Commerzbank Ag Net Income jumped on 454% while Revenue decreased on 6.8%
14 Feb 2019 • About Commerzbank Ag (
$CZB) • By InTwits
Commerzbank Ag reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- Commerzbank Ag is a company in decline: 2018 revenue growth was -6.8%, 5 years revenue CAGR was -5.7%
- The company has potentially unprofitable business model: ROIC is 0.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.3x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 6.8%.
Net Income margin increased on 5.5 pp from 1.1% to 6.6% in 2018. The efficient tax rate was 23.7% in 2018.
Investments (CAPEX, working capital and M&A)
Commerzbank Ag has spent €5m on M&A in 2018 which accounts for 0.038% of revenue.
Return on investment
The company operates at low ROIC (0.7%) and ROE (3.1%). ROIC showed almost no change in 2018. ROE increased on 2.6 pp from 0.54% to 3.1% in 2018.
Leverage (Debt)
Debt decreased on 9.4% while cash decreased on 3.3%.
Commerzbank Ag has short term refinancing risk: cash is only 52.9% of short term debt.
Management team
The company's CEO is Martin Zielke. Martin Zielke has 3 years tenure with the company. CEO total compensation was €1,687,000 in 2018 which included €1,313,000 salary and €161,000 annual bonus. Stephan Engels is a the company's CFO. Stephan Engels has spent 7 years at the company.
At the end of financial year the company had 49,410 employees. Average revenue per employee in 2018 was €265,979.
Financial and operational results
FY ended 31 Dec 2018
Commerzbank Ag ($CZB) key annual financial indicators| mln. € | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 16,149 | 16,080 | 14,645 | 14,107 | 13,142 | -6.8% |
| Tax | | | | | 268 | |
| Net Income | 266 | 1,084 | 279 | 156 | 865 | 454.5% |
Balance Sheet
|
|---|
| Cash | 4,897 | 28,509 | 34,802 | 55,733 | 53,914 | -3.3% |
| Short Term Debt | 49,392 | 52,045 | 33,261 | 105,379 | 101,907 | -3.3% |
| Long Term Debt | 86,309 | 76,390 | 71,283 | 58,309 | 46,389 | -20.4% |
Cash flow
|
|---|
| Capex | 735 | 252 | 362 | 889 | | |
| Acquisitions | | | | | 5 | |
Ratios
|
|---|
| Revenue growth | -8.2% | -0.4% | -8.9% | -3.7% | -6.8% | |
|
|---|
| Net Income Margin | 1.6% | 6.7% | 1.9% | 1.1% | 6.6% | 5.5% |
| CAPEX, % of revenue | 4.6% | 1.6% | 2.5% | 6.3% | | |
|
|---|
| ROIC | 0.3% | 0.9% | 0.3% | 0.2% | 0.7% | 0.5% |
| ROE | 1.0% | 3.9% | 1.0% | 0.5% | 3.1% | 2.6% |
People
|
|---|
| Employees | | | | | 49,410 | |
| Revenue/Employee, th. € | | | | | 266 | |
Peers in Banks
Below we provide Commerzbank Ag benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| European Islamic Investment Bank ($EIIB) | 42.3% | -4.1% | -63.9% | 232.5% | |
| Halyk Savings Bank Of Kazakhstn JSC ($HSBK) | 16.3% | 19.5% | 16.4% | 59.5% | |
| Zenith Bank ($ZENB) | | 6.8% | 17.9% | 46.7% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 26.8% | 27.0% | 46.4% | 28.9% |
| TCS Group Holding ($TCS) | 11.5% | 10.6% | 34.0% | 33.7% | |
| |
|---|
| Median (43 companies) | 11.1% | 4.0% | 3.9% | 4.5% | 14.9% |
|---|
| Commerzbank Ag ($CZB) | | -0.4% | -8.9% | -3.7% | -6.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Lloyds Banking Group ($LLPC) | 13.1% | 13.6% | 14.5% | 14.5% | |
| Banco Santander Sa ($BNC) | 8.9% | 10.2% | 9.1% | 10.0% | 14.7% |
| Bcb Hldgs Ltd ($BCBW) | 5.4% | 2.5% | 3.0% | 7.3% | 5.9% |
| Royal Bank Of Scotland Group ($RBS) | 4.1% | 4.6% | 5.6% | 7.1% | |
| Diamond Bank ($DBPA) | 6.0% | 6.7% | 6.2% | 7.0% | |
| |
|---|
| Median (39 companies) | 2.0% | 2.6% | 2.0% | 1.8% | 1.2% |
|---|
| Commerzbank Ag ($CZB) | 4.6% | 1.6% | 2.5% | 6.3% | |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| TCS Group Holding ($TCS) | 6.7% | 3.4% | 22.5% | 31.8% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 30.1% | 30.3% | 28.0% | 25.3% | 25.4% |
| Guaranty Trust Bank ($GRTB) | 17.8% | 16.0% | 17.4% | 18.3% | |
| Sberbank Of Russia ($SBER) | 4.8% | 4.0% | 9.4% | 13.0% | |
| Zenith Bank ($ZENB) | 15.0% | 11.2% | 11.1% | 11.4% | |
| |
|---|
| Median (43 companies) | 4.4% | 3.5% | 4.6% | 4.6% | 4.5% |
|---|
| Commerzbank Ag ($CZB) | 0.3% | 0.9% | 0.3% | 0.2% | 0.7% |
