Commerzbank, fending off UniCredit advances, reports better than expected Q3 profit
2:30 am Wednesday, November 06th, 2024
FRANKFURT (Reuters) -Germany’s Commerzbank, fending off a possible takeover by Italy’s UniCredit, said on Wednesday net profit fell 6.2% in the third quarter, better than analysts expected but dragged down by a fall in interest income and a rise in risk provisions.
Nevertheless, the bank raised its outlook for net interest income and commission income for the full year.
The figures are the first since Italy’s No. 2 bank disclosed it snapped up a hefty stake in Commerzbank and began pressing for a possible tie-up. Commerzbank, which is Germany’s No. 2 bank, has meanwhile been honing its defence as it seeks to stay independent.
Net profit of 642 million euros ($690.28 million) in the quarter compares with a profit of 684 million a year earlier. Analysts had expected profit of 529 million euros on average, an October consensus forecast published by Commerzbank showed.
“This shows that our growth initiatives are increasingly paying off, thanks to the very consistent implementation of our strategy,” Chief Executive Bettina Orlopp said.
The bank raised its 2024 forecast for net interest income to 8.2 billion euros, up from a previous projection of 8.1 billion. Commission income is now seen rising more than 5%, better than an earlier forecast of 4%.
($1=0.9301 euros)
(Reporting by Tom Sims and Oliver Hirt; Editing by Rachel More and Clarence Fernandez)
