Bulletin: Commerzbank Outlines Ambitious Financial Targets To Ward Off UniCredit

FRANKFURT (S&P Global Ratings) Feb. 13, 2025--S&P Global Ratings believes that Commerzbank AG's (A/Stable/A-1) attainment of ambitious financial targets for 2028 will depend substantially on maintaining strong momentum in fee-based business, likely supported by further bolt-on acquisitions. Enhancing operating leverage through cost reduction and capital efficiencies will also be crucial. However, we believe that achieving the targets will depend on external factors beyond management's control, including interest rates, economic conditions, and market values. We understand Commerzbank does not intend to raise its risk appetite to bolster its revenues. Commerzbank today unveiled an ambitious upward revision of its financial targets, now aiming for a return on tangible equity (RoTE) of 15% by 2028, a significant increase from the previous target of

...February 13, 2025 FRANKFURT (S&P Global Ratings) Feb. 13, 2025--S&P Global Ratings believes that Commerzbank AG's (A/Stable/A-1) attainment of ambitious financial targets for 2028 will depend substantially on maintaining strong momentum in fee-based business, likely supported by further bolt-on acquisitions. Enhancing operating leverage through cost reduction and capital efficiencies will also be crucial. However, we believe that achieving the targets will depend on external factors beyond management's control, including interest rates, economic conditions, and market values. We understand Commerzbank does not intend to raise its risk appetite to bolster its revenues. Commerzbank today unveiled an ambitious upward revision of its financial targets, now aiming for a return on tangible equity (RoTE) of 15% by 2028, a significant increase from the previous target of over 12% by 2027. This compares with a reported RoTE of 9.2% for 2024. The heightened targets coincide with UniCredit's significant...

Bulletin