Commerzbank has today raised its revenue outlook after surprising investors by swinging back to profit in the first quarter, buoyed by strong trading commissions.

Shares in Germany's second biggest bank rose 7% after the better-than-expected performance.

Commerzbank said its improved performance was largely attributable to net commission income from securities trading, a rebound that has also helped other banks.

Commerzbank posted a net profit of €133m in the three months to March 31 compared to a loss of €291m a year earlier.

Analysts had expected a net loss of €131m for the quarter.

It still expects Commerzbank to report a loss this year as it carries out a €2 billion restructuring involving hundreds of branch closures and 10,000 job cuts.

The bank, which is still partially owned by the state after a bailout during the financial crisis more than a decade ago, now expects full-year revenue to slightly exceed last year's, a shift from previous expectations for a slight decline.

"After a very good start to the year, we are looking confidently to the future despite the ongoing pandemic," Commerzbank's chief executive Manfred Knof said.

Knof last week struck a deal with employees over the planned job losses, central to efforts to restore profitability at Commerzbank, which has never fully recovered since its bailout and made a €2.9 billion loss last year.

Fees from the surge in securities trading are expected to ease in the coming months as markets become less volatile, Commerzbank's finance chief Bettina Orlopp told analysts.