My second German bank arrived with their report for the full year 2015. By the look of it Coba has now managed to turn the ship around and things are looking better. Not only are they bringing home more earnings but they are even claiming to move some assets that was entered in the Non-Core-Assets (=all the dangerous high risk stuff that they had in their books) back to the normal business. I do not remember what the market response was to the report but generally banks and German banks in particular are strongly disliked by the market today.
For the report in full then please click here and for the previous brief summary then please visit Coba report Q3 2015 and to find out more about Commerzbank then please go to analysis of Coba 2015 (a new one will arrive shortly).
When we take a look at the financial statement below then one must yet again conclude that they are still dropping on the interest income. This year they are -7% which is a trend I really want to see changed! The Cost/Income ratio for the full year was at 73% which they also need to improve but compared to DBs 115% they are still doing well. Happily they have managed to decrease their costs by almost -15% and when all is said and done then around 1.2 billion € drops out in earnings.
Conclusion: From my point of view Coba has now reach the turn around point. There are still problems but they are getting less and less and much is speaking for that the turnaround is here. Bringing back assets from the NCA, managers decide that they can walk away into retirement, third year with increased earnings, decided to pay dividend etc. The interesting thing from my point of view is that even though the company is going in the good direction the share price have gone in the other direction as have their S&P, Fitch and Moody's rating. I will remain as a shareholder and with one or two good quarter reports and an upgrade in the rating then I think 2016 can become an interesting year.
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