(Bloomberg) — Commerzbank AG Chief Executive Officer Bettina Orlopp said the lender is off to a strong start this year, even as economists caution that the threat of tariffs will weigh on economic growth in Germany this year.
Commerzbank has seen a “very good start, and that across all segments,” Orlopp said Thursday at a financial conference hosted by Morgan Stanley. “So we are very confident that we will have some good news in our package, in mid-May, when we present first-quarter results.”
Commerzbank joins peers including Deutsche Bank AG in sounding an optimistic note, after Germany approved a massive defense and infrastructure spending plan this week. The program is expected to boost economic growth next year, though the threat of tariffs imposed by the US on European goods will likely have a negative impact this year, Orlopp said.
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Commerzbank’s strategy currently assumes economic growth of 1% over the coming years in Orlopp’s home country, and 0.5% for this year, she said. While most economists have raise the forecast for next year, they have scaled back estimates for 2025, she said.
For this year, they have become “even more cautious,” Orlopp said. “But I’m more an optimist.”
Orlopp has boosted profitability and payout targets in an effort to defend the lender against a potential takeover by Italian rival UniCredit. Shares of Commerzbank have rallied around 80% since early September, when UniCredit disclosed a large stake.
Commerzbank gave up some gains on Thursday, falling as much as 6.7% as banks broadly declined. That extended a 3.7% drop on Wednesday, when UniCredit CEO Andrea Orcel said he may wait several years before deciding on a potential takeover offer.
Germany’s shift to an expansive fiscal policy promises to revive Europe’s largest economy after two years of contraction. The historic decision — expected to also help bolster growth across the region — was spurred by a US shift away from the transatlantic alliance.
Deutsche Bank CEO Christian Sewing said this week that his lender also stands to benefit from the debt deal.
“You see already in the client discussions we have, be it on the corporate side or on the private banking side, that the people are actually getting a more optimistic view,” he said.
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