Commerzbank (CBK) investor relations material

Strategic direction and integration plans

• Entering a new phase with a two-stage path: initial collaboration followed by consolidation, pending regulatory approvals expected by early next year.

• Three structural options for integration are under consideration, all requiring a 75% AGM majority, highlighting the government's pivotal role.

• Phase I will focus on leveraging group synergies while maintaining independent strategies and ambitious targets for 2028 and 2030.

• Integration with HVB in phase II will require further shareholder alignment, especially with government involvement.

• Clarity for clients and staff is prioritized to maintain loyalty and focus during the transition.

Financial performance and guidance

• Confident in achieving EUR 3.4 billion net income for 2026, with restructuring costs mainly booked in 2027.

• Net interest income guidance of EUR 8.6 billion for 2026 remains valid, supported by favorable forward rates and replication portfolio benefits.

• Fee income has grown over 7% for three consecutive years, with further growth expected from lending, payments, and potential pension reform effects.

• Asset quality remains stable, with cost of risk guidance at EUR 850 million and no significant concerns about defaults.

• Capital return policy targets 100% payout, with a mix of dividends and share buybacks, supported by a strong CET1 ratio.

Market environment and operational focus

• German economic outlook is improving, with GDP assumptions rising to 1.2% and positive signals from ifo and PMI data.

• Lending growth is stronger internationally and in the public sector, while domestic lending remains subdued.

• Deposit competition is intense, but a balanced approach is maintained to avoid unsustainable offers and manage deposit beta.

• International network is a key differentiator, especially for medium-sized corporates seeking global support.

• AI adoption is advancing across the organization, driving innovation and efficiency, but also increasing cybersecurity investments.