Commerzbank has issued a hold recommendation on French bank Credit Lyonnais. Its research suggests the bank's retail network is relatively weak at generating sales, and that its corporate and investment banking earnings remain volatile.

Commerzbank believes there will be an extension of the core shareholder pact, which will protect the bank and reduce takeover speculation, even though its longer-term independence remains questionable.

The recent virtual bank and online broker initiatives are poorly timed and unlikely to earn strong profits for the group. The shares are trading at around €40 with Commerzbank issuing a price target of €39.7.