German Finance Minister Lars Klingbeil will be pressing the demand, along with other conditions, during a planned meeting with UniCredit CEO Andrea Orcel in Berlin next week.

A combination of UniCredit and Commerzbank would create a bank with more than 1.3 trillion euro in assets, encompassing two of the euro zone’s largest economies.

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Al-Sharaa made the payment at a restaurant in Damascus’s Old City on Wednesday (August 26), with Central Bank Governor Mohammed Safwat Raslan present.

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The announcement, made during discussions between Saudi Arabia’s investment minister Fahd bin Abduljalil al Saif and BNP’s chairman Jean Lemierre in Paris, signals the French bank’s commitment to deepening regional operations whilst navigating shifting competitive dynamics between Gulf financial centres.

The move underscores Saudi Arabia’s strategic success in leveraging regulatory requirements to reshape how multinational companies structure their Middle East presence.

The registration places BNP Paribas among over 750 multinational corporations now based in Riyadh, substantially exceeding Saudi Arabia’s original target of 500 companies by 2030. The Regional Headquarters Programme, launched in 2021 with mandatory enforcement from January 2024, fundamentally restructures how foreign firms operate across the Middle East and North Africa.

Any company seeking government contracts – a significant revenue stream given Saudi Arabia’s massive public procurement budgets and capital deployment through state-owned enterprises and the Public Investment Fund (PIF) – must maintain its regional headquarters within the kingdom. This requirement does not merely encourage relocation; it enforces it through procurement restrictions.

For BNP Paribas, the timing reflects pragmatic adaptation to regulatory imperatives alongside genuine market opportunity. The bank, which has operated in Saudi Arabia for nearly two decades, recently underwent substantial Middle East reorganisation.

In October 2024, the group scrapped its traditional Middle East and Africa headquarters structure based in Bahrain, reporting regional operations instead to Paris.

This change in structure was partly a strategy to avoid showing preference for any one Gulf city as competition between Riyadh, Dubai, and Abu Dhabi increased, and it was also practical because Saudi Arabia has strong control over foreign banks that want to win profitable contracts.

The bank relocated its Saudi offices to King Abdullah Financial District, Riyadh’s premier business district, in February 2025. This move followed a detailed strategic assessment, positioning BNP Paribas to capitalise on what executives describe as the Kingdom’s “high-growth potential.”

Saudi Arabia’s total banking assets expanded 9.5% in 2023, reaching SAR 3.7 trillion (approximately USD 985 billion), providing immediate context for intensifying competition among global financial institutions for market relevance and influence.

BNP Paribas now operates alongside Goldman Sachs, Citigroup and BNY Mellon, all of whom secured regional headquarters licences within the past 18 months. The financial services sector dominates the RHQ programme, though the initiative extends across industrial, technology and consumer sectors – from Pepsi and Unilever to Deloitte, SAP and Siemens.

This broad participation reflects the programme’s comprehensive reach and the growing perception that Saudi Arabia represents a serious economic opportunity.

Underpinning this corporate migration are substantial tax incentives. Saudi Arabia offers qualifying regional headquarters a 30-year exemption from corporate income tax and withholding tax, announced in December 2023.

The government also streamlined investment procedures and, in August 2024, introduced a revised investment law aimed at ensuring parity between domestic and foreign investors, coupled with new dispute resolution mechanisms outside the traditional court system.

For BNP Paribas, the regional headquarters licence enables it to service clients across the Gulf while maintaining compliance with procurement mandates.

The bank has been expanding its sovereign wealth fund coverage across the region, positioning itself strategically as Saudi Arabia’s Public Investment Fund (PIF) and sister wealth vehicles continue deploying capital into NEOM megaproject development, domestic equities and international markets.

Whether the RHQ programme ultimately achieves its economic diversification objectives remains uncertain. Some analysts question whether administrative headquarters necessarily translate to deeper economic integration or merely satisfy regulatory requirements.

For BNP Paribas and its peers, however, the calculus is straightforward: Saudi Arabia’s market scale, growth trajectory and government purchasing power make regional presence not optional but strategically essential.

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The figure, which spans dividends and share buybacks across the continent’s largest lenders and insurers, would mark the highest annual payout on record for the sector, extending a run of ever-larger distributions that began once regulators lifted pandemic-era restrictions on capital returns.

It builds on a string of already-record years, with combined payouts having climbed steadily from roughly 50 billion euros for banks alone in 2024 to a far broader and larger pool this year as insurers and diversified financial groups joined the wave.

The scale of the payouts reflects a profound shift in the fortunes of European lenders, which spent more than a decade trading at depressed valuations after the global financial crisis. Higher interest rates through 2023 and 2024 boosted net interest margins, while a subsequent pivot toward fee income from wealth and asset management has made many banks less dependent on rate cycles than before.

