Bettina Orlopp took over the CEO position at Germany's Commerzbank last October. By increasing profits and setting more ambitious targets, she aims to ensure the bank’s independence.

The new strategy, presented on Thursday, also includes job cuts. By the end of 2027, around 3'900 full-time positions will be eliminated, including 3'300 in Germany alone.

However, there are expansion plans outside the domestic market, such as at the Polish mBank or at locations in Asia. As a result, the total workforce of the Commerzbank Group will remain largely stable at around 36'700 full-time positions worldwide.

Organic and Inorganic Growth

In addition to organic growth, the business will also be expanded through acquisitions and partnerships. The bank aims to support its growth acceleration with targeted acquisitions.

Profit targets are being raised. By 2028, profits are expected to rise to €4,2 billion. In 2024, the bank posted a profit of nearly €2,7 billion. For the current year, profits are projected to fall to €2,4 billion. The costs of the job cuts are estimated at around €700 million this year.

By 2028, the cost-income ratio is expected to improve to around 50 percent (2024: 59 percent). Net commission income is projected to grow by an average of 7 percent annually, and the target for return on equity is set at 15 percent.

With these plans, Orlopp aims to convince investors that Commerzbank can survive as an independent institution in the long term.

Defense Against Unicredit

In September, Italian banking giant Unicredit acquired a 9 percent stake in Commerzbank. It now has access to 28 percent of the shares through derivatives. CEO Andrea Orcel is advocating for a full takeover but has given himself a few more quarters before making a formal offer.

Commerzbank’s management insists on maintaining its independence, calling the Milan-based bank’s actions hostile.