Commerzbank Raises Rating to Buy after €913M Profit, Defends UniCredit Bid
Commerzbank raised its rating to Buy after reporting record quarterly net profit of €913 million on revenues up 5% to €3.2 billion. It bolstered a 14.5% CET1 ratio and 12.7% RoTE while defending against UniCredit’s takeover bid, cutting 3,000 jobs and ramping up AI spending before its 2030 strategic plan.
1. Rating Upgrade and Q1 Performance
Commerzbank raised its rating to Buy after posting a record quarterly net profit of €913 million on revenues up 5% to €3.2 billion, with operating result rising 11% to €1.4 billion. This performance surpassed the bank’s internal targets and underpinned its more optimistic outlook for 2026.
2. Strengthened Capital Metrics and Takeover Defense
The bank’s Common Equity Tier 1 ratio improved to 14.5% and its Return on Tangible Equity reached 12.7%, both exceeding strategic thresholds. These stronger capital metrics support Commerzbank’s stance as it defends against UniCredit’s unsolicited takeover bid.
3. Strategic Initiatives: Cost Cuts and AI Investment
To drive efficiency and long-term growth, management plans to cut 3,000 jobs and increase spending on artificial intelligence. These measures form part of the bank’s newly announced strategic roadmap leading up to 2030.