Shares of Commerzbank remain upward-trending, copper prices take a dip
In an unexpected turn of events, the German banking giant, Commerzbank, saw its shares soar to new heights on Thursday, despite a decline in the Dax and a historic drop in copper prices.
The Commerzbank stock, which closed at 32 euros on Thursday afternoon, has more than doubled in value this year. This sudden increase is primarily driven by the bank's strong financial performance and positive outlook, as revealed in its Q2 2025 results.
Commerzbank recently hit a new 52-week high in its stock price, reaching €38.66. The bank's Q2 results showed strong operating income of €1.2 billion (up 34% year-over-year) and efficient cost management with a 56% cost-income ratio under its "Momentum" strategy.
Despite a 14.1% drop in net profit for Q2, Commerzbank increased its operating profit by 34% and revenues by 13.2%, mainly due to higher net commission income. This performance has led to a revised full-year 2025 net result outlook for the bank, which now stands at approximately €2.5 billion.
International expansion, especially through its subsidiary mBank, has also contributed to profit diversification and resilience. These positive internal financial metrics and strategic management decisions have insulated Commerzbank’s stock from broader market declines and unrelated commodities like copper, which do not directly affect the bank's fundamentals.
Meanwhile, the S&P 500 and Nasdaq 100 hit new records in early Thursday trading, but the Dax closed down 0.8% at 24,065 points. Elmos shares fell 7.7% on earnings in the SDax.
The US government's announcement that raw copper will be duty-free, contrary to expectations of a 50% US import duty from August 1, did not seem to have a significant impact on the copper price at the New York Commodity Exchange (Comex), which experienced a historic 22% drop in a single day.
Interestingly, the positive earnings reports from tech giants Meta and Microsoft on Wednesday evening did not boost European stock markets. Meta shares rose 12.7% on Thursday, while Microsoft shares rose 5.8%.
Airbus stock fell back by 1.1% by late afternoon, despite being on track to meet its targets for the year. Ceconomy shares gained 2.1% to 4.44 euros on a takeover offer from China, but remained below the offer price of 4.60 euros.
In summary, the stock rise for Commerzbank reflects the operational strength, dividend boost, strategic transformation, and improved earnings outlook of the bank, rather than general market or commodity trends.
Commerzbank's stock rise is primarily driven by its strong financial performance and positive outlook, as demonstrated in its Q2 2025 results (finance). The bank's improved earnings outlook has insulated its stock from broader market declines and unrelated commodities like copper, which do not directly affect the bank's fundamentals (finance).
