Commerzbank (CBK) Q3 2024 earnings summary

Executive summary

• Q3 2024 results exceeded expectations, with 9M 2024 net result up 5% year-over-year to €1,926m and operating profit at €2,841m, slightly below prior year due to higher provisions.

• Strategy execution and 2027 targets remain a priority, focusing on capital efficiency, risk-return optimization, and cost management.

• Significant management changes include Dr. Bettina Orlopp as Chair and UniCredit Group increasing its stake to 9.5%, with an option to reach 21%.

• Share buyback of €600m approved, with an application for an additional €400m.

• Strategic initiatives included the acquisition of Aquila Capital and expansion in high-net-worth client services.

Financial highlights

• Net interest income for 9M 2024 was €6,251m, flat year-over-year; net commission income up 4.1% to €2,693m.

• CET1 ratio at 14.8% at Q3 2024, with a year-end target of 15%.

• Cost-income ratio improved to 58% in Q3 2024, on track for a 60% target for 2024.

• Risk result for 9M 2024 at -€529m, mainly due to single cases and ESG provisions.

• Share buyback of €600m starts immediately, with an application for an additional €400m.

Outlook and guidance

• 2024 targets raised: revenues €10.9bn, NII ~€8.2bn, fee income growth >5%, CET1 ratio ~15%.

• Net result for 2024 expected around €2.4bn; payout ratio targeted at ≥70%.

• 2025 NII expected in the range of €7.6–7.9bn, with total revenues projected to exceed 2024.

• ROTE target of at least 8% for 2024, with ambition above 12% by 2027.

• Share buybacks of up to €1bn are planned, subject to regulatory approval.