REG-Commerzbank Aktiengesellschaft Commerzbank with record figures in the first half of the year – targets for 2025 raised
06/08/2025 06:15
============
Commerzbank Aktiengesellschaft (CZB)
Commerzbank with record figures in the first half of the year – targets
for 2025 raised
06-Aug-2025 / 07:04 CET/CEST
The issuer is solely responsible for the content of this announcement.
══════════════════════════════════════════════════════════════════════════
• Operating result in H1 increased by 23% to €2.4bn – in Q2 34% higher
at €1.2bn
• Net result in H1 with €1.3bn remains at high level of previous year
despite restructuring expenses of €534m – in Q2 net result of €462m
• Revenues in H1 and Q2 increased by 13% each to €6.1bn and €3bn
respectively
• Net commission income in H1 increased by 8% to €2bn – in Q2 10% higher
at €1bn
• Net interest income in H1 with €4.1bn and in Q2 with €2.1bn almost
unchanged despite lower interest rates
• Cost-income ratio in H1 reduced by 3 percentage points to 56% – below
target of 57% for full year
• Risk result in Q2 at minus €176m – NPE ratio at 1.1%
• Double-digit Net RoTE of around 11% in H1 and Q2 before restructuring
expenses
• Next share buyback of up to €1bn based on half-year results applied
for – solid CET 1 ratio of 14.6%
• Outlook for full year 2025 further improved: targets for net interest
income and net result raised
Commerzbank remains fully on track: in the first half of the year, the
Bank achieved the best operating result in its history with €2.4bn.
Despite restructuring expenses, the net result of €1.3bn remained at the
high level of the previous year. Without these investments in the Bank’s
transformation, the net result would have risen by 29% to a record €1.7bn.
The Bank’s revenues increased by around 13% in the first half of the year
to €6.1bn, driven by dynamic growth in net commission income. The
cost-income ratio improved to 56%, being below the target of 57% for the
full year. The positive business development of the first half year is
also reflected in the net return on tangible equity (Net RoTE), which was
a double-digit 11.1% before restructuring expenses. The loan book
continued to prove robust in a challenging economic environment, with a
risk result of minus €300m at mid-year, remaining at a moderate level as
expected.
Commerzbank made good progress in implementing its “Momentum” strategy in
the second quarter. In the negotiations on staff reductions, a framework
settlement of interests and a framework social plan were agreed with the
employee representative committees. These agreements form the basis for
the personnel changes the Bank announced in February this year.
For the staff reduction in Germany, the Bank relies on proven measures,
particularly partial retirement programmes and early retirement
arrangements. Additionally, termination agreements with severance payment
have been arranged, along with other measures. Based on the framework
agreements, the details of the staff reduction have now been discussed and
will be regulated in partial settlements of interests within the various
corporate divisions. The goal is to complete the negotiations by autumn of
this year.
The Bank is also on track with the implementation of the personnel
objectives of “Momentum” at its international locations. As announced,
staff levels are being increased at selected foreign locations and at
mBank. The Bank has launched corresponding recruitment initiatives to
support this.
Furthermore, Commerzbank has reached an agreement together with employee
representative committees on the introduction of an employee share
programme. This programme aims to increase employee participation in the
Bank’s success. The programme will be introduced this autumn in the AG
Germany and at the Bank’s international locations.
In the Private and Small-Business Customers segment, the sharpening of the
two-brand strategy in Germany with stronger price and product
differentiation is progressing well. The introduction of the new pricing
model for current accounts has been very successful. Since June of this
year, the Bank has generated additional earnings from it. The majority of
the contacted customers have already given their consent. For €4.90 per
month, they receive access to a comprehensive range of personal and
digital advice, high security standards and digital features such as the
mobile Girocard for Apple Pay, as well as free nationwide cash
withdrawals. Recently, the virtual assistant Ava has been added to the
list of features. It provides round-the-clock support for enquiries on
banking products and financial topics, as well as resolving service
requests. For customers who do not require personal advice, the Bank
continues to offer a free digital alternative through its comdirect brand.
In the Corporate Clients segment, Commerzbank is making positive progress
in expanding its digital platform business. International clients can now
make money market deposits online via the Bank’s trading platform as well
as various multi-dealer platforms. With targeted investments in its
trading platforms, the Bank has also increased its revenues thanks to a
higher market share in foreign exchange and interest rate derivatives.
