Germanys second-biggest lender Commerzbank on Wednesday said net profit almost doubled in the first quarter, thanks to a tailwind from higher interest rates.<\/p>\n
The group said it made a bottom-line profit of 580 million euros ($630 million), compared with 298 million euros over the same period a year earlier.<\/p>\n
We had a very good start to 2023, CEO Manfred Knof said in a statement.<\/p>\n
The interest rate development continues to give us a tailwind, and the fee business has delivered a good result, he said.<\/p>\n
Like other lenders in Europe, Commerzbank has benefited from a higher interest rate environment as the European Central Bank has raised borrowing costs at an unprecedented rate in recent months to combat inflation.<\/p>\n
Inflation in Germany, Europes biggest economy, eased to 7.2 percent in April after peaking at 8.8 percent last October.<\/p>\n
Commerzbank said quarterly revenues fell slightly to just under 2.7 billion euros, from 2.8 billion euros a year earlier. The lender said the dip was partly due to charges set aside to cover legal costs at its Polish unit mBank.<\/p>\n
Commerzbank embarked on a major turnaround in recent years, focussed on winning new customers, digitisation and reducing its workforce.<\/p>\n
The bank has culled around 9,000 jobs since 2021, out of a planned 10,000.<\/p>\n
The overhaul helped the group remain in the black for a second consecutive year in 2022, when it booked a net profit of 1.4 billion euros.<\/p>\n
Commerzbank returned to the prestigious DAX index of Germanys 40 top listed companies in February.<\/p>\n
Looking ahead, Commerzbank said itwas aiming for a full-year net profit well above that of 2022.<\/p>\n
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Commerzbank profits soar on higher interest rates - Macau Business<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Germanys second-biggest lender Commerzbank on Wednesday said net profit almost doubled in the first quarter, thanks to a tailwind from higher interest rates. The group said it made a bottom-line profit of 580 million euros ($630 million), compared with 298 million euros over the same period a year earlier Continue reading