Commerzbank Turns To Profit In Q1

Commerzbank AG (CRZBY.PK) reported that its first-quarter consolidated profit attributable to shareholders was 133 million euros compared to a loss of 291 million euros in the prior year.

Total operating profit was 538 million euros compared to an operating loss of 278 million euros in the prior year. It more than compensated for the restructuring charges of 465 million euros booked in the first quarter.

Revenues for the first quarter increased 35% to 2.49 billion euros from last year, primarily on the basis of a strong net commission income and positive valuation effects. The underlying revenues, excluding exceptional items, rose to 2.31 billion euros from 2.02 billion euros in the prior year.

Commerzbank had already agreed a voluntary redundancy program on a headcount reduction of 1,700 full-time equivalents for 2021.

The company said revenues should slightly exceed the previous year. While uncertainty of the further development of the pandemic remains, a risk result in the range from minus 0.8 billion euros to minus 1.2 billion euros is anticipated. Based on current observations, a risk result up to minus 1 billion euros is likely. Commerzbank expects a positive operating result. The expectations are based on the assumption that there is no fundamental change affecting the Swiss francs loan portfolio at mBank.

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