Commerzbank is updating its payments platform in Germany to execute cross-border payments.The bank will use the Swift network to process cross-border payments and the Target 2 or Euro 1 payment systems to process high-value and urgent payments, Commerzbank said in a Thursday (April 4) press release.To accomplish this, the bank is using PPI’s Travic-Payment Hub, according to the release. It expects to complete the migration by the end of 2025.“With the integration of the Travic-Payment Hub from PPI AG, we wi ...

Strong performance in 2023 – strategy is delivering Analyst conference – Q4 2023 / FY 2023 preliminary and unaudited results All figures in this presentation are subject to rounding 15 February 2024 Commerzbank, Manfred Knof, CEO, and Bettina Orlopp, CFO, Frankfurt Manfred Knof CEO 15 February 2024 Commerzbank, Manfred Knof, CEO, Frankfurt 1 | --- | --- | --- | |--------------------------------------|------------------------------|----------------------------------------------------------------------------- ...

Commerzbank AG (OTCPK:CRZBF) Q4 2023 Earnings Conference Call February 15, 2024 3:00 AM ET Company Participants Manfred Knof - Chief Executive Officer Bettina Orlopp - Chief Financial Officer Conference Call Participants Kian Abouhossein - JPMorgan Borja Ramirez - Citi Stuart Graham - Autonomous Research Benjamin Goy - Deutsche Bank Mate Nemes - UBS Jeremy Sigee - BNP Paribas Exane Tobias Lukesch - Kepler Cheuvreux Vishal Shah - Morgan Stanley Chris Hallam - Goldman Sachs International Jochen Schmitt - Metz ...

Financial Data and Key Metrics Changes - The operating results reached nearly €2.9 billion and the net result was €1.8 billion, with a net RoTE of 8.6%, which has doubled compared to the same period last year [4] - Revenues surpassed €8 billion despite burdens of €754 million from Swiss franc loans and mBank, driven by growth in net interest income [5] - The CET 1 ratio increased to 14.6%, well above requirements, reflecting stable risk-weighted assets and a good net result [6][28] Business Line Data and Key Metrics Changes - In the PSBC segment, net commission income decreased by 3% compared to Q2 due to lower volumes in securities transactions [8] - Net interest income (NII) reached a new high, with corporate clients achieving a 3% growth compared to Q2, while PSBC Germany saw an increase of €24 million quarter-on-quarter [9] - mBank's operating level was slightly below Q2 due to a higher risk result, but revenues excluding provisions for Swiss franc mortgages remained stable [21] Market Data and Key Metrics Changes - The deposit beta increased to around 25% in Q3, with expectations of an average of 30% in Q4 [10][50] - PSBC attracted additional call deposits, increasing the volume by €11 billion in the quarter, while side deposits decreased by €7 billion [17] - The overall loan volume in corporate clients increased, achieving levels similar to Q3 last year, with a moderate shift to term and call deposits [23] Company Strategy and Development Direction - The company has improved its outlook for 2023, expecting overall revenues around €10.6 billion, driven by net interest income of more than €8.1 billion [29] - The cost base is maintained at €6.4 billion, with a cost-income ratio expected to be around 61% [30] - The company plans to carry over the top-level adjustment of €435 million into 2024, providing room for potential defaults in the loan portfolio [34][62] Management's Comments on Operating Environment and Future Outlook - Management anticipates a risk result of less than €700 million for the full year, with a conservative economic outlook for Germany [14][34] - The company expects a stable development of the loan book for private clients, while being more optimistic about corporate clients due to investment demand [55] - The tax rate is expected to remain elevated at around 36%, primarily due to provisions for Swiss franc mortgages [15] Other Important Information - The company plans a share buyback of up to €600 million, pending approval from the ECB and the German Finance Agency [30][40] - Operating expenses are higher year-on-year due to salary increases and variable compensation accruals, but overall costs are on track with targets [12] Q&A Session Summary Question: Details on deposits in PSBC and cost of deposits - Management noted an inflow of approximately €4 billion from external sources, with a shift from side deposits into term and call deposits, offering teaser rates up to 4% [32][33] Question: Guidance for NII and loan losses in 2024 - The risk result is expected to be around €800 million due to weak economic development in Germany, with NII guidance for 2024 anticipated to be between €7.5 billion and €7.6 billion [34][35] Question: Impact of deposit mix on NII in Q4 - Management confirmed a headwind of around €100 million from deposit exchange and adjustments to the replication portfolio, which will be offset in others and consolidation [39] Question: Clarification on Stage 2 assets - Management explained that the increase in Stage 2 assets is a regulatory change and does not indicate significant underlying issues [42][46] Question: Expectations for loan growth in Q4 and 2024 - Management expects stable loan growth for private clients, while corporate clients may see increased demand for investments depending on government interventions [55][56]

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------|-------|-------|-------|-------|-------|---------------------------------------------|-------|---------|-------|-------|-----------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | return – | | | | | | | | | | | Strong foundation for increasing 9M net result of €1.8bn | | | | | | | | Analyst conference – | | Q3 ...

