Q2 2024 Commerzbank AG Earnings Call Transcript
Key Points
- Commerzbank AG (CRZBF) reported strong business momentum across all segments, with increasing revenues year-on-year and growth in fee income.
- The company achieved a half-year net result of almost EUR1.3 billion, translating into a return on tangible equity of 8.9%.
- The CET1 ratio remains strong at 14.8%, supporting capital distribution plans for 2024 and beyond.
- Loan demand showed positive development, with the corporate loan book growing by 5% compared to Q2 last year.
- The company is on track to meet its 2024 targets, including a cost-to-income ratio of 60% and a payout ratio of at least 70%.
- The macroeconomic environment remains challenging, with a slight contraction in German GDP and weaker-than-expected PMI and Ifour data.
- Core inflation is expected to stabilize above 2%, preventing aggressive easing of monetary policy by the ECB.
- The company faces significant non-operational burdens from Russia and Poland, amounting to EUR395 million.
- Higher personnel costs and regulatory requirements are expected to drive up operating expenses in 2025.
- The company remains cautious about potential larger single default cases, despite maintaining high asset quality.
Hello, and welcome to the Commerzbank AG conference call regarding the second quarter results of 2024. (Operator Instructions) Let me now turn the floor over to your CEO, Manfred Knof.
Good morning, and welcome to our earnings call. Before we start I would like to make a small personal remark. I had the flu and for safety reasons and that most of us are planning to go on vacation. I'm sitting in a different room. So apologies for any potential hiccups or delays during the call.
I guess we all had wished for [calmer] market these days, but it's nevertheless, my pleasure to present you on very good Q2 and H1 results. We have a strong business momentum across the board. Client business in all segments, including mBank, shows, increasing revenues year on year and growth in fee income gains further traction, we are successfully balancing our business mix to reach our targets.
Our clear focus on execution pays off, and this makes us optimistic going forward. Our increased
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