Financial results for 2024:
• 2024 targets exceeded: net result increased by 20% to around €2.7 bn – operating result improved by 12% to €3.8 bn
• Revenues up 6% to €11.1 bn driven by strong customer business
• Net commission income up 7% to €3.6 bn; materially better than forecast – net interest income remains strong at €8.3 bn despite interest rate cuts
• Risk result at minus €743 m demonstrates resilience of loan portfolio • Cost-income ratio improved to 59%
• 9.2% return on tangible equity much higher than target of at least 8%
• Capital return for 2024 increased to around €1.73 bn – dividend of 65 cents per share planned
Strategy upgrade until 2028 – Commerzbank leverages strong momentum:
• Bank will further accelerate its profitable growth – strategic focus on expanding business in asset and wealth management – Corporate Clients segment primarily focussing on stronger client penetration and capital efficiency
• Continual revenue growth expected despite further interest rate cuts – net commission income expected to increase by around 7% on average
• Digitalisation, artificial intelligence, and increased use of international shoring locations create greater efficiency gains
• In 2025 net result target of €2.4 bn after and €2.8 bn before restructuring charges for transformation
• Cost-income ratio expected to improve to around 50% in 2028
• Net result target of €4.2 bn and return on tangible equity target of 15% for 2028
Attractive capital return until 2028:
• For 2025 planned payout ratio of 100% of net result after deduction of AT 1 coupons and before restructuring charges for transformation
• For 2026 to 2028, payout ratio of 100% of net result after deduction of AT 1 coupons planned – subject to successful strategy implementation and macroeconomic environment
“We have built a strong foundation and can now leverage market opportunities and technological advancements. With this momentum, we are accelerating our profitable growth and consistently driving forward our transformation. This makes Commerzbank stronger and better.” Bettina Orlopp, CEO
“Commerzbank has what it takes to increase returns for shareholders in the years to come. Continually raising revenues, strict cost discipline, and a dynamic capital return provide the foundation for reliably increasing the Bank’s profitability.” Carsten Schmitt, designated CFO
Commerzbank continued to develop dynamically in the financial year 2024 and exceeded its ambitious targets, which were raised during the year. Net result increased to around €2.7 bn, which is higher than the recently targeted €2.4 bn. This means that the Bank increased its result by around 20% compared to the previous year. At the same time, it achieved its highest profit ever. Its revenues were the main driver: thanks to strong customer business, revenues rose by around 6% to €11.1 bn compared to the previous year and also exceeded the target set in autumn 2024. Despite inflation and slightly higher costs related to investments, the cost-income ratio improved to 59%, placing it below the original target of 60%. The return on tangible equity increased to 9.2%, significantly exceeding the target of at least 8%. The Bank has created a strong starting point with a series of excellent results in recent years. Commerzbank is now using this momentum to accelerate its profitable growth and to continue to advance the transformation by executing its upgraded strategy for the coming years.
Commerzbank’s CEO Bettina Orlopp said: “We have delivered again. With yet another record result, we have shown that we are creating substantial added value for our shareholders, customers, and employees. We have significantly increased our profitability, expanded our fee business as previously announced, continued to improve our cost-income ratio, and are an even more attractive employer. This provides us with a strong basis for the years to come.”
