Germany's Commerzbank Posts Biggest Net Profit In 15 Years

Germany's Commerzbank posted its biggest profit in 15 years in 2023, a 55% increase from the previous year, as it benefited from higher interest rates, and the lender said it was aiming for another profit rise in 2024, Tom Sims and Matthias Inverardi reported for Reuters.

Commerzbank, one of Germany's best-known banks. I Photo: Arminia Wikimedia Commons

But the bank warned that the sluggish economy "will remain a challenge."

Full-year net profit was 2.224 billion euros ($2.39 billion), up from 1.435 billion euros a year earlier and ahead of expectations for 2.191 billion euros.

Commerzbank, one of Germany's best-known banks and partially held by the government after a bailout more than a decade ago, spent much of the past three years in a major overhaul, slashing its workforce and branch network to restore profits.

"We will achieve a further increase in net profit for the current year," Chief Executive Officer Manfred Knof said.

Like many banks, Commerzbank benefits from a rise in interest rates and the income generated. Net interest income rose 8.5% in the fourth quarter to 2.126 billion euros, better than expectations for 2.081 billion euros.

For the fourth quarter, net profit fell 16%, but it was better than analysts had expected.

Net profit of 395 million euros in the quarter compared with 472 million euros a year earlier. Analysts had on average expected profit of 361 million euros, according to a consensus forecast published by Commerzbank.

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