Commerzbank: Preliminary operating result for the first quarter above expectations – outlook for the 2022 financial year confirmed
- Double-digit growth in revenues to €2.8bn (Q1 2021: €2.5bn) more than compensates for increase in risk result to minus €464m (Q1 2021: minus €149m)
- Preliminary operating result at €544m (Q1 2021: €538m) – net result of €284m expected (Q1 2021: €133m)
- Manfred Knof: “We have made a good start to the new financial year. Thanks to strong customer business we have improved our operating result although the economic consequences of the Russian war against Ukraine have impacted on our risk result.”
On the basis of preliminary figures, Commerzbank has increased its operating result in the first quarter 2022 slightly to €544 million (Q1 2021: €538 million) which significantly exceeds analyst consensus of €282 million. Revenues improved thanks to strong customer business in all operating areas by 12% to €2,795 million (Q1 2021: €2,492 million). Net interest income rose by 12% to €1,401 million (Q1 2021: €1,254 million) which primarily reflects higher revenues at mBank as a consequence of the rises in the Polish interest rates. Net commission income increased by a further 2% to €972 million (Q1 2021: €951 million), following on from a strong result in the previous year.
With the double-digit growth in revenues, Commerzbank more than compensated for the charges as a consequence of the Russian war against Ukraine. The risk result in the first quarter is to be minus €464 million (Q1 2021: minus €149 million). This increase results from provisioning effects of about half a billion euros in connection with the war in Ukraine. In total, the Bank has now formed top level adjustments (TLA) of €713 million as additional provisions.
All in all, the preliminary net result in the first quarter after taxes and minority interests amounted to €284 million. In the first quarter of 2021 this figure was €133 million.
Commerzbank continues to expect a net result of more than €1 billion for the 2022 financial year and confirms all its other 2022 financial targets. This is also true for the risk result, which is still expected to be less than €700 million in 2022 taking into account the top level adjustments which have been formed. The outlook is based on the assumptions that there will be no substantial increase in the provisions for the Swiss francs loan portfolio of mBank and that the economic effects of the Russia-Ukraine war remain contained.
“We have made a good start to the new financial year. Thanks to strong customer business we have increased our operating result although the economic consequences of the Russian war against Ukraine have impacted on our risk result. We are sticking by our targets for the year as a whole,” said Manfred Knof, Chief Executive Officer of Commerzbank.
The figures stated in this press release are preliminary. Commerzbank will publish its final figures for the first quarter 2022 on 12 May 2022.
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