Commerzbank (CBK) 29th Annual Financials CEO Conference summary

Strategic priorities and outlook

• Focus on executing Strategy 2027, targeting 12% RoTE and a cost-income ratio of 54% by 2027, with high payout ratios above 90% in coming years.

• Open to evaluating consolidation or combination options that create stakeholder value, while maintaining stability for clients and staff.

• Exploring value creation beyond 2027, but current focus remains on strategy execution and evaluating new opportunities.

• Recent government and shareholder developments have prompted a pause to ensure stability and thorough evaluation of all options.

• No intention to pursue disruptive acquisitions or defensive maneuvers; emphasis is on protecting and enhancing franchise value.

Financial performance and targets

• Updated multi-year plan includes higher growth ambitions, especially in international locations and asset management.

• Fully consolidated Aquila, with revenue growth expected from this and other initiatives.

• CET1 ratio at 14.8% (July), targeting 13.5% by 2027, enabling significant capital return.

• RoTE target raised from 11% to 12% by 2027, with continuous year-on-year improvement expected.

• Interest rate assumptions between 2%-3%, with net commission income growth target increased to above 5% per year.

Market environment and growth drivers

• Conservative planning for German economy, expecting another year of zero growth but well-diversified loan portfolio supports resilience.

• Corporate client lending growth expected at 3%; private client mortgage activity rebounding due to rate cuts.

• Net commission income expected to exceed 4% year-on-year growth.

• Mittelstand remains a core focus, financing 30% of German corporate exports.

• Fee business growth driven by private and corporate client initiatives, asset management, and bolt-on acquisitions.