© Reuters. FILE PHOTO: A Commerzbank emblem is pictured after the financial institution’s annual information convention in Frankfurt, Germany, February 12, 2016. REUTERS/Ralph Orlowski
By Tom Sims and Frank Siebelt
FRANKFURT (Reuters) – Commerzbank (DE:) swung to a better-than-expected fourth-quarter and annual web revenue regardless of present process a significant overhaul, the German lender mentioned on Thursday, and likewise painted a rosy outlook for 2022.
Revenue this yr will exceed 1 billion euros ($1.14 billion), Commerzbank mentioned, beating analyst forecasts. It added that it could pay a dividend for the yr.
Outcomes have been partly helped by income at its CommerzVentures enterprise capital funds in addition to commissions from its securities buying and selling enterprise.
The optimistic end to the total yr at Germany’s No. 2 financial institution marks a victory for CEO Manfred Knof, who joined the corporate in the beginning of 2021 to hold out a restructuring programme price 2 billion euros, involving tons of of department closures and 10,000 job cuts to get again on a path to revenue.
GRAPHIC – Commerzbank outcomes
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“Within the first yr of the transformation, now we have delivered on our guarantees. This will increase our confidence that we are going to obtain our formidable targets for 2024,” Knof mentioned.
The financial institution’s Frankfurt-listed shares rose 2.9% in early commerce.
Commerzbank reported a fourth-quarter web revenue of 421 million euros versus a lack of 2.7 billion a yr earlier which mirrored restructuring costs.
That beat the 81 million euros anticipated by analysts in a ballot supplied by Commerzbank.
For the total yr, the financial institution swung to a web revenue of 430 million euros from a lack of 2.9 billion.
A provision made at its Polish mBank subsidiary that was introduced in January was a drag on the fourth quarter.
Forward of Thursday’s outlook revision, analysts had anticipated the financial institution to put up a revenue of round 900 million euros, which might be its greatest revenue since 2015.
($1 = 0.8807 euros)
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