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Commerzbank AG (ADR) (CRZBY)
:CRZBY
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Commerzbank AG
(OTC:CRZBY)
78Outperform
Commerzbank AG (CRZBY) vs. S&P 500 (SPY)
Market Cap
$29.69B
Dividend Yield1.03%
Average Volume (3M)781.00
Price to Earnings (P/E)10.2
Beta (1Y)0.55
Revenue Growth-1.44%
EPS Growth25.77%
CountryUS
Employees39,090
SectorFinancial
Sector Strength85
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.43
Shares Outstanding1,184,669,100
10 Day Avg. Volume0
30 Day Avg. Volume781
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)N/A
Price to Sales (P/S)1.28
Price to Cash Flow (P/CF)N/A
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 ConsensusN/A
Number of Analyst Covering0
Commerzbank AG Business Overview & Revenue Model
Company DescriptionCommerzbank AG (CRZBY) is a leading international commercial bank headquartered in Frankfurt, Germany. The bank operates in two main segments: Private and Small-Business Customers, and Corporate Clients. Commerzbank offers a wide range of financial services, including retail banking, investment banking, asset management, and corporate banking services. It serves private clients, small to medium-sized enterprises (SMEs), and large corporations, providing them with tailored financial solutions and products.
How the Company Makes MoneyCommerzbank AG generates revenue primarily through interest income from loans and advances to customers, as well as from interest-earning financial assets. The bank also earns significant income from fees and commissions related to payment transactions, securities trading, asset management, and other financial services. Additionally, Commerzbank benefits from trading income, mainly derived from its investment banking activities. The bank's revenue model is strengthened by its extensive network of branches and strategic partnerships, which enable it to offer comprehensive services to both domestic and international clients. The focus on digitalization and efficiency improvements also contributes to its revenue generation capabilities.
Commerzbank AG Financial Statement Overview
Summary
Commerzbank AG's financial performance is solid, with improved profitability and cash flow generation. The income statement shows increased operational efficiency and cost management, though revenue growth has been inconsistent. The balance sheet reflects stable financial status despite a higher liability structure, indicating potential risks. Cash flow statements demonstrate robust free cash flow and cash conversion.Income Statement
Commerzbank AG has shown a significant improvement in its financial performance. The gross profit margin and EBIT margin have improved substantially, reflecting higher operational efficiency. The net profit margin has increased, indicating effective cost management and revenue growth. However, the revenue growth rate has fluctuated over the years, suggesting some volatility in revenue streams.78
Positive
Balance Sheet
The balance sheet indicates a stable financial position with a moderate debt-to-equity ratio, which suggests reasonable leverage. The return on equity has improved, indicating better profitability per unit of equity. However, the equity ratio is relatively low, reflecting a higher proportion of liabilities compared to equity, which could indicate potential financial risk.72
Positive
Cash Flow
Commerzbank AG's cash flow statements demonstrate strong free cash flow generation and an improvement in operating cash flow. The operating cash flow to net income ratio is healthy, indicating good cash conversion. Although the free cash flow growth rate shows fluctuations, the overall cash flow position is robust, supporting financial stability.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 14.81B | 9.91B | 10.39B | 9.65B | 8.77B | 8.85B | Gross Profit |
| 14.58B | 11.75B | 10.39B | 9.65B | 8.77B | 8.85B | EBIT |
| 7.58B | 9.54B | 5.92B | 182.00M | -2.61B | 1.01B | EBITDA |
| -229.00M | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 2.36B | 2.22B | 1.44B | 430.00M | -2.89B | 585.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 62.27B | 102.69B | 86.65B | 60.21B | 81.21B | 46.19B | Total Assets |
| 462.37B | 517.17B | 477.44B | 473.04B | 506.92B | 463.64B | Total Debt |
| 46.39B | 48.25B | 43.77B | 43.84B | 46.12B | 45.28B | Net Debt |
| -15.88B | -102.69B | -42.88B | -16.36B | -35.09B | -915.00M | Total Liabilities |
| 432.96B | 484.16B | 43.77B | 43.84B | 46.12B | 45.28B | Stockholders Equity |
| 28.21B | 31.99B | 30.02B | 28.85B | 27.48B | 29.37B |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | 19.09B | 25.18B | -25.23B | 32.78B | -11.49B | Operating Cash Flow |
| 0.00 | 20.09B | 25.86B | -24.26B | 33.68B | -10.79B | Investing Cash Flow |
| 0.00 | -920.00M | -713.00M | -804.00M | -1.22B | -844.00M | Financing Cash Flow |
| 0.00 | -1.09B | 178.00M | -1.21B | 2.21B | -1.18B |
Commerzbank AG Technical Analysis
Positive
25.08
Price Trends
21.06
Positive
18.74
Positive
17.38
Positive
Market Momentum
1.48
Positive
61.39
Neutral
29.57
Neutral
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 25.08 is above the 20-day moving average (MA) of 24.11, above the 50-day MA of 21.06, and above the 200-day MA of 17.38, indicating a bullish trend. The MACD of 1.48 indicates Positive momentum. The RSI at 61.39 is Neutral, neither overbought nor oversold. The STOCH value of 29.57 is Neutral, 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $202.31B | 9.26 | 13.74% | 5.24% | 6.79% | 8.57% | |
81 Outperform | $55.06B | 8.55 | 9.14% | 2.71% | 8.58% | 35.39% | |
78 Outperform | $29.69B | 10.17 | 7.94% | 1.03% | -1.44% | 25.77% | |
77 Outperform | $105.44B | 8.29 | 13.16% | 2.17% | 11.61% | 24.35% | |
63 Neutral | $14.33B | 10.14 | 8.73% | 4.25% | 17.15% | -12.05% |
* Financial Sector Average
Performance Comparison
CRZBY
Commerzbank AG
25.08
11.68
87.16%
BCS
Barclays
15.99
7.00
77.86%
HSBC
HSBC Holdings
57.98
21.77
60.12%
SAN
Banco Santander SA
6.99
2.37
51.30%
Commerzbank AG Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: 27.05% | Next Earnings Date: May 9, 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.Highlights
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.
Lowlights
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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.