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Commerzbank AG (CRZBY)
OTHER OTC:CRZBY
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Commerzbank AG
(OTC:CRZBY)
Rating:73Outperform
Price Target:―
Commerzbank AG (CRZBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.99B
Dividend Yield2.22%
Average Volume (3M)828.00
Price to Earnings (P/E)13.1
Beta (1Y)0.40
Revenue Growth17.10%
EPS Growth25.59%
CountryUS
Employees39,069
SectorFinancial
Sector Strength75
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.82
Shares Outstanding1,184,669,100
10 Day Avg. Volume743
30 Day Avg. Volume828
Financial Highlights & Ratios
PEG Ratio2.02
Price to Book (P/B)0.94
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
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:May 09, 2025
(Q4-2024)
| % Change Since: 22.26%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance in 2024, with significant achievements in revenue growth, capital returns, and improved financial metrics. Despite challenges related to legal provisions in Poland and loan defaults, the bank is well-positioned for 2025 with measures in place to navigate economic uncertainties.Q4-2024 Updates
Positive Updates
Strong Financial Outperformance
Commerzbank delivered a net return on tangible equity of 9.2%, exceeding the target of at least 8%. The bank also returned €1.7 billion to shareholders, more than planned.
Cost/Income Ratio Improvement
Achieved a cost/income ratio of 59%, better than the target of 60%, supported by strong revenue growth of 6.2% and meeting cost expectations of €6.5 billion.
Robust CET1 Ratio
The CET1 ratio stood at 15.1% at the end of 2024, providing a solid buffer above regulatory requirements.
Increase in Net Commission Income
Net commission income rose by 7% year-on-year, outperforming targets, with strong contributions from the securities business and asset management activities.
Significant Capital Return to Shareholders
Completed the first tranche of a share buyback program amounting to €600 million, with approval for a second tranche of up to €400 million, and proposed a dividend of €0.65 per share.
Positive Performance in Corporate Clients Segment
Corporate Clients segment increased revenues by 5%, with substantial growth in fee, lending, and rates businesses.
Strong Performance of mBank
mBank in Poland achieved growth rates of 10% in both NII and NCI, supported by good margin management and rising volumes.
Negative Updates
Legal Provisions for FX Mortgages in Poland
A pre-tax burden of €1 billion from legal provisions for FX mortgages in Poland impacted the net results.
Challenges with Loan Defaults
There were larger loan defaults recorded in the fourth quarter, particularly affecting the Corporate Clients segment.
Economic Environment Concerns
A muted outlook for the German economy was noted, with expectations of a risk result of around €850 million in 2025.
Company Guidance
During the Commerzbank AG Fourth Quarter 2024 Conference Call, several key financial metrics and guidance were highlighted. The bank reported a strong financial performance with a net return on tangible equity of 9.2%, surpassing their target of at least 8%. They also returned €1.7 billion to shareholders, exceeding their planned capital return. Commerzbank achieved a cost/income ratio of 59%, bettering their target of 60%, driven by a 6.2% revenue growth and meeting cost expectations of €6.5 billion. The net result increased by 20%, reaching approximately €2.7 billion, despite a €1 billion pre-tax burden from legal provisions for FX mortgages in Poland. The bank's CET1 ratio was at 15.1%, providing a solid buffer above regulatory requirements. For 2025, Commerzbank slightly raised its net interest income guidance to €7.7 billion to €7.9 billion, maintaining a cost/income ratio target of 57%. They also anticipate a risk result of around €850 million and plan for a net result of €2.4 billion, or €2.8 billion excluding restructuring charges. The bank aims for a CET1 ratio of at least 14% following expected RWA growth.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.36B | 9.91B | 10.39B | 9.65B | 8.77B |
| Gross Profit | 12.36B | 11.75B | 10.39B | 9.65B | 8.77B |
| EBITDA | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 2.68B | 2.22B | 1.44B | 430.00M | -2.89B |
Balance Sheet | |||||
| Total Assets | 554.65B | 517.17B | 477.43B | 473.04B | 506.92B |
| Cash, Cash Equivalents and Short-Term Investments | 89.72B | 102.69B | 86.65B | 60.21B | 81.21B |
| Total Debt | 54.89B | 48.25B | 43.77B | 43.84B | 46.12B |
| Total Liabilities | 518.93B | 484.16B | 43.77B | 43.84B | 46.12B |
| Stockholders Equity | 34.47B | 31.99B | 30.05B | 28.85B | 27.48B |
Cash Flow | |||||
| Free Cash Flow | -21.46B | 19.09B | 25.18B | -25.23B | 32.78B |
| Operating Cash Flow | -20.32B | 20.28B | 25.86B | -24.26B | 33.68B |
| Investing Cash Flow | -1.31B | -920.00M | -713.00M | -804.00M | -1.22B |
| Financing Cash Flow | 565.00M | -1.29B | 178.00M | -1.21B | 2.21B |
Commerzbank AG Technical Analysis
Positive
32.90
Price Trends
31.16
Positive
27.75
Positive
22.48
Positive
Market Momentum
0.62
Positive
52.97
Neutral
9.06
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRZBY, the sentiment is Positive. The current price of 32.9 is above the 20-day moving average (MA) of 32.84, above the 50-day MA of 31.16, and above the 200-day MA of 22.48, indicating a bullish trend. The MACD of 0.62 indicates Positive momentum. The RSI at 52.97 is Neutral, neither overbought nor oversold. The STOCH value of 9.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRZBY.
Commerzbank AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $28.55B | 13.59 | 11.58% | 3.44% | 2.08% | 2.87% | |
78 Outperform | $24.12B | 12.77 | 10.30% | 3.72% | 7.55% | 17.46% | |
78 Outperform | $27.35B | 12.11 | 11.46% | 0.37% | 0.34% | -3.13% | |
78 Outperform | $21.60B | 11.60 | 11.33% | 4.15% | 1.05% | 12.14% | |
76 Outperform | $30.90B | 12.67 | 9.48% | 2.80% | 0.18% | 14.75% | |
73 Outperform | $38.99B | 13.07 | 9.21% | 2.22% | 17.10% | 25.59% | |
64 Neutral | $6.54B | 11.13 | 7.19% | 5.10% | 23.85% | 5.18% |
* Financial Sector Average
Performance Comparison
CRZBY
Commerzbank AG
32.90
16.44
99.88%
FITB
Fifth Third Bancorp
42.61
3.80
9.79%
FCNCA
First Citizens BancShares
2,113.80
287.85
15.76%
HBAN
Huntington Bancshares
16.98
3.24
23.58%
MTB
M&T Bank
195.60
32.93
20.24%
RF
Regions Financial
24.51
3.33
15.72%
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.