After a successful quarter, Commerzbank is targeting a profit of 2.2 billion euros for 2023

After a successful quarter, Commerzbank is targeting a profit of 2.2 billion euros for 2023

According to a report from www.finanzen.net, Commerzbank plans to generate higher profits in the next few years, primarily through wealthy private customers and additional digital offerings for corporate customers. The board is targeting a surplus of around 2.2 billion euros for 2023 and plans to increase the net result to around 3.4 billion euros by 2027. The rise in interest rates has boosted the bank's business, leading to a sharp increase in profit in the third quarter. In addition, Commerzbank wants to distribute more than half of its profits to shareholders in the coming years.

The planned profit increases by 2027 are said to be primarily due to higher net commission income. Net interest income is expected to grow moderately as the European Central Bank has raised interest rates, but only moderate growth is expected in the medium term. In the third quarter, the bank increased its bottom line profit to 684 million euros, almost doubling compared to the same period last year. Net interest income increased by almost 39 percent to a good 6.2 billion euros in the period from January to September. Which had to set aside less money for possible loan defaults, which contributed to an increase in surplus.

However, Commerzbank's goals for the coming years, especially for 2027, are viewed with skepticism on the stock market. The bank's earnings prospects are below market expectations and are described as "lackluster". Commerzbank's assumptions for future net interest income are based on the European Central Bank's key interest rates, which are significantly higher than current market estimates. The promised distributions to shareholders also fall short of expectations.

Commerzbank shares suffered a strong “swing” after the publication of the quarterly figures and suffered short-term losses. The goals for the coming years did not convince investors, which led to a negative stock market trend.

The bank's planned measures to increase profits and efficiency in the coming years are ambitious, but it remains to be seen whether the bank will be able to achieve these goals and regain investor confidence.