FRANKFURT (dpa-AFX) - Commerzbank AG (CRZBY.PK) reported Monday that its second-quarter profit more-than doubled from last year, with significant growth in Core Bank revenues.
Looking ahead, the German bank said it intends to continue the Core Bank's sustainable growth path in the second half, with which it still aims to grow the revenues and market shares for fiscal 2015.
Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank, said, 'This is further testimony to the successful turnaround achieved by the Bank. We are on the right course with the strategic positioning. This is also shown in the return on equity for the first half of 2015, which, despite higher capital resources, increased considerably over the previous year.'
For the second quarter, net profit more than doubled to 280 million euros from last year's 100 million euros. Earnings per share were 0.23 euro, higher than 0.08 euro last year.
Operating profit in the quarter improved substantially to 385 million euros from prior year's 257 million euros.
In the Core Bank, operating profit increased substantially to 641 million euros from 442 million euros last year. The bank also recorded positive development in the operating return on equity or RoE at the Core Bank.
Mittelstandsbank's operating profit increased 9 percent, while Central & Eastern Europe segment's operating profit declined reflecting the ongoing low level of interest rates.
The operating loss in the non-core assets segment was 256 million euros, compared to loss of 185 million euros.
For the second quarter, the revenues before loan loss provisions increased considerably to 2.42 billion euros from 2.24 billion euros a year ago.
Net interest and trading income increased to 1.51 billion euros from 1.43 billion euros last year.
The loan loss provisions in the second quarter were 280 million euros, compared to 257 million euros last year.
The common Equity Tier 1 ratio or CET 1 with full application of Basel 3 rose to 10.5 percent at the end of June 2015 from 9.5 percent at the end of March 2015.
For 2015, the Bank expects loan loss provisions to remain below 1 billion euros, with lower loan loss provisions in both NCA and in the Core Bank.
In Germany, Commerzbank shares gained 0.47 percent on Friday to settle at 11.78 euros.
Copyright RTT News/dpa-AFX