Commerzbank posts better-than-expected Q1 profit, upgrades revenue outlook
Commerzbank upgraded its revenue outlook for the entire year as it posted a higher-than-expected first-quarter profit. This was after the German lender slashed jobs and decreased its operations.
Commerzbank posted on Wednesday a net profit of 133 million euros in the first three months of the year, compared to a loss of 291 million euros incurred in the previous year. Analysts had expected a net loss of 131 million euros.
The bank’s upbeat performance in the first quarter was largely attributable to net commission income from securities trading, a trend that has also lifted other banks in the said period.
However, analysts still see the second-biggest bank in Germany to remain in the red this year as it conducts a 2 billion euro ($2.42 billion) restructuring involving hundreds of branch closures while slashing 10,000 jobs.
The German lender’s shares advanced 2% in pre-market trade.