Commerzbank forecasts 'slight improvement' in profit for 2016
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.