On track to reach targets – H1 net result of €1.1bn Analyst conference – Q2 2023 4 August 2023 Commerzbank, Manfred Knof, CEO & Bettina Orlopp, CFO, Frankfurt All figures in this presentation are subject to rounding Manfred Knof CEO 4 August 2023 Commerzbank, Manfred Knof, CEO, Frankfurt 1 On track to reach our 2023 and 2024 targets Operating Result (€m) 1,289 1,764 H1 2022 H1 2023 Net Result (€m) 768 1,145 H1 2022 H1 2023 CET1 ratio (%) 13.7 14.4 H1 2022 H1 2023 1) Subject to approval of ECB and German Fin ...

Commerzbank AG (OTCPK:CRZBF) Q2 2023 Earnings Conference Call August 4, 2023 3:00 AM ET Company Participants Manfred Knof - Chief Executive Officer Bettina Orlopp - Deputy Chairwoman and Chief Financial Officer Conference Call Participants Stuart Graham - Autonomous Research Benjamin Goy - Deutsche Bank Borja Ramirez - Citi Johannes Thormann - HSBC Jeremy Sigee - BNP Paribas Exane Chris Hallam - Goldman Sachs International Anke Reingen - RBC Tobias Lukesch - Kepler Cheuvreux Kian Abouhossein - JP Morgan Vi ...

Financial Data and Key Metrics Changes - The company reported a strong start to 2023 with an operating result of €875 million, a 60% increase year-over-year, and a net result of €580 million, nearly doubling from the previous year [3][16] - The cost-income ratio stood at 65% for Q1, aligning with the target of 60% for 2024, while the CET1 ratio improved to 14.2% [4][18] - The underlying net interest income (NII) increased by 4.5% compared to Q4, driven by higher rates on floating rate and short maturity instruments [20][24] Business Line Data and Key Metrics Changes - The Corporate Clients segment showed stable performance with a healthy bond business, while the Private and Small-Business Customers (PSBC) segment improved its contribution from the securities business [19][36] - Underlying NII for PSBC increased by 23% or €114 million, while mBank's operating result reached €262 million, a 49% increase year-over-year [36][37] - The Corporate Clients segment achieved a record operating result of €539 million, with interest income up 36% year-over-year and costs down by 8.4% [41] Market Data and Key Metrics Changes - The company noted a gradual increase in mBank's deposit beta, reflecting stable central bank rates in Poland at 6.75% since September [22][37] - The total volume of deposits increased year-on-year but decreased from the previous quarter due to seasonal factors and inflationary pressures [35][66] - The company observed a shift from sight deposits to term deposits as customers sought higher yields amid rising interest rates [35][66] Company Strategy and Development Direction - The current focus is on enhancing the new business model across customer segments, particularly through the expansion of the sector-specific advisory model for large corporates [6][14] - The company aims to achieve a cost-income ratio of 60% by 2024 through ongoing efficiency gains and prioritizing investment programs based on business cases [10][14] - The company is committed to sustainability, having confirmed targets for carbon emissions reduction and joining the Taskforce on Nature-related Financial Disclosure [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching 2023 targets but acknowledged the need for discipline in addressing major business challenges [7][14] - The outlook for 2023 includes expectations for NII around €7 billion, significantly above the initial estimate of €6.5 billion, with a cautious approach to deposit beta increases [24][44] - The company anticipates a mild recession and expects a risk result well below €900 million, assuming the use of top-level adjustments [30][44] Other Important Information - The ECB has approved the company's first share buyback, with a planned payout ratio of 50% for 2023 [5][14] - The company reported a low risk result of €68 million in Q1, reflecting high credit quality and resilience in its customer base [30][31] Q&A Session Summary Question: Deposit beta expectations and breakdown - Management indicated that the deposit beta was 15% in Q1 and expects it to rise to 35% over the next three quarters, with a cautious approach to retail and corporate deposits [46][48] Question: Loan book performance and consumer loans - The loan book in retail is growing in line with the market, and management remains cautious about consumer loans due to risk management considerations [49][50] Question: Coverage expectations for Polish FX mortgages - Coverage ratio of 61% is deemed sufficient, but future rulings from courts will determine if additional coverage is needed [51] Question: NII peak and future guidance - Management believes Q1 NII may be the peak for the year, with expectations of slight decreases due to deposit beta pressures [56] Question: Mix of dividend and buyback in payout ratio - The company plans to split the 50% payout between dividends and buybacks, with further updates expected after Q2 [57] Question: Deposit volumes and optimization - Management expects stable deposit volumes for the remainder of the year, with shifts from sight deposits to term deposits [65][66] Question: NII trends and competitive rates - Management clarified that the NII trends are consistent with market movements, and competitive rates for term deposits have driven shifts in customer behavior [73][74]

