Commerzbank with record figures in the first half of the year - targets for 2025 raised

DJ Commerzbank with record figures in the first half of the year - targets for 2025 raised

Commerzbank Aktiengesellschaft (CZB) 
Commerzbank with record figures in the first half of the year - targets for 2025 raised 
06-Aug-2025 / 07:04 CET/CEST 
The issuer is solely responsible for the content of this announcement. 
 
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 -- Operating result in H1 increased by 23% to EUR2.4bn - in Q2 34% higher at EUR1.2bn 
 -- Net result in H1 with EUR1.3bn remains at high level of previous year despite restructuring expenses of EUR534m - in Q2 
  net result of EUR462m 
 -- Revenues in H1 and Q2 increased by 13% each to EUR6.1bn and EUR3bn respectively 
 -- Net commission income in H1 increased by 8% to EUR2bn - in Q2 10% higher at EUR1bn 
 -- Net interest income in H1 with EUR4.1bn and in Q2 with EUR2.1bn almost unchanged despite lower interest rates 
 -- Cost-income ratio in H1 reduced by 3 percentage points to 56% - below target of 57% for full year 
 -- Risk result in Q2 at minus EUR176m - NPE ratio at 1.1% 
 -- Double-digit Net RoTE of around 11% in H1 and Q2 before restructuring expenses 
 -- Next share buyback of up to EUR1bn based on half-year results applied for - solid CET 1 ratio of 14.6% 
 -- Outlook for full year 2025 further improved: targets for net interest income and net result raised 
Commerzbank remains fully on track: in the first half of the year, the Bank achieved the best operating result in its 
history with EUR2.4bn. Despite restructuring expenses, the net result of EUR1.3bn remained at the high level of the 
previous year. Without these investments in the Bank's transformation, the net result would have risen by 29% to a 
record EUR1.7bn. The Bank's revenues increased by around 13% in the first half of the year to EUR6.1bn, driven by dynamic 
growth in net commission income. The cost-income ratio improved to 56%, being below the target of 57% for the full 
year. The positive business development of the first half year is also reflected in the net return on tangible equity 
(Net RoTE), which was a double-digit 11.1% before restructuring expenses. The loan book continued to prove robust in a 
challenging economic environment, with a risk result of minus EUR300m at mid-year, remaining at a moderate level as 
expected. 
 
Commerzbank made good progress in implementing its "Momentum" strategy in the second quarter. In the negotiations on 
staff reductions, a framework settlement of interests and a framework social plan were agreed with the employee 
representative committees. These agreements form the basis for the personnel changes the Bank announced in February 
this year. 
 
For the staff reduction in Germany, the Bank relies on proven measures, particularly partial retirement programmes and 
early retirement arrangements. Additionally, termination agreements with severance payment have been arranged, along 
with other measures. Based on the framework agreements, the details of the staff reduction have now been discussed and 
will be regulated in partial settlements of interests within the various corporate divisions. The goal is to complete 
the negotiations by autumn of this year. 
 
The Bank is also on track with the implementation of the personnel objectives of "Momentum" at its international 
locations. As announced, staff levels are being increased at selected foreign locations and at mBank. The Bank has 
launched corresponding recruitment initiatives to support this. 
 
Furthermore, Commerzbank has reached an agreement together with employee representative committees on the introduction 
of an employee share programme. This programme aims to increase employee participation in the Bank's success. The 
programme will be introduced this autumn in the AG Germany and at the Bank's international locations. 
 
In the Private and Small-Business Customers segment, the sharpening of the two-brand strategy in Germany with stronger 
price and product differentiation is progressing well. The introduction of the new pricing model for current accounts 
has been very successful. Since June of this year, the Bank has generated additional earnings from it. The majority of 
the contacted customers have already given their consent. For EUR4.90 per month, they receive access to a comprehensive 
range of personal and digital advice, high security standards and digital features such as the mobile Girocard for 
Apple Pay, as well as free nationwide cash withdrawals. Recently, the virtual assistant Ava has been added to the list 
of features. It provides round-the-clock support for enquiries on banking products and financial topics, as well as 
resolving service requests. For customers who do not require personal advice, the Bank continues to offer a free 
digital alternative through its comdirect brand. 
 
In the Corporate Clients segment, Commerzbank is making positive progress in expanding its digital platform business. 
International clients can now make money market deposits online via the Bank's trading platform as well as various 
multi-dealer platforms. With targeted investments in its trading platforms, the Bank has also increased its revenues 
thanks to a higher market share in foreign exchange and interest rate derivatives. 
 
