The Commerzbank falls in earnings further behind their targets. In the second quarter, earnings shrank below the line by nearly a third to 209 million euros, as the second largest bank announced on Monday evening. Although this was only slightly below the already reduced expectations of analysts Commerzbank itself had requested. With a profit of 372 million euros after six months to repeat the billion profit last year but seems hardly realistic. The Bank is already more than 40 percent below the level in mid 2015. The banks get the permanently low interest rates increasingly felt. The new CEO Martin Zielke had warned in May that it would be difficult to achieve the target.
Industry experts believe the bank in this year on average only € 882 million to. A spokeswoman declined to comment on the prospects and referred to the publication of the quarterly report on August 2.
Stricter capital rules could increase the capital cushion Commerzbank also surprisingly thin will. The end of June came off the bench only on a hard core capital ratio of 11.5 percent. Three months ago the figure was 12.0 percent. Regulators force all banks, their balance sheet risks (RWA) up to assess if their own risk assessment to greatly differed from industry data, the bank said. Rising pension provisions due to low interest rates and higher risk premiums on Italian government bonds also weighed on shares.
CFO Stephan Engels had warned repeatedly before temporarily fluctuating rates. Commerzbank think but firmly adhere by the European Central Bank (ECB) for each bank individually prescribed capital ratios, she explained. For 2016 only 10.25 percent.
By 2019, Commerzbank has however come to a hard core capital ratio of 11.75 percent with full application of all future rules. The group repeated the view that it could often be variations in the capital ratio, given the current uncertain market conditions. Recently, the bank had a positive surprise with their capital buffers frequently. Among other things, they had given a year ago with a capital increase in additional air. Equity is an important buffer against new imbalances.
In the capital ratio included is a dividing line for the planned dividend. In the first half, the bank put it back 10 cents per share. Thus the bank is heading for a total dividend of 20 cents again. In the spring she had again paid a dividend for the first time since the financial crisis. At that time the taxpayer had saved the bank with billions. To date, the sum is not completely repaid, the federal government has with more than 15 percent next largest shareholder.
The operating profit of Commerzbank before tax fell in the second quarter by 19 percent to 342 million euros. Analysts in their forecasts especially in the Mittelstand – made and in investment banking the biggest drawbacks – in recent years the most reliable earner. In business with almost twelve million private customers in Germany, the bank on the other hand was from April to June, almost at the same level. In the Mittelstandsbank, the biggest cuts are expected when CEO Zielke presenting its plans for the next year. She suffers from the weakening demand for credits and low interest rates. Insiders believe that are deleted in the category up to 20 percent of the approximately 5700 sites.
Finally, the Institute had already pointed out that it “clearly ambitious “, will achieve the result of more than one billion euros from the previous year for the full year. Initially the bank had even made gains in prospect. This statement was, however, abandoned even at the Annual General Meeting in April, his last major appearance at the top of the Bank of longtime CEO Martin Blessing. Since the beginning of May passes the former private clients Chef Martin Zielke, the second largest German bank. He is currently working on a strategy for the coming years.
No comments:
Post a Comment