Following failed merger talks with Deutsche Bank (DB), Commerzbank (CRZBF) shares are trading at depressed valuations. This reflects not only a lowered acquisition probability but the bank’s muted profitability metrics. With a current return on tangible equity (ROTE) of 3.5%, Commerzbank’s performance ranks near the bottom of its industry peer group. Results have been hampered by a persistently low-interest-rate environment. Profitability at the company will likely remain low given an unsupportive rate outlook and the highly competitive nature of the German banking industry. Absent rate hikes, Commerzbank appears destined to underperform