Monday 9 April 2018

Coba annual report 2017


Front page of Commerzbank annual report 2017

For the report in full then please click here and for the previous brief summary then please visit Coba annual report 2016 and to find out more about Commerzbank then please go to analysis of Coba 2017.

The only thing that kept entering my mind when reading the report from Commerzbank was "Ops, I did it again... etc. etc.". I seriously do not know for which year in a row that the revenue has decreased. It is a never ending story. They claim that the restructuring is now finally done. Do I believe that? No, I do not. Give them another month and it will be time for a new restructuring plan. They congratulated themselves for the growth of mBank in Poland. It grew so well during 2016 and even better in 2017 that... was only slightly hampered by the loan losses. Ok, to me that means that they are growing like crazy by giving loans and credit to people that are at high risk. So the "growth" from 2017 will be punished in 2018. It is sad, sad, sad to read these kind of things.

Looking at the financial statement below then we see that the interest income dropped, happily so did the expenses and the bottom line is a sad story of only 154 millions in profits which is 44% less than the earnings in 2016. Well done! Pad on the shoulder and all that.

Financial statement from Commerzbank 2017

Conclusion: Commerzbank have not managed to sort out their shit in pretty much 10 years now since the financial crisis. Should they be allowed to survive when they are so incompetent? Swedish banks, please step into the German market to push this German incompetence to either die or be truly forced to improve improve. I will remain a grumpy shareholder.

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