The high level of client focus and the comprehensive product offering are appreciated by clients. As a result, 
Commerzbank was named the best bank for corporates and best bank for Mittelstand in the "FINANCE Bank Survey" 2025. 
Each year, Chief Financial Officers (CFOs), treasurers, and heads of finance from around 250 companies in Germany are 
surveyed for the study. Also, for the eighth consecutive year, the "Euro-Magazin" has named comdirect as Germany's best 
direct bank and best bank as well as Commerzbank as the best branch-based bank. 
 
"In the first half of the year, we achieved the best operating result in the history of Commerzbank and are progressing 
fast with our transformation. With 'Momentum' we are generating more value for our shareholders, customers and 
employees," said CEO Bettina Orlopp. "We have already applied to the European Central Bank and the German Finance 
Agency for our next share buyback of up to EUR1bn." 
 
Commerzbank successfully completed the capital return for the 2024 financial year in May 2025 with a dividend payment 
totalling EUR733m after approval by the Annual General Meeting. Together with share buybacks completed in January and 
March 2025 totalling EUR1bn, the Bank returned EUR1.73bn in total for the 2024 financial year to its shareholders. Moving 
forward, the Bank will continue to rely on a combination of dividend payments and share buybacks for capital returns. 
 
Strong customer business: net commission income grows by 10% 
 
In the second quarter, Commerzbank significantly increased its revenues by 13% to EUR3,019m (Q2 2024: EUR2,668m). This was 
positively influenced by the continued strong growth in net commission income: driven by a strong securities, loan 
origination and foreign exchange business, it increased by 10% compared to the previous year to EUR1,004m (Q2 2024: 
EUR910m). The Bank maintained its net interest income almost at the high level of the previous year's second quarter with 
EUR2,062m despite significantly lower benchmark interest rates (Q2 2024: EUR2,078m). 
 
Costs increased by 5% in the second quarter to EUR1,674m (Q2 2024: EUR1,599m). This was mainly due to an increase in 
administrative expenses by 6% to EUR1,616m (Q2 2024: EUR1,524m). The investments in growth and the exchange rate effects at 
the Polish subsidiary mBank again had an impact. Additionally, personnel expenses increased, primarily due to general 
salary increases and higher valuation effects for deferred equity-based variable compensation resulting from the rising 
share price. Through its active cost management, the Bank was able to partially offset the higher expenses. 
Furthermore, the consolidation of Aquila Capital Investmentgesellschaft (ACI) since June 2024 lead to higher expenses. 
Compulsory contributions decreased in the second quarter to EUR58m (Q2 2024: EUR75m). Overall, the Bank reduced its 
cost-income ratio by around 5 percentage points to 55% (Q2 2024: 60%). On a half-year basis, costs increased by 7% to 
EUR3,396m (H1 2024: EUR3,187m), and the cost-income ratio improved to 56% (H1 2024: 59%) - and remained below the target of 
57% for the full year. 
 
Despite the persistently challenging economic environment, the risk result remained at a moderate level in the second 
quarter with minus EUR176m (Q2 2024: minus EUR199m). This includes an amount of EUR142m from adjustments of methodology and 
models. The ratings for small and medium-sized corporate clients were recalibrated and the sensitivity for 
macroeconomic effects was increased. Thereof EUR91m alone are primarily related to potential impacts of US tariffs. 
Mainly due to this adjusted methodology, the remaining top-level adjustment (TLA) of EUR182m was fully released in the 
second quarter. Overall, the loan book continues to prove very robust, with a non-performing exposure ratio (NPE ratio) 
of 1.1% (Q1 2025: 1.0%). 
 
Commerzbank improved its operating result by 34% to EUR1,169m in the second quarter (Q2 2024: EUR870m). For the half year, 
this resulted in an increase of 23%, reaching a record EUR2,396m (H1 2024: EUR1,954m). Net result after taxes, minorities 
and restructuring expenses amounted to EUR462m in the second quarter (Q2 2024: EUR538m), with a slight increase to EUR1,296m 
for the half-year (H1 2024: EUR1,285m). Without the restructuring expenses, the half-year profit would have reached a new 
record of EUR1,662m. 
 
The Common Equity Tier 1 ratio (CET 1 ratio) decreased to 14.6% as of 30 June, among others due to the planned capital 
return of 100% before restructuring expenses and after deduction of AT 1 coupon payments for the 2025 financial year 
(31 March 2025: 15.1%; 30 June 2024: 14.8%). Commerzbank continues to have a high potential for capital return to its 

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August 06, 2025 01:04 ET (05:04 GMT)