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FINANCIALS: CMZB Misses; Higher Loan Losses. Headline Spread Negative.

FINANCIALS

Commerzbank (CMZB: Baa2 pos/BBB- pos) 2Q24 results headlines look like a small operating profit miss with higher loan loss charges offsetting a revenue beat, CET1 in line but a new EUR600m buyback has been applied for (same size as six months earlier). Spreads have been outperformers, so this headline miss appears a spread negative at first glance.

  • “*COMMERZBANK 2Q OPER PROFIT EU870M, EST. EU876M
  • *COMMERZBANK 2Q CET1 RATIO 14.8%, EST. 14.8%
  • *COMMERZBANK 2Q LOAN-LOSS PROVISION EU199.0M, EST. EU170.3M
  • *COMMERZBANK 2Q NET INCOME EU538M, EST. EU550.5M
  • *COMMERZBANK APPLIED FOR APPROVAL FOR €600M BUYBACK
  • *COMMERZBANK: FY NET PROFIT STILL TARGETED TO BE HIGHER THAN '23
  • *COMMERZBANK: TARGETS FOR '24 CONFIRMED” - BBG

Conf call is 0800 (London time) at: https://www.webcast-eqs.com/commerzbank-2024-q2 

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