Commerzbank halves its half-year profit. The German bank presented the accounts with net profits of 372 million in the first half (compared to 645 million in the first half of 2015) and 209 million in the second quarter (307 million in 2015). The bank now expects lower net income and operating profit than in 2015 and has decided to cut its estimates for this year. This can be read in the report published on the occasion of the dissemination of the half-yearly data of one of the big names in German savings. Weak rates and customers' cautious stance, reflecting geopolitical uncertainties, weighed heavily.
The bank blames negative interest rates for this sharp drop in earnings. Operating profit also fell to 615 million in the first half (compared to 1,08 billion in the first half of 2015). “Commerzbank has maintained its good market position – underlined the CFO Stephan Engels – despite an adverse context. We have grown further in the private client sector and have expanded the volume of loans”. Engels also underlined “a very good Npl Ratio which makes our risk profile sustainable. Furthermore, our Cet1 Capital Ratio of 11,5% is appropriate” and the leverage ratio at 4,4% is considered satisfactory.
The stock for 6,5% at 5,39 euros at 9,48 on Tuesday morning.