BERLIN (dpa-AFX) - German lender Commerzbank AG (CRZBY.PK) reported Friday higher profit in its first quarter, despite weak net interest income. Further, the company confirmed its fiscal 2025 outlook for net result, and adjusted net interest income view.
In the first quarter, consolidated net result increased 11.7 percent to 834 million euros from last year's 747 million euros. The company said it is the best quarterly result since the first quarter of 2011.
Pre-tax result increased 9.5 percent from last year to $1.19 billion euros, and operating profit grew 13.2 percent year-over-year to 1.23 billion euros.
Revenues climbed 11.8 percent to 3.07 billion euros from 2.75 billion euros a year ago. Adjusted revenues increased 15 percent from last year to 3.13 billion euros.
Net interest income was 2.07 billion euros, down 2.6 percent year-over-year amid declining interest rate environment, while net commission income increased 6.4 percent to 1.01 billion euros.
The cost-income ratio decreased to 56 percent, below the target of 57 percent for the full year. The return on tangible equity was double-digit at 11.1 percent in the first quarter.
Looking ahead for fiscal 2025, the company continues to project net result of 2.4 billion euros on a reported basis after restructuring charges, and adjusted net result of 2.8 billion euros.
In 2024, net result was 2.68 billion euros.
The Bank said it now anticipates a net interest income of around 7.8 billion euros, along with a related positive fair value adjustment of approximately 0.3 billion euros.
The company previously said it expects a net interest income between 7.7 billion euros and 7.9 billion euros.
Net commission income is still planned to increase by around 7 percent.
The outlook remains subject to the development of burdens related to Russia and foreign currency loans at mBank.
In total, Commerzbank expects a contribution of around 8.1 billion euros to revenues.
Commerzbank anticipates a CET 1 ratio of at least 14.5 percent by year-end after the planned capital return and restructuring expenses. In February of this year, the Bank had expected more than 14 percent.
As announced earlier, the Bank proposes to pay a dividend of 0.65 euro per share, higher than the 0.35 euro per share paid earlier, which will be decided at the Annual General Meeting on May 15.
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