Commerzbank raises 2025 targets after record first-half results

Published 06/08/2025, 06:08
Commerzbank raises 2025 targets after record first-half results

FRANKFURT - Commerzbank AG (OTC:CRZBY) reported a record operating result for the first half of 2025, prompting the German lender to raise its full-year targets despite ongoing restructuring expenses.

The bank’s operating result increased by 23% to €2.4 billion in the first half of the year, with second-quarter figures up 34% to €1.2 billion. Net profit for the first half remained stable at €1.3 billion despite €534 million in restructuring costs. Without these expenses, net profit would have risen 29% to €1.7 billion.

Total (EPA:TTEF) revenues grew 13% in both the half-year and second quarter to €6.1 billion and €3 billion respectively. Net commission income rose 8% to €2 billion for the half-year, while net interest income remained nearly unchanged at €4.1 billion despite lower interest rates.

The bank improved its cost-income ratio to 56% for the half-year, below its 57% full-year target. Risk provisions remained moderate at €176 million for the second quarter, with the non-performing exposure ratio at 1.1%.

Commerzbank (ETR:CBKG) has applied to regulators for approval of a share buyback of up to €1 billion based on its half-year results. The bank’s Common Equity Tier 1 ratio stood at 14.6% as of June 30.

"In the first half of the year, we achieved the best operating result in the history of Commerzbank and are progressing fast with our transformation," said CEO Bettina Orlopp in the press release.

The bank now expects a full-year net result of around €2.9 billion before restructuring expenses, up from a previous forecast of €2.8 billion. After restructuring costs, it anticipates a net result of approximately €2.5 billion.

Commerzbank also raised its net interest income outlook to around €8 billion for 2025, with an additional €0.3 billion from fair value adjustments. The bank continues to target net commission income growth of about 7% and a cost-income ratio of around 57%.

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