Commerzbank ETR: CBK reported record first-half results for 2026, citing broad-based revenue growth, cost discipline and resilient client activity, while reaffirming its full-year outlook and outlining plans for capital returns and discussions with major shareholder UniCredit.
The bank said first-half revenue rose 7% year over year to €6.5 billion, while operating profit increased 14% to €2.7 billion. Net profit reached a record €1.8 billion, up 40% from the prior-year period, which had included restructuring charges tied to its Momentum strategy.
Commerzbank reported a cost-income ratio of 53%, including compulsory contributions, and a net return on tangible equity of 12.6% for the first half. Its CET1 capital ratio stood at 14.4% after accounting for capital distributions.
Quarterly results and outlook
Chief Financial Officer Carsten Schmitt said the bank generated its highest-ever quarterly operating result in the second quarter, at €1.367 billion. Quarterly revenue rose 9% year over year, supported by growth in net commission income and a stable net interest income performance despite a less favorable interest-rate environment, particularly in Poland.
Second-quarter net interest income was €2.059 billion, slightly higher than in the first quarter and broadly stable from a year earlier. Schmitt said business growth and lower central-bank rates largely offset each other during the period.
Net commission income grew 7% year over year, with corporate clients contributing 6% growth through cash management, trade finance and capital-markets activity. In Private and Small-Business Customers Germany, commission income rose 11%, led by securities activity and payments.
Commerzbank maintained its full-year guidance, including:
- Revenue of about €13.2 billion.
- Net interest income of around €8.6 billion.
- A risk result of about €850 million.
- Costs of around €7 billion.
- A cost-income ratio of approximately 53%.
- Net profit of at least €3.4 billion.
- Net return on tangible equity of around 12%.
Schmitt said the bank expects net interest income to accelerate in the second half, supported by stabilization in Polish rates, further loan and deposit growth, higher contributions from its replication portfolio and expected higher European Central Bank rates. The replication portfolio is expected to provide €400 million to €600 million of annual net interest income through 2030, he said.
Client business, deposits and credit quality
Corporate-client lending expanded by €17 billion, or 16%, over the past 12 months, including €8 billion in the first half. The bank said demand remained largely international, although it has begun to see relatively more activity in Europe and early signs of recovery in Germany.
In private and small-business banking, discretionary portfolio management volumes increased 20% year over year to around €25 billion. Total client securities volumes rose 16% to €285 billion, while the number of trades at comdirect increased 5%.
Deposit competition in Germany remained intense. Corporate clients added €2 billion of sight deposits during the quarter, while Private and Small-Business Customers Germany saw a €2 billion decline in core-money deposits. Management said some rate-sensitive customers moved funds to competitors offering introductory rates above 3%, but Commerzbank chose to prioritize profitability rather than match those offers.
The second-quarter risk result was €202 million. Schmitt said default rates in Germany had edged higher, mainly among smaller service-sector companies where Commerzbank has limited exposure. The bank’s non-performing exposure ratio remained unchanged at 1.1%.
Capital returns and RWA measures
The bank reiterated its commitment to a 100% payout ratio after AT1 coupon payments until it reaches its CET1 target of 13.5%. For 2026, Commerzbank is planning capital returns of €3.2 billion, representing a stated total yield of 8%.
It has applied for a share buyback of up to €1.2 billion, which has received European Central Bank approval and is awaiting approval from the German Finance Agency. Management said at least 50% of total capital returns is expected to be paid through dividends, reflecting investor feedback favoring a larger cash dividend component.
Commerzbank also said it expects ECB approval in the third quarter for changes to the scope of its internal credit-risk models. The bank estimated that the changes could reduce risk-weighted assets by a mid- to high-single-digit billion euro amount, with the impact gradually emerging through the second quarter of 2027. Schmitt said the effect was not included in the original Momentum 2030 plan and should reduce the bank’s 2028 risk-weighted asset target.
UniCredit discussions and strategy
Management addressed UniCredit’s position after the offer period ended, saying UniCredit had gained access to almost 50% of Commerzbank voting rights. The bank said only 2.7% of institutional and retail shareholders had tendered their shares, and said a substantial portion of tendered shares was likely borrowed by UniCredit-linked financial institutions.
Commerzbank said it had begun discussions with UniCredit on governance, the current shareholder structure and potential areas for cooperation. Management said any structural changes, including a domination agreement, would require approval by at least 75% of votes at the annual general meeting.
The bank maintained that its Momentum 2030 strategy remains its primary plan and said UniCredit’s “Commerzbank Unlocked” proposal was based on incomplete external information and carried significant execution risks. At the same time, management said it was prepared to explore cooperation in areas including products, investment programs and the international network, while protecting minority shareholder interests.
Commerzbank also said it has completed the rollout of Microsoft Copilot and Google Gemini tools to employees and launched an AI academy. The bank is targeting cumulative AI investments of around €600 million through 2030, with an expected annual value contribution of approximately €500 million by 2030.
About Commerzbank (ETR:CBK)
Commerzbank AG provides banking and capital market products and services to private and small business customers, corporate, financial service providers, and institutional clients in Germany, rest of Europe, the Americas, Asia, and internationally. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers saving, checking, business, and current accounts; term deposits; pension; credit and debit cards; payment solutions; overdraft services; various loans; and insurance products.
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