Commerzbank AG lowered its 2024 net interest income outlook to €8.5 billion from €8.6 billion as deposit volumes in its German retail unit fell by about €3 billion in the third quarter. CEO Bettina Orlopp said the bank deliberately declined to match competitors' "exceptionally high offers for new money," accepting outflows to protect profitability. Net income rose 45% year-on-year in Q3, and overall profit and revenue targets were confirmed.
The move comes as UniCredit SpA, which holds nearly 50% of Commerzbank, prepares to take control in coming months. UniCredit CEO Andrea Orcel has signaled plans to replace Orlopp and Chairman Jens Weidmann, cut large parts of Commerzbank's international network, and eliminate up to 7,000 jobs in Germany. The German government, holding 13%, wants to preserve the lender's role in funding the economy.
Orlopp described working-group talks with UniCredit as "very constructive" and highlighted potential synergies from joint procurement, shared international networks, and combined product platforms.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing