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Commerzbank vs BNP Pariba

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Kirill Somov

on 14 November 2013

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Transcript of Commerzbank vs BNP Pariba

Commerzbank vs BNP Paribas

Commerzbank AG is a German global banking and financial services company with its headquarters in Frankfurt, Germany. It is the second-largest German bank after Deutsche Bank.
Part 1
BNP Paribas
BNP Paribas is a French bank and financial services company with headquarters in Paris and a second global headquarters in London.It was formed through the merger of Banque Nationale de Paris (BNP) and Paribas in 2000 and is one of the largest banks in the world.
Part A
2012 2011

ROE 6,71% 7,09%
ROA 0,32% 0,31%
Equity multiplier 20,992 22,952
Asset Utilization 1,52% 1,65%
Profit margin 0,2099 0,1866
Expense/Revenue 0,7901 0,8134
Revenue to assets 0,0152 0,0165
Leverage ratio 19,9925 21,9519
Interest Coverage -0,4953 -0,4922
Current ratio 2,9308 1,8239

Part B
2012 2011

Cash Ratio 29,6222 10,9008
Dividend Payout Ratio - -
Loans to Deposit Ratio 1,1982 1,2188
Funding Diversification
Liabilities to banks 4708 2462
Liabilities to customers 1074872 1092568
Cost-to-Income Ratio -0,6342 -0,5724
Net Interest Margin 0,0083 0,0090
Net Interest Income 32308 35378

Comparison analysis
Commerzbank is mainly active in commercial bank, retail banking and mortgaging. Commerzbank holds a nationwide network of branch offices throughout Germany and numerous branch offices in the EU and Europe (namely London, Luxembourg, Poland, Spain and Switzerland) and with a leading market share in online banking.
Based on 2012 information BNP Paribas was ranked as the fourth largest bank in the world, as measured by total assets.The firm is a universal bank split into three strategic business units: Retail Banking, Corporate & Investment Banking and Investment Solutions (which includes Asset Management, custodial banking, and real estate services).
1)The main difference between them, that BNP Paribas is thinking more global and it is represented in a significant number of foreign countries like Italy, North America, Belgium and in other West and Eastern European countries.
Qualitative assessment:
We observe that Commerzbank has ROE 0.40% and BNP Paribas 6.71%. And in this case BNP Paribas are far ahead.
Commerzbank has 0,017% and BNP Paribas 0,32%. Well, that’s another key ratio, especially it is useful when we compare two companies from one industry and here they operate both banks and operate in the financial industry.
Based on Jim Harvey's speech structures

2012 2011

ROE 0,40% 3,01%
ROA 0,017% 0,113%
Equity multiplier 23,52 26,68
Asset Utilization 0,0156 0,0149
Profit margin 0,0110 0,0755
Expense/Revenue 0,9890 0,9245
Revenue to assets 0,0156 0,0149
Leverage ratio 21,8862 24,9058
Interest Coverage 0,1003 0,0477
Current ratio 0,6662 0,6494
Part 2

2012 2011

Cash Ratio 1,0532 1,0900
Dividend Payout Ratio - -
Loans to Deposit Ratio 1,0478 1,1615
Funding Liabilities to banks 11723 -39144
Diversification Liabilities to customers 10534 -7483
Cost-to-Income Ratio 0,7095 0,8082
Net Interest Margin 0,0087 0,0102
Tier 1 17706 17321
Tier 2 37580 38401
Revenues 9901 9889

Commerzbank's Ratios
BNP Paribas's Ratios
2)According to the banks Commerzbank doesn’t pay dividends at all since 2008, that might be the result of World Crisis in the age of 2008-2009 and its bad consequences. BNP Paribas in his turn showed 1.50 euro per share which is relatively good example. This will motivate shareholders to hold company’s shares in the future.
BNP Paribas - 0,0083 margin and 32308 income,
Commerzbank 5539 income and 0,0087 margin.
Net interest margin and net interest income.
Thank you for your attention
Ovchinnikova Ksenia
Ramilison Livia
Ponomarev Dmitriy
Somov Kirill

Tips for the would be investor

BNP Paribas Commerzbank

Dividends Per Share – 0.81 Dividends Per Share - 0
Earnings per Share – 1.57 Earnings per Share – 0.18
P/E Ratio – 7.48 P/E Ratio – 7.01
P/B Ratio – 0.52 P/B Ratio – 0.42
Full transcript