Commerzbank Stock Hits 52-Week High as UniCredit Bid Clears Regulatory Hurdle
Commerzbank's stock is trading near its 52-week high, buoyed by regulatory approval for UniCredit's bid to increase its stake. The Frankfurt-based lender's shares have climbed 0.56% in today's session, reaching levels not seen since 2010.
The BaFin has deemed UniCredit's application complete and forwarded the matter to the European Central Bank, which now faces a 60-working-day window to render its verdict. This regulatory progress is significant, but it doesn't tell the full story of Commerzbank's second-quarter performance.
The bank delivered record results last Thursday, with net profit attributable to shareholders nearly doubling to €898 million from €462 million in the same period last year. Net income climbed 40% to a company record €1.81 billion, while operating profit advanced 14% to €2.7 billion. Return on tangible equity hit 12.6%, another all-time high.
Management didn't stop at the numbers; they also unveiled a share buyback program of up to €1.2 billion, already cleared by the ECB. The bank reaffirmed its full-year guidance of roughly €13.2 billion in revenue and net profit of at least €3.4 billion.