Commerzbank gets one-off boost as core business struggles
(9 May 2017 – Germany) Commerzbank has posted a 28 percent rise in first-quarter net profit, as it received a one-off boost, offsetting lower returns from core corporate and retail operations..
The 11 percent rise in group operating profit at Germany's second-biggest listed bank compared with a fall of 20 percent at its two main businesses.
"It is clear that it will take some time for our growth to be sufficient to significantly outweigh the burden resulting from the negative interest rate environment", Chief Executive Martin Zielke said in a statement.
Earnings from Commerzbank's corporate clients unit were down on a weak capital market business.
Germany’s second largest lender, launched €6 billion (A8.88 billion) loan offering for small- and medium-sized companies as it seeks to benefit from growing loan demand in anticipation of rising interest rates.
The bank’s retail arm recorded a decline in profits due to pressure on its deposits business, where negative interest rates weighed.
Commerzbank said it aimed to keep its cost base stable and book the first part of charges related to its current restructuring programme this year, with stable loan loss provisions in its core business.
"We expect a similar consolidated net profit to the previous year in 2017," the bank said
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