that an attractive premium is offered to shareholders and the key elements of the strategy are retained.

German Chancellor Friedrich Merz (CDU) recently backed Commerzbank’ and Germany announced that ’ needed strong banks, but any takeover of “ would not be welcome.

’ strongly rejects hostile and aggressive behavior, Chancellor Berlin “de said.

Media reports are also examining whether the federal government can increase its stake in Commerzbank’.

The state currently holds about 12 percent of the shares. Commerzbank posted a net profit of €913 million in the first quarter.

According to the bank, this was the best quarterly result since 2011’.

Commerzbank reports increased profit as it fends off UniCredit offer

by the Logistics TransportIn the the General Assembly

Germany's Commerzbank reported better-than-expected results in the first three months of 2025. The bank's net profit replaces the expected declining net income %It increased by 12 to 834 million Euro’.

Revenues of the lender %Net interest income was slightly lower than a year ago, with a 12-year increase to €3.1 billion, compared to €2.07 billion at the end of the first quarter of 2025’. Meanwhile, net commission income in the same period due to the influence of the strong securities business %6 increased to 1 billion Euro’.

Bettina Orlopp, CEO of Commerzbank, said: "By demonstrating that we can grow even in times of economic hardship, we have achieved the highest quarterly profit since 2011’. We are on our way to implementing our “‘Momentum’ strategy. We plan to bring more capital to our shareholders in the coming years.”

Commerzbank has completed the €1 billion ’ share buyback program from November 2024’, and also offers to pay a dividend of €0.65 per share to be agreed at the Annual General Assembly ’ on May 15, 2025’.

Better-than-expected results come at a time when the German bank is striving to fend off takeover moves by Italian banking group Unicredit’.

Unicredit recently acquired a large stake in Commerzbank’ta ,9’a was taken out; this is what Unicredit’in needs to IPO for the entire bank %It's just below the 30 threshold.

In February, Commerzbank announced that the bank's workforce would be about %He announced that he had taken cost-cutting measures, including the dismissal of 10’.

Employee representatives of the German bank are also holding a protest against a possible takeover, just hours before Commerzbank’'s annual plenary meeting in ’ on May 15.

Commerzbank confirms this year's targets

The German bank said it expects a higher net result of around €2.4 billion for the entire year following restructuring expenses this year.

The bank allocated €40 million for restructuring expenses in the first quarter for its early partial retirement program, which it will offer later this year. That's part of the layoffs; The lender is currently negotiating with employee representative committees.

In addition, to maintain profitability, Commerzbank is also reducing its dependence on net interest income (the difference between what it earns from loans and what it pays on deposits) as interest rates fall.

Financial equity profitability in the first quarter of last year %From the 10.5 level %increased to 11.1’e; That's a strong seasonal figure. Commerzbank CFO’su Carsten Schmitt, “%"We are on track to achieve our goal all year round around 9.6," ” said. “We are also reducing our dependence on net interest income. We confirm our 2025 forecast.”

Commerzbank will cut layoffs and increase profits to fend off UniCredit’i

by the Logistics TransportIn the the General Assembly

Commerzbank announced on Thursday that it will close 3,900 full-time positions by 2028 to improve its financial stability.

Nevertheless, the bank added that the recruitment will take place in other “-selected areas, meaning that the global number of full-time employees will remain stable at 36,700”.

The layoffs will mainly affect staff in ’, Germany, while hiring will take place in cheaper locations.

Commerzbank’'s announcement was announced in a fiscal update on Thursday after the bank posted its full-year earnings two weeks ago.

Germany’'s second-largest bank, 2024’te %It achieved a record net profit of €2.68 billion with an increase of 20.

Revenues, partly in net commission income %7 increase to 3.64 billion Euro’ as a result of the growth %6 increased to 11.11 billion Euro’. Net interest income also remained strong.

The layoff warnings came at a time when Commerzbank’ was trying to fend off the hostile purchase offer from Italian lender UniCredit’.

UniCredit, partly through derivatives of the German bank ’lik acquired its stake, but the management of Commerzbank’ is against a full takeover.

Both German banking officials and politicians fear the merger could lead to layoffs and prevent loans to small and medium-sized businesses.

At the end of last year, Chancellor Olaf Scholz criticized “'s efforts to aggressively buy shares in companies without any cooperation, without any consultation, without any feedback.

UniCredit CEO ’ Andrea Orcel said on Tuesday that Germany will launch an official takeover bid from the bank following ’'s appointment of a new government following elections at the end of the month.

If Commerzbank can strengthen business opportunities before that date, it will be easier for the lender to resist the takeover.

The firm said on Thursday it expects net profits of €4.2 billion in 2028’ and %He announced that he aimed to obtain a return on material equity of 15’.

Expense-to-income ratio last year approximately the same year compared to ’ %He said he was expected to go up to 50’ye.

Looking at the results of 2025, Commerzbank predicts that profits will fall to 2.4 billion Euro’ due to restructuring costs of 700 million Euros.

The bank is still looking for ways to increase dividends and shareholder payments.

Based on its 2024 earnings, the lender is offering a dividend of 0.65 euros per share from last year's 0.35 euros’.

Commerzbank, for the period 2025-2028 after deducting restructuring costs and Annex Tier 1 (EC 1) bond vouchers %It plans a payout rate of over 100’.

In a separate statement on Thursday, it announced the launch of a strategic partnership with the German credit institution Visa.

Commerzbank customers will be given Visa debit and credit cards as a priority, and the lender argued that this would make it even easier for “bank's customers to shop abroad and online.