Prof­its point to Com­merzbank ‘turn­around’

The China Post - - WORLD BUSINESS -

Ger­many’s sec­ond big­gest bank­ing group Com­merzbank said Mon­day its sec­ond-quar­ter prof­its had al­most tripled, pushed up by higher rev­enue and a lower tax bill.

Com­merzbank was se­verely hit by the fi­nan­cial cri­sis, hav­ing to be res­cued by the state in 2009, and the gov­ern­ment still holds a 15-per­cent stake in the bank. It said the re­sults showed it had man­aged a suc­cess­ful turn­around.

From April to June the bank made a net profit of 280 mil­lion eu­ros (US$307 mil­lion), it said, against 100 eu­ros mil­lion dur­ing the same pe­riod the year be­fore.

The re­sults are bet­ter than an­a­lysts pre­dicted, with fi­nan­cial ser­vices com­pany Fac­tSet say­ing the bank’s net prof­its were likely to have come in around 267 mil­lion eu­ros.

Frank­furt-based Com­merzbank said its net profit more than dou­bled to 646 mil­lion eu­ros dur­ing the first half, with a 15.5-per­cent rise in turnover to 5.2 bil­lion eu­ros.

“The sub­stan­tial im­prove­ment in our op­er­at­ing in­come in the first quar­ter is a clear sign of the turn­around suc­cess of Com­merzbank,” the bank’s chair­man Martin Bless­ing said in a state­ment.

Bless­ing said the bank was on the “right track” with a “con­sid­er­able in­crease” in re­turn on eq­uity dur­ing the first half of the year de­spite higher out­lays.

“In 2015, we still ex­pect a rise in rev­enues and mar­ket share,” said chief fi­nan­cial of­fi­cer Stephan Engels.

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