FRANKFURT: Germany’s Commerzbank said on Wednesday that it was planning a 600-million-euro ($654.48 million) share buyback after reporting an expected dip in second-quarter net profit and confirming its outlook for the full year.
Commerzbank, one of Germany’s best-known banks and partially held by the government after a bailout more than a decade ago, spent much of the past years in a major overhaul, slashing its workforce and branch network to restore profits.
The lender’s net interest income (NII) dipped in the second quarter, contributing to a 4.8% fall in net profit that was in line with analysts’ expectations.
Commerzbank reported a net profit of 538 million euros in the reported quarter, compared with a profit of 565 million euros a year earlier.
Analysts, on average, had expected a profit of 539 million euros, according to a July consensus forecast published by the German lender.
Commerzbank reports better-than-expected 29% rise in Q1 profit
The bank sought an approval with its regulators for a first tranche of a share buyback programme, and said it plans to apply for a second tranche with its third-quarter results later this year.
“The first half of the year was our best in 15 years,” CEO Manfred Knof said.
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