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Commerzbank AG (CRZBY)
OTHER OTC:CRZBY
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Commerzbank AG
(OTC:CRZBY)
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Rating:73Outperform
Price Target:―
Commerzbank AG demonstrates strong financial performance with effective revenue management and profitability. The stock is trending positively with a reasonable valuation. The earnings call provided a favorable outlook for 2025, highlighting resilience despite some challenges. Cash flow concerns are the primary risk, but overall, the company is well-positioned for future growth.
Commerzbank AG (CRZBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.80B
Dividend Yield2.11%
Average Volume (3M)2.47K
Price to Earnings (P/E)13.9
Beta (1Y)0.40
Revenue Growth2.23%
EPS Growth19.59%
CountryUS
Employees39,069
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.84
Shares Outstanding1,127,496,200
10 Day Avg. Volume4,150
30 Day Avg. Volume2,470
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)0.54
Price to Sales (P/S)0.74
P/FCF Ratio-0.87
Enterprise Value/Market Cap-1.12
Enterprise Value/Revenue-2.13
Enterprise Value/Gross Profit-3.78
Enterprise Value/Ebitda-11.58
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Commerzbank AG Business Overview & Revenue Model
Company DescriptionCommerzbank AG provides banking and capital market services to private and small business customers, multinational groups, financial service providers, and institutional clients worldwide. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers accounts, commercial payments, payment enabling, clearing and custody, and other services; trade services, including documentary collection, letters of credit, guarantees, trade facilitation, supply chain financing, buyer's credit, and forfaiting services; and bilateral loans, club deals, Schuldschein instruments, syndicated loans, bonds, private placements, other debt instruments, and Islamic financing services. It also provides money market, and commodities and precious metals products; interest, currency, and liquidity management services, as well as wealth management services. The company operates approximately 790 branches. Commerzbank AG was founded in 1870 and is headquartered in Frankfurt am Main, Germany.
How the Company Makes MoneyCommerzbank AG generates revenue through various streams, primarily driven by its core banking operations. The bank earns interest income from loans and advances provided to customers, including individuals and businesses. Additionally, Commerzbank earns revenue through fee-based services such as asset management, investment banking, and transaction services. The bank also benefits from trading and sales activities, which include foreign exchange, commodities, and equity trading. Key partnerships and a robust client base in the SME sector further bolster its earnings. The bank's ability to leverage its extensive network and expertise in financial markets contributes significantly to its revenue generation.
Commerzbank AG Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong positive sentiment with record operating results, increased financial targets, and resilient income streams despite macroeconomic challenges. However, some concerns were noted, including the impact of lower ECB rates and increased operating costs.Q2-2025 Updates
Positive Updates
Record Operating Result
Commerzbank achieved the best operating result in its history, with revenues 13% higher than the previous year, leading to a record operating result of EUR 2.4 billion, which is 23% higher than last year and 36% higher than in 2023.
Increased Targets for 2025
The bank raised its targets for net interest income and net result for 2025, demonstrating confidence in future performance.
Net Interest Income Resilience
Net interest income remained robust despite a decreasing rate environment, with a full year guidance increase from EUR 7.8 billion to EUR 8 billion.
Strong Fee Income Growth
Net commission income grew by 8% in the first half of the year, driven by securities business in PSBC Germany and strong client business across all segments.
Capital Return and Share Buyback
Commerzbank applied for a share buyback of up to EUR 1 billion and plans to fully distribute the net result of EUR 2.6 billion before restructuring expenses.
Loan Growth in Corporate Clients
Corporate Clients saw an 8% loan growth, helping mitigate the impact from lower rates on deposit NII.
Negative Updates
Impact of Lower ECB Rates
The lower ECB rates impacted the deposit business, causing a 7% decrease in revenues for Corporate Clients compared to the previous year.
Aquila Impairment
The impairment of intangibles in Aquila Capital impacted the operating result of PSBC Germany, reducing it to EUR 262 million.
Increased Costs
Operating expenses increased due to salary increases and higher share price on equity-based variable compensation.
Challenges with UniCredit Shareholding
The presence of UniCredit as a significant shareholder poses a challenge due to its status as a competitor in the German market.