The high level of client focus and the comprehensive product offering are
appreciated by clients. As a result, Commerzbank was named the best bank
for corporates and best bank for Mittelstand in the “FINANCE Bank Survey”
2025. Each year, Chief Financial Officers (CFOs), treasurers, and heads of
finance from around 250 companies in Germany are surveyed for the study.
Also, for the eighth consecutive year, the “Euro-Magazin” has named
comdirect as Germany’s best direct bank and best bank as well as
Commerzbank as the best branch-based bank.
“In the first half of the year, we achieved the best operating result in
the history of Commerzbank and are progressing fast with our
transformation. With ‘Momentum’ we are generating more value for our
shareholders, customers and employees,“ said CEO Bettina Orlopp. “We have
already applied to the European Central Bank and the German Finance Agency
for our next share buyback of up to €1bn.”
Commerzbank successfully completed the capital return for the 2024
financial year in May 2025 with a dividend payment totalling €733m after
approval by the Annual General Meeting. Together with share buybacks
completed in January and March 2025 totalling €1bn, the Bank returned
€1.73bn in total for the 2024 financial year to its shareholders. Moving
forward, the Bank will continue to rely on a combination of dividend
payments and share buybacks for capital returns.
Strong customer business: net commission income grows by 10%
In the second quarter, Commerzbank significantly increased its revenues by
13% to €3,019m (Q2 2024: €2,668m). This was positively influenced by the
continued strong growth in net commission income: driven by a strong
securities, loan origination and foreign exchange business, it increased
by 10% compared to the previous year to €1,004m (Q2 2024: €910m). The Bank
maintained its net interest income almost at the high level of the
previous year’s second quarter with €2,062m despite significantly lower
benchmark interest rates (Q2 2024: €2,078m).
Costs increased by 5% in the second quarter to €1,674m (Q2 2024: €1,599m).
This was mainly due to an increase in administrative expenses by 6% to
€1,616m (Q2 2024: €1,524m). The investments in growth and the exchange
rate effects at the Polish subsidiary mBank again had an impact.
Additionally, personnel expenses increased, primarily due to general
salary increases and higher valuation effects for deferred equity-based
variable compensation resulting from the rising share price. Through its
active cost management, the Bank was able to partially offset the higher
expenses. Furthermore, the consolidation of Aquila Capital
Investmentgesellschaft (ACI) since June 2024 lead to higher expenses.
Compulsory contributions decreased in the second quarter to €58m (Q2 2024:
€75m). Overall, the Bank reduced its cost-income ratio by around
5 percentage points to 55% (Q2 2024: 60%). On a half-year basis, costs
increased by 7% to €3,396m (H1 2024: €3,187m), and the cost-income ratio
improved to 56% (H1 2024: 59%) – and remained below the target of 57% for
the full year.
Despite the persistently challenging economic environment, the risk result
remained at a moderate level in the second quarter with minus €176m
(Q2 2024: minus €199m). This includes an amount of €142m from adjustments
of methodology and models. The ratings for small and medium-sized
corporate clients were recalibrated and the sensitivity for macroeconomic
effects was increased. Thereof €91m alone are primarily related to
potential impacts of US tariffs. Mainly due to this adjusted methodology,
the remaining top-level adjustment (TLA) of €182m was fully released in
the second quarter. Overall, the loan book continues to prove very robust,
with a non-performing exposure ratio (NPE ratio) of 1.1% (Q1 2025: 1.0%).
Commerzbank improved its operating result by 34% to €1,169m in the second
quarter (Q2 2024: €870m). For the half year, this resulted in an increase
of 23%, reaching a record €2,396m (H1 2024: €1,954m). Net result after
taxes, minorities and restructuring expenses amounted to €462m in the
second quarter (Q2 2024: €538m), with a slight increase to €1,296m for the
half-year (H1 2024: €1,285m). Without the restructuring expenses, the
half-year profit would have reached a new record of €1,662m.
The Common Equity Tier 1 ratio (CET 1 ratio) decreased to 14.6% as of 30
June, among others due to the planned capital return of 100% before
restructuring expenses and after deduction of AT 1 coupon payments for the
2025 financial year (31 March 2025: 15.1%; 30 June 2024: 14.8%).
