economy banking industry
Commerzbank expects the real estate business to revive
Status: 01:01 | Reading time: 2 minutes
Commerzbank board member Thomas Schaufler
Source: Alexandra Lechner/Commerzbank AG
The mortgage lending business has declined significantly due to the normalization of interest rates. But Commerzbank private customer board member Thomas Schaufler believes that the dry spell will end soon. He rejects allegations that the banks are too slow in passing on rising interest rates to customers.
Commerzbank assumes that business with private real estate financing will pick up again in the foreseeable future. “We are currently registering a stabilization, albeit at a low level compared to the record year 2021,” said Thomas Schaufler, responsible for private customer business, at WELT AM SONNTAG.
Construction financing remained a core business for the institute. He does not see that purchases are currently “should be impossible”. For a stronger return in demand, however, prices would have to fall further.
“Even if they are currently declining, they are still at a high level. But a new balance will be found and then business will pick up again,” said Schaufler.
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In the coming months, the Management Board expects a higher number of loan defaults. “The rate will normalize,” said Schaufler. So far, the bank has not seen any significant increase in consumer loans or real estate financing in private customer business. High loads are not to be expected.
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“We feel very comfortable with our portfolio. We have a very good risk profile and are adequately secured,” said the Commerzbank board member. In addition, the bank does not see how customers may get into payment difficulties because of higher interest rates for real estate loans.
“We are already addressing those who are foreseeably going to be tight so that they can take countermeasures in good time and secure the current interest rate level,” says Schaufler.
Development of deposits at Commerzbank “in line with expectations”
In the deposit business, Schaufler promised further increases in interest rates. “The demand for credit interest will increase. And we will react to that as well as to further increases in interest rates,” he said. He rejected accusations that the banks were reacting too slowly.
“Banks have paid fees for deposits for many years and have only partially passed this on to customers at a very late stage. The reaction to the rapid and sharp rise in interest rates cannot consist of passing it on immediately and in full,” said Schaufler. Commerzbank deposits developed “overall in line with our expectations”.
In its branch network, the bank has now reached the targeted level of around 400 branches. She will only know at the end of the year how many customers she has lost due to the numerous closures of locations. “As of today, it is significantly less than expected,” said Schaufler.
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