Buy Commerzbank shares or not? Our future forecast 2022!

Christina Clarke
October 5, 2021
What does this mean for shareholders who want to buy Commerzbank shares and hold them in short to medium term?
Buy Commerzbank shares or not? Our future forecast 2021!

Is it worth betting on Commerzbank shares? Suppose you take a closer look at the bank, which was founded in 1870. In that case, it is noticeable that shareholders did not have excellent times due to the strongly fluctuating and overall rapidly falling Commerzbank share prices. 

In Southern and Eastern Europe in particular, Commerzbank can again fall back on more than five million customers. What does this mean for shareholders who want to buy Commerzbank shares and hold them in short to medium term? What are the greatest advantages of the share, and what are the bank’s prospects? What strategies is the bank striving to achieve to drive up Commerzbank shares and overall profit?

Table of Contents

What should you look out for when buying Commerzbank shares?

You should pay attention to the following points when buying Commerzbank shares:

  • Why should you invest in Commerzbank shares? Almost all stock market experts agree that the Commerzbank share is undervalued. Thus, one can assume that the share price will continue to rise.
  • Where can you buy Commerzbank shares? Commerzbank shares can be bought from any online broker. It’s also present in South Africa. However, we recommend our test winner broker Capixal. In our opinion, Capixal is the absolute best stockbroker, as you can buy stocks and ETFs here completely free of charge.
  • What could the future of Commerzbank shares look like? We look to a promising future with high returns and a further increase in the share price.

Broker comparison: buy Commerzbank shares

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4.9/5
250
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  • Forex 40 +
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85
2
4.5/5
250
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254
82
3
58
4.9/5
250
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480
80
3
50
Step by step instructions for buying Commerzbank shares:

Step 1: Select provider

How can you invest in Commerzbank shares? The Commerzbank share investment is quite simple. First, it is best to use one of the numerous online brokers. Second, it is generally very easy to buy all kinds of stocks – including those with a Commerzbank connection.

The registration is done within a few minutes, and in most cases, you can start trading within a short period. However, you should first think carefully about which Commerzbank share you want to invest in.

It is worthwhile to evaluate the companies calmly because you should always analyse exactly where you are investing very hard-earned money. Then, after the decision, you can place a buy order with most exchanges within a few clicks.

The favourite Commerzbank share can be bought very easily. But, of course, you also have to make sure that you choose the right time to buy. For this, it is worthwhile to keep an eye on the overall market.

With our test winner Capixal, valid EU regulation meets fair prices and a sophisticated platform. We, therefore, recommend our test winner Capixal for the purchase of Commerzbank shares.

 

Capixal

Step 2: Registration with the desired provider

Most trading platforms require various login details. This is by no means intentional discrimination against investors. Rather, EU guidelines are implemented here, which ultimately benefit the safety of traders.

The following information must be provided with almost all brokers: name, email address, address, date of birth and telephone number.

Step 3: verification

The verification of the data is simply part of online trading. There should be no reputable trading platform that does not rely on this procedure. As a rule, the entire registration process should work very quickly.

However, the providers carefully check all submissions, so it can sometimes take longer in individual cases. In most cases, the following documents are requested for verification: copy of ID, address confirmation, confirmation of email address/telephone number, proof of income.

Step 4: Deposit money to buy Commerzbank shares

If you use our test winner, an exceptional payment method is available to you: PayPal. But credit cards, transfers or alternative payment methods are also available in other ways.

Here is an overview of all payment methods that are available at Capixal:

Payment optionPossible?
Buy Commerzbank shares with a credit card✔️
Buy Commerzbank shares with PayPal✔️
Buy Commerzbank shares with Skrill✔️
Buy Commerzbank shares with bank transfer✔️
Buy Commerzbank shares with Neteller✔️
Buy Commerzbank shares with UnionPay✔️

Step 5: Buy Commerzbank shares

When the amount paid in has arrived in the account, trading can begin. On this page, you will find numerous references to interesting values ​​from very different areas of the industry. It is best to use the provider’s demo mode for test trading.

Congratulations, you have just successfully bought your first Commerzbank shares.

Commerzbank share price (price), dividend, target price and key figures for 2021

Share price & key figures

The Commerzbank share key figures are generally not alarming at the moment, as already mentioned above. Moreover, the prospects of a price increase are undoubtedly high given the current valley of fewer than seven euros. However, it is unclear whether it will be enough for a secure position at the top of the DAX in the long term.

