Commerzbank reports highest net profit in more than ten years thanks to strong revenue performance

February 16, 2023 - Commerzbank more than tripled its net profit in the 2022 financial year to more than €1.4 billion, exceeding their announced target of over €1 billion. This is their highest profit in more than ten years. The Common Equity Tier 1 ratio also improved, to 14.1%. The Bank now has the capacity to resume returning capital to its shareholders. In accordance with its capital return policy, the Bank intends to distribute 30% of its net profit after deduction of AT1 coupon payments by planning a dividend of 20 cents per share and by applying for a share buyback programme of €122 million. 

Thanks to a strong customer business and with the tailwind of higher interest rates, revenue momentum at the bank accelerated over the course of the year.

Commerzbank's loan book also proved to be resilient in the face of  economic uncertainties and the consequences of the Russian war of aggression against Ukraine. With the still available Top-Level Adjustment (TLA) of almost €500 million, the Bank say they are well prepared for upcoming economic challenges. 

Chairman of the Board of Managing Directors Manfred Knof commented: “Commerzbank has delivered as promised: We achieved our strategic and financial goals in the  2022 financial year. Despite the difficult economic environment and the high one-off burdens in  Poland, we more than tripled our net profit and thus increased it even more than expected. That  proves our strategy is working. Our turnaround is a success. Commerzbank is back."

He went on to add: "We will continue to keep up the pace in the second half of the implementation of our ‘Strategy  2024’ and achieve our return targets. Without slackening on cost discipline, we are now focusing  on the customer business and revenue. Especially in light of the current profound social and  economic changes, our strengths in the advisory business are paying off.”