CEO Bettina Orlopp of Commerzbank said to a local newspaper that any partnership with its Italian counterpart would result in a loss of clients, and that the two banks did not discuss a merger during a recent meeting.

In her first interview as CEO of Germany's second-biggest lender by assets (behind Deutsche Bank), Orlopp expressed pessimism about the likelihood of large bank mergers.

While Commerzbank has been strengthening its defense, Intesa, the second-largest lender in Italy after Sanpaolo, has been pushing for a partnership.

Orlopp stated in an interview that was published on Monday in the German publication Handelsblatt that a merger does not necessarily have to appear good on paper to be successful in the long run and provide value for the shareholders.

Orlopp conducted the interview a few days after meeting UniCredit CEO Andrea Orcel. She said the two did not discuss a merger at what she described as a regular investor meeting.

Orlopp, who has backed Commerzbank's independence approach, told the newspaper that if the two lenders merged, the German bank would lose clients because of the significant client overlap. Additionally, she predicted a drop in Commerzbank's credit rating.

Having acquired 9% of Commerzbank, UniCredit stated that it intended to purchase more shares upon obtaining regulatory approval. There has also been a strong push for talks to investigate a merger.

This strategy is the biggest effort to date to combine banks across Europe. However, political obstacles must be overcome in Germany before the national elections.

The management and staff of Commerzbank, along with Chancellor Olaf Scholz, have all expressed opposition to a takeover. Favor speaks with at least one major investor and a few business leaders.

Orcel stated a partnership would be the wisest course of action. Orcel has long harbored interest in joining forces with Commerzbank.