Commerzbank Q4 Profit Climbs, Lifts Dividend; Sees Weak Profit In FY25, Lifts FY27 View

(RTTNews) - Germany's Commerzbank AG (CRZBY.PK) reported Thursday significantly higher profit in its fourth quarter, despite weak net interest income. Further, the bank lifted dividend, and issued fiscal 2025 earnings, expecting a decline.

The company revised fiscal 2027 outlook, and sees growth in fiscal 2028 net result.

For the fourth quarter, the Bank's consolidated net result grew 90 percent to 750 million euros from last year's 395 million euros.

Operating result increased 83.8 percent to 996 million euros from 542 million euros a year ago.

Revenues for the quarter climbed 22.7 percent to 2.96 billion euros from 2.41 billion euros a year ago. Adjusted revenues were 2.87 billion euros, up 18 percent from prior year's 2.43 billion euros.

Net interest income, meanwhile, dropped 2.2 percent from last year to 2.08 billion euros.

Further, Commerzbank said it will give back a total of around 1.73 billion euros - 71 percent of its net result after deduction of AT 1 coupons - to its shareholders for the financial year 2024.

The Board of Managing Directors and the Supervisory Board intend to propose a dividend of 65 cents per share, higher than previous year's 35 cents per share, at the Annual General Meeting on May 15.

Looking ahead for fiscal 2025, the company projects net result of 2.4 billion euros on a reported basis, after restructuring charges, and adjusted net result of 2.8 billion euros.

In 2024, net result was 2.68 billion euros.

The Bank expects a net interest income between 7.7 billion euros and 7.9 billion euros. Net commission income is planned to increase by around 7 percent.

In 2025, Commerzbank will make significant progress towards achieving its financial targets by the end of 2028.

The Bank aimed for a net result target of 3.6 billion euros in 2027. Based on its "Momentum" strategy, the Bank now forecasts a net result of 3.8 billion euros for 2027. Revenues are projected to rise to 13.6 billion euros instead of the previously expected 13.3 billion euros.

Further, with its upgraded strategy "Momentum", Commerzbank is aiming to increase its net result to 4.2 billion euros by 2028. The main driver will be net commission income, while a moderate increase in net interest income is expected despite ongoing interest rate cuts.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.