Commerzbank continues to have a high potential for capital return to its
shareholders. The current buffer to the regulatory minimum requirement
(MDA threshold), which is currently around 10.2%, remains very comfortable
at 438 basis points.
The significant increase in the Bank’s profitability is demonstrated by
the net return on tangible equity (Net RoTE), it improved to 10.7% in the
second quarter before restructuring expenses (Q2 2024: 7.3%). For the
first half of the year, it also achieved a double-digit value of 11.1%
(H1 2024: 8.9%). In the full year, Commerzbank aims for a Net RoTE of
around 9.6% before restructuring expenses.
“The strong growth in net commission income underpins the operational
strength of our business. The double-digit net return on tangible equity
shows that we are delivering what we promise,” said CFO Carsten Schmitt.
“We have raised our profit target for 2025 and now expect a net result of
€2.9bn before restructuring expenses.”
Segment Development: increased loan demand among corporate clients
The Corporate Clients segment generated revenues of €1,169m in the second
quarter (Q2 2024: €1,255m). Net commission income increased by 9% to
€355m, driven by a strong loan origination and foreign exchange business
(Q2 2024: €325m). Despite lower benchmark interest rates, net interest
income also increased by 6% to €614m (Q2 2024: €580m). However, hedging
derivates in the Banking Book led to a lower fair value result. Loan
demand rose across all client groups, with also Mittelstand clients
showing an increased demand for investment loans. The average loan volume
in the quarter significantly rose to €107bn (Q1 2025: €104bn; Q2 2024:
€99bn). Overall, the segment’s operating result amounted to €498m in the
second quarter (Q2 2024: €548m), and €1,100m for the first half of the
year (H1 2024: €1,251m).
The Private and Small-Business Customers segment in Germany contributed
€1,126m to revenues in the second quarter, more than in the previous
year’s second quarter (Q2 2024: €1,075m). This growth was driven by strong
net commission income, which increased by 9% to €516m (Q2 2024: €474m).
The main driver of this growth was the strong securities business,
especially at comdirect and in Wealth Management products. Net interest
income remained stable at €594m despite lower interest rates (Q2 2024:
€591m). Mainly due to higher costs resulting from an impairment on
intangible assets of €65m at ACI as well as a higher risk result, the
Private and Small-Business Customers segment in Germany achieved an
operating result of €262m (Q2 2024: €320m). For the first half of the
year, the result amounted to €692m (H1 2024: €715m).
In a highly competitive market environment, the average deposits of
private and small-business customers in Germany amounted to €169bn in the
second quarter (Q2 2024: €174bn). The loan volume increased slightly to
€126bn (Q2 2024: €125bn), mainly due to the mortgage loan volume, which
was €97bn in the second quarter (Q2 2024: €96bn). The securities volume
increased at the end of the quarter, driven by developments in the stock
markets, to €247bn (Q2 2024: €233bn).
The Polish subsidiary mBank benefited in the second quarter once more from
reduced provisions for legal risks related to foreign currency loans: the
burdens nearly halved compared to the previous year’s quarter to €128m
(Q2 2024: €240m). Excluding this effect and burdens from credit holidays,
revenues were on the same high level as last year. Net interest income
slightly decreased to €587m due to lower benchmark interest rates in
Poland and exchange rate effects (Q2 2024: €596m), while net commission
income climbed by 20% to €140m, mainly driven by strong
transaction-related businesses such as payments and a one-off effect from
an insurance cooperation (Q2 2024: €117m). In total, mBank doubled its
operating result to €300m (Q2 2024: €147m). The half-year result also
improved significantly, more than doubling compared to the previous year
at €503m (H1 2024: €229m).
Outlook for the full year: higher interest income and net result expected
Commerzbank has raised its outlook for the full year. It now expects a net
result of around €2.9bn before restructuring expenses, having previously
anticipated around €2.8bn. After restructuring expenses, the Bank now
expects a net result of around €2.5bn, up from around €2.4bn. The outlook
remains subject to the development of burdens related to Russia and
foreign currency loans at mBank.