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As of Tuesday (August 11), Berkshire’s stock value stood at USD 529.42, followed by Microsoft (USD 506.06), Google parent Alphabet (USD 357.52), Apple (USD 308.26) and Amazon (USD 278.09).

As per the venture’s quarterly reports, its cash pile fell to USD 364.7 billion on June 30 from a record USD 380.2 billion three months earlier. It has also repurchased USD 4.5 billion of its own stock and bought USD 23.5 billion of other stocks during the Q2, including a USD 10 billion investment in Alphabet.

The Omaha, Nebraska-based conglomerate spent at least USD 10.1 billion more cash in July on stock buybacks and the acquisition of home builder Taylor Morrison.

Overall second-quarter operating profit rose 16% to USD 12.98 billion, as gains from railroad, service and some insurance businesses offset rising accident claims and advertising spending at the Geico car insurer.

Net income, on the other hand, more than doubled to USD 25.67 billion, including paper gains on investments such as Alphabet ‌and ⁠Apple. Revenue grew 10%, following more than two years of largely stagnant growth.

Keefe, Bruyette & Woods and UBS raised their share price forecasts for Berkshire, with KBW analyst Meyer Shields calling the quarter “very solid” and UBS analyst Brian Meredith saying the “meaningful” ⁠cash deployment reflected Berkshire’s disciplined capital allocation.

Shields still rates Berkshire “underperform” because of macroeconomic uncertainty and pricing pressures in property and casualty insurance. Meredith has rated Berkshire “buy.”

Berkshire, however, flagged “considerable uncertainty,” especially on macroeconomic and geopolitical fronts, with tariffs and wars impacting both the prospects of the conglomerate and the wider global economy.

The company has also identified falling demand at its consumer businesses including its 103 car and truck dealerships, Fruit of the Loom underwear and Forest River RVs.

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In June it moved towards technology, transport and hospitality firms holding intellectual property and VIP client data. By July the crosshairs had narrowed onto private equity firms, law firms and financial ratings agencies, organisations sitting on merger documents, capital deployment plans and live litigation files.

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This accolade is also an indication of the institutional strength that Profuturo has developed over the years to maintain competitive performance and generate value for its clients. The combination of a rigorous investment strategy, operational excellence, effective risk management, and a long-term approach has enabled the company to consistently provide value while protecting the financial well-being of millions of Mexican workers.

This International Finance Award recognises financial organisations that demonstrate excellence in the quality of their asset management, their operational strength, and their ability to generate lasting value. For Profuturo, this award reinforces a track record built on consistency, and on decision-making grounded in analysis, experience, and fiduciary responsibility.

Profuturo’s commitment to maintaining a long-term strategy supported by disciplined investment and risk management is reflected in its competitive and sustained results. This approach has enabled the company to maintain its position as the top-performing pension fund manager for the past nine years, according to the Net Performance Indicator published by Mexico’s National Commission for the Retirement Savings System (CONSAR), which further reinforces the company’s consistent ability to deliver value to its clients.

The consistency of Profuturo’s results has also been recognised by leading international investment research organisations. Most recently, Profuturo became the first institution in Latin America to receive Morningstar’s Gold Medalist Rating. This achievement reflects the strength of the company’s investment process, the quality of its management team, its ability to create consistent value over time, and further solidifies Profuturo’s standing among the region’s leading retirement fund management companies.

This performance is not an isolated achievement. Rather, it stems from the institutional capabilities developed by Profuturo to manage retirement savings from a long-term perspective. The company’s model combines a prudent investment strategy with efficient risk management and robust decision-making processes, enabling the organisation to balance sustainable value generation with the protection of its clients’ assets.

“Profuturo’s asset management is not only guided by institutional policies, but also by a genuine commitment to our clients,” said Antonio Sibaja, chief investment officer at Profuturo, for whom these results are far from incidental, arising instead from a management philosophy consistently applied over time. “We have demonstrated that it’s possible to maintain consistent returns even in complex environments. This speaks to our investment discipline, but above all, to our responsible stewardship of the retirement savings entrusted to us by millions of Mexicans.”

The true significance of Profuturo’s history of achievement lies in the impact it has had on millions of Mexican workers. By translating sound management and sustained results into improved retirement outcomes, the company has demonstrated its commitment to responsible management of retirement assets, with a long-term vision and a steadfast focus on delivering value to its clients.

Alongside its financial performance, Profuturo has built a comprehensive client-centered model designed to support workers throughout their retirement journey. By combining innovation, operational excellence, and ongoing guidance and support, the company has cultivated a service ecosystem that integrates specialised advisory services, accessible digital tools, and content designed to facilitate informed decision-making at every stage of life.

This distinction from International Finance is the result of a rigorous evaluation process that considers factors such as operational performance, management quality, leadership, and impact on the global financial sector. As such, it is a testament to Profuturo’s history of consistent performance and the company’s commitment to generating consistent value.

