Admin I Wednesday, August 07, 2024
BERLIN – Commerzbank on Wednesday reported a drop in second-quarter profit despite an increase in revenues, while reaffirming its optimistic fiscal 2024 outlook.
In the second quarter, consolidated net profit dropped 4.8% to €538 million from last year’s €565 million.
Operating result was at €870 million, down 2% from €888 million a year ago.
Total revenues for the quarter improved 1.5% to €2.67 billion from prior year’s €2.63 billion, with strong contributions from customer business.
Adjusted revenues were €2.82 billion, up 7.4% from last year.
Net commission income improved 4.5% to €879 million, while net interest income dropped 2.4% to €2.08 billion due to the continued growth in deposits.
Looking ahead for fiscal 2024, the company continues to expect net profit to be higher than 2023.
The bank continues to target a net interest income of around €8.1 billion ($8.8 billion) with upside potential for 2024. The target for net commission income growth remains unchanged at 4%.
In accordance with its capital return policy, Commerzbank plans to return at least 70% of its profit for the current financial year to its shareholders, but no more than the net profit after deduction of AT1 coupon payments.
Based on the half-year results, the bank has applied to the European Central Bank (ECB) and the German Finance Agency for a further share buyback with a first tranche totalling €600 million.
Commerzbank plans to apply for a second tranche on the basis of the third-quarter results.
