Commerzbank reports higher earnings

[BERLIN] Germany's second largest lender Commerzbank reported on Monday a sharp increase in third quarter earnings which were boosted by the sale of its Ebase unit.

Net profit for the three months to September jumped 35 per cent to 294 million euros (S$444.1 million), the bank said, releasing preliminary figures.

Operating profit was up 30 per cent at 448 million euros.

The Frankfurt-based bank said the better-than-expected results reflected increased income and reduced costs.

Commerzbank will release full third quarter results on November 7 but has said previously that low interest rates, which hit margins, could undercut earnings next year.

The bank, which has struggled for several years, is in the process of cutting 2,300 jobs from a global workforce of 38,000, as it refocuses its business in Germany.

In April, Commerzbank gave up on a high-stakes potential merger with rival Deutsche Bank, saying it would maintain its independent strategy focused on retail banking and small- and medium-sized business clients.

The government holds a 15 per cent stake in the bank.

AFP