Profit sags by a third: Commerzbank irritated investors – n-tv.de NEWS

 Economy
 

 Tuesday, 26 July 2016

 
 
 

 
 The headwind for Commerzbank is getting stronger: The historically low interest rate situation and the ongoing unrest in the capital markets slow the recovery rate of the financial institution and ensure resentment among investors .
 

 
  Charts
 
 

Germany’s second largest bank is einbegrochen face of persistently low interest rates of profit. In the second quarter of Commerzbank remained below the line with 209 million euros more than a third less than a year ago. For much more discomfort among investors makes in the fall of the capital buffer – capital ratio called – from 12 to 11.5 percent. Investors then threw the paper in a high arc from the depots. For the stock, this means a decrease of six percent – and in the wake of German bank lose the same with

Since the beginning of the paper has now almost 40 percent of its value lost and quoted so near record-lows. More threatening is the 12-month view: During this period, the value of shares has now halved. Worry investors not so much the figures but rather the prospect of future capital ratio. “Commerzbank holds itself open all doors, by referring to the market volatility, which could also affect the rate,” says another trader. But this was critical: “A further decline rate should be interpreted by the market as increasing risk for a capital increase and the share fairly burden”. This risk was “not negligible”. After all, had analysts as the operational of Morgan Stanley, noted that Commerzbank most suffering among European banks under the low interest rate environment.

earned money home between April and end with 342 million euros well a fifth less. Reason is the increase in risk-weighted assets (RWA) – about higher pension obligations and increased Neubwertungsrücklagen due to higher credit risks for Italian government bonds. Even more serious, however impacted external risk factors, which are mapped in the SHE model.

By 2019, Commerzbank has to come with full application of all future rules on a hard core capital ratio of 11.75 percent. 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.

More about
 
 
 

The forecast for 2016 is shaking since the weak first quarter. It would be “much more ambitious”, to reach the result of more than one billion euros from the previous year for the full year, Commerzbank had stated in early May. Nevertheless, the bank already laid for the first half of 10 cents per share for a renewed dividend return.

  Source: n-tv.de
 

  themes