The improved outlook is primarily driven by net interest income. The Bank
now expects a net interest income of around €8bn for the full year and a
related positive fair value adjustment of around €0.3bn. In total, this
contributes around €8.3bn to revenues. Previously, the Bank had expected
net interest income of around €7.8bn and a related positive fair value
adjustment of around €0.3bn, totalling around €8.1bn. The Bank still plans
for net commission income to grow by around 7%. Commerzbank confirms its
target for the cost-income ratio at around 57%. Due to the challenging
economic environment, the risk result is still expected at around
minus €850m. The CET 1 ratio is anticipated at least at 14.5% by year-end
after the planned capital return and restructuring expenses.
The Bank has also confirmed its plan for capital return. For the 2025
financial year, Commerzbank continues to aim to return 100% of its net
result before restructuring expenses and after AT 1 coupon payments to its
shareholders. For the following years from 2026 to 2028, Commerzbank aims
for a payout ratio of 100% after AT 1 coupon payments, depending on the
successful implementation of the strategy, the macroeconomic environment,
and the approval of the European Central Bank and the German Finance
Agency for respective share buybacks. The Bank intends to continuously
increase capital return to its shareholders.
Financial figures at a glance
Q2 25 H1 25
in €m Q2 2025 Q2 2024 vs. Q2 Q1 2025 H1 2025 H1 vs. H1
24 2024 24
(in %) (in %)
Net interest income 2,062 2,078 – 0.8 2,071 4,133 4,204 – 1.7
Net commission income 1,004 910 + 10.3 1,012 2,015 1,861 + 8.3
Net fair value – 38 – 35 – 9.2 14 – 25 – 119 + 79.2
result^1
Other income – 8 – 284 + 97.2 – 24 – 32 – 530 + 94.0
Total revenues 3,019 2,668 + 13.2 3,072 6,092 5,415 + 12.5
Revenues excl. 3,086 2,815 + 9.6 3,125 6,211 5,534 + 12.2
exceptional items
Risk result – 176 – 199 + 11.3 – 123 – 300 – 274 – 9.3
Operating expenses 1,616 1,524 + 6.0 1,618 3,234 3,021 + 7.1
Compulsory 58 75 – 22.5 104 162 166 – 2.3
contributions
Operating result 1,169 870 + 34.3 1,227 2,396 1,954 + 22.6
Restructuring expenses 493 1 40 534 2
Pre-tax result 676 869 – 22.3 1,187 1,862 1,953 – 4.6
Taxes 150 289 – 48.1 306 456 611 – 25.4
Minorities 64 42 + 49.8 46 110 57 + 93.1
Consolidated result^2 462 538 – 14.1 834 1,296 1,285 + 0.9
Cost-income ratio in
operating business 55.4 59.9 56.1 55.8 58.8
incl. compulsory
contributions (%)
Operating RoTE (%) 14.4 11.3 14.9 14.6 12.7
Net RoTE (%) 5.8 7.3 11.1 8.5 8.9
Net RoE (%) 5.5 7.1 10.6 8.1 8.6
CET 1 ratio (%) 14.6 14.8 15.1 14.6 14.8
Leverage ratio 4.3 4.5 4.6 4.3 4.5
Total assets (€bn) 582 560 574 582 560
^1 Net income from financial assets and liabilities measured at fair value
through profit and loss.
^2 Net result attributable to Commerzbank shareholders and investors in
additional equity components.
The events of the day at a glance:
• 9.00 a.m. CEST: 1 Online conference call with analysts on the Q2 2025
results with Bettina Orlopp and Carsten Schmitt (“listen-only”)
• 10.30 a.m. CEST: 2 Online conference call for journalists on the Q2
2025 business figures with Bettina Orlopp and Carsten Schmitt (in
German, please register approximately 15 minutes prior to the start)
The documents relating to the Q2 2025 business results will be available
via our 3 website from around 7.00 a.m. CEST. Press photos of Bettina
Orlopp and Carsten Schmitt are available in our 4 media centre. The CVs
of the members of the Board of Managing Directors are also accessible on
5 our website.
Press contact
Svea Junge +49 69 9353-45691
Kathrin Jones +49 69 9353-45687
Investors’ contact
Ansgar Herkert +49 69 9353-47706
Ute Sandner +49 69 9353-47708
About Commerzbank
With its two business segments – Corporate Clients and Private and
Small-Business Customers –, Commerzbank, as a full-service bank, offers a
comprehensive portfolio of financial services. It is the leading bank in
the Corporate Clients Business in Germany and for the German Mittelstand
and a strong partner for around 24,000 corporate client groups.
