• January 01, 2018
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Commerzbank reports 2017 Q3 financial results

Key statements

• Commerzbank has continued to implement its “Commerzbank 4.0” strategy as planned, further improved its capital ratio and again reduced the workout portfolio. In the Private and Small-Business Customers segment the Bank has already gained around 587,000 net new customers in Germany since October 2016, thereof 450,000 net new customers since the start of the current year. The shipping portfolio in the Asset&Capital Recovery segment (ACR) was significantly reduced by ř1.5bn in the first nine months of 2017, taking it to ř3.3bn at the end of the third quarter.

• An operating result of ř1,144m was recorded in the first nine months of 2017, compared with ř1,062m in the prior-year period. Consolidated earnings attributable to Commerzbank shareholders were ř66m, against ř96m last year.

• Group loan loss provisions fell to ř– 530m, with corporate clients in particular requiring lower provisioning; the NPL ratio was 1.5%. At ř5,297m, operating expenses remained stable despite spending on strategic development.

• Restructuring expenses of ř807m impacted on profit in the period under review. They were connected with the implementation of the “Commerzbank 4.0” strategy and the agreement reached with the employee representative committees in this regard on an outline reconciliation of interests and an outline social plan. The negotiations on the partial reconciliation of interests with the Central Works Council were also concluded in mid-October. The Group Works Council approval is expected in December.

• The Common Equity Tier 1 ratio (based on fully implemented Basel 3 regulations) was 13.5%; the leverage ratio was 4.7%.

• The operating return on equity was 6.5%, compared with 6.1% in the prior-year period. The return on tangible equity based on consolidated profit was 0.3%, compared with 0.5% in the prior-year period. The cost/income ratio remained stable at 76.0%.

Re-disseminated by The Asian Banker