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FRANKFURT - Commerzbank AG (OTC:CRZBY) (ETR:CBK) has announced a robust start to the financial year, posting its highest quarterly net income since 2011. The German bank’s operating result surged by 13% to a new record of €1.2 billion, while net income grew by 12% to €834 million in the first quarter.
The bank’s revenues increased by 12% to €3.1 billion, with a notable 6% growth in net commission income, reaching €1 billion. Commerzbank (ETR:CBKG) also achieved a lower cost-income ratio of 56%, beating its full-year target of 57%. The bank’s non-performing exposure ratio stood at a solid 1.0%, indicating a robust loan book amidst a moderate risk result of minus €123 million.
Commerzbank’s return on tangible equity (Net RoTE) reached double digits at 11.1%, and the CET 1 ratio, a key measure of financial strength, was reported at 15.1%, suggesting a high potential for capital return to shareholders. The bank confirmed its outlook for a CET 1 ratio of at least 14.5% for the full year 2025.
In the first quarter, Commerzbank booked €40 million in restructuring expenses for an early partial retirement program. The bank also completed a €400 million share buyback in March and proposed a dividend increase to €0.65 per share, up from €0.35 in the previous year. This proposal, which will be decided at the Annual General Meeting on May 15, 2025, would result in a dividend payment of €733 million.
Commerzbank CEO Bettina Orlopp stated, "We achieved the highest quarterly profit since 2011, demonstrating that we can grow even in economically challenging times." The bank has made significant strides in its "Momentum" strategy, launching several AI applications, including a virtual assistant in its banking app and an AI-based tool for fraud detection.
The bank also reported progress in its digitalization strategy for capital markets platforms, with more corporate clients using its online trading platform FX Live Trader and deposit processing via electronic platforms.
The information for this article is based on a press release statement provided by Commerzbank.
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