Germany's Commerzbank posts biggest net profit in 15 years

GERMANY’S Commerzbank on Thursday (Feb 15) posted its largest revenue in 15 years in 2023, a 55 per cent enhance from the earlier 12 months, because it benefited from greater rates of interest, and the lender mentioned it was aiming for an additional revenue rise in 2024.

But the financial institution warned that the sluggish financial system “will remain a challenge”.

Full-year web revenue was 2.224 billion euros (S$3.21 billion), up from 1.435 billion euros a 12 months earlier and forward of expectations for two.191 billion euros.

Commerzbank, considered one of Germany’s greatest identified banks and partially held by the federal government after a bailout greater than a decade in the past, spent a lot of the previous three years in a significant overhaul, slashing its workforce and department community to revive income.

“We will achieve a further increase in net profit for the current year,” chief govt officer Manfred Knof mentioned.

Like many banks, Commerzbank is benefiting from an increase in rates of interest and the earnings that generates. Net curiosity earnings rose 8.5 per cent within the fourth quarter to 2.126 billion euros, higher than expectations for two.081 billion euros.

For the fourth-quarter, web revenue fell 16 per cent but it surely was higher than analysts had anticipated.

Net revenue of 395 million euros within the quarter, in contrast with a revenue of 472 million euros a 12 months earlier. Analysts had on common anticipated revenue of 361 million euros, in response to a consensus forecast printed by Commerzbank. BLOOMBERG

Source: www.businesstimes.com.sg”