Strong start in 2024
Analyst conference - Q1 2024
15 May 2024 | Commerzbank, Manfred Knof, CEO, and Bettina Orlopp, CFO, Frankfurt | All figures in this presentation are subject to rounding |
Manfred Knof
CEO
15 May 2024 | Commerzbank, Manfred Knof, CEO, Frankfurt | 1 |
Strong start in 2024 with record quarterly result
Net Result
(€m) | 580 | 747 |
298 | ||
Q1 22 | Q1 23 | Q1 24 |
RoTE | 10.5 | |
(%) | 8.3 | |
4.0 | ||
Q1 22 | Q1 23 | Q1 24 |
CET1 ratio | ||
(%) | 14.2 | 14.9 |
13.5 |
Q1 22 | Q1 23 | Q1 24 |
Significantly improved earnings power reflects strong client franchise
Increasingly healthy return profile in positive rates environment targeting RoTE of at least 8% for 2024
Strong capital ratio underpins significant capital return potential
15 May 2024 | Commerzbank, Manfred Knof, CEO, Frankfurt | 2 |
Strong
performance in a dynamic macro environment
15 May 2024
German leading indicators point to a pick-up of GDP
Expected wage inflation will likely impact rates trajectory and requires high cost discipline
Loan demand in Germany still muted with investments trending abroad
Customer centric business model with high asset quality pays off in challenging environment
Commerzbank, Manfred Knof, CEO, Frankfurt | 3 |
Delivering on management priorities for 2024
Ensure delivery of targeted capital return
Grow
fee income
Strict performance & execution management
Strengthen customer loyality
Improve employee satisfaction
50% pay-out by €600m buyback and €35ct dividend completed,
application for next buyback planned with H1 results
Good start in Q1 - contribution of Aquila Capital Management and Global Payments JV only after closing later in the year
Steering focus on fee generating business and Cost-Income-Ratio
Commerzbank and comdirect awarded best retail banks (€uro Magazin) and best bank in Germany (Global Finance Magazine)
Employee survey in Q1 indicates improved sentiment
15 May 2024 | Commerzbank, Manfred Knof, CEO, Frankfurt | 4 |
Key take-aways from Q1 2024
We had a strong start in 2024
2027
We confirm our outlook for 2024
~55%
CIR
Moving Forward
We target a pay-out ratio1 of at least 70%
1) Pay-out ratio based on net result after potential (fully discretionary) AT1 coupon payments; pay-out not exceeding net result after potential AT1 coupon payments
15 May 2024 | Commerzbank, Manfred Knof, CEO, Frankfurt | 5 |
Bettina Orlopp
CFO
15 May 2024 | Commerzbank, Bettina Orlopp, CFO, Frankfurt | 6 |
Record operating result of €1.1bn
Revenues
(€m)
Revenues
Costs
Cost-income-ratio (CIR)
Result
(€m)
Operating result
Net Result
RoTE
Q1 23 | Q4 23 | Q1 24 |
2,668 2,409 2,747
1,724 1,616 1,588
65% 67% 58%
Q1 23 Q4 23 Q1 24
875 | 1,084 | ||
542 | |||
580 395 747
8.3% 5.2% 10.5%
Risk
(€m)
Risk result
Top-level adjustment (TLA)
Non-performing exposure (NPE) ratio
Capital
CET1 ratio
RWA
(€bn)
Q1 23 | Q4 23 | Q1 24 | |
-68 | -76 | ||
-252 |
483 453 423
1.1% 0.8% 0.8%
Q1 23 | Q4 23 | Q1 24 |
14.2% 14.7% 14.9%
172 175 173
15 May 2024 | Commerzbank, Bettina Orlopp, CFO, Frankfurt | 7 |
Revenue growth driven by strong customer business
Revenues | 2,668 | 2,755 | 2,747 | |||
(€m) | 2,629 | |||||
2,409 | ||||||
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | |
Net interest | 1,947 | 2,130 | 2,166 | 2,126 | 2,126 |
income | |||||
Net commission | 915 | 841 | 831 | 798 | 920 |
income | |||||
Net fair value | -72 | -17 | -67 | -202 | -53 |
Other Income | 51 | 23 | 60 | 28 | 72 |
(excl. FX loan prov.) | |||||
FX loan provisions | -173 | -347 | -234 | -340 | -318 |
Revenues up 3% YoY reflects high level of client activity in both customer segments
Net interest income (NII) up 9% YoY and stable compared to Q4 with volume growth offsetting higher pass-through rate (deposit beta)
Net commission income (NCI) up 1% YoY with seasonally strong securities business - on track to 4% growth YoY
Net fair value result (NFV) reflects partial offset of NII - in Corporate Clients good contribution from capital markets business
Other income excluding provisions for FX loans benefits mainly from early repayment of legacy loans
Provisions for FX loans at mBank in Q1 2024 amounted €318m. In total, provisions for FX loans at the end of Q1 stood at €1.9bn
15 May 2024 | Commerzbank, Bettina Orlopp, CFO, Frankfurt | 8 |
Net interest income in Q1 still close to peak level
Net interest income | CC | PSBC Germany | mBank | O&C | |||||||
(€m) | |||||||||||
2,130 | 2,166 | 2,126 | 2,126 | ||||||||
1,947 | |||||||||||
696 | 718 | 741 | 713 | ||||||||
627 | |||||||||||
572 | 596 | 438 | 661 | ||||||||
603 | |||||||||||
547 | 561 | 580 | |||||||||
488 | |||||||||||
583 | |||||||||||
229 | 315 | 291 | 367 | 169 | |||||||
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 |
Corporate Clients (CC) with increasing deposit beta at stable deposit volumes
Private and Small-Business Customers Germany (PSBC
Germany) with ongoing growth in call deposits at positive margins offsetting higher beta. Additionally, adjustment of the replication portfolio in Q4 23 leads to higher NII in Q1 with offset in O&C
mBank with stable NII QoQ based on continued effective deposit margin management and beginning rebound in lending
Others & Consolidation (O&C) with lower NII QoQ mainly
reflecting other side of the adjustment in the replication portfolio of PSBC
15 May 2024 | Commerzbank, Bettina Orlopp, CFO, Frankfurt | 9 |
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Commerzbank AG published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 11:06:44 UTC.