In key news on German stocks, Commerzbank AG (DE:CBK) reported its Q1 results for 2024, marking its strongest quarterly performance in over a decade. Commerzbank shares gained 5.13% yesterday. The bank’s strong Q1 numbers were primarily driven by robust customer business and a sustained favorable interest rate environment. The bank’s EBIT (earnings before interest and taxes) increased by 24% to €1.1 billion.
It also saw a 29% year-over-year rise in its Q1 net profit to €747 million. Building on these robust figures, Commerzbank aims to achieve record profits for the full year.
Commerzbank provides a wide range of banking services, catering to both private and corporate clients.
Highlights from CBK’s Q1 Results
In the first quarter, Commerzbank’s revenue increased by 3% to €2.7 billion. Among its segments, Corporate Clients excelled once more across all client groups, achieving a notable 13% increase in revenues to reach a record €1.2 billion.
CBK’s net interest income stood at €2.13 billion, marking a 9% year-on-year increase. The slower-than-anticipated decline in interest rates benefited the bank, particularly given its emphasis on small and medium-sized enterprises (SMEs) and private customers.
The Q1 profit also gained from reduced costs. Total costs during the quarter decreased by approximately 8% to €1.59 billion compared to the same period last year.
In terms of outlook, Commerzbank confirmed its full-year numbers for 2024. For net interest income, the bank is now targeting approximately €8.1 billion. Additionally, it aims to achieve a net profit surpassing the previous year.
What is the Price Target for Commerzbank?
Following the release of Q1 results, several analysts maintained their ratings on Commerzbank stock, with four Buy recommendations. Notably, analysts at Warburg Research and UBS anticipate upside of 13% and 19%, respectively.
Overall, CBK stock has received a Moderate Buy rating on TipRanks, backed by seven Buys, four Holds, and one Sell recommendation. The Commerzbank share price forecast is €15.52, which implies a growth of 3.16% from the current trading level.
