Arab Today, arab today big profit at commerzbank marks comeback from brink
Last Updated : GMT 08:38:00
Arab Today, arab today
Arab Today, arab today

Big profit at Commerzbank marks comeback from brink

Arab Today, arab today

Arab Today, arab today Big profit at Commerzbank marks comeback from brink

Commerzbank, Germany's second biggest bank
Frankfurt - AFP

Commerzