Commerzbank (CBK) 2026 RBC Capital Markets Global Financial Institutions Conference summary

Market environment and client behavior

• Volatility in early 2024 has benefited securities and capital markets business, with a strong start to the year.

• Traditional medium-sized corporate clients remain cautious, delaying investment programs due to ongoing uncertainty.

• Interest rate environment is favorable, but uncertainty impacts risk outlook and GDP growth projections.

Financial performance and guidance

• Revenue grew 10% last year, with net commission income up 7%; growth was not solely driven by net interest income (NII).

• NII is expected to rise by €300 million year-over-year, driven by the replication portfolio, stable rates, and volume growth.

• Updated NII guidance for 2028 is €9.4 billion, with most growth coming from the replication portfolio and loan expansion.

• Return on tangible equity target is at least 15% by 2028, with cost-income ratio expected to fall below 50%.

Competition and deposit dynamics

• Deposit competition remains intense, especially among digital and direct banks, with new entrants like Chase expected.

• Client stickiness is higher in traditional brands, while digital users are more likely to move for better rates.