Commerzbank transacts approximately 30% of Germany’s foreign trade
financing. The Bank is present internationally in more than 40 countries
in the corporate clients’ business – wherever its Mittelstand clients,
large corporates, and institutional clients need it. In addition,
Commerzbank supports its international clients with a business
relationship to Germany, Austria, or Switzerland and companies operating
in selected future-oriented industries. With more than €400bn assets under
management, Commerzbank is also one of the leading banks for private and
small-business customers in Germany. Under the brand Commerzbank, it
offers a wide range of products and services with an omni-channel
approach: online and mobile, via phone or video in the remote advisory
centre, and personally in its around 400 branches. Under the brand
comdirect, it offers all core services as a digital primary bank 24/7 and,
as a performance broker, solutions for saving, investing, and securities
trading. Its Polish subsidiary mBank S.A. is an innovative digital bank
that serves approximately 5.8 million private and corporate customers,
predominantly in Poland, as well as in the Czech Republic and Slovakia.
Disclaimer
This release contains forward-looking statements. Forward-looking
statements are statements that are not historical facts. In this release,
these statements concern inter alia the expected future business of
Commerzbank, efficiency gains and expected synergies, expected growth
prospects and other opportunities for an increase in value of Commerzbank
as well as expected future financial results, restructuring costs and
other financial developments and information. These forward-looking
statements are based on the management’s current plans, expectations,
estimates and projections. They are subject to a number of assumptions and
involve known and unknown risks, uncertainties and other factors that may
cause actual results and developments to differ materially from any future
results and developments expressed or implied by such forward-looking
statements. Such factors include, amongst others, the conditions in the
financial markets in Germany, in Europe, in the USA and other regions from
which Commerzbank derives a substantial portion of its revenues and in
which Commerzbank holds a substantial portion of its assets, the
development of asset prices and market volatility, especially due to the
ongoing European debt crisis, potential defaults of borrowers or trading
counterparties, the implementation of its strategic initiatives to improve
its business model, the reliability of its risk management policies,
procedures and methods, risks arising as a result of regulatory change and
other risks. Forward-looking statements therefore speak only as of the
date they are made. Commerzbank has no obligation to update or release any
revisions to the forward-looking statements contained in this release to
reflect events or circumstances after the date of this release.
══════════════════════════════════════════════════════════════════════════
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
══════════════════════════════════════════════════════════════════════════
ISIN: DE000CBK1001
Category Code: IR
TIDM: CZB
LEI Code: 851WYGNLUQLFZBSYGB56
Sequence No.: 398027
EQS News ID: 2179996
End of Announcement EQS News Service
══════════════════════════════════════════════════════════════════════════
References
Visible links
1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=e568a833fba7fbb4291acde4e8f0ac02&application_id=2179996&site_id=reuters~~~787b94c3-8286-43cc-98b3-26b1dc52d810&application_name=news
2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=80c901bcc9f4e4f1a2a1f900bb4d18f9&application_id=2179996&site_id=reuters~~~787b94c3-8286-43cc-98b3-26b1dc52d810&application_name=news
3. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=53a75065064554365a1271a29bd46766&application_id=2179996&site_id=reuters~~~787b94c3-8286-43cc-98b3-26b1dc52d810&application_name=news
4. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=1daece74d74c69d2f29b164151524acc&application_id=2179996&site_id=reuters~~~787b94c3-8286-43cc-98b3-26b1dc52d810&application_name=news
5. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=0023d32e24870b66a5c70cfbf54bfa46&application_id=2179996&site_id=reuters~~~787b94c3-8286-43cc-98b3-26b1dc52d810&application_name=news
============Recent news on COMMERZBANK AG
See all newsREG-Commerzbank Aktiengesellschaft Commerzbank with record figures in the first half of the year – targets for 2025 raised
AnnouncementREG-Commerzbank Aktiengesellschaft Commerzbank proves high resilience in EBA stress test
AnnouncementREG - Deutsche Bank AG FF - Post-Stabilisation Notice
AnnouncementREG - Deutsche Bank AG FF - Post Stabilisation Notice -Wolters Kluwer EUR L5yr
AnnouncementREG - PIMCO ETFs PLC - Dividend Declaration
Announcement