WASHINGTON (dpa-AFX) - German lender Commerzbank AG (CRZBY.PK) reported Thursday lower profit in its third quarter amid slightly weak net interest income, while revenues were higher than last year. Further, the company maintained fiscal 2025 profit view, and raised net interest income forecast.
The company added that it has applied for a further buyback of up to 600 million euros to ECB and German Finance Agency.
The separately planned buyback of own shares for the newly launched employee share programme will be implemented in the fourth quarter.
CFO Carsten Schmitt said, 'The strong 9-month-result reflects the growth of our revenues, driven by the expansion of net commission income in both customer segments.. Based on this, we confirm our profit target for 2025 and are confident to even achieve a slightly higher net interest income.'
Looking ahead for fiscal 2025, the company continues to expect a net result of around 2.9 billion euros before restructuring expenses. On a reported basis, the Bank anticipates a net result of around 2.5 billion euros.
The outlook remains subject to the development in Russia and burdens related to foreign currency loans at mBank.
Further, the Bank now forecasts a higher net interest income for the full year than anticipated in the summer. It now expects a net interest income of around 8.2 billion euros, compared to previously expected around 8.0 billion euros.
Commerzbank anticipates an increase in net commission income of around 7 percent.
Commerzbank added that it is taking a very positive view of the financial year 2026 due to higher net interest income and tailwinds based on the macroeconomic environment.
With its 'Momentum' strategy, Commerzbank has set ambitious targets for 2028 with a cost-income ratio of 50 percent, a net return on tangible equity (Net RoTE) of 15 percent, and a payout ratio of 100 percent of the net result.
In the third quarter, consolidated net result declined 7.9 percent to 591 million euros from last year's 642 million euros.
Operating result, however, climbed 18.1 percent to 1.05 billion euros from 886 million euros a year ago.
Total revenues grew 7.4 percent to 2.939 billion euros from 2.74 billion euros in the prior year. Revenues excluding exceptional items increased 6.8 percent to 2.940 billion euros.
Net interest income edged down 0.2 percent year-over-year to 2.044 billion euros, while net commission income grew 6.5 percent to 985 million euros with growth across all customer segments.
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