Commerzbank seeks buyback and confirms outlook as profit drops

FRANKFURT (Reuters) -Germany’s Commerzbank (ETR:) said on Wednesday that net profit fell 4.8% in the second quarter, in line with expectations and as net interest income dipped.

The bank also said it had asked regulators to approve a share buyback, while it confirmed its full-year targets.

Net profit of 538 million euros ($587 million) in the quarter compares with a profit of 565 million euros a year earlier. Analysts had on average expected a profit of 539 million euros, according to a July consensus forecast published by Commerzbank.

The bank said that it was now seeking approval for a first tranche of a share buyback totalling 600 million euros.

Commerzbank, one of Germany’s best known banks and partially held by the government after a bailout more than a decade ago, spent much of the past years in a major overhaul, slashing its workforce and branch network to restore profits.

“The first half of the year was our best in 15 years,” CEO Manfred Knof said.

($1 = 0.9166 euros)