Commerzbank Reports Profit In Q2; Backs FY22 Earnings View

Commerzbank AG (CRZBY.PK), a German lending major, on Wednesday posted a turnaround to profit for the second quarter, amidst a rise in revenues and decline in operating expenses. In addition, for the full year, the company has reaffirmed earnings outlook.

For the second quarter, the Frankfurt-headquartered firm reported a pre-tax profit of 721 million euros, compared with a loss of 478 million euros posted a year ago.

Consolidated earnings were at 470 million euros as against a loss of 527 million euros, year-over-year basis.

Operating profit surged to 746 million euros, from 32 million euros posted for the same period of 2021.

Operating expenses declined to 1.42 billion euros, from 1.70 billion euros of last year quarter.

Net interest income of the Group posted at 1.478 billion euros, higher than 1.173 billion euros, recorded for the same period of 2021. Net commission income stood at 896 million euros, compared with 852 million euros of previous year quarter.

Commerzbank generated total revenues of 2.42 billion euros, versus 1.86 billion euros, during the corresponding period of 2021.

Looking ahead, for the fiscal 2022, the bank still expects to post a net profit of over 1 billion euros.

The company further said: "All in all, the Bank expects higher revenues this year despite the expected burdens from Poland. This growth will be driven by significantly higher underlying net interest income thanks to rising interest rates while underlying net commission income is expected to be at the level of last year…"

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The US Centers for Disease Control and Prevention or CDC has ended recommendations for social distancing and quarantine with a view to minimize covid-19's impact on persons, communities, and health care systems. The agency also ended recommendation for test-to-stay in schools, CNN noted. Healthcare major Johnson & Johnson, which is in the middle of a talcum powder fiasco, said it is discontinuing talc-based JOHNSON'S Baby Powder globally in 2023. The company plans to transition to an all cornstarch-based baby powder portfolio. According to the company, the commercial decision to use cornstarch in all its baby powder products was made after conducting an assessment of its portfolio Walt Disney's streaming service Disney+ is rolling out its much-anticipated new ad-supported subscription plan for Disney+ in the U.S. as part of its bid to stem the loss and make its streaming business profitable after the services posted a hefty operating loss of more than $1 billion in the third quarter. It is also raising pricing for its bundled subscription plans with Hulu, ESPN+ and live TV.
Follow RTT