“Receiving this award for the eighth consecutive year comes with a great responsibility for our entire team,” said Arturo Garcia, CEO of Profuturo. “We strive every day to provide solid and reliable savings solutions tailored to the needs of Mexican workers. This achievement motivates us to continue creating value for our clients and supporting them at every stage of life to help them safeguard their financial well-being.”

With this latest milestone, Profuturo has confirmed that its proven results are the product of well-developed institutional capabilities and an enduring commitment to the people it serves. Profuturo’s robust management model, long-term approach, and unwavering pursuit of excellence will continue to guide its efforts to protect and strengthen the financial future and retirement goals of millions of Mexican workers.

Image Credit: Profuturo

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According to compensation consultancy Johnson Associates, bonuses for equity traders and equity capital markets bankers are projected to rise by between 20% and 30% this year, the largest increase across Wall Street. Bankers advising on mergers and acquisitions are expected to receive payouts that are 15% to 20% higher than in 2025.

The upbeat outlook follows a strong earnings season for the largest US banks, driven by robust trading volumes, a resurgence in corporate dealmaking and increased underwriting activity.

“Most of the excitement is coming from the equity side, with stock markets at record highs and volatility increasing trading volume,” said Alan Johnson, founder of Johnson Associates.

Investment and commercial bankers are expected to see bonus growth of at least 10% to 15%, while fixed-income traders could receive increases of between 7.5% and 12.5%. Compensation for bankers underwriting bonds and loans is forecast to rise by between 5% and 10%.

The recovery in dealmaking has been one of the biggest drivers of higher compensation. Years of subdued mergers and acquisitions activity have given way to a growing pipeline of transactions, generating substantial fees for Wall Street firms.

Among the year’s biggest mandates was SpaceX’s blockbuster initial public offering (IPO), which reportedly created a fee pool of around USD 500 million. Goldman Sachs and Morgan Stanley, which led the deal, are estimated to have earned roughly USD 100 million each, while Bank of America, Citigroup and JPMorgan collected about USD 75 million apiece.

Johnson said the resilience of the US economy had surprised many bankers, despite geopolitical tensions in the Middle East, inflationary pressures and shifting expectations around interest rates.

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The bank’s chairman, Jens Weidmann, said that the Italian bank’s dominance of its shareholder base ⁠meant “constructive talks” were needed to establish a framework in the interests of shareholders and staff.

While stating that Commerzbank would have preferred a different outcome from the whole saga, Weidmann signaled that he had no other choice but to enter the talks ‌with ⁠the Andrea Orcel-led venture..

“We have to have constructive talks to establish the key parameters for staff, shareholders and the customers of the bank. Everyone needs to act like adults now, because one thing is certain: ⁠These discussions are in UniCredit’s interest as well, and there will be no ⁠shortcut via Berlin,” Weidmann ⁠said.

Weidmann’s response came within the 24 hours of the UniCredit’s remark, in which it asked its German counterpart to start adopting the strategy the Italian bank ‌has mapped out in January 2026. Orcel raised the pitch further, by stating that his business had the option of using its 48% stake to install a new board.

Boosted by better than expected earnings and an upgraded its profit outlook, Orcel has taken an assertive path now, by asking for talks with the Berlin government, a Commerzbank shaPrareholder, and the German lender’s worker representatives.

However, both the stakeholders have asked the UniCredit boss to engage with his Commerzbank counterpart Bettina Orlopp.

“We are in a position to call an extraordinary general meeting and exercise … control. We would do that if that’s necessary, but our expectations are (not to have) to do that at ⁠the moment, if we have everybody on board and on the same direction … from January 1,” Orcel told analysts.

Orcel, a veteran dealmaker, has tactically used derivatives, to complete the takeover of Commerzbank.

“We got to control (of Commerzbank) potentially without making any concession, as you usually would in a transaction. So now we are quite open,” he told CNBC television.

UniCredit first invested in Commerzbank in 2024, prompting Germany to reject the Milanese lender’s approach as hostile and back Commerzbank’s quest to remain independent. The European country’s finance ministry has still maintained its aggressive stance against the Itaian lender, apart from calling the latter to engage in a constructive approach. Sascha Uebel, head of the Commerzbank’s works council, criticised UniCredit for turning to worker representatives.

“Can we all please act like adults now? Under corporate law, management decides what happens ‌in a ⁠company,” he said.

Germany still owns 12% of Commerzbank after a 2009 bailout, a stake UniCredit needs to buy to eventually merge Commerzbank with its own German business HVB in two or three years’ time.

UniCredit also sees economic gains from Commerzbank adopting its strategy. On July 23, it raised the estimated benefits by 50% to 1.2 billion euro (USD 1.4 billion) before taxes.

