Sound domestic market position in corporate banking, supported by a robust German economy. Strong capitalization and rapid progress in de-risking the bank's noncore activities, and materially increased levels of additional loss-absorbing capital (ALAC) to protect senior creditors in the event of a resolution. Adequate funding and liquidity. Below-average market share and earnings contribution from domestic retail activities. Doubts about the bank's ability to generate sufficient shareholder returns absent a cyclical recovery and in light of high competition and low yields. Loan book quality metrics and composition still below those of many peers. S&P Global Ratings' negative outlook on Commerzbank AG reflects that we might lower our ratings within the next two years if economic risks in Germany were to worsen.
