Commerzbank Q1 net profit rose 28.4 to 217 million eurosStaff Writer | May 9, 2017
Commerzbank reported higher profit in its first quarter with slightly higher revenues. The company also backed its outlook.
Commerzbank Net interest and trading income grew 7.7 percent
The Bank's operating profit grew 11.3 percent to 314 million euros from 282 million euros in the previous year.
Loan loss provisions stood at 195 million euros, compared to 148 million euros last year. The 31.8 percent year-on-year increase in loan loss provisions was due to higher loan loss provisions for ship finance. The bank noted that the non-performing loan or NPL ratio of just 1.5 percent, which is still good compared to European peers, reflected its healthy risk profile.
Revenues, before loan loss provisions, increased 2.2 percent to 2.374 billion euros from the previous year's 2.323 billion euros. As expected, there was no repeat of the significant positive one-off effects that occurred in the same quarter of the previous year.
Excluding one-off effects, revenues rose by 116 million euros year-on-year. This positive trend in revenues was due primarily to a rise in net commission income on the back of higher volumes in securities.
Net interest and trading income grew 7.7 percent from last year to 1.45 billion euros, and net commission income grew 7.8 percent to 887 million euros. ■