Financial Data and Key Metrics Changes - Commerzbank reported a net result of €1.4 billion for 2022, more than tripling the result from 2021, marking the best performance in over 10 years [3][12] - The capital ratio stands at 14.1%, significantly above the target range, providing a cushion for potential economic downturns [3][12] - The return on tangible equity (ROTE) reached 4.9%, with a target of over 7.3% by 2024 [12][21] - The cost-income ratio improved to 69%, with a target of 60% by 2024 [12][21] Business Line Data and Key Metrics Changes - Corporate Clients increased underlying net commission income by 6% in 2022, while PSBC Germany's net commission income declined each quarter due to lower transaction numbers [14][24] - The net interest income (NII) for 2022 was 36% higher than in 2021, with a particularly strong increase in Q4 due to several euro rate hikes [14][15] - The operating result for PSBC Germany increased by 43% for the financial year, while mBank achieved a record result of €301 million in Q4 [25][24] Market Data and Key Metrics Changes - The deposit business has seen continued inflows, but there has been no significant passing on of rates to customers, with expectations of a shift from site deposits to term deposits [23][24] - The expected average deposit beta for 2023 is 30%, reflecting competitive behavior in the German market [16][49] Company Strategy and Development Direction - The company aims to maintain speed in restructuring and focus on customer business and revenues, emphasizing strict cost discipline [6][11] - Commerzbank plans to propose a capital distribution to shareholders with a payout ratio of 30% for 2022 and aims to increase it to 50% for 2023 [4][11] - The company is committed to enhancing its ESG journey, targeting €300 billion in sustainable finance by 2025 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2023, citing a strong performance in 2022 and a good cushion for potential economic challenges [2][3] - The company anticipates a mild recession and has retained a top-level adjustment of €482 million for potential economic disruptions [20][30] - The outlook for 2023 includes expectations for NII to exceed €6.5 billion, with potential upside scenarios reaching €7.1 billion [17][30] Other Important Information - The company has successfully completed 90% of its planned reduction of 10,000 FTEs, with limited execution risk remaining [3][4] - A share buyback program of €122 million has been announced, marking the first step in capital distribution to shareholders [4][5] Q&A Session Summary Question: Clarification on NII guidance and capital ratio - Management explained that the NII guidance reflects adjustments for deposit beta and higher funding costs, with a base case of €6.5 billion for 2023 [33] - The capital ratio of 14% is maintained for comfort and to support ongoing transformation efforts, with potential for further buybacks depending on macroeconomic conditions [34] Question: 2024 NII expectations and cost-income ratio - Management indicated that 2024 NII guidance is uncertain due to market volatility, but improvements are expected if interest rates remain stable [38] - The target for the cost-income ratio remains at 60% for 2024, with expectations to approach this target in 2023 [39] Question: Concerns about FTE headcount reduction and capital return - Management acknowledged slower FTE reductions due to the need for adequate staffing in private client services to minimize churn [42] - The capital return policy aims for a 50% payout ratio, with buybacks considered as part of this strategy [45] Question: Deposit beta expectations and competition - Management expects a higher deposit beta for corporate clients compared to private clients, with a stable growth outlook for deposits in 2023 [49] Question: Risk costs and restructuring impact - The risk result guidance includes considerations for a mild recession, with expectations for potential defaults primarily from smaller business clients [52][56]

Commerzbank AG (OTCPK:CRZBF) Q3 2022 Earnings Conference Call November 9, 2022 3:00 AM ET Company Participants Manfred Knof - CEO Bettina Orlopp - Deputy Chairwoman and CFO Conference Call Participants Kian Abouhossein - JPMorgan Johannes Thormann - HSBC Stuart Graham - Autonomous Research Tobias Lukesch - Kepler Cheuvreux Jeremy Sigee - BNP Paribas Anke Reingen - RBC Chris Hallam - Goldman Sachs Riccardo Rovere - Mediobanca Operator Good morning, ladies and gentlemen, and welcome to the Commerzbank AG Conf ...