If you believe in the seriousness of Commerzbank to reform itself and make profits through new ways – for example, through the OnVista portal it has taken over – you should consider investing in Commerzbank. In the Commerzbank share pros and cons comparison, the bank undoubtedly has many plus and minus factors. However, according to forecasts of numerous Commerzbank shares, the international company has unquestionably growth potential.

Commerzbank share dividend 2016 to 2021

Dividend per shareReturn in%year
* € 0.03* 0.482021
0 €02020
0 €02019
€ 0.203.462018
0 €02017
0 €02016

In 2020, Commerzbank did not distribute a dividend due to the Corona crisis. However, the stock can go up sharply in value (as well as the dividend), provided that various factors speak for it and the management’s strategy continues to work as desired.

Commerzbank share news & history

When Commerzbank was founded in 1870, where to buy shares was the question for many interested parties. As a result, interest in the bank proliferated. Within a few decades, the bank had a relatively dense network of branches in various countries. Moreover, many shareholders were then interested in Commerzbank shares where to buy because the company continued to grow.

Thanks to the great history of Commerzbank shares, the company has a lot of experience and know-how in banking operations. This is sometimes why many people are now asking Commerzbank how to buy shares, as the company has enormous human capital.

Commerzbank shares – buy or sell?

  • Undervalued stock
  • Currently increasing value
  • Low profitability
  • Currently, low yield increases possible

Buy Commerzbank shares or not Our future forecast 2021!

Commerzbank share: arguments to buy Commerzbank shares

Commerzbank has had a turbulent time; shareholders have not seen any money rain in recent years. In 2008 the company got into severe difficulties due to the financial crisis, which resulted in a massive drop in Commerzbank share prices.

In the meantime, however, the bank has reached the end of the downturn. It has presented a growing Commerzbank share price in recent months and shows a moderate profit in 2018. So what are the main reasons why shareholders buy Commerzbank shares now?

Countercyclical buying behaviour. In 2007 the Commerzbank share price climbed to over 185 euros. Shareholders were also able to benefit from the high Commerzbank share dividend. Although, with the arrival of the financial crisis in 2008, the Commerzbank share dividend fell to zero, the value of the share sank to less than 15 euros by January 2009.

But even then, things did not improve for the share. The worst Commerzbank share prognosis came true. A few years later, the bank had to duplicate its shares to not drop in value below one euro and thus become a “ penny stock ” share. But the shares stabilised and at the beginning of 2016 were worth around seven euros. After a small uphill and downhill run, the share is back at around 6.50 euros.

From an investor’s perspective, the current low after a downturn is a clear sign that things will look up again in the future – after all, the company has substance and capital. This is also shown by the Commerzbank share key figures. The company made a profit of 0.68 euros per share. Given the loss-making years before that, this is an important step upwards. But other Commerzbank share key figures are also noteworthy. The P / E ratio (price-earnings ratio) is 8.41. In 2020 the factor should only be 5.84.

Management strategy and credit reduction

Commerzbank has had a new CEO, Martin Zielke, since 2016. That might sound unspectacular, but it ushered in a completely new strategy. While the commercial bank in the years before often seemed conceptless and was also perceived as such by stock market experts, Zielke created a new strategy. The goal now is growth through a larger customer base.

With what success has Commerzbank done this so far? By the end of 2017, the company had already managed to generate more than 690,000 new customers. The stated goal of the Executive Board is to create two million new customers by 2020. However, the strategy of the Zielke board is not without controversy.

After all, acquiring new customers costs a lot of money. But the large number of new customers that were won within a comparatively short period is a clear indication of the dynamism and growth potential of the group.

The bank has terrible loans, for example, in the container shipping industry. However, this has been known for years and was largely incorporated into the Commerzbank share price. To this end, Commerzbank is now busy reducing its bad loans and is striving to sell non-repayable loans quickly. As a rule, of course, this is a losing proposition for the bank. As a result, however, Commerzbank is reducing the bad loans much faster than originally expected.

As a result, the bank incurs fewer additional costs, and the trustworthiness of the company increases because assets and liabilities are more calculable. A clear advantage for shareholders in the Commerzbank share pros and cons comparisons.

The state as the largest shareholder

Commerzbank is relatively safe from total bankruptcy and the closure of the company for several reasons. This is not just the importance of Commerzbank as one of the largest banks with more than 18 million customers in total. 

