Commerzbank AG said Wednesday that rising rates and strong customer business helped it to expectations-beating profit and revenue for the third quarter, despite high one-off costs in Poland.
Germany’s second-largest lender
said net profit in the three months to the end of September was 195 million euros ($196.5 million), down from EUR403 million in the same period of last year.
Total revenue, its top-line figure, dipped by 5.9% on year to EUR1.89 billion.
However, both numbers beat consensus estimates of net profit of EUR116 million and revenue of EUR1.78 billion, according to analysts polled by the company.
The Frankfurt-based bank said its net interest income rose to EUR1.62 billion from EUR1.12 billion in the third quarter of last year, based on higher interest rates.
After previously announced provisions in Poland based on a mortgage holiday and on Swiss-franc loans, the company’s mBank subsidiary there posted an operating loss of EUR528 million, though higher revenue across Commerzbank in the year to date offset the burden.
Commerzbank confirmed its key full-year guidance of more than EUR1 billion in net profit, and that it intends to pay a dividend.
It added that it costs were on track, despite rising inflationary pressures.
Write to Ed Frankl at firstname.lastname@example.org