Frankfurt. The CEO of the major Italian bank Unicredit, Andrea Orcel, is asking corporate customers of the Unicredit subsidiary Hypovereinsbank (HVB) and Commerzbank to remain loyal to their banks. “Our commitment to German companies is clear,” Orcel was quoted as saying in a statement sent out on Friday. “We ask our customers to continue to place their trust in us and to measure us against our actual performance.”
The announcement is the clearest signal to date that the foreseeable takeover of Commerzbank by Unicredit is causing nervousness among Commerzbank and Hypovereinsbank customers. Companies that do business with both institutions are likely to ask themselves whether the banks will still give them as much financing flexibility after a merger as both institutions have so far. Some companies also want to avoid becoming too dependent on a bank.
Orcel tries to dispel his nervousness with his statements. “We will continue to expand our support for corporate customers, building on the existing networks and established customer relationships of HVB and Commerzbank and further developing them in a targeted manner,” the Unicredit boss was quoted as saying.
Orcel promised to expand its lending business: “We will increase our financing capacity for the growth of companies and make the full power of Unicredit’s products, expertise and international network available to our customers,” the statement said. “I am personally committed to keeping these promises and ensuring that our words are followed by concrete actions.”
Such a detailed, personal statement from a foreign bank boss to customers in Germany is unusual, especially since it was sent without any specific reason. It suggests that the statements by various top bankers that the customer base of Commerzbank and Hypovereinsbank are reacting more and more nervously to the approaching takeover are not just made out of thin air.
Commerzbank welcomes Orcel's statement
Deutsche Bank boss Christian Sewing recently commented on this in detail on Wednesday. “In the last three to four months, the intensity of customer conversations has increased significantly given the situation with our neighbors,” he said in a conference call with analysts.
So far this has only had a “minimal” impact on the bank’s business. “But it is important that customers consider switching and think about where they will make future investments – and consider Deutsche Bank as a new or alternative bank,” Sewing continued. “People are looking for a German bank with an international network, and Deutsche Bank is the one left,” he said.
Sewing's reference to Deutsche Bank's internationality is probably no coincidence. Orcel had repeatedly emphasized that he wanted to trim Commerzbank's foreign network. Unicredit is also active internationally, but has a focus on Eastern Europe. Commerzbank is much stronger in Asia. So far there has been no clear commitment from Unicredit that this should remain the case.
The future of Commerzbank's foreign business remains a point of contention between Unicredit and Germany's second-largest private bank. Even on Friday, Unicredit remained vague about its international business. The aim is to support companies in “taking advantage of opportunities in Europe and beyond”. The announcement talks about Unicredit's presence in 14 core European markets and generally about the “international presence” of both institutions.
Commerzbank was nevertheless pleased with Orcel's intervention. “We welcome Unicredit’s strong commitment to Commerzbank’s customer promise,” said the institute.
