FRANKFURT, May 12 (Xinhua) — Leading German lender Commerzbank on Wednesday posted a higher-than-expected net profit in the first quarter (Q1) despite the ongoing pandemic and restructuring charges, and subsequently raised its full-year outlook.
Despite restructuring charges of 465 million euros (561 million U.S. dollars), the bank’s Q1 net profit was 133 million euros, while for the same period last year it reported a net loss of 291 million euros, it said in a statement.
Revenues in Q1 surged by 35 percent year-on-year to 2.49 billion euros, primarily thanks to a significant increase in net commission income due to its flourishing securities business.
The bank said that the rise in commission income allowed it to largely compensate the impact from the negative interest rate environment and the ongoing subdued consumption resulting from the coronavirus restrictions.
“After a very good start into the year, we are looking confidently to the future despite the ongoing pandemic,” Chief Executive Officer (CEO) Manfred Knof said in the statement.
Given its strong Q1 performance, the bank now expects full-year revenues to slightly exceed the previous year’s figure, a shift from the previous expectation of a decline.
In January, Commerzbank announced an in-depth restructuring program, which includes 10,000 job cuts worldwide and the closure of more than 300 branches. The bank said last Friday that it had struck a deal with employees on a job reduction plan. (1 euro = 1.21 U.S. dollars)