Commerzbank Jumps After Passing ECB’s Asset Review, Stress Tests

Shares in Commerzbank AG, Germany’s second-largest lender, gained the most in nearly a year in initial trading after passing the European Central Bank’s stress test and asset quality review.

Commerzbank rose as much as 9.5 percent, the biggest intraday increase since Nov. 7, 2013, and traded up 4.8 percent at 12.34 euros at 9:21 a.m. in Frankfurt. The benchmark Bloomberg Europe Banks and Financial Services Index was 0.4 percent higher. Commerzbank shares have more than doubled from a record low of 5.56 euros during the second half of 2013.

Commerzbank shares are among the European banks that “should react most positively as the level of valuation largely reflected risk of failure,” analysts at Exane BNP Paribas, including Jag Yogarajah, said in a note yesterday.

The lender passed the ECB’s asset review with a Tier 1 capital ratio of 10.84 percent and emerged from the most onerous stress test with 7.96 percent. A minimum CET1 of 8 percent and 5.5 percent was needed respectively.

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