Commerzbank with record figures in the first half of the year - targets for 2025 raised -2-

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)

DJ Commerzbank with record figures in the first half of the year - targets for 2025 raised -2-

shareholders. The current buffer to the regulatory minimum requirement (MDA threshold), which is currently around 
10.2%, remains very comfortable at 438 basis points. 
 
The significant increase in the Bank's profitability is demonstrated by the net return on tangible equity (Net RoTE), 
it improved to 10.7% in the second quarter before restructuring expenses (Q2 2024: 7.3%). For the first half of the 
year, it also achieved a double-digit value of 11.1% (H1 2024: 8.9%). In the full year, Commerzbank aims for a Net RoTE 
of around 9.6% before restructuring expenses. 
 
"The strong growth in net commission income underpins the operational strength of our business. The double-digit net 
return on tangible equity shows that we are delivering what we promise," said CFO Carsten Schmitt. "We have raised our 
profit target for 2025 and now expect a net result of EUR2.9bn before restructuring expenses." 
 
Segment Development: increased loan demand among corporate clients 
 
The Corporate Clients segment generated revenues of EUR1,169m in the second quarter (Q2 2024: EUR1,255m). Net commission 
income increased by 9% to EUR355m, driven by a strong loan origination and foreign exchange business (Q2 2024: EUR325m). 
Despite lower benchmark interest rates, net interest income also increased by 6% to EUR614m (Q2 2024: EUR580m). However, 
hedging derivates in the Banking Book led to a lower fair value result. Loan demand rose across all client groups, with 
also Mittelstand clients showing an increased demand for investment loans. The average loan volume in the quarter 
significantly rose to EUR107bn (Q1 2025: EUR104bn; Q2 2024: EUR99bn). Overall, the segment's operating result amounted to 
EUR498m in the second quarter (Q2 2024: EUR548m), and EUR1,100m for the first half of the year (H1 2024: EUR1,251m). 
 
The Private and Small-Business Customers segment in Germany contributed EUR1,126m to revenues in the second quarter, more 
than in the previous year's second quarter (Q2 2024: EUR1,075m). This growth was driven by strong net commission income, 
which increased by 9% to EUR516m (Q2 2024: EUR474m). The main driver of this growth was the strong securities business, 
especially at comdirect and in Wealth Management products. Net interest income remained stable at EUR594m despite lower 
interest rates (Q2 2024: EUR591m). Mainly due to higher costs resulting from an impairment on intangible assets of EUR65m 
at ACI as well as a higher risk result, the Private and Small-Business Customers segment in Germany achieved an 
operating result of EUR262m (Q2 2024: EUR320m). For the first half of the year, the result amounted to EUR692m (H1 2024: 
EUR715m). 
 
In a highly competitive market environment, the average deposits of private and small-business customers in Germany 
amounted to EUR169bn in the second quarter (Q2 2024: EUR174bn). The loan volume increased slightly to EUR126bn (Q2 2024: 
EUR125bn), mainly due to the mortgage loan volume, which was EUR97bn in the second quarter (Q2 2024: EUR96bn). The securities 
volume increased at the end of the quarter, driven by developments in the stock markets, to EUR247bn (Q2 2024: EUR233bn). 
 
The Polish subsidiary mBank benefited in the second quarter once more from reduced provisions for legal risks related 
to foreign currency loans: the burdens nearly halved compared to the previous year's quarter to EUR128m (Q2 2024: EUR240m). 
Excluding this effect and burdens from credit holidays, revenues were on the same high level as last year. Net interest 
income slightly decreased to EUR587m due to lower benchmark interest rates in Poland and exchange rate effects (Q2 2024: 
EUR596m), while net commission income climbed by 20% to EUR140m, mainly driven by strong transaction-related businesses 
such as payments and a one-off effect from an insurance cooperation (Q2 2024: EUR117m). In total, mBank doubled its 
operating result to EUR300m (Q2 2024: EUR147m). The half-year result also improved significantly, more than doubling 
compared to the previous year at EUR503m (H1 2024: EUR229m). 
 
Outlook for the full year: higher interest income and net result expected 
 
Commerzbank has raised its outlook for the full year. It now expects a net result of around EUR2.9bn before restructuring 
expenses, having previously anticipated around EUR2.8bn. After restructuring expenses, the Bank now expects a net result 
of around EUR2.5bn, up from around EUR2.4bn. The outlook remains subject to the development of burdens related to Russia 
and foreign currency loans at mBank. 
 
The improved outlook is primarily driven by net interest income. The Bank now expects a net interest income of around 
EUR8bn for the full year and a related positive fair value adjustment of around EUR0.3bn. In total, this contributes around 
EUR8.3bn to revenues. Previously, the Bank had expected net interest income of around EUR7.8bn and a related positive fair 
value adjustment of around EUR0.3bn, totalling around EUR8.1bn. The Bank still plans for net commission income to grow by 
around 7%. Commerzbank confirms its target for the cost-income ratio at around 57%. Due to the challenging economic 
environment, the risk result is still expected at around minus EUR850m. The CET 1 ratio is anticipated at least at 14.5% 
by year-end after the planned capital return and restructuring expenses. 
 
The Bank has also confirmed its plan for capital return. For the 2025 financial year, Commerzbank continues to aim to 
return 100% of its net result before restructuring expenses and after AT 1 coupon payments to its shareholders. For the 
following years from 2026 to 2028, Commerzbank aims for a payout ratio of 100% after AT 1 coupon payments, depending on 
the successful implementation of the strategy, the macroeconomic environment, and the approval of the European Central 
Bank and the German Finance Agency for respective share buybacks. The Bank intends to continuously increase capital 
return to its shareholders. 
 
  
 
Financial figures at a glance 
 
                                         Q2 25             H1 25 
   in EURm                               Q2   Q2  vs. Q2  Q1   H1   H1  vs. H1 
                                  2025  2024   24   2025  2025  2024   24 
                                         (in %)            (in %) 
Net interest income                         2,062 2,078  - 0.8 2,071 4,133 4,204  - 1.7 
Net commission income                        1,004  910  + 10.3 1,012 2,015 1,861  + 8.3 
Net fair value result^1                       - 38  - 35  - 9.2   14  - 25 - 119  + 79.2 
Other income                             - 8 - 284  + 97.2  - 24  - 32 - 530  + 94.0 
Total revenues                           3,019 2,668  + 13.2 3,072 6,092 5,415  + 12.5 
Revenues excl.                           3,086 2,815  + 9.6 3,125 6,211 5,534  + 12.2 
exceptional items 
Risk result                             - 176 - 199  + 11.3 - 123 - 300 - 274  - 9.3 
Operating expenses                         1,616 1,524  + 6.0 1,618 3,234 3,021  + 7.1 
Compulsory contributions                        58   75  - 22.5  104  162  166  - 2.3 
Operating result                          1,169  870  + 34.3 1,227 2,396 1,954  + 22.6 
Restructuring expenses                        493   1        40  534   2      
Pre-tax result                            676  869  - 22.3 1,187 1,862 1,953  - 4.6 
Taxes                                 150  289  - 48.1  306  456  611  - 25.4 
Minorities                               64   42  + 49.8   46  110   57  + 93.1 
Consolidated result^2                         462  538  - 14.1  834 1,296 1,285  + 0.9 
Cost-income ratio in operating business incl. compulsory       55.4  59.9       56.1  55.8  58.8      
contributions (%) 
Operating RoTE (%)                          14.4  11.3       14.9  14.6  12.7      
Net RoTE (%)                             5.8  7.3       11.1  8.5  8.9      
Net RoE (%)                              5.5  7.1       10.6  8.1  8.6      
CET 1 ratio (%)                           14.6  14.8       15.1  14.6  14.8      
Leverage ratio                            4.3  4.5       4.6  4.3  4.5      
Total assets (EURbn)                          582  560       574  582  560 

^1 Net income from financial assets and liabilities measured at fair value through profit and loss. ^2 Net result attributable to Commerzbank shareholders and investors in additional equity components.

The events of the day at a glance:

-- 9.00 a.m. CEST: Online conference call with analysts on the Q2 2025 results with Bettina Orlopp and Carsten Schmitt

("listen-only") -- 10.30 a.m. CEST: Online conference call for journalists on the Q2 2025 business figures with Bettina Orlopp and

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