Commerzbank announced that the European Central Bank (ECB) has set slightly higher bank-specific capital requirements for the group in 2024. The additional capital requirement for Pillar 2 (P2R) increases by 25 basis points to 2.25 percent of total capital. Of this, at least 1.27 percent must now be covered by Tier 1 capital, compared to the previous requirement of 1.125 percent.
The total requirement for core capital for Commerzbank at the group level as of September 30, 2023 amounts to 10.27 percent of risk-weighted assets. This is significantly higher than the market average CET1 ratio of 14.6 percent as of September 2023. Commerzbank has incorporated these requirements into both its strategic planning and its target equity ratio of 13.5 percent.
The Commerzbank share increased moderately by 0.14 percent to 11.02 euros after trading hours via Tradegate. Nevertheless, the financial institution continues to maintain a strong position in the market, as evidenced by its high CET1 ratio.
This slight increase in capital requirements shows the constant vigilance of the ECB regarding the stability of the European banking landscape. However, for Commerzbank, this does not pose a challenge as it is well positioned to meet the requirements.
The amount of equity that the company already possesses allows room for further developments in the future, which strengthens the confidence of investors.
In summary, Commerzbank is well positioned in terms of the upcoming capital requirements and has already taken measures to meet them. This is also evident in the solid performance of its stock in the aftermarket. Therefore, the company remains an attractive investment for investors looking for a secure and stable bank.
