Commerzbank AG

Sound domestic market position in corporate banking. Sound capitalization in light of the largely restructured noncore activities. Material levels of additional loss-absorbing capital (ALAC) to protect senior creditors in the event of a resolution. Prudent funding and liquidity management and metrics. Need to improve subpar shareholder returns to substantiate sustainability of the business. Below-average market share and earnings from domestic retail activities. Loan book quality metrics and composition still untested through a full business cycle and generally below those of some international peers. S&P Global Ratings' negative outlook on Commerzbank AG indicates the potential for a downgrade over the next two years if the weakening operating environment in Germany prevents the bank's risk-adjusted profitability from improving to that of similarly

...Material levels of additional loss-absorbing capital (ALAC) to protect senior creditors in the event of a resolution....

Full Report