Orlopp has said that terms for any takeover negotiations should reflect the importance of ⁠Germany for the combined group and respect the Frankfurt-based lender’s business model.

Declining costs and strong net fees drove UniCredit’s second-quarter profit to 2.9 billion euro. UniCredit now expects 2026 income comfortably above 11 billion euro, compared with previous guidance for a result in line or above that figure. Orcel sees the tally rising to significantly more than 13 billion euro in 2028, excluding the full consolidation of Commerzbank.

By cancelling a ⁠planned 4.75 billion euro share buyback, UniCredit will keep its core capital at 13% of assets in 2026 despite the hit it will take, by consolidating Commerzbank into its accounts. The buyback cancellation, however, has weighed on the bank’s shares, which fell 3.6%.

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While the latest development puts UniCredit a step closer to gaining decisive control of Commerzbank, which it has been trying to buy ‌since 2024, Orcel, the chief architect of the cross-border deal, now faces the choice of whether he wants to lift the stake above 50%, which would allow his bank to propose board changes at Commerzbank, or attempt to first build consensus, as the banking industry veteran had pledged to do.

UniCredit, which has been present in Germany since 2005 through its Bavarian unit HVB, could still struggle to advance its takeover project, as the latter is facing a united opposition from the Friedrich Merz government, unions, and Commerzbank itself.

Commerzbank, in its latest reaction, has said that less than 2% of institutional and retail ⁠investors had tendered their shares as part of UniCredit’s offer, reiterating its same stance again.

“The low acceptance ‌rate ⁠among independent shareholders is clear evidence of ⁠the low attractiveness of the ⁠offer,” Commerzbank said.

Germany’s Finance Ministry, on the other hand, renewed its criticism of UniCredit, calling the Italian lender’s “aggressive and hostile approach” unacceptable.

The Merz government still holds 12% of Commerzbank following a 2009 bailout. While expressing its displeasure over UniCredit’s share tendering practices, Commerzbank has remained open to constructive dialogue with ⁠its Italian counterpart.

Orcel and his Commerzbank counterpart Bettina Orlopp have held several rounds of short-lived informal talks, but attempts to hold substantive negotiations over the takeover bid have so far failed to produce fruitful results due to disagreements.

UniCredit, facing unsurmountable pressure in Germany, now expects the European Central Bank (ECB) to declare it to be in control of Commerzbank under German rules.

It would, however, need majority ownership in order to name all shareholder representatives, while overhauling Commerzbank’s supervisory board, as Orcel has suggested it may seek to do.

As per Hans-Peter Burghof, chair of banking and financial services at the University of Hohenheim, workers’ representatives hold half the seats on the board, and they “dislike” UniCredit’s approach.

Orlopp, Stepping into the situation, reportedly put forward a video message ⁠to employees on the bank’s intranet, where she urged for calm.

“With the results of the takeover offer, we are now facing a situation that is new for all of us. But we will not let it unsettle us,” Orlopp said according to a transcript of the message seen by media outlet Reuters.

What could potentially make Commerzbank’s acquisition a difficult affair for UniCredit is the bailout contract that, as per Burghof, also reserves two seats for the government on the German lender’s board.

Angering Commerzbank further, Orcel has laid out to investors his plans to boost the German lender’s profits, which, once in control, ‌he would ⁠reportedly implement over a couple of years while keeping Commerzbank separate from HVB.

Having built a 26.7% stake in the rival lender since September 2024, UniCredit stepped up its efforts in May 2026 by launching a tender offer, in which, instead of seeking control, the Italian lender wanted to nudge its stake above 30%, which would free it to buy more shares on the market without triggering a mandatory buyout.

UniCredit told the Commerzbank, “Take-up of the offer totalled 17.6%. That is up from 12.5% before a two-week extension of the tender period dictated by German takeover laws.”

Since then, the two entities have been involved in an ugly spat over the ⁠take-up data. As per Commerzbank, shares had been tendered mostly by investment banks that were counterparties in swap contracts UniCredit had entered on Commerzbank shares.

Excluding treasury shares, which carry no voting rights, UniCredit has a 49.7% voting stake in Commerzbank, well above the threshold of around 40%, which generally entails a position of control under Germany’s corporate rules. However, going by the same rules, being declared in control without majority ownership ⁠would force UniCredit to consolidate a minority stake.

UniCredit also has the choice of opting to amend swap contracts it owns, which currently can only be settled in cash and not shares, handing it a further 11.5% of Commerzbank.

As per Commerzbank management, a combination of the banks could result in 11,000 job cuts, while the works council has ⁠projected 23,000 cuts. The German lender, which has around 38,000 full-time positions, has undertaken several rounds of major cuts over the past ⁠decade, including 3,000 jobs earlier in 2026 and a 2021 deal with the unions, in which 10,000 jobs got axed.

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