The restructuring of Commerzbank is progressing.

In the second quarter of 2022, the bank earned EUR 470 million after taxes thanks to the rise in interest rates and what it says is “strong customer business”.

On average, analysts had only forecast a net profit of 370 million euros.

In the second quarter of 2021, restructuring costs had pushed Germany's second largest listed bank deep into the red with a minus of 527 million euros.

Hanno Mussler

Editor in Business.

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Since then, however, Commerzbank has been on a better footing under the leadership of Manfred Knof, who took office at the beginning of 2021, even if it sometimes squeaks, as Knof recently admitted in an interview with the FAZ.

7,000 out of 10,000 termination agreements with employees have already been concluded, but the digital processes that are supposed to take the place of personal advice are not always in place.

Commerzbank announced on Wednesday that it had lost 89,000 net customers in the second quarter - allegedly fewer than planned.

And at least business is going.

Both divisions are growing

The Private and Entrepreneur Bank division received 2.5 billion euros in funds, and the volume of loans issued also grew slightly.

Operationally, i.e. essentially before taxes, the private customer division, including the Polish M-Bank, contributed EUR 377 (previous year's quarter: 99) million euros to the pre-tax profit, the corporate customer business as the second division delivered EUR 325 (241) million to the gross profit.

The CEO Manfred Knof was satisfied.

“In the first half of the year, we increased earnings in both segments more than expected and more than doubled our operating profit.

The strong earnings development is clear proof that our Strategy 2024 is working.”

In the first quarter of 2022, Commerzbank had already earned EUR 298 million after taxes and minority interests, so that this net profit now amounts to EUR 768 million for the first half of 2022.

This means that the goal set by CEO Manfred Knof for this year of a net profit of EUR 1 billion is within reach.

In spring 2023, the board of directors wants to distribute 30 percent of the net profit achieved in 2022 to the long-suffering shareholders, including the German state with a good 15 percent.

It would be only the third dividend since 2008.

For years, Commerzbank has in vain assumed rising interest rates in its annual planning. Now it is benefiting from the turnaround in interest rates implemented by the central banks in the fight against runaway inflation.

Corporate revenues grew 30 percent while costs fell 16 percent.

It is noticeable here that Commerzbank closed 350 branches and had already reached the target of only 450 branches by the end of June.

However, Commerzbank had to slightly increase its cost target for this year to EUR 6.4 billion on Wednesday - due to EUR 100 million higher compulsory contributions to the deposit insurance in Poland.

"However, this should be more than compensated for by stronger increases in earnings," says Wednesday's press release.

Commerzbank now only has to spend 55 cents to generate one euro of income, compared to almost 73 cents in the first half of 2021.

The net return on equity (red) is also moving in the right direction at 5.4 percent, but is still at a level that is too low compared to the industry sector.