Quick Facts
- Commerzbank is the second largest bank in Germany
- It recently went through restructuring
- It is the first bank that has a crypto custody license in Germany
- We recently added its shares to the Europe Value Wikifolio
Pros
- Most ranks except for Sentiment are healthy and green ✔
- The recent restructure and innovation drive may improve future profitability ✔
- It has set and is recognized for ambitious sustainability goals ✔
- It may enjoy stable growth as an independent bank ✔
Cons
- It has low Analyst-related ranks ❌
- It might not keep pace with the latest technologies ❌
- It has very mixed reviews from customers and employees ❌
The banking sector is the theme of the week. We have the second largest commercial bank in Germany, Commerzbank, as one of the recent additions to our Europe Value Wikifolio.
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An Obermatt 360° View of 94 makes Commerzbank a better overall performer compared to 94% of its peers - large European banks. The Safety Rank, which is also at 94, makes this bank one of the safest to invest in. Low Analyst Opinion Changes and Pro Holdings ranks drive its Sentiment Rank to a quite weak 34. This means that the analysts currently have some doubts regarding investing in Commerzbank, but this metric can be quite volatile when banks are in question.
Around 11 million retail clients make Commerzbank the second largest in Germany, right after Deutsche Bank. However, saving banks have the largest private users share in Germany, with the number of fintech and online banks users on the rise, thanks to the innovation and convenience that they bring. Commerzbank has an advantage over other classical banks, as it became the first commercial bank in Germany to obtain a crypto custody license - just a few months ago.
Commerzbank claims that they are establishing a secure custody platform for digital assets. This also comes right after the completion of a restructuring program that the bank has been going through recently, which cut costs and improved efficiency, quite possibly leading to higher profitability in the future. Their ambitious sustainability and climate goals also speak in favor of this - Commerzbank has been featured in Corporate Knights' Global 100 Most Sustainable Corporations in the World Index, as the only German bank on the list, and is also a part of the DAX 50 ESG Index.
There is still quite a lot to improve, as the bank’s online reviews aren’t all positive: customers have had their shares of dissatisfaction, just like the employees, which also have mixed opinions of the work environment and culture.
On a more recent note, the rumors of a merger with Deutsche Bank have been dismissed by the Commerzbank CEO: the bank will stay an independent player on the market. This further means that the bank will continue trying to achieve its set goals, which may stabilize profit and returns that have been quite volatile over the past years.