Company Guidance
During the second quarter earnings call of Commerzbank AG, CEO Bettina Orlopp provided a comprehensive update on the bank's financial performance and outlook for 2025. The bank achieved a record operating result of EUR 2.4 billion in the first half of 2025, marking a 23% increase from the previous year. This success led to an enhanced full-year guidance, with net interest income expectations raised from EUR 7.8 billion to EUR 8 billion and net result target increased to EUR 2.5 billion, excluding restructuring charges. Orlopp highlighted a cost/income ratio of 56%, on track to meet the annual target of 57%, and a return on tangible equity of 11.1%. The bank plans a 100% capital return to shareholders, based on net results before restructuring expenses. Loan growth, especially in Corporate Clients, was strong at 8%, while net commission income saw an 8% uplift, driven by robust performance across all customer divisions. The CET1 ratio stood at 14.6%, aligning with the year-end target of at least 14.5%. Orlopp emphasized the momentum strategy's success and strategic initiatives, including a planned employee share program and a new account fee structure for private customers, contributing significantly to fee income.Commerzbank AG Financial Statement Overview
Summary
Commerzbank AG exhibits robust revenue growth and profitability. The income statement shows strong net profit margins, and the balance sheet reflects a solid equity position with no debt. However, the cash flow statement reveals liquidity concerns due to negative cash flows in 2024.Income Statement
Commerzbank AG has shown strong revenue growth over the years, with a notable increase from 2023 to 2024. The gross profit margin remains solid as the revenue equals the gross profit, indicating efficient cost management. However, the EBIT margin for 2024 is non-existent due to zero EBIT, which raises concerns about operational efficiency. Net profit margin is robust, reflecting effective bottom-line management.85
Very Positive
Balance Sheet
The bank's debt-to-equity ratio has improved as it shows no debt in 2024, reflecting a strong equity position. The return on equity has been increasing, showcasing effective utilization of equity. The equity ratio demonstrates a healthy balance sheet with significant equity compared to total assets. However, the large cash holdings might indicate underutilized resources.75
Positive
Cash Flow
The free cash flow has significantly decreased in 2024, moving from positive to negative, raising concerns about cash management. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Despite these issues, the company had strong cash flow in previous years, showing potential for recovery if managed effectively.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.35B | 25.25B | 9.91B | 14.26B | 8.00B | 8.77B |
| Gross Profit | 11.46B | 10.42B | 11.75B | 10.39B | 9.65B | 6.56B |
| EBITDA | 3.74B | 0.00 | 0.00 | 2.82B | 980.00M | 0.00 |
| Net Income | 2.69B | 2.68B | 2.22B | 1.44B | 430.00M | -2.87B |
Balance Sheet | ||||||
| Total Assets | 581.82B | 554.65B | 517.17B | 477.43B | 467.41B | 506.92B |
| Cash, Cash Equivalents and Short-Term Investments | 72.46B | 89.72B | 102.69B | 86.65B | 60.21B | 81.21B |
| Total Debt | 75.83B | 54.89B | 48.25B | 43.77B | 43.84B | 42.91B |
| Total Liabilities | 546.59B | 518.93B | 484.16B | 446.50B | 437.58B | 478.04B |
| Stockholders Equity | 33.83B | 34.47B | 31.99B | 30.05B | 28.85B | 27.48B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -21.46B | 19.28B | 25.18B | -25.23B | 32.78B |
| Operating Cash Flow | 0.00 | -20.32B | 20.28B | 25.86B | -24.26B | 33.68B |
| Investing Cash Flow | 0.00 | -1.31B | -920.00M | -713.00M | -804.00M | -1.22B |
| Financing Cash Flow | 0.00 | 565.00M | -1.29B | 178.00M | -1.21B | 2.21B |
Commerzbank AG Technical Analysis
Negative
34.54
Price Trends
38.37
Negative
36.16
Negative
29.73
Positive
Market Momentum
-0.88
Positive
34.39
Neutral
10.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRZBY, the sentiment is Negative. The current price of 34.54 is below the 20-day moving average (MA) of 36.58, below the 50-day MA of 38.37, and above the 200-day MA of 29.73, indicating a neutral trend. The MACD of -0.88 indicates Positive momentum. The RSI at 34.39 is Neutral, neither overbought nor oversold. The STOCH value of 10.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRZBY.
Commerzbank AG Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $71.36B | 11.74 | 11.31% | 3.64% | 1.94% | 30.93% | |
73 Outperform | $38.80B | 13.85 | 8.77% | 2.11% | 2.23% | 19.59% | |
73 Outperform | $73.65B | 10.95 | 11.71% | 4.27% | 2.95% | 33.77% | |
71 Outperform | $56.22B | 11.69 | 7.98% | 4.77% | 21.90% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $66.42B | 15.10 | 7.85% | 3.75% | 0.76% | -5.74% | |
65 Neutral | $79.84B | 13.59 | 8.69% | 1.48% | -2.22% | 24.37% |
* Financial Sector Average
CRZBY
Commerzbank AG
34.54
17.36
101.05%
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PNC
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USB
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.