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Highlights
- Commerzbank’s revenues grew to €8.2 billion by September, driven by robust customer business.
- The bank expects its CET1 ratio to reach around 15% by year-end, supporting future capital returns.
- Full-year net result target of €2.4 billion confirmed, with upgraded projections for commission and interest income.
Commerzbank has improved its outlook for the full year of 2023, buoyed by strong performance over the first nine months. The bank's revenues climbed to €8.2 billion by the end of September, compared to €8.1 billion during the same period last year, as customer business continued to deliver solid results.
Key Financial Metrics
The bank reported a 4% increase in net commission income, which reached €2.7 billion over the first nine months. Net interest income remained consistently strong at €6.3 billion, despite facing headwinds from recent rate cuts. Operating costs were stable at €4.8 billion, maintaining a cost-income ratio of 59%.
Commerzbank’s operating result for the nine-month period stood at €2.8 billion, showcasing resilience despite a challenging interest rate environment. The bank's net result rose by 5% to €1.9 billion, underscoring its capacity to generate steady profits.
Corporate Lending and Risk Management
The loan volume for corporate clients in the Mittelstand business segment increased by 3% in the third quarter, reaching €62 billion. This growth highlights Commerzbank's commitment to supporting medium-sized businesses, a key pillar of its strategy.
In terms of risk management, the bank recorded a risk result of minus €529 million, yet maintained a low non-performing exposure ratio of 0.9%. This indicates a well-managed risk environment, further strengthening the bank’s financial stability.
Capital Strength and Share Buyback Program
Commerzbank’s Common Equity Tier 1 (CET1) ratio improved to 14.8% as of September, up from 14.6%, and is expected to rise to around 15% by year-end. The robust capital position sets the stage for potential capital returns to shareholders. The bank has already approved the first tranche of a €600 million share buyback and has applied for approval of a second tranche worth up to €400 million.
Upgraded Full-Year Outlook
Looking ahead, Commerzbank has confirmed its full-year net result target of around €2.4 billion. Furthermore, the bank has raised its expectations for net commission income and net interest income, reflecting confidence in sustained growth and profitability.
