Commerzbank AG

CBK

Equity

ISIN DE000CBK1001 / Valor 21170377

Xetra (2024-12-23)

EUR 15.26+0.10%

Commerzbank AG
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About company

Commerzbank AG is a leading bank in Germany, specializing in serving the German Mittelstand and providing financial services to around 26,000 corporate client groups and nearly 11 million private and small-business customers in the country. The bank also offers international services to clients with German connections and companies in selected future-oriented industries. In the Private and Small-Business Customers segment, Commerzbank provides online, mobile, and in-person banking services through its brands Commerzbank and comdirect. The bank's focus is on supporting its customers' success, offering a range of financial products and services tailored to their needs. Additionally, Commerzbank is updating its payment platform to facilitate cross-border payments using the TRAVIC-Payment Hub developed by PPI.

Summarized from source with an LLMView SourceSector: Finance

Revenue and Profit

In the third quarter of 2024, Commerzbank AG reported a net result after taxes and minority interests of €642 million, compared to €684 million in the same quarter of the previous year. For the first nine months of 2024, the net result improved by 5% to €1,926 million, up from €1,829 million in the same period of 2023. The bank is on track to achieve its target of generating a higher profit for the financial year 2024 than in the previous year.

Cost Management

Commerzbank AG's cost management efforts led to a reduction in costs by around 1% to €4,780 million between January and September 2024. The cost-income ratio improved slightly to 58.7% from 59.7% in the first nine months of 2023. Despite the increased cost base following the acquisition of Aquila Capital, active cost management helped offset these effects.

Risk and Loan Book

The risk result for Commerzbank AG in the third quarter of 2024 was minus €255 million, including methodology updates to cover climate and environmental risks. The non-performing exposure ratio remained low at 0.9%, and the loan book proved robust despite the challenging economic environment. The bank's Top-Level Adjustment decreased by €94 million, leaving €242 million available to cover expected secondary effects from geopolitical crises and inflation uncertainties.

Capital and Equity

Commerzbank AG's Common Equity Tier 1 (CET1) ratio was stable at 14.8% as of September 30, 2024, providing a comfortable buffer of 451 basis points above the regulatory minimum requirement. The return on tangible equity (RoTE) improved to 8.8% for the first nine months of 2024, with the bank on track to achieve its target of at least 8% for the full year.

Outlook and Shareholder Returns

Commerzbank AG has raised its forecast for net interest income to around €8.2 billion for the full year 2024, with net commission income expected to exceed the previous year's figure by more than 5%. The bank aims to return at least 70% of the net result to shareholders, with plans for a third share buyback programme. The bank's strengthened financial targets until 2027 indicate increased capital return potential.

Summarized from source with an LLMView Source

Key figures

41.8%1Y

128%3Y

181%5Y

Performance

32.4%1Y

42.3%3Y

46.5%5Y

Volatility