Net income increased to 225 million euros ($282 million) from 75 million euros a year earlier, the Frankfurt-based company said in a statement today. The average of eight analysts’ profit estimates compiled by Bloomberg was 185.5 million euros.
Commerzbank is expanding lending to German consumers and companies while cutting thousands of staff to increase profitability. It’s also winding down soured shipping and real-estate assets as part of a bailout in 2009 by the German government, which still owns 17 percent of the company.
“You can see a generally positive trend in the core segments of
private customers” and lending to medium-sized companies, said Stefan Bongardt, an analyst at Independent Research GmbH who rates Commerzbank hold. “The third-quarter figures look reasonable.”
Commerzbank shares gained 0.8 percent to 12.08 euros as of 9:29 a.m. in Frankfurt, while the benchmark Bloomberg Europe Banks and Financial Services Index fell 0.7 percent.
Jobs, Provisions
Loan-loss provisions fell 31 percent to 341 million euros, while Commerzbank lowered its 2014 operating expenses target to 6.9 billion euros from 7 billion euros. The bank announced a plan in June last year to eliminate about 5,200 staff by 2016.
Commerzbank AG Chief Executive Officer Martin Blessing said in the statement that the... Read More
The lender passed the European Central Bank’s asset review and emerged from the most onerous stress test with a 7.96 percent capital ratio, above the 5.5 percent minimum required.
Commerzbank’s result in the ECB’s adverse stress test shows “the room to maneuver is higher than some might have expected” and may ease calls for the bank to increase capital, Exane BNP Paribas analysts including Jag Yogarajah and Guillaume Tiberghien wrote in a research note dated Oct. 26.
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