Commerzbank Q3 net profit more than triples, beating expectations. In a strategy update on Wednesday, Commerzbank (CBKG.DE), a German bank, reported that net profit more than quadrupled in the third quarter, exceeding expectations and aided by rising interest rates.
A profit of 195 million euros was made a year earlier, compared to a net profit of 684 million euros ($730.72 million) in the quarter. The average profit projected by analysts was 611 million euros, per a consensus projection released by Commerzbank.
Commerzbank, like many other banks, is profiting from rising interest rates and the associated profits. Surpassing estimates of 2.1 billion euros, net interest income increased 34% to 2.2 billion euros.
Following a bailout more than ten years ago, the government partially took over Commerzbank, one of the most well-known banks in Germany. To increase profitability, Commerzbank underwent a significant makeover for most of the last three years, cutting staff and branch locations.
In a strategy update on Wednesday, management stated that it would strive for a net profit of around 3.4 billion euros in 2027 and would lower its cost-to-income ratio to 55% by then.
These contrast with a 60% ratio thus far this year and 2.2 billion euros in profit projections for the entire year.
Chief Executive Officer Manfred Knof stated, “With our refined strategy, we are strengthening our position as a decisive player in the German banking market.”
Comment Template