Corporate Banking in Germany

RAROC profiles and pricing benchmarks for 2 Germany banks, sourced from Pillar 3 disclosures.

Overview

OpenRAROC tracks 2 banks headquartered in Germany with a combined corporate credit exposure of EUR 336bn. The average Germany bank in our dataset has a cost-to-income ratio of 60.5% and an average corporate probability of default of 3.48%. On a representative BBB+ EUR 25M 5-year term loan, these banks generate an average RAROC of 6.58%.

Cheapest vs most expensive in Germany

On the standard sample deal, Deutsche Bank is the cheapest lender in Germany, requiring just 268bp to hit a 12% RAROC hurdle. The most expensive is Commerzbank at 275bp — a difference of 7bp on the same deal. For a EUR 25M facility, that's EUR 16,984 per year in interest expense.

All 2 banks ranked by RAROC

RAROC computed on a representative BBB+ rated, 5-year, EUR 25M term loan at 150bp spread. Click any bank for its full profile.

#	Bank	C/I	Avg PD	LGD	EAD	RAROC	Min spread
1	Deutsche Bank	64.0%	4.26%	31.1%	EUR 244bn	6.70%	268bp
2	Commerzbank	57.0%	2.70%	39.7%	EUR 92bn	6.46%	275bp

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