Commerzbank reported a record nine-month profit and confirmed its full-year target, even as deposit competition forced a trim to its interest income forecast.

Net profit for the first nine months rose 41% to €2.67 billion, a record for the period, while operating profit climbed 17% to €4.04 billion. In the third quarter, net profit jumped 45% to €859 million, operating profit rose 25% to €1.3 billion and revenue rose 9%.

The Frankfurt lender reaffirmed its target of at least €3.4 billion in net profit for 2026, with revenue of around €13.2 billion, a cost-income ratio near 53% and a return on tangible equity near 12%. But it cut its forecast for net interest income to about €8.5 billion from about €8.6 billion, blaming deposit competition.

Deposits walk away

Finance chief Carsten Schmitt said the bank had let about €3 billion of rate-sensitive call money leave in the quarter rather than match rivals' unusually high rates. It has since improved its offers for new call deposits and expects volumes to rise again.

The bank's common equity tier 1 ratio slipped to 14.2% from 14.4% in the second quarter, largely on market moves, but it still expects a year-end ratio above 14%. It has reserved €2.5 billion for shareholders so far this year and reiterated its aim to pay out all earnings.

UniCredit timetable

Commerzbank also set out the route into UniCredit's orbit. Further regulatory approvals are expected by the first quarter of 2027 at the latest. Chief executive Bettina Orlopp said the bank would first operate as a subsidiary of the Italian group, with a deeper HypoVereinsbank merger possible. She described the talks as constructive.

RBC Capital Markets cut its price target to €39 from €41 after the update, and the shares were down 0.8% on Friday.