(Alliance News) - To bolster market confidence, Commerzbank has requested authorization for a new EUR600 million buyback, in addition to the EUR1 billion already approved, and raised its year-end net interest margin estimate from EUR8 billion to EUR8.2 billion, MF-Milano Finanza reported on Friday.
CEO Bettina Orlopp claimed "strong momentum over the last twelve months" and the desire to continue as an independent bank.
The strategy comes as UniCredit, led by Andrea Orcel, has reached 26% of the capital and is aiming for 29% in view of a pan-European operation that is, however, meeting with strong opposition from German management, employees, and the government.
In response, the Frankfurt board has launched a restructuring plan involving 3,900 job cuts, almost all in Germany, to reduce costs and strengthen profitability, in an attempt to demonstrate that stand-alone growth can offer value to shareholders. However, the slowdown in profits makes Orlopp's challenge in countering the pressure exerted by UniCredit more difficult.
By Antonio Di Giorgio, Alliance News reporter
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