Commerzbank net profit triples as revenue grows

Net income increased to €225 million from €75 million a year earlier

Commerzbank shares gained 1.4 per cent yesterday to close at €11.98 in Frankfurt trading, and rose 2.3 pe rcent this year
Commerzbank shares gained 1.4 per cent yesterday to close at €11.98 in Frankfurt trading, and rose 2.3 pe rcent this year

Commerzbank, Germany's second-largest lender, said third-quarter profit rose, beating estimates, as provisions for risky loans decreased and sales rose. Net income increased to €225 million from €75 million a year earlier.

The bank is expanding lending to German consumers and companies while cutting thousands of staff to increase profitability. It's also winding down soured shipping and real- estate assets as part of a bailout by the German government in 2009, which still owns 17 per cent of the company. Growth in the core bank illustrates the "product and service range amended in line with changing customer requirements is very popular," chief executive Martin Blessing said .

Commerzbank shares gained 1.4 per cent yesterday to close at €11.98 in Frankfurt trading, and rose 2.3 per cent this year. The bank’s common equity Tier 1 ratio, a measurement of financial strength, under the full application of Basel III rules was at 9.6 per cent, up from 9.4 per cent at the end of of the second quarter.

The bank expects its CET1 ratio under the full application of the latest Basel rules to exceed 10 per cent by 2016. The lender passed the European Central Bank’s asset review and emerged from the most onerous stress test with 7.96 per cent capital ratio, above the 5.5 per cent minimum required.

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Bloomberg