The bottom line is that Commerzbank earned less in the third quarter than in the previous year due to a higher tax rate.
Operationally, however, profit increased thanks to a significant increase in income. The bank confirmed its profit forecast but raised its outlook for net interest income.
Net profit fell by 8 percent to 591 million euros. Analysts had expected 659 million euros in a consensus compiled by the company itself. Profit before taxes rose by 16 percent to 1.03 billion euros and was therefore in line with expectations.
On the income side, Commerzbank recorded growth of 7 percent to 2.94 billion euros. A stable net interest income was offset by a significant increase in net commission income.
For the current year, Commerzbank is now forecasting a net interest income of around 8.2 billion euros. The bank had previously assumed around 8 billion. The profit is still expected to be 2.5 billion euros after almost 2.7 billion euros in the previous year. Adjusted for restructuring costs, the profit is expected to amount to 2.9 billion euros. The bank wants to distribute 100 percent of adjusted profits to shareholders. In the first nine months the profit was 1.89 billion euros.
Commerzbank results mixed
Commerzbank’s third-quarter results were mixed, especially given the bank’s recent strong track record and ever-higher bar, Deutsche Bank wrote in a research note. The group’s profit was worse than expected, weighed down by a higher tax rate and a volatile net fair value result, write analysts Benjamin Goy and Marlene Eibensteiner. The bank confirmed its profit outlook for 2025, but raised its forecast for net interest income and risk result, both of which were roughly expected by the consensus. The analysts believe that the new, but expected, share buyback of up to 600 million euros will put the bank on track for high capital distributions this year.
Commerzbank sees net interest income at EUR 8.4 billion in 2026
Commerzbank expects a further increase in net interest income for the coming year. As CFO Carsten Schmitt said in a conference call, the bank expects net interest income of around 8.4 billion euros in 2026. For this year, Commerzbank has increased its outlook for net interest income to 8.2 billion from 8.0 billion. 2 billion is expected for the fourth quarter. Schmitt said he assumes that the net interest income will have passed the low point in the second quarter.
Commerzbank weak – Goldman Sachs: high tax rate
Commerzbank’s quarterly balance sheet was not well received on the stock market on Thursday. With a discount via XETRA of 2.03 percent to 31.88 euros, the shares were among the biggest losers in the leading index DAX.
The reason for this could be profit-taking after the price has more than doubled since the beginning of the year.
The net result in the third quarter was ten percent below the consensus estimate, wrote analyst Chris Hallam from Goldman Sachs. This is due to the tax rate. At 36.5 percent, this is 6.5 percentage points higher than expected on the market.
All in all, the changes to the consensus estimates are likely to be limited, according to the expert.
DOW JONES / dpa-AFX Broker
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