It is clear that the situation for Commerzbank is anything but rosy. The current year was characterized by high provisions for loan losses due to the corona pandemic. In addition, the further falling interest rates put pressure on the margin and, to top it off, the management duo threw it out. Management has been expecting a loss for some time now. The analyst consensus has now put this in concrete terms.
The experts questioned by Commerzbank themselves now assume that the bank will make a loss of 323 million euros on balance in the current year. The last estimates from before the quarterly figures on November 5th were still from minus 153 million euros. The higher risk provisioning for loans has a clear impact of 1.49 billion euros. That is almost 800 million euros more than was forecast at the beginning of the year.
Costs should decrease slightly
Commerzbank does not operate its own investment banking and is therefore heavily dependent on the lending business for both private and corporate customers. So it’s no wonder the financial institution has been hit hard when it comes to risk prevention. But the estimates for the commission surplus have risen by 157 million euros. In addition, the analysts assume that the costs will decrease by 239 million euros to 6.36 billion euros.
Commerzbank
(WKN: CBK100)
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The expectations show that the new CEO Manfred Knof will have a lot of work to do when he takes up his post in January. Shareholders should chop off 2020. Big surprises in a positive sense are unfortunately no longer to be expected. However, the year is almost over and the focus is now on 2021. Then some options are waiting.
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Note on conflicts of interest:
The Chairman of the Board of Management and majority owner of the publisher Börsenmedien AG, Mr Bernd Förtsch, has taken direct and indirect positions on the following financial instruments referred to in the publication or related derivatives that will benefit from any price development resulting from the publication: Commerzbank.
Commerzbank shares are in the SHAREHOLDER depot.
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