The bank is one of the beneficiaries of rising central bank interest rates.
(Photo: dpa)
Frankfurt Thanks to the turnaround in interest rates, Commerzbank is doing really well again. This is shown by the institute’s strong quarterly figures, as well as by the forecasts of the analysts, who consider the board’s profit targets for 2024 to be realistic for the first time in a long time.
The good results are nothing more than a pleasing snapshot, on the contrary: Commerzbank’s strong figures even make it clear where the weaknesses of the institute lie.
The most important driver for operating profits is net interest income, on which the bank is too dependent. Since the central banks have been raising interest rates, banks have been able to earn more money with deposits and loans. Many banks have benefited from this, and this is especially true for Commerzbank.
Because the second largest German private bank is weaker in investment banking and asset management than many European competitors – and therefore more dependent than others on interest income. To be more precise: on interest gains in private and corporate customer business from Germany and a little bit from Poland.
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Commerzbank is similarly dependent on the interest business as Deutsche Bank is on investment banking. In the course of its many years of restructuring after the financial crisis of 2008, the institute has increasingly restricted itself regionally and with a view to the product range. A previously considered European expansion as a digital bank ultimately failed due to the costs.
One cannot blame the management for this self-restraint. Because beyond its current activities, Commerzbank lacks critical mass, clout and investment funds almost everywhere. That reduces Commerzbank to a big bet on the German economy and European monetary policy. This is not enough for an independent existence in the long run.
More: Commerzbank warns of “recession like after the financial crisis” after jump in profits