UniCredit CEO says restructuring at Commerzbank inevitable without change of course

April 20 (Reuters) – UniCredit CEO Andrea Orcel told analysts in a phone call:

*RELATIVE VALUATION NOT SUPPORTED BY COMMERZBANK FUNDAMENTALS

* POSSIBLE OFFER REVISION DEPENDS ON THE LEVEL OF ACCEPTANCE AND TRANSPARENCY RFOM COMMERZBANK

* COMMERZBANK’S 2025 RESULTS ARE SUPPORTED BY TRANSITIONAL WINDS AND FINANCIAL ENGINEERING

* COMMERZBANK’S MOMENTUM OFFERS MORE OF THE SAME

* MORE OF THE SAME MEANS MORE RESTRUCTURING AT COMMERZBANK IS INEVITABLE

* PROPOSAL TO CHANGE THE STORY IN COMMERZBANK WITH THE APPROACH APPLIED IN UNICREDIT

* THE RECOMMENDED APPROACH FOR COMMERZBANK IS RELATED TO RESTORING DISCIPLINE BY BALANCED PROPER GROWTH WITH INVESTMENT-FOCUSED PRODUCTIVITY

* PROPOSED LOCK-OUT APPROACH FOR COMMERZBANK REQUIRES ‘HARD WORK, DETERMINATION AND COMMITMENT’

* THE CHOICE IS EASY FOR COMMERZBANK CONSISTENT LOW PERFORMANCE TO CONTINUE UNDER THE CURRENT PLAN OR CHANGE THE STORY

* IN 2025, COMMERZBANK CONTINUED TO LOW PERFORMANCE IN UNICREDIT AND THE SECTOR ACROSS ALL RELEVANT KPIS

* COMMERZBANK’S 2025 NET PROFIT TITLE IS ACCEPTABLE BUT THE 2021-2024 ORDER WILL BE REPEATED IN 2025 BUT IT IS BASIC

* COMMERZBANK’S RETURN TO MOMENTUM MEANS THAT LOW PERFORMANCE WILL CONTINUE IN 2028

* HALF OF THE MOMENTUM-BASED REVENUE GROWTH AT COMMERZBANK BY 2028, ON THE BASIS OF FINANCIAL CASTWINDS AND RATES

* COMMERZBANK DOES NOT HAVE THE RISK OF BEING COMPATIBLE WITH THE RAPIDLY CHANGING BANKING ENVIRONMENT

* WE TRADED IN COMMERZBANK SECTOR WITH A 22% DISCOUNT UNTIL UNICREDIT ANNOUNCED ITS INVESTMENT

* THE PROPOSED UNLOCKING OF COMMERZBANK WILL ENSURE THAT COMMERZBANK MATCHES THE SUPERIOR PERFORMANCE OF THE INDEPENDENT HVB

* UNICREDIT CEO: SAVINGS WILL PARTLY BE ACHIEVED BY REDUCING ‘HIGH’ BUREAUCRACY AT COMMERZBANK

* UNICREDIT CEO: APPROXIMATELY 60% OF UNLOCKED COST SAVINGS WILL COME FROM NON-HR AND NON-CORE ACTIVITIES IN THE INTERNATIONAL NETWORK, NOT IN GERMANY

* THE REMAINING 40% OF COST CUTTS IN THE COMMERZBANK UNLOCKED PLAN WILL COME MAINLY FROM OVERHEADS, REDUCTION OF BUREAUCRACY

* FURTHER 1.1 BILLION EUROS WILL BE ADDED TO THE PRE-TAX VALUE IN 2030 FROM THE COMMERZBANK-UNICREDIT MERGER

* WE MAY CONSIDER THE REVISION PROPOSAL AFTER SERIOUS DETAILED NEGOTIATIONS WITH COMMERZBANK

* OFFER INCLUDES ‘SIGNIFICANT’ PREMIUM PLACED ON COMMERZBANK’S RISING ASSESSMENT OF UNICREDIT’S INVESTMENT More information about the company: (Reported by Milan Newsroom)