- Commerzbank has increased its full-year net interest income forecast to approximately €8 billion from €7.8 billion.
- Net income is expected to grow to about €2.5 billion, up from an earlier projection of €2.4 billion.
- The provision for loan losses is maintained at around €850 million, close to the estimate of €852.7 million.
- For the second quarter, Commerzbank reported net income of €462 million, exceeding the estimate of €351.9 million.
- The quarterly revenue stood at €3.02 billion, marking a 13% increase year-over-year and surpassing the estimated €2.99 billion.
- Operating profit reached €1.17 billion, ahead of the estimated €1.11 billion.
- The provision for loan losses in the quarter dropped by 12% year-over-year to €176 million, below the estimated €202.3 million.
- Common equity Tier 1 ratio was 14.6%, slightly below the estimated 14.9% but projected to be at least 14.5% by year-end after capital return.
- The efficiency ratio improved to 55.4% from 59.9% year-over-year, better than the estimated 58.2%.
- Adjusted revenue increased by 9.6% year-over-year to €3.09 billion, exceeding the estimated €2.92 billion.
- Net interest income slightly decreased by 0.8% year-over-year to €2.06 billion, but beat the estimated €2 billion.
- Net commission income grew by 10% year-over-year to €1 billion, surpassing the estimated €971.4 million.
- Operating expenses rose by 6% year-over-year to €1.62 billion, slightly above the estimated €1.58 billion.
- CEO Bettina Orlopp confirmed the application to the European Central Bank and the German Finance Agency for a share buyback of up to €1 billion.
- The bank plans to conclude staff reduction negotiations by autumn.
- Current analyst ratings include 9 buys, 10 holds, and 2 sells.
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Commerzbank AG on Smartkarma
Analyst coverage of Commerzbank AG on Smartkarma reveals contrasting sentiments from top independent analysts. Harry Kalfas, with a bearish lean, discusses UniCredit’s strategic shift away from Banco BPM towards increasing its stake in Commerzbank to 29%. This move triggers index adjustments as UniCredit aims to boost its ownership from 20% to the target percentage, potentially impacting Commerzbank’s free float and passive flows in the future.
In contrast, Jesus Rodriguez Aguilar, leaning bullishly, highlights Commerzbank’s strong standalone outlook, exceeding targets and setting ambitious goals for revenue and Return on Tangible Equity (RoTE) by 2028. Despite UniCredit’s takeover strategy and plans to convert its synthetic stake into equity by mid-2025, political and regulatory hurdles posed by the German government and other stakeholders create uncertainty around a near-term takeover, despite UniCredit’s strategic intentions.
A look at Commerzbank AG Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Commerzbank AG, a prominent player in the banking sector, is positioned for a strong long-term outlook based on its Smartkarma Smart Scores. With an impressive Growth score of 5, the bank is expected to expand its operations and increase its market share over time. Additionally, Commerzbank AG scores high in Resilience and Momentum, indicating its ability to weather challenges and maintain positive momentum in the market.
Furthermore, the bank’s above-average Value score reflects its attractiveness to investors, while its respectable Dividend score signals a consistent dividend payment history. Overall, Commerzbank AG‘s robust scores across key factors point towards a promising future for the company in the financial landscape.
**Summary:** Commerzbank AG attracts deposits and offers a wide range of banking services, including mortgage loans, securities brokerage, private banking, and treasury services globally. The bank’s Smartkarma Smart Scores highlight its potential for growth, resilience, and value, positioning it as a strong contender in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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