Commerzbank Mulls Acquisitions

Commerzbank, Germany's fourth-biggest bank, is eyeing potential acquisitions in Germany and promises to lift earnings both this year and next year after it managed to swing back into the black in 2004, it said Wednesday. Detailing plans to bolster Commerzbank's retail banking operations at a news conference, chairman Klaus-Peter Müller said the group would make "acquisitions in Germany if favorable opportunities present themselves." Müller did not name the possible takeover targets. Commerzbank has repeatedly expressed an interest in Postbank, the profitable high-street banking arm of Deutsche Post, but a tie-up has so far foundered on the resistance of the semi-privatized postal service. Unlike many of its rivals, Commerzbank is making money from its domestic retail banking operations and was able to lift operating profit in the division by 50 percent last year. Müller also said that Commerzbank aimed to achieve an after-tax return on equity of "more than 10 percent" in 2006.