Commerzbank provides a sudden profit jump as it prevents unicredit

Written by Tom Sims and Frank Sibel

On Friday, Frankfurt (Reuters) said on Friday that the net profit increased by approximately 12 % in the first quarter, overcoming expectations despite the strong opposite winds of the German economy.

The profits have regained the annual meeting of the shareholders next week when Commerzbank Management is seeking to support the investor to obtain a continuous continuous strategy.

Commerzbank results by benefits and commission provisions have helped stronger than expected, and less than expected provisions for bad loans.

The lender recorded a net profit of 834 million euros (936 million dollars) in a quarter, above a consensus of 698 million euros in a survey published by Commerzbank. The net profit reached 747 million euros in the previous year.

“We have achieved the highest quarterly profit since 2011, indicating that we can grow even in difficult times economically,” Betina Uloop, CEO of Commerzbank said in a statement.

The shares increased by 2.5 % in medium trade.

Unicredit, with a share of about 10 %, is the second largest contributor to COMMERZBANK after the German government. A boost began to integrate the potential bank of Europe last year, leaving the institutional and political establishment in Germany.

Attention rapidly caused anxiety among employees as well as the Commerzbank administration and senior German government officials.

“We focus on our independent strategy,” Uruk told analysts.

The opposite wind

The CEO of Unicredit Andrea Orzel has become a test of Germany’s intention to hunt foreign suitor and prevent its financial position in Frankfurt from the loss of one of the remaining major commercial banks.

The German economy was stagnant, but bankers and executives hope that the newly installed advisor, Ferdrich Mirz, would support the revival.

Commerzbank warned in a presentation on Friday that the US tariff “makes it difficult for German companies to reach the most important export market.”

The country’s central banker has warned that Germany is facing a potential simple stagnation in 2025, which could affect bank profits and lead to the failure to pay loans by corporate customers.

Earlier this week, German financial organizer Pavin said that uncertainty would remain high.

Orcel said he would wait until a new German government is valid before another procedure. He said that the bank may need to wait until 2027 to make a final decision.

Last month, unicredit obtained the approval of the German monopoly authorities to obtain a share of less than 30 % of Commerzbank. This was followed by a similar green light for the European Central Bank earlier this year.