Commerzbank Rewards Shareholders with Record Payout as UniCredit’s Bid Fails to Gain Traction

Commerzbank reports record Q1 profit, hikes dividend 70% to €1.10, launches buyback; UniCredit's hostile bid gets 0.02% acceptance, stock overbought but trend intact.

The Commerzbank’s board has scored a powerful counterpoint in its defence against the UniCredit takeover bid. Just days after unveiling a first-quarter operating profit that climbed 11% to a record €1.4 billion, the bank is now funneling a record dividend of €1.10 per share into the accounts of its long-term holders. The payment, approved by an overwhelming majority at the annual general meeting on 20 May, lands in accounts on 26 May — a near-70% jump from last year’s €0.65 payout.

The payout is matched by a new share buyback mandate of up to 10% of share capital, giving management a double-barrelled argument that its standalone strategy is delivering for shareholders. The operating strength is hard to dismiss: revenues reached €3.219 billion in the first quarter, generating a net profit of €913 million. The board has raised its full-year net profit target to at least €3.4 billion, betting the momentum can continue.

UniCredit’s hostile bid, by contrast, remains firmly stuck in the mud. In the first acceptance period, only 0.02% of Commerzbank shares were tendered — a result that reflects the yawning gap between the offer price and the market. The indicative value of the Italian offer stands at €34.56 per share, while Commerzbank closed Friday at €36.16. Analysts see median fair value closer to €41.50, meaning the bid is well below both the current price and intrinsic estimates.

Insiders indicate UniCredit has no current plans to revise its proposal, leaving the offer to run against the clock. The extended acceptance period is set to expire on 3 July 2026, though final regulatory clearance means full completion of any deal would likely slip into 2027.

The share price has been on a tear, gaining 3.85% over the past month and 36.04% over twelve months. The RSI has surged past 80, hitting 80.6, which signals the stock is technically overbought — a cautionary note for short-term traders. Still, the distance to the 200-day moving average sits at 7.74%, suggesting the trend remains intact.

Commerzbank’s management is focusing on the long game. Its “Momentum 2030” strategy aims for a net profit of roughly €5.9 billion by the end of the decade, alongside a return on equity of 21%. A key plank of the plan is technology: between 2026 and 2030, the bank plans to invest around €600 million in artificial intelligence to accelerate processes and slim cost structures.

With the dividend now in the rear-view mirror, attention will shift to the next water-level report on UniCredit’s acceptance rate. If the current indifference persists, the offer will fizzle out on its own terms — leaving Commerzbank free to execute its ambitious roadmap without external interference.