💥Fed cuts sparks mid cap boom! ProPicks AI scores with 4 stocks +23% each. Get October’s update first.Pick Stocks with AI

UniCredit and Commerzbank in five charts

Published 09/30/2024, 07:29 AM
Updated 09/30/2024, 11:25 AM
© Reuters. FILE PHOTO: A 3-D printed Commerzbank logo is seen near Unicredit credit cards in this illustration taken September 20, 2017. REUTERS/Dado Ruvic/Illustration/File Photo
CBKG
-
0RLS
-

(Corrects credit ratings in the final row of the first chart, transposing them from previous version)

By Tom Sims and Valentina Za

FRANKFURT/MILAN (Reuters) -UniCredit chief executive officer Andrea Orcel and Commerzbank (ETR:CBKG)'s designated chief Bettina Orlopp have held a first round of talks as the Italian bank presses to explore a tie-up and the German bank readies its defence.

The following charts show how the two banks differ across an array of measures and what any combined bank could look like:

1. UNICREDIT VS. COMMERZBANK

The Italian lender is more efficient and more profitable than its German counterpart - with a market capitalisation that is more than triple the value of Commerzbank.

One area where Commerzbank is stronger: its credit rating. UniCredit is weighed down by its home market exposure and Italy's greater relative risk of default compared with that of Germany.

2. DETAILED VIEW

UniCredit's German operations comprise mainly HVB, the Bavarian lender it acquired in 2005. HVB in the chart below stands for UniCredit's German operations.

3. UNICREDIT OUTPERFORMS

Investors, lulled by UniCredit's profits and buybacks, have sent the Italian bank's share price surging in the last two years, with the Milan-based bank's stock outpacing gains at European banks and its smaller German rival.

4. COMMERZBANK SURGES

The German bank's shares have soared nearly 30% since UniCredit announced it was amassing a stake, pushing Commerzbank to the highest since 2011.

© Reuters. FILE PHOTO: A 3-D printed Commerzbank logo is seen near Unicredit credit cards in this illustration taken September 20, 2017. REUTERS/Dado Ruvic/Illustration/File Photo

5. THE LONG VIEW

Despite the recent gains, Commerzbank shares have had a rough 15 years since the German state bailed it out during the global financial crisis.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.