Commerzbank Reports Substantial Growth in Q1 2024

Commerzbank Aktiengesellschaft announced a significant rise in its operating and net profits for the first quarter of 2024, marking its strongest quarterly performance in over a decade. The bank's operating result surged by approximately 24% to €1.1 billion from last year's €875 million during the same period. Its net profit also increased by 29%, reaching €747 million.

The growth was primarily driven by robust customer business and a favorable interest rate environment. Commerzbank reported a slight uptick in revenues, totaling €2.75 billion, owing in part to a thriving corporates clients segment and strong securities and deposit contributions from private and small-business customers. Cost reductions also contributed, with total expenses dropping to €1.6 billion from €1.7 billion in Q1 2023, enhancing the cost-income-ratio to 58%. The bank also noted a moderate risk result of minus €76 million, reflecting a high-quality loan portfolio.

Ahead in 2024, Commerzbank has revised its net interest income outlook to around €8.1 billion and confirmed other financial targets for the year. The shareholder pay-out ratio is targeted at a minimum of 70% following approval of a €0.35 per share dividend at the Annual General Meeting. Furthermore, strategic IT improvements and new joint ventures in digital payment solutions underscore the bank's commitment to reinforcing its business model and customer offerings.