Germany's Commerzbank today posted a 54% drop in net profit in the first quarter, just weeks after merger talks with rival Deutsche Bank fell apart.
The bank attributed the decline to a higher tax burden.
Its net profit of €120m was slightly above the €115m expected by analysts in a Reuters poll, but it was down from €262m a year earlier.
Revenues also declined to €2.156 billion in the first quarter, from €2.217 billion a year earlier. But the bank forecast that underlying revenues would be higher in 2019 than in 2018.
Talks with Deutsche Bank were discontinued last month after six weeks of negotiations. The banks attributed the failure to the risks of doing a deal, restructuring costs and capital demands.
The failure of talks has raised questions about Commerzbank's future, with some foreign banks expressing interest in taking it over.
"We are addressing the right issues with our strategy," the bank's chief executive Martin Zielke said in a statement today.
Chief Financial Officer Stephan Engels said business remains on a positive track. "The challenge now is to build on this progress," he said.