DJ Commerzbank continues growth trajectory: Record operating result after nine months
Commerzbank Aktiengesellschaft (CZB) Commerzbank continues growth trajectory: Record operating result after nine months 06-Nov-2025 / 07:06 CET/CEST The issuer is solely responsible for the content of this announcement. =---------------------------------------------------------------------------------------------------------------------- -- Operating result after 9M increased by 21% to EUR3.4bn - in Q3 up 18% to EUR1bn -- 9M profit of EUR1.9bn despite restructuring expenses of EUR553m - net result in Q3 at EUR591m -- Revenues after 9M up by 11% to EUR9bn - in Q3 growth of 7% to EUR2.9bn -- Net commission income after 9M higher by 8% at EUR3bn - increase in Q3 by 7% to EUR985m -- Net interest income after 9M at high level of EUR6.2bn - in Q3 stable at EUR2bn -- Cost-income ratio after 9M reduced by around 3 percentage points to 56% - below the full-year target of 57% -- Risk result at minus EUR515m after 9M - in Q3 at minus EUR215m - NPE ratio at 1.0% -- Net return on tangible equity (Net RoTE) before restructuring expenses after 9M at 10% -- Share buyback of up to EUR1bn started - further buyback of up to EUR600m applied for to ECB and German Finance Agency - solid CET 1 ratio at 14.7% -- Outlook for 2025: profit target confirmed - net interest income expected higher Commerzbank remains on its growth path; between January and September, the Bank increased its operating result by 21% compared to the previous year to EUR3.4bn, achieving the best 9-month result in its history. The driver of this positive development is the increase in revenues by 11% to EUR9bn. Net commission income continued its positive trend, growing by 8%, exceeding the full-year target of around 7%. The net result after nine months stands at EUR1.9bn, nearly matching the high level of the previous year despite restructuring expenses of EUR553m which were mostly incurred in the second quarter. The net result before restructuring expenses rose by 18% to a record EUR2.3bn. The cost-income ratio improved by around 3 percentage points to 56%, remaining below the target of 57% for the full year. The net return on tangible equity (Net RoTE) was double-digit at 10% before restructuring expenses. Loans in the Corporate Clients segment increased by a strong 13% compared to the previous year. The Bank's loan book continues to demonstrate robustness: the risk result after nine months stands at a moderate level of minus EUR515m. With its 'Momentum' strategy, Commerzbank has set ambitious targets for 2028 with a cost-income ratio of 50%, a net return on tangible equity (Net RoTE) of 15%, and a payout ratio of 100% of the net result. This year, the Bank makes significant progress towards these targets. The high revenue growth and continued decline in the cost-income ratio after nine months support these targets. The Corporate Clients segment successfully completed a Significant Risk Transfer (SRT) by the end of September, as outlined in the Bank's 'Momentum' strategy. In the coming years, Commerzbank plans to manage risk-weighted assets (RWA) through the securitisation of corporate loans. The aim is to improve the Bank's RWA efficiency. Further transactions are planned in the fourth quarter. The Private and Small-Business Customers segment launched its advanced advisory model in mid-October, laying the groundwork for further increases in sales. The new model enhances the bespoke advisory service for our customers and strengthens staffing of the branches. Regarding staff structure targets set with 'Momentum', Commerzbank continues to make good progress. Only three months after the negotiations began, it reached agreements with employee representative committees and started implementing the personnel changes. For the job reductions, the Bank is utilising established social plan instruments, particularly partial retirement and early retirement arrangements. These measures have been positively received by employees and are showing a high acceptance rate. The objective is to implement the planned reductions in a socially responsible manner and within the established framework. "We have generated significant momentum over the past 12 months," said Commerzbank CEO Bettina Orlopp. "The level of return we have achieved now serves as the new baseline for future growth. For the full year, we aim to deliver an attractive dividend, and we have also applied for the next share buyback." The share buyback is a component of the capital return for the 2025 financial year. For its capital return to shareholders, the Bank relies on a combination of share buybacks and dividend payments. The exact distribution between the instruments will be determined based on the full-year results. On 25 September 2025 Commerzbank began the first share buyback of up to EUR1bn, which is part of the capital return for this financial year. The second buyback of up to EUR600m will start after