Commerzbank achieved a record result in the first half of the year and announced a further share buyback program as part of its battle against a takeover by Italian banking giant Unicredit. In the second quarter, the bank made a profit of 898 million euros, while the bottom line for the half-year stood at 1.8 billion euros, Commerzbank announced on Thursday. Talks with Unicredit are now on the agenda.
The record result shows "what strength lies in our business model," emphasized Orlopp. "We are growing profitably, investing, and proving the strength of our customer business day after day." On this basis, the bank is planning its next share buyback worth 1.2 billion euros. This allows the bank to boost its share price.
Profit in the first half of the year rose by 40 percent compared with the previous year, the bank reported. In the prior year, high costs from the bank's restructuring had weighed on results. In resisting a takeover by Unicredit, Orlopp has relied on a strategy of independence, which includes job cuts alongside ambitious profit targets and generous dividends.
Unicredit has in the meantime secured half of the voting rights in the Frankfurt-based bank. Orlopp announced talks with the Italian banking group last week. On Thursday, she stated: "Even though UniCredit has a majority at the next Annual General Meeting, it cannot decide on significant structural measures alone." This was, she said, "a clear mandate for both sides to shape the way forward together."
From breaking news to thought-provoking opinion pieces, our newsletter keeps you informed & engaged.
By subscribing, you agree to our Terms & Conditions and Privacy Policy.
