Commerzbank raises outlook as it posts surprise first quarter profit
Commerzbank raised its revenue outlook this morning as it surprised investors by posting a profit after a period of strong trading commissions.
The German bank said its better-than-expected performance came down to higher net commission income from securities trading.
It posted a net profit of €113m in the three months to 31 March, against a loss of €291m a year earlier.
“After a very good start to the year, we are looking confidently to the future despite the ongoing pandemic,” chief executive Manfred Knof said.
Analysts had expected a net loss of €131m for the quarter and still expect a loss this year as it carries out a €2bn restructuring which includes hundreds of branch closures and 10,000 job cuts.
Finance boss Bettina Orlopp added: “We started the year with very strong results, and we have achieved a positive net result after restructuring charges.”
“In particular, the strong securities business made a significant contribution to this result, and this enabled us to largely compensate for the effects arising from the negative interest-rate environment. Our improved capital ratio provides us with a solid basis for the further transformation.”
Shares in the bank rose more than seven per cent in early trading to €6.19. However over the past three years the stock has fallen more than 40 per cent.