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Investing.com -- Commerzbank (ETR:CBKG) on Wednesday raised its full-year 2025 earnings guidance after posting second-quarter results that exceeded expectations, driven by stronger core revenues and lower-than-forecast provisions and costs.
The bank reported €676 million in profit before tax for the quarter, 13% above consensus.
Net income was €462 million, 26% higher than expected but down 45% from the first quarter.
Operating revenues reached €3.02 billion, surpassing expectations by 1.2%. Net interest income totaled €2.06 billion, about 2% above forecasts, while commission income came in at €1 billion, 2% higher than estimates.
Provisions for loan losses were €493 million, up 40% from the prior quarter but below consensus.
Provision guidance for the year remains at €850 million. Provisions related to Swiss franc mortgages dropped to €124 million from €158 million.
Operating costs stood at €1.62 billion, in line with expectations. Restructuring expenses decreased and mandatory contributions fell to €58 million, down from €104 million in the previous quarter.
The bank upgraded its 2025 net income target to €2.5 billion, excluding restructuring charges, from €2.4 billion previously. Net interest income guidance was raised to €8 billion from €7.8 billion.
Commerzbank’s Common Equity Tier 1 ratio declined to 14.56% from 15.09%, reflecting higher risk-weighted assets due to market volatility, as well as foreign exchange and regulatory impacts.
The capital buffer above the internal 13.5% target stands at about 100 basis points. Full-year guidance for the CET1 ratio remains above 14.5%.
Total (EPA:TTEF) loans grew to €257.3 billion, a 1.5% increase from the prior quarter. Deposits remained stable at €313.4 billion.