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Commerzbank Q1 Profit Rises; Backs FY22 Earnings Outlook

Commerzbank AG (CRZBY.PK), on Thursday posted a surge in profit for the first quarter, amidst a rise in revenue, backed by an increase in net interest income. In addition, for the fiscal 2022, the company has reiterated its earnings guidance.

For the first three-month period of 2022, the company reported a consolidated profit of 298 million euros, compared with 133 million euros, reported for the same period of previous year.

Pre-tax profit was at 529 million euros as against 73 million euros, on year-on-year basis.

Operating earnings also moved up to 544 million euros, from 538 million euros, reported for the first quarter of 2021.

Net commission income was at 972 million euros, higher than 951 million euros of last year.

The Frankfurt-headquartered bank's net interest income improved by 12 percent to 1.401 billion euros, compared with 1.254 billion euros of last year, benefitting significantly due to higher interest rates in Poland as well as from the higher loan volume and increased pricing of deposits.

In response to persisting Russian incursion in Ukraine, since mid-February, the bank has reduced its net exposure to Russia by 36 percent to less than 1.2 billion euros by the end of April.

The risk result in the first quarter was -464 million euros, compared with - 149 million euros, dominated by provisioning effects of almost half a billion euros in connection with Russia.

Commerzbank generated total revenue of 2.795 billion euros, versus 2.492 billion euros, posted a year ago.

Moving forward, for the fiscal 2022, the lender continues to expect a net result of over 1 billion euros.

In addition, for the business year 2022, the bank intends to propose a dividend with a pay-out ratio of 30 percent of the net result-after AT1 coupon payments.

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