Commerzbank CEO Looks to Free Up Capital to Fend Off UniCredit

Bloomberg11-04

(Bloomberg) -- Commerzbank AG Chief Executive Officer Bettina Orlopp is seeking to unlock more capital to pay out or invest, as she makes the case for an independent bank in the face of a potential ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCommerzbank CEO Looks to Free Up Capital to Fend Off UniCredit\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-04 21:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/commerzbank-ceo-looks-free-capital-130248996.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>(Bloomberg) -- Commerzbank AG Chief Executive Officer Bettina Orlopp is seeking to unlock more capital to pay out or invest, as she makes the case for an independent bank in the face of a potential ...</p>\n\n<a href=\"https://finance.yahoo.com/news/commerzbank-ceo-looks-free-capital-130248996.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"UNCFF","symbol_name":"UniCredito Spa","start_time":0,"source_url":"https://finance.yahoo.com/news/commerzbank-ceo-looks-free-capital-130248996.html","article_id":"2480583809","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/008ZdfZ52R5IS6osysJrjw--~B/aD0xMzM0O3c9MjAwMDthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/bloomberg_markets_842/bf8be74247f88009e3c9220a1e9ef6b1"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2480583809","pubTimestamp":1730725368,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":" -- Commerzbank AG Chief Executive Officer Bettina Orlopp is seeking to unlock more capital to pay out or invest, as she makes the case for an independent bank in the face of a potential takeover by rival UniCredit SpA.Orlopp’s is working on a plan to keep the expected growth in risk-weighted assets several billion euros below the current 2027 goal, people familiar with the matter said. She wants to achieve that partly by using more significant risk transfers and potentially backing away from some low-yielding clients, the people said, asking not to be named discussing the internal deliberations.The move, which hasn’t been previously reported, would reduce the additional amount of regulatory capital tied up by anticipated RWA expansion, creating more room for shareholder distributions or investments including acquisitions, the people said.One element of Orlopp’s new plan is a substantial increase in transactions known as significant risk transfers, which are designed to release regulat","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"UNCFF":"UniCredito Spa","UNCRY":"UniCredito Spa","BK4207":"综合性银行"},"translate_title":"德国商业银行首席执行官希望释放资本来抵御联合信贷银行","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"UNCFF":0.9,"UNCRY":0.9},"content_text":"(Bloomberg) -- Commerzbank AG Chief Executive Officer Bettina Orlopp is seeking to unlock more capital to pay out or invest, as she makes the case for an independent bank in the face of a potential takeover by rival UniCredit SpA.\nOrlopp’s is working on a plan to keep the expected growth in risk-weighted assets several billion euros below the current 2027 goal, people familiar with the matter said. She wants to achieve that partly by using more significant risk transfers and potentially backing away from some low-yielding clients, the people said, asking not to be named discussing the internal deliberations.\nThe move, which hasn’t been previously reported, would reduce the additional amount of regulatory capital tied up by anticipated RWA expansion, creating more room for shareholder distributions or investments including acquisitions, the people said.\nA spokesperson for Commerzbank declined to comment.\nThe capital release strategy is at the heart of Orlopp’s plan to convince shareholders that Commerzbank is a compelling investment case on its own. She increased profitability and payout targets in September, shortly after Italy-based UniCredit swooped in to take a major stake, saying it’s considering a full-blown acquisition of the German lender.\nUniCredit CEO Andrea Orcel has since signaled he doesn’t believe Commerzbank’s existing strategy is ambitious enough. Orlopp has presented her plan for the German lender in a virtual meeting with him and she has indicated a preference for Commerzbank to stay independent.\nOne element of Orlopp’s new plan is a substantial increase in transactions known as significant risk transfers, which are designed to release regulatory capital, the people said now. \nCommerzbank has recently obtained approval from the European Central Bank for its internal risk models, which will free up some capital as well, they said. \nCommerzbank will also seek to cut exposure to clients who earn it little money compared to their risk profiles, a situation known as low RWA efficiency, the people said. The move would help the lender achieve lower RWA growth.\nBy contrast, Orlopp is planning to get more business out of existing clients as a way to lift profitability, the people said. Measures could include raising prices, asking for more collateral, or selling more products to them, they said. \nThe move is the restart of a program initiated by Corporate Clients head Michael Kotzbauer a few years ago, the people said. Since then, higher interest rates boosted lending income and put the program on the backburner. With rates falling again, the lender is now taking a fresh look at such measures, they said.\nKotzbauer was promoted to deputy CEO in September, when Orlopp was named to replace Manfred Knof at the helm of the lender. The corporate clients head in 2021 unveiled a strategy to either boost revenue from clients with low RWA efficiencies, or get rid of them.\nRWAs define how much common equity tier 1 capital a lender needs to keep as regulatory safety cushion. Commerzbank in September cut the expected RWA increase through 2027 by €7 billion ($7.6 billion), compared with guidance given a year ago. The new measures Orlopp is considering now are aimed at reducing that growth even further.\nIn an SRT, a bank typically pays institutional investors for agreeing to cover losses on the riskiest portion of a given credit portfolio, effectively providing some insurance for bundles of loans that frequently total billions of euros. The protection means the bank can release some of the regulatory capital it was previously required to keep as a backstop for the loans.\n©2024 Bloomberg L.P.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2480583809"}