MNI BRIEF: China State Planner To Increase Trade-in Support

MNI China Daily Summary: Thursday, July 25

MNI BRIEF: Japan Govt Keeps Econ View, Cuts Exports

MNI: PBOC Conducts CNY200 Bln via MLF Thurs; Rate Cut

MNI: PBOC Sets Yuan Parity Lower At 7.1321 Thurs; -1.92% Y/Y

CHINA PBOC CONDUCTS CNY235.1 BILLION VIA 7-DAY REVERSE REPOS THURS

Core Goods Pipeline Pressures Pick Up On 3m/3m Basis

Aircraft-Led Durables Collapse Masks Rebound In Core Orders

MNI: BELGIUM JUL BNB BUSINESS SURVEY -12.3

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Commerzbank; Credit Metrics Better, Some Respite For German Assets

FINANCIALS

Commerzbank (CBK GY) 4Q23 results were a little better than consensus with credit metrics all better, good news considering recent newsflow around German assets. Perhaps some respite for DePfa (PBB GY) and related credit assets.


  • Revenues are up 2% y/y, around 3% below consensus but on lower trading income. Costs were broadly flat (2% weaker than expected) and credit losses were 13% higher but slightly better than expected. That revenue miss meant operating profit missed, too but missing on trading income isn’t usually viewed that negatively.
  • Key credit metrics: loan losses were 23bp of loans, up 5bp q/q but still a very low levels and non-performers were strong; 20bp lower at 0.8%. CET1 was 10bp higher q/q at 14.7% and total capital was 19.3% (+10bp), all a little better than expected.
  • The outlook statement is relatively positive (especially when there’s a slide entitled “German economy expected to stay weak”), also; revenue guidance (+4% y/y) is in line with consensus, credit losses are set to be lower than the 4Q23 run-rate and less than expected. In line with the buyback announced on 9-Jan, CET1 will glide towards 14%.

Conf call is 0800 London time at https://www.webcast-eqs.com/login/commerzbank-2023-q4

Credit BulletsBulletHomepagemarkets-real-timeCredit
Credit BulletsBulletHomepagemarkets-real-timeCredit

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.