The state has a 15 per cent stake in Commerzbank, which makes it the largest shareholder in the bank. So even if Commerzbank were not liquid, there would be an almost 100 per cent chance of a bank bailout by the state.

Sell ​​Commerzbank shares? Sell ​​arguments

Should you sell your Commerzbank shares? Quite a few investors who are unsure about the Commerzbank share price and their future are asking this question. Specificinitially, Commerzbank points are undoubtedly critical. This is mainly due to the recent history of Commerzbank shares. It has been marked by numerous low blows and has not distributed any profits or stock dividends for years.

Commerzbank still has a significant amount of bad loans. These were given to companies in the shipping industry. However, since 2008 the industry has been in a massive, constant crisis. Due to an oversupply of container ships and, in some cases, unfavourable raw material prices, the number of insolvent companies in the shipping and container ship industries is increasing enormously.

While Deutsche Bank was the largest lender, Commerzbank was at least one of the largest lenders. 

It is not known how much of the debt Commerzbank bears from this. While debt reduction programs are underway, it is clear that they will end in losing deals. Commerzbank clearly shows that a terrible end can sometimes still be better than a (guilt) horror without end.

Acquisition of new customers and branch density as a business strategy

The acquisition of new customers as an economic strategy of CEO Zielke is not without controversy. The costs are high: Commerzbank costs around 180 to 200 euros to acquire a new customer. These are expenses that only pay for themselves after 18 months of membership.

There is an internal charge that many customers have no intention of being a long-term member of Commerzbank and are only interested in the bonuses when they register. Therefore, they would log out later. CEO Zielke denies this. There are only a few exceptions.

For many shareholders and company analysts, the density of branches at Commerzbank is one of the reasons why Commerzbank has barely made any profits in recent years. The private customer director Michael Mandel emphasises, however, that these are used regularly.

He even emphasises: “We are currently also looking for locations where we can open new branches.” Commerzbank has more than 60 branches in Berlin alone. Although the number of customer visits to the branches is not decreasing despite the Internet, the situation is pronounced. The high number of branches causes high costs and has to be reduced in the coming years. The fact that the company management rigorously rejects this does not speak in favour of Commerzbank.

Investing in Commerzbank shares – yes or no?

Should you buy Commerzbank shares? A Commerzbank share investment could undoubtedly be worthwhile. However, a Commerzbank share investment would undoubtedly not be a 100 per cent sure thing. You can already see that in the Commerzbank share history, but this is also illustrated very well by the Commerzbank share price, which has fluctuated over the past few months. Commerzbank undoubtedly currently has the chance to write larger profits again and to become a safe equity investment.

But that is far from certain. It is unclear whether the customer acquisition strategy will prove to be financially viable in the long term. It is also unclear whether Commerzbank can keep the dense structure of branches or save to “shrink back to health” in the future. It is also a fact that the bank will undoubtedly have to cut jobs in some cases to be competitive in the future.

Buy Commerzbank shares or not Our future forecast 2021!

Fees when buying Commerzbank shares

We compare the fees of the largest brokers with the following example:

  • Purchase of a Commerzbank share valued at € 1,000
  • Hold the Commerzbank share for one month and then sell
  • No course changes in the 30 days

With these assumptions, we now compare the fees of Libertex, Capixal & Plus500 :

providersLibertexCapixalPlus500
Depositfor freefreefor free
Purchase fees€ 2.20free3.08%
Holding feesfor freefree0.05%
Sales charges€ 2.20spreads3.08%
Total fees€ 4.40Reasonable€ 92.32
Conclusion

As a share, Commerzbank is undoubtedly a risky bond that can be worthwhile at times. For investors with a medium to high-risk appetite, Commerzbank can undoubtedly be a suitable investment. Even if the dividend is currently low, the stock sometimes has the potential for great growth. The prerequisites for this are good earnings, a continued functioning business strategy and no major scandals. It is expanding in the South African market, and people are receptive to its services. 

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FAQs

Commerzbank can be interesting for investors due to its growth potential. However, dividends will be low in 2019.

The internationally operating company is listed on the German stock market. However, the company can be traded worldwide.

You can easily invest in Commerzbank through numerous online brokers. This works across a variety of platforms and does not require any prior knowledge.

Third Reich. In 1937, the nationalized shares were then transferred back to private shareholders. In 1940, the name Commerzbank Aktiengesellschaft, which had already been used in public, was adopted and the logo changed to “C” with side wings.

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