Commerzbank profit down 52%, but better than expected and keeps outlook

FRANKFURT (Reuters) -Germany’s Commerzbank (ETR:) said on Wednesday that net profit fell by 52% in the third quarter, in a better-than-expected outcome for a period that was helped by higher interest rates but dragged down by previously flagged problems at a Polish unit.

The lender also maintained its outlook for the full year even as its home market faces soaring inflation, a slowing economy and an energy crisis.

The quarterly profit, while down from last year, is still a healthy sign for Germany’s No. 2 bank as it carries out a 2 billion euro restructuring programme involving hundreds of branch closures and 10,000 job cuts.

“We have made great progress in the execution of our ‘Strategy 2024’ and are well on track to achieving our targets,” said Chief Executive Officer Manfred Knof.

Net profit of 195 million euros ($196.31 million) in the quarter compares with a profit of 403 million euros a year earlier. Analysts had on average expected a profit of 116 million euros, according to a consensus forecast published by Commerzbank.

($1 = 0.9933 euros)

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