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A Commerzbank logo is pictured before the bank’s annual news conference in Frankfurt, Germany, February 9, 2017. REUTERS/Ralph Orlowski/File Photo
FRANKFURT, Aug 4 (Reuters) – Germany’s Commerzbank (CBKG.DE) said on Friday that net profit rose a better-than-expected 20% in the second quarter, helped by higher interest rates but dragged down by previously flagged problems at a Polish unit.
The bank raised its outlook for full-year net interest income, now expecting 7.8 billion euros ($8.54 billion), up from previous expectations of around 7 billion euros. It cut its outlook for net commission income.
Commerzbank, one of Germany’s best-known banks and partially held by the government after a bailout more than a decade ago, is in the middle of a major overhaul, slashing its workforce and branch network to restore profits.
Like many banks, it is benefiting from a rise in interest rates and the income that generates, which was up 44% in the quarter from a year earlier.
Net profit of 565 million euros ($618.56 million) in the quarter compares with a profit of 470 million euros a year earlier. Analysts had on average expected profit of 538 million euros, according to a consensus forecast published by Commerzbank.
($1 = 0.9134 euros)
($1 = 0.9132 euros)
Reporting by Tom Sims and Frank Siebelt
Editing by Miranda Murray and Friederike Heine
Our Standards: The Thomson Reuters Trust Principles.
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