Commerzbank CEO Slams UniCredit’s Surprise Stake Plan, Calls Price “Very Low” at Conference

Core Viewpoint - Commerzbank is focused on its standalone "Momentum" strategy and plans to present updated targets extending to 2030, emphasizing AI investments as a key contributor to future growth [1][6] Group 1: Company Strategy and Performance - Commerzbank delivered a record result in 2025 and has had a strong start in 2026, issuing guidance for 2026 and targets for 2028 [1] - The bank's profitability trajectory includes a target of 15% return on tangible equity (ROTE) and aims for a cost-income ratio of 50%, with current performance already showing improvement to 54% [8] - Commerzbank is reassessing its cost guidance, with a previous aspiration of EUR 6.5 billion to EUR 7.1 billion by 2028, and aims to keep the cost-income ratio below 50% [9] Group 2: Market Position and Competitive Landscape - The CEO described the competitive deposit market, noting that current offers are often above the ECB rate, affecting profitability [12] - Commerzbank is focused on various growth levers for net commission income, including corporate loan-linked fees and capital markets activity [14] - The bank is optimistic about the potential for European policy initiatives to revitalize the securitization market, which is currently small compared to the U.S. [15] Group 3: Risk Management and Economic Outlook - Commerzbank's direct exposure to the Middle East is limited, but potential second-round impacts from geopolitical tensions could affect Germany's GDP growth [10] - The bank's risk result guidance of EUR 850 million is conservative, allowing for flexibility in managing its diversified loan book [11] - Commerzbank currently assumes a 0.9% growth for German GDP, with a potential reduction of about 0.4 percentage points if geopolitical tensions persist [10]