Commerzbank share: Solid earnings and promising outlook

Last Updated: 15. Februar 2024By

After the presentation of the business figures for 2023, including an outlook for the current year, Commerzbank shares rose by almost 4 percent in today’s morning trading. The stock is trading at around 11 euros, roughly at the level it was at in early January (as of February 15, 2024, approximately 12 p.m.).

The strong profits from the last fiscal year were particularly convincing for investors – they were the highest in 15 years. The bank also remains optimistic for 2024 and the coming years, making Commerzbank shares an interesting investment in the banking sector after the release of the annual report.

Commerzbank with record profits in 2023 In the 2022 fiscal year, Commerzbank achieved a profit of almost 1.44 billion euros, which was significantly exceeded in the past year. With a profit of 2.22 billion euros, it reached its highest level in 15 years and also met the bank’s own forecast after the third quarter results. At the same time, the net interest income of 8.37 billion euros also impressed.

For the current year 2024, Commerzbank is optimistic and expects net interest income of around 7.9 billion euros and a group profit higher than that of 2023. The bank still plans to achieve a profit of 3.4 billion euros by the year 2027. For the successful fiscal year, Commerzbank wants to reward shareholders with a capital return (share buybacks and dividends) of 1 billion euros.

Commerzbank shares: A solid outlook The figures for the past year and, above all, the outlook for 2024 confirm that Commerzbank is still on a good path and the cost-cutting measures of the past years have already paid off. Given the forecast for this and the coming years, there is still potential for Commerzbank shares – despite its good performance, the stock price has hardly moved in the past year.

The majority of analysts see it similarly and confirm their price targets after the business figures. While RBC Bank has confirmed its target of 13.75 euros, JP Morgan sees even more potential with a target of 14.40 euros. Deutsche Bank has also confirmed its evaluation and target price of 16 euros – based on the current price, this represents a potential increase of around 46 percent for Commerzbank shares.