Article / 02 August 2016 at 10:00 GMT

Germany's second-largest bank hit hard

  • Commerzbank is Germany's second-largest bank after Deutsche Bank
  • It fared poorly in yesterday's stress tests
  • Bank posted weak quarterly numbers today
  • Shares in apparent continual free-fall, but analysts see potential
  • Deutsche Bank no longer part of Eurostoxx 50
Commerzbank Tower in Frankfurt
Getting darker. Commerzbank's famous tower in Frankfurt (right). Photo: iStock

By Clemens Bomsdorf

The grade Commerzbank yesterday received by the European Banking Authority in its adverse financial stress scenario would equal a “pass” in school, but not more. Its core equity Tier 1 ratio (CET1) was 7.4% while its peers averaged more than 1%.

CET1 capital ratio in the adverse scenario by bank in alphabetical order (%) , click to enlarge 

Source: EBA
Today Germany’s second largest bank – after Deutsche Bank – disclosed disappointing quarterly earnings which showed it to be lacking far behind last year’s result. Operating profit was down by roughly a third compared to the same period a year earlier and net profit fell even more. Operating profit and net income for the whole year will be lower than in 2015.

Commerzbank quarterly figures
 Source: Commerzbank

Last year, Commerzbank posted an operating profit of 1.9 billion euros while net income was 1.1 billion euros. “The bank expects the negative rate environment and the adverse markets to further weigh on revenues,” it said in a statement. 

However, that did not help as shares tumbled.

Commerzbank share price since 2011 and overview (click to enlarge)
Commerzbank Overview
Source: Saxo Bank. Create your own charts with Saxo Trader click here to learn more 

But as one can see from the above overview in SaxoTrader, analysts are positive about Commerzbank stock. Let's see whether they change their take after having digested today's news. 

In the meantime, you might want to think about Peter Garnry's European Bank's Dec-2017 call, which he mentioned during yesterday's morning call. Worth mentioning is also the news that has just come in today as well: "Credit Suisse, Deutsche index exclusion another blow to European banks" (read here the full Reuters piece online).

— Edited by Michael McKenna

Clemens Bomsdorf is a consulting editor at


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail