The banking and finance sector is, both in Europe and worldwide, an investment sector that attracts many investors, since some renowned groups offer strong capitalisation and a wealth of financial and economic data useful for analysis. This is the case of the German group Commerzbank, whose activity and how to carry out a historical analysis of its share price on the stock market will be presented here in more detail.
First of all, the Commerzbank Group's efforts to further expand its market expansion will be closely monitored. In particular, partnership transactions with other banks are very important from a strategic point of view and with the aim of expanding Commerzbank's range of offers or reaching new customers.
Geographically, Commerzbank still has a card to play when it comes to conquering the Asian and American markets. We will therefore carefully scrutinise all news in this direction, such as strategic acquisitions of local banks or alliance operations with banks well established in these geographical areas.
Of course, as with all securities in the banking sector, you will have to follow closely the evolution of Euro zone regulations, which still have a very strong influence on stock market securities in this area.
Similarly, the economic situation in the euro zone and the current decline in growth in this sector will have to be carefully analysed in order to anticipate the negative or positive impact this will have on the results of the banking sector and thus indirectly on the Commerzbank share price.
Commerzbank is one of the largest banking groups in Germany with a rapidly growing turnover, which today puts it in the spotlight on the stock exchange scene. Its activities cover various areas such as corporate banking with the financing of public and private projects, market banking, but also retail banking, private banking and asset management.
The group currently manages several hundred billion deposits and loans in Germany, but also throughout Europe, Asia and America.
The Commerzbank share price is an integral part of the calculation of the German benchmark index, the DAX 30, and has been rising steadily over the past few years. Its results are still positive, with a rising return per share since 2012.
The German banking group Commerzbank is currently one of the leaders in its sector in Germany and is also trying to make a place for itself on the European market by developing its establishments in other countries of the Euro zone. But whether at national or European level, it is of course facing competition to a greater or lesser extent. It is therefore very important to know the group's main competitors in order to better assess the possibilities of a rise or fall in its share price on the stock market. Indeed, without this comparison and study of the competition, you will not have all the information you need for a complete fundamental analysis.
At a national level, Commerzbank's main competitor is of course the Deutsche Bank banking group, which is currently the leader in this market. But there is also DZ Bank, which is third in the ranking.
At the European level, the leader remains the French banking group BNP Paribas, which is therefore Commerzbank's main competitor.
The Commerzbank Group has often set up partnerships in order to boost its market presence and win new customers. Here are the most important partnerships of this company.
Since 2010, it has been a partner of BNP Paribas in the field of personal loans in Germany. This partnership was renewed in 2016 to develop consumer credit in the country.
In 2013, Commerzbank also signed a partnership with AXA for the financing of intermediary companies.
In 2014, two European banking groups, Santander and Société Générale, are interested in a partnership with Commerzbank through the purchase of a 17% stake still held by the Federal Republic.
Firstly, what is undoubtedly one of the Commerzbank Group's greatest strengths today is its strong positioning in its home country. Indeed, Commerzbank is now the second largest bank in Germany, which makes it one of the most attractive and well-attended German banking securities of the moment. This positioning has been made possible in particular by the banking group's creation of a very large network of branches and subsidiaries throughout the country.
The Commerzbank banking group also enjoys a very strong reputation among the country's businesses. The bank was voted best bank by German SMEs, which makes it easier for it to win new customers thanks to its excellent brand image.
Commerzbank and its stock are obviously attractive to shareholders and investors thanks to the very large customer base of this banking group. To date, Commerzbank has more than 15 million private customers and over one million corporate customers worldwide, not just in Germany.
Another strong point of the Commerzbank Group is its strategic positioning in the market for new technologies. Commerzbank is currently Germany's leading online bank, which will enable it to gain even more market share and customers.
First of all, Commerzbank's biggest shortcoming according to the major economic analysts in this sector concerns the distribution of the banking group's activities. Indeed, today, the vast majority of the group's revenues come from retail banking activities, while investment banking activities remain largely a minority. This therefore entails a significant risk of losses in the event that the retail banking sector suffers a certain recession. Moreover, it has been proven that investment banking activities are often more profitable and therefore more attractive in the long term.
Finally, the second and last major weakness of the Commerzbank group this time concerns its difficulties in positioning itself in markets other than the German market. Indeed, Commerzbank is barely able to operate in some European countries but is struggling to gain market share elsewhere in the world. In particular, we regret its lack of presence in Asian countries, which are recognised as very buoyant emerging markets, as well as in most American markets. Due to this poor geographical distribution of its activities, Commerzbank remains closely linked to the German market on which it depends heavily and is therefore exposed to a very significant geo-economic risk.