CRZBF - Commerzbank: 2024 RoTE Target Of At Least 7% Marks End Of Restructuring

• Commerzbank has only 70M EUR remaining in restructuring charges and is 61.5% complete with its 10,000 full-time equivalents reduction target.
• Strong capital position with CET 1 of 13.57% to be impacted by about 69 bps of regulatory headwinds into 2023.
• Direct Russia exposure at 1.3B EUR is about 5.3% of tangible equity of 24.6B EUR. A write-off would cut tangible book value by about 1 EUR to about 18.6 EUR/share.
• MDA buffer of around 420 bps likely to stay in the required 200-250 bps range for capital distributions even after regulatory impacts or elevated credit losses.
• Depending on retained capital, RoTE for 2024 is forecast in a range of 7% to 8.1%.

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