Commerzbank shares on the decline: analysts fear lower return on equity

Commerzbank shares on the decline: analysts fear lower return on equity

According to a report by www.finanzen.net, Commerzbank shares accelerated their decline after Bank of America downgraded them to “underperform”. The bank's shares temporarily fell by 4.2 percent during trading and reached their lowest level since shortly before Christmas.

This negative development on the stock market also raises questions about possible effects on the financial sector. The chart analyzes show that the 21- and 50-day lines have now been crossed and the 100-day line is getting closer. This suggests that the technical chart picture is getting cloudier further. At the end of trading, Commerzbank shares had lost 3.39 percent to 10.69 euros via XETRA.

Analyst Rohith Chandra-Rajan from Bank of America fears in his study that declining interest rate expectations could lead to the bank not achieving its 2024 return on equity target. Against this background, he is also concerned about the level of capital returns. The approval of these returns by the European Central Bank (ECB) shortly before Christmas gave the shares price gains around the turn of the year, which have now disappeared again.

Even the hope of a merger with Deutsche Bank has not been able to help the shares get back on their feet in the past few days. From expert Chandra-Rajan's point of view, such a merger would make sense, but is currently unlikely.

These developments show that Commerzbank is facing a number of challenges that can also impact the entire financial market. Investors and other market participants must consider these factors when making decisions as they have the potential to impact financial stability and competition in the industry.