The Commerzbank has raised its profit forecast for 2026 after achieving a record operating result last year. The bank, which is currently being courted by Italy's UniCredit, now expects net income this year to surpass its original target of €3.2 billion. In the previous year, operating profit climbed by 18 percent to €4.5 billion, the bank announced on Wednesday. Analysts had anticipated €4.46 billion. Bottom line, the group posted a net profit of €2.6 billion. "We have not only achieved our ambitious growth targets for 2025, but have even exceeded them in many areas. And our share price has more than doubled. This shows: Commerzbank is now playing in a different league," said CEO Bettina Orlopp.

The 2025 results were driven by a ten percent increase in revenues to €12.2 billion. A key contributor was the surplus from commissions, which rose by seven percent to €4 billion. Net interest income remained nearly at the previous year's high level, at €8.2 billion, despite lower key interest rates. The cost-income ratio, a key metric for profitability, improved by two percentage points to the targeted 57 percent. For the current year, 2026, the bank now expects net interest income of around €8.5 billion instead of €8.4 billion, and aims to reduce the cost-income ratio to approximately 54 percent. The original target was 56 percent.

UniCredit now holds just over 26 percent of Commerzbank shares and has secured access to a further three percent. However, the management of the Frankfurt-based bank continues to reject a takeover by the Italians and remains committed to the bank's independence. CEO Orlopp is supported by the rising share price, which is deterring UniCredit CEO Andrea Orcel from making a takeover offer. Just on Tuesday, Commerzbank announced another share buyback. Starting Thursday, the bank plans to repurchase its own shares worth €540 million by March 26. Shareholders are set to receive a dividend of €1.10 per share for 2025, up from €0.65 the previous year.

(Reporting by Patricia Weiß, edited by Sabine Wollrab. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)