Commerzbank (CBK) Goldman Sachs 28th European Financials conference summary

Macroeconomic and geopolitical environment

• Sentiment among corporates is improving, with increased discussions on investment plans, leading to optimism for Q2.

• Net exposure to Russia has been significantly reduced to EUR 171 million, with ongoing monitoring of claims and compliance with sanctions.

• Operations in Russia are in hibernation mode, with no new business and proactive client outreach to reduce exposure.

Net interest income (NII) and deposit trends

• 2024 NII outlook raised to around EUR 8.1 billion, supported by better-than-expected performance at mBank and higher ECB rates.

• Higher deposit inflows and intentional increases in deposit beta through attractive offerings have positively impacted NII.

• Replication portfolio aims to stabilize NII through 2027, with additional benefits of up to EUR 400 million expected this year.

Loan and mortgage growth

• Mortgage activity has recovered but remains cautious due to interest rates and only moderate price declines.

• Corporate loan growth is expected and embedded in plans through 2027, driven by investment needs for transformation.