CRZBF - Commerzbank: Strong Capital Position To Drive Shareholder Returns
- Q3 RoTE of 5.8% due to a low cost of risk (7bps) and a tax rate of around 1%, offset by 76M EUR of restructuring expenses.
- Strong capital position with a CET1 ratio of 13.51%. MDA buffer at 411 bps far superior to Deutsche Bank's 258 bps.
- Good progress on workforce optimization - around 5.200 out of approximately 10.000 full-time equivalents already off payroll or contracted. Majority of provisions booked, with around 90M EUR remaining until YE2022.
- Key risks on the horizon remain execution on the restructuring, the Swiss mortgages at Polish subsidiary mBank, wage negotiations as well as credit performance once government support schemes expire.
- If Commerzbank was to run a MDA buffer similar to Deutsche Bank, a payout of around 30% of the current share price could be distributed to shareholders over the medium to long term.
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Commerzbank: Strong Capital Position To Drive Shareholder Returns