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

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

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 11:12:17 UTC.