Sunday, May 22, 2016

Coba report Q1 2016


Coba, Q1, 2016, front page

The share price of Commerzbank have been drifting downwards for the last couple of weeks so I therefore assume that the expectations on Coba were higher than what they managed to deliver. What was then in the report?


For the report in full then please click here and for the previous brief summary then please visit Coba annual report 2015 and to find out more about Commerzbank then please go to analysis of Coba 2016.

Commerzbank seems to have lost some of their steam. The start of this year was not good with a Cost/Income ratio going from 70% to 80%. This needs to be worked on! As you can see below also the interest income kept decreasing compared to Q1 2015 and I truly hoped that this negative trend had been broken but it is very clear that that is not the case. The costs were a bit tide up which is good but not enough considering the low income. The big ball changer is the net trading income... what this means is net trading gains or losses including fair value evaluation of for instance derivatives. To me that means that you bring out the magic eight ball and you shake it around a little to get those fair valuations of the derivatives. In the end... maybe... we shareholders earned 163 million €.




Conclusion: I cannot help but to feel that they continuously try to fool me when I read the reports from banks and I always wonder if they themselves know what they are doing. My guess is they do not. I will remain shareholder in Coba I am however back to being a little grumpy concerning their performance.

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