Commerzbank rises in Frankfurt, boosted by better-than-expected quarterly profit

(Il Sole 24 Ore Radiocor) - Commerzbank is well-positioned on the Frankfurt Stock Exchange after having positively surprised the market with an increase in quarterly profit while the forecast pointed to a decline. The stock of the German bank, in the sights of Unicredit, is among the best on the German list. Commerz achieved a net profit of 834 million euros in the first three months of 2025, the highest level since 2011, compared to 747 million last year. According to estimates published by the bank, analysts had expected an average profit of 698 million. The result was favored by higher-than-expected fee revenues and lower-than-expected provisions for doubtful loans. Operating profit rose 13% to a record 1.2 billion and revenues rose 12% overall to 3.1 billion, with fee income rising 6% to 1 billion, while interest income fell 2.6% to 2.07 billion "in an environment of falling interest rates". The cost of risk "remained at the moderate level of -123 million euros" from -76 million last year, the bank also said. The cost-income ratio fell 2 points to 56% and is therefore better than the target of 57% set for the financial year. Net RoTE improved to 11.1% from 10.5% and net RoE rose to 10.6% from 10.1%. The Cet1 capital ratio increased to 15.1% from 14.9% and "demonstrates the high potential for capital return", Commerzbank emphasized.

“We achieved our best quarterly profit since 2011, proving that we can grow in economically challenging times,” said CEO Bettina Orlopp , adding that the bank is making progress in implementing its Momentum strategy and plans to “return more capital to shareholders in the coming years.” Commerz confirmed its outlook for the 2025 financial year, including a Cet1 ratio of at least 14.5%. JP Morgan analysts confirmed their buy recommendation with a price target of 27 euros. Rbc instead reiterated its Neutral rating with an unchanged target price of 21.50 euros. On Unicredit , Orloop essentially reiterated what she had said in the past. “We are focused on our stand-alone strategy , on achieving results and creating value for our key stakeholders,” she stressed during the conference call on quarterly results. So for the Milanese institute, which has received the green light to increase its ratio to 30%, “nothing has changed.” "It is clear that if something comes to the table we will evaluate the options," Orlopp added, referring to a possible offer from the Italian bank.