Commerzbank’s profit surges as UniCredit takeover bid looms
Commerzbank's net profit came in at €898 million in the three months to the end of June, up from €462 million a year earlier.
Commerzbank reported a nearly doubled net profit of €898 million in the second quarter of 2022, up from €462 million in the same period last year. The German bank anticipates a record profit of €1.8 billion for the first half of the year. Commission income rose as fees from services like accounts and brokerage increased, while interest income remained stable.
These results come amid an escalating battle for control of Commerzbank, with UniCredit pursuing a hostile takeover for the past two years. The German bank has made over 3,000 job cuts to boost its profit and share price, making the potential takeover more expensive. UniCredit holds 48% of Commerzbank, a stake that has increased as the bank has cut costs.
Commerzbank CEO Bettina Orlopp emphasized that despite UniCredit's majority stake, both banks share responsibility for fundamental structural measures and require consensus. Berlin, which owns a 12% stake, has strongly opposed the takeover, and unions oppose it too, fearing job losses. Commerzbank forecasted earnings of at least €3.4 billion for the year, up from €2.6 billion in 2021.
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