Reuters
Published May 12, 2021 01:38AM ET
Updated May 12, 2021 04:30AM ET
By Tom Sims and Patricia Uhlig
FRANKFURT (Reuters) -Commerzbank raised its revenue outlook on Wednesday after surprising investors by swinging back to profit in the first quarter, buoyed by strong trading commissions.
Shares in Germany's second biggest bank rose 7% after the better-than-expected performance, which Commerzbank (DE:CBKG) said was largely attributable to net commission income from securities trading, a rebound that has also helped other banks.
Commerzbank posted a net profit of 133 million euros ($161 million) in the three months to March 31, against a loss of 291 million euros a year earlier.
Analysts, who had expected a net loss of 131 million euros for the quarter, still expect Commerzbank to report a loss this year as it carries out a 2 billion euro restructuring involving hundreds of branch closures and 10,000 job cuts.
The bank, which is still partially owned by the state after a bailout during the financial crisis more than a decade ago, now expects full-year revenue to slightly exceed last year's, a shift from previous expectations for a slight decline.
"After a very good start to the year, we are looking confidently to the future despite the ongoing pandemic," Commerzbank Chief Executive Manfred Knof said.
Knof last week struck a deal with employees over the planned job losses, central to efforts to restore profitability at Commerzbank, which has never fully recovered since its bailout and made a 2.9 billion euro loss last year.
Fees from the surge in securities trading are expected to ease in the coming months as markets become less volatile, Commerzbank's finance chief Bettina Orlopp told analysts.
($1 = 0.8247 euros)
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.