UniCredit and Commerzbank flaunted their financial strength as the fate of one of Europe’s largest banking mergers still hangs in balance.
UniCredit and Commerzbank flaunted their financial strength as the fate of one of Europe's largest banking mergers still hangs in balance.Markets are watching for whether UniCredit will press ahead with efforts to lure Commerzbank into a takeover, after the Italian bank unexpectedly built a stake in its German counterpart in September.Both banks reported third-quarter results on Wednesday, with UniCredit posting an 8% year-on-year hike in net profit to 2.
"We have a very good strategy in place, which is also delivering," she said — as markets watch for whether the bank will assume a defense strategy to fend off takeover interest.Commerzbank has so far shied from UniCredit's courtship.
"Let's put it this way: we wouldn't be here if we hadn't been invited to buy that stake. And it all started in a way that we thought was constructive," UniCredit CEO Andrea Orcel told CNBC's Charlotte Reed on Wednesday. CNBC has reached out to the German Ministry of Finance for comment. Last year, UniCredit purchased a nearly 9% stake of Greece's Alpha Bank from the state-owned Hellenic Financial Stability Fund. On Tuesday, the Italian lender announced it completedWith a common equity tier 1 ratio — a measure of a bank's strength and resilience — above 16% in the first three quarters of this year, UniCredit appears equipped to weather the strain of a takeover.
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