Side-by-side credit pricing comparison from Pillar 3 disclosures.
On a representative BBB+ EUR 25M 5-year term loan, Deutsche Bank is the cheaper lender by 7bp in minimum spread. For a EUR 25M facility, that's EUR 16,984 per year.
| Metric | Deutsche Bank Germany |
Commerzbank Germany |
|---|---|---|
| IRB approach | Mixed | Mixed |
| Cost-to-income | 64.0% | 57.0% |
| Effective tax rate | 26.8% | 27.6% |
| Avg corporate PD | 4.26% | 2.70% |
| Avg LGD unsecured | 31.1% | 39.7% |
| Avg LGD secured | 20.0% | 20.0% |
| Funding spread (bp) | 20bp | 22bp |
| Corporate EAD | EUR 244bn | EUR 92bn |
Both banks priced on the exact same deal — 150bp spread, 20bp commitment fee, 60-month maturity. Higher RAROC means the bank earns more from this deal. Lower min-spread means the borrower gets a better rate.
| Component | Deutsche Bank | Commerzbank |
|---|---|---|
| Annual revenue | EUR 385,000 | EUR 385,000 |
| Operating cost | EUR 154,000 | EUR 154,000 |
| Expected loss | EUR 28,750 | EUR 28,750 |
| Capital required (FPE) | EUR 2,451,320 | EUR 2,451,320 |
| RAROC (after tax) | 6.70% | 6.46% |
| Min spread for 12% RAROC | 268bp | 275bp |
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