Commerzbank starts 2025 strong despite tariff concerns

Commerzbank AG's CEO Bettina Orlopp announced the bank is off to a strong start in 2025. She spoke at a financial conference and expressed confidence about upcoming results for the first quarter. Despite her optimism, Orlopp acknowledged concerns from economists about potential tariffs affecting Germany's economic growth. She believes the impact of US tariffs on European goods could be negative this year, although Germany's new spending plan is expected to enhance growth in the future. Orlopp mentioned the bank is targeting 1% growth in Germany over the next few years and 0.5% for this year. She noted that while many economists have raised growth forecasts for next year, they have become more cautious about 2025. Commerzbank shares have increased significantly, rising around 80% since last September, partly due to interest from Italian rival UniCredit. However, shares fell nearly 6.7% on Thursday, continuing a downward trend from the previous day. Germany's new fiscal policies are aimed at reviving economic growth after two years of decline. This expansion is anticipated to benefit other European economies as well, as corporate and private banking clients embrace a more optimistic outlook.