Com­merzbank fore­casts 'slight im­prove­ment' in profit for 2016

The Pak Banker - - FRONT PAGE -

Com­merzbank said it ex­pects a "slight im­prove­ment" in full-year net profit as Ger­many's se­cond-largest len­der cuts costs and un­winds toxic as­sets.

While "cap­i­tal mar­ket volatil­ity is likely to re­main high in 2016, with con­tin­u­ing bur­dens from the low­est in­ter­est-rate en­vi­ron­ment," Com­merzbank will con­tinue its "rig­or­ous cost man­age­ment," the len­der said in its an­nual re­port on Fri­day. The bank said it ex­pects full-year profit to rise from 1.06 bil­lion euros ($1.2 bil­lion) in 2015, "pro­vided that there are no sig­nif­i­cant changes in eco­nomic and political con­di­tions." Com­merzbank last month posted fourth-quar­ter profit that beat an­a­lyst es­ti­mates, led by a jump in earn­ings at its con­sumer-bank­ing busi­ness, and said it will wind down its unit for soured loans at a faster pace than fore­cast.

Un­der Chief Ex­ec­u­tive Of­fi­cer Martin Bless­ing, the len­der has boosted profit by cut­ting jobs and tap­ping in­vestor de­mand for higher-yield­ing as­sets to shrink its pile of delin­quent ship­ping and com­mer­cial real-es­tate loans.

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