Frankfurt Commerzbank CEO Martin Blessing adopted at its last annual balance sheet with a billion profit and the first payment of a dividend since 2007.
Germany’s second largest money house quadrupled last year the net profit to 1.06 billion euros – the first time in five years that the financial crisis beleaguered Commerzbank earned back more than a billion. “The 2015 has shown that our strategy is correct and the implementation is successful,” concluded Blessing, leaving the Bank no later than October, on Friday in Frankfurt. After years of waiting to shareholders – as promised by Blessing in the autumn – will receive a dividend of 20 cents per share. That should also Finance Minister Wolfgang Schäuble pleased the state holds still 15.6 percent at the bank.
Also, investors regain confidence: The Commerzbank shares shot up 15 percent to 7.35 euros upwards and took the loss of the past four days trying again. The recovery in other banking stocks were much more restrained. While Commerzbank appears to be out of the woods, the great rival German Bank is just starting its long-delayed restructuring. The German bank includes branches and sweeps thousands of jobs. A dividend will the industry leader pay neither 2015 nor for the current year.
SCHÄUBLE CASHES 39 mILLION
At Commerzbank allowed to Federal Finance Minister Schaeuble contrast appreciate EUR 39 million dividend. In a few years it could be significantly more, presented CFO Stephan Engels prospect. The share package is approximately 1.4 billion euros but worth far less than the federal government in the financial crisis had paid for them.
The biggest earnings driver was the 2015 Private Customers division, which has won in three years 800,000 customers. Net operating profit jumped by two thirds to 751 million euros upwards. “The biggest positive surprise was the strong improvement in capital ratios and the continued reduction of our shipping loans,” said Equinet analyst Philipp Häßler. “The conservative forecast is a little disappointing, but understandable given the difficult market environment.” Commerzbank wants to increase profits in the new year slightly, although the provisions for bad loans again “moderate” is likely to attract. 2015 they were down by 40 percent to 696 million euros.
With the resolution of the internal ‘bad bank’ NCA sets Blessing a sign that he sees overcome as final the crisis Commerzbank. He in 2012 had decided the reduction of the financing of ships and commercial real estate. The reduction unit was last still 63 billion euros difficult. Now the majority is to be transferred to the Mittelstandsbank and Private Customers division. What remains are 18 billion for riskier exposures to which by 2019 a small, should take care of “Asset & amp Capital Recovery Unit”. Up to 850 million euro loss, the Bank for yet scheduled.
The problem loans had long attached much capital. The mining operation the hard core capital ratio over the past year to 12.0 from 9.3 percent. The leverage ratio – the ratio of equity to total assets – improved significantly to 4.5 from 3.6 percent. “We have 2015 risks further reduced and the stability of the Commerzbank increased significantly,” Engels said.
cAPITAL tARGETS ACHIEVED – YIELD tARGETS NOT
Blessing, whose successor is to be found at the latest in April, leaves a mixed record: the objectives of the capital base and the reduction of risks he has indeed achieved ahead. The targeted return on equity of more than ten percent in the core business was due to the continuous low interest rates but for the foreseeable future, nor accessible as an expense ratio of 60 percent. Last year, the return on the expense ratio was 8.1 percent, at 72 percent.
After Blessings farewell Commerzbank a complete new start personnel could quickly than expected imminent. “I’m hanging on the bank, but I did not stick to my chair,” said supervisory board chairman Klaus-Peter Müller in the employee portal of the Bank. The 71-year-old predecessor Blessings as bank chief is now able to imagine but to surrender before 2018th Receivables thereafter were last been raised mainly from the policy.
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