Germany's Commerzbank said today its that net profit more than tripled in the third quarter, better than expected and helped by higher interest rates, as it presented a strategy update.
Net profit of €684m in the quarter compared with a profit of €195m a year earlier. Analysts had on average expected profit of €611m, according to a consensus forecast published by Commerzbank.
Like many banks, Commerzbank is benefiting from a rise in interest rates and the income that generates. Net interest income rose 34% to €2.2 billion, better than expectations for €2.1 billion.
Commerzbank, one of Germany's best known banks and partially held by the government after a bailout more than a decade ago, spent much of the past three years in a major overhaul, slashing its workforce and branch network to restore profits.
Management today presented a strategy update, saying it would reduce its cost-to-income ratio to 55% by 2027 and aim for a net profit of around €3.4 billion in that year.
Those compare with a ratio of 60% so far this year and expectations for profit of €2.2 billion for the full year.
"With our refined strategy, we are strengthening our position as a decisive player in the German banking market," Commerzbank chief executive Manfred Knof said.
