More NewsNew Commerzbank Credit Rating

New Commerzbank Credit Rating

Commerzbank has been assigned a Senior Debt Rating of AA- (Double A minus). For 1999, Commerzbank’s consolidated pre-tax profits rose 10.6%. The increase in the bank’s after-tax income was more subdued, stemming from a higher tax charge (after an unusually low level in 1998). In 1999, the bank’s revenue stream benefited from sizable growth in net commission income and higher trading results, while growth in net interest income was modest. Within total commission income, the strongest areas of growth were in the underwriting and asset management businesses. In 1999, the bank was able to reduce loan loss provisions by 22% due to lower international provisions. Growth in operating expenses was quite high, stemming from greater personnel costs (particularly in investment banking) and surging information technology costs. In 1999, the bank’s Tier I ratio remained steady while the Total BIS ratio improved. For 1Q00, Commerzbank’s pre-tax profits rose 27% from 1Q99, reflecting continued strong growth in net commission income, moderately lower loan loss provisions, and higher trading profits. Overall, Commerzbank remains on a sound financial footing, but its strategic position in a consolidating European banking market remains a question.

Related Articles

Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

2m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

3m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

3m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

3m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

4m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

4m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

4m Tasja Botha
FX for corporates: 5 best practices for treasurers

Economy FX for corporates: 5 best practices for treasurers

4m Mateo Graziosi