Commerzbank, partially nationalized, achieved a net attributable profit of 1,888 million euros until September, 2% less than a year earlier, due to higher taxes.
Commerzbank reported this Thursday, 6th, that operating profit rose between January and September to a record 3,442 million euros, 21.2% more than a year earlier, following the increase in commission income.
The bank paid taxes up to September worth 830 million euros, 2.8% more than a year earlier.
“We have generated significant momentum over the last twelve months,” said Commerzbank CEO Bettina Orlopp when presenting the results.
“The level of profitability we have achieved now serves as the new baseline for future growth. For the entire year, our goal is to offer an attractive dividend and we also request the next share buyback,” explained Orlopp.
Commerzbank wants to offer attractive remunerations to shareholders to avoid the acquisition by Italian bank UniCredit, which is already the largest shareholder with a 26% stake and has financial instruments to increase it to 29%.
At the end of September, the first share buyback began, worth up to 1,000 million euros, as part of the capital return for this year.
The second share buyback, worth up to 600 million euros, will begin as soon as Commerzbank receives authorization from the European Central Bank (ECB) and the German Financial Agency.
Net interest income fell in the first three quarters to €6,177 million (-1.2%), but commission income improved to €3,000 million (+7.7%).
In this way, total revenue reached 9,030 million euros in the first three quarters (+10.8%).
Likewise, Commerzbank reduced provisions for bad debts to €515 million (-2.8%).
But between January and September, operating expenses increased to 4,858 million euros (+6.8%) due to salary increases and variable remuneration with shares.
Commerzbank, which will cut around 3,900 jobs by the end of 2027, including 3,300 in Germany, had restructuring costs of 553 million euros up to September (four million euros a year earlier).
For Commerzbank’s chief financial officer, Carsten Schmitt, the strong result for the first nine months reflects revenue growth, driven by increased commissions across all customer segments.
Therefore, Schmitt confirmed profit forecasts for the entire year 2025 and expressed confidence in achieving a “slightly higher” net interest income of 8,200 million euros, 200 million euros more than he had previously predicted.
Commerzbank, which has a common equity tier 1 (CET1) ratio of 14.7% (14.8% a year earlier), expects to close 2025 with a net profit of 2,500 million euros.
Furthermore, Commerzbank improved the efficiency ratio to 56.2% (compared to 58.7% a year earlier).