the Bank has received the approval from the European Central Bank (ECB) and the German Finance Agency. The separately planned buyback of own shares for the newly launched employee share programme will be implemented in the fourth quarter. Strong customer business: Net commission income increases across all segments In the third quarter, Commerzbank increased its revenues by 7% compared to the same quarter last year to EUR2,939m (Q3 2024: EUR2,735m). Net commission income rose once again across all customer segments. Driven by strong securities and syndication business, it increased by 7% to EUR985m (Q3 2024: EUR925m). Despite significantly lower benchmark interest rates, net interest income remained stable at EUR2,044m compared to the previous year's quarter (Q3 2024: EUR2,048m). The increased demand for loans in the Corporate Clients segment also contributed to this result. Additionally, the decrease in provisions for legal risks related to foreign currency loans in Poland had a positive impact. Total costs rose by 5% in the third quarter to EUR1,677m (Q3 2024: EUR1,594m). This increase was primarily due to operating expenses rising by 6% to EUR1,624m compared to the previous year's quarter (Q3 2024: EUR1,530m). This was driven by higher personnel expenses, mainly due to general salary increases and valuation effects from equity-based variable compensation resulting from the increased share price. Investments in business growth at the Polish subsidiary mBank also had an impact. The Bank's active cost management along with lower compulsory contributions, which decreased to EUR53m (Q3 2024: EUR64m), partially offset the higher operating expenses. The cost-income ratio was at 57%, down from the previous year's quarter (Q3 2024: 58%). For the 9-month period, the total costs of the Bank increased by 6% to EUR5,073m (9M 2024: EUR4,780m); the cost-income ratio improved by around 3 percentage points to 56% (9M 2024: 59%) - and remained below the target of 57% for the full year. The risk result in the third quarter stood at minus EUR215m, lower compared to the previous year's quarter (Q3 2024: minus EUR255m). In-model adjustments and collective staging for risks stemming from macro-economic environment and novel risks like climate and environmental risk continue to be applied in an unchanged manner. After nine months the risk result was at a moderate level of minus EUR515m (9M 2024: minus EUR529m). The Bank's loan book remains resilient; the non-performing exposure ratio (NPE ratio) declined to 1.0% (Q2 2025: 1.1%). Commerzbank increased its operating result in the third quarter by 18% to EUR1,047m (Q3 2024: EUR886m). For the 9-month period, the increase was even more pronounced at 21%: the operating result of EUR3,442m (9M 2024: EUR2,841m) sets a record for the 9-month period. The net result after taxes, minorities, and restructuring expenses amounted to EUR591m in the third quarter (Q3 2024: EUR642m). This was mainly due to the increased tax rate of 36% (Q2 2025: 22%). After nine months, the net result stands at EUR1,888m, almost matching the high level of the previous year (9M 2024: EUR1,926m). Before restructuring expenses for the transformation of the Bank, Commerzbank achieved a record 9-month profit of EUR2,267m. The Common Equity Tier 1 (CET 1) ratio of Commerzbank was at 14.7% as of 30 September (30 June 2025: 14.6%; 30 September 2024: 14.8%). This provides the Bank with a comfortable buffer of 438 basis points to the regulatory minimum requirement (MDA threshold), which currently stands at around 10.4%. As part of the Supervisory Review and Evaluation Process (SREP), the ECB reduced Commerzbank's Pillar 2 capital requirement (P2R) by 10 basis points to 2.15% for the year 2026. The net return on tangible equity (Net RoTE) was 7.8% in the third quarter (Q3 2024: 8.7%); after nine months, it was 8.2% (9M 2024: 8.8%). Before accounting for restructuring expenses, the net return on tangible equity for the 9-month period was 10%. For the full year, Commerzbank aims for a net return on tangible equity of around 9.6% before restructuring expenses. "The strong 9-month-result reflects the growth of our revenues, driven by the expansion of net commission income in both customer segments," said CFO Carsten Schmitt. "Based on this, we confirm our profit target for 2025 and are confident to even achieve a slightly higher net interest income." Segment development: Corporate Clients with strong loan growth In the third quarter, the Corporate Clients segment contributed EUR1,202m to revenues (Q3 2024: EUR1,196m). International Corporates showed a very positive development, underlining the Bank's growth potential in international business. The net commission income of the Corporate Clients segment rose due to strong syndication and guarantee business, as well
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November 06, 2025 01:06 ET (06:06 GMT)
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