Investors are excitedly looking forward to Commerzbank’s current figures. According to analysts, the radical restructuring of the group, including the shedding of thousands of jobs, is keeping the financial institution in the red. Investors are quite optimistic in advance – the share can gain momentum at the start of the new trading week.
The bottom line is that the experts expect an average quarterly loss of 131 million euros. The institute will present the exact figures for the period January up to and including March 2021 this Wednesday, May 12th.
At the beginning of April, the bank announced that the quarterly result would be impacted by severance payments and other costs in connection with the restructuring of the Group totaling around 470 million euros. The Management Board now estimates the total costs for the group restructuring, which will run until 2024, at a little more than two billion. So far, the board had assumed 1.80 billion euros. Around half of this was already taken into account in the balance sheet last year.
Strict austerity policy
With a tough austerity course, CEO Manfred Knof, who has been in office since the beginning of the year, wants the institute, whose largest shareholder has been the German state since the financial crisis of 2008/2009, back on the road to success. The number of full-time positions across the Group is to be slashed from just under 40,000 to 32,000 by the end of 2024. The branch network in Germany will be almost halved to 450 locations. The international network is also shrinking.
Analysts expect black numbers from 2022
After a loss of around 2.90 billion euros last year, the newly formed board is aiming for a positive result at least operationally in 2021. When all savings plans are implemented in 2024, the bank wants to earn 2.70 billion euros in day-to-day business. Analysts expect an after-tax profit from next year.
Knof’s primary goal is to reduce costs: from around 6.70 billion euros last year, they should be reduced by 1.40 billion euros by 2024. Then better times will begin again for the shareholders of the Frankfurt-based MDax group: for the 2023 financial year, the management board is aiming to distribute a dividend after several zero rounds.
Important personal details at the AGM on May 18th
One week after the quarterly figures have been presented, the Commerzbank management presents itself to the shareholders. At the Annual General Meeting (AGM) on May 18, which will be held online again due to the corona, personal details play a major role. The agenda includes the election of five new members for the Supervisory Board – including the new chief controller.
Commerzbank gained around one percent on Monday and was trading at EUR 5.66. This means that the share price is above the technically important EUR 5.55 mark.
Even if the costs are a little higher than expected, there is noticeable progress, which is to be assessed positively. Commerzbank boss Manfred Knof pressed the tube as promised. In terms of personnel (at the top level), more calm could return from May 18 – with the election of the new chief inspector. The brave can jump in before the numbers and bet that Commerzbank will beat the analysts’ expectations. Invested investors stick with it.