FRANKFURT: Germany’s second-largest lender Commerzbank on Wednesday turned in a solid first-quarter performance, surprising markets despite the drag on profits of a major restructuring.
Net profit during the first three months of 2021 reached 133 million euros ($161 million), beating the forecast of analysts polled by Factset who expected a loss of 82 million euros. “After a very good start into the year, we are looking confidently to the future despite the ongoing pandemic,” said CEO Manfred Knof in a statement.
The bank booked 465 million euros in restructuring costs, notably to cover staff layoffs. But it was able to slash its risk provision to 149 million euros from 326 million one year ago at the start of the coronavirus outbreak.
Revenues surged 35 percent year-on-year to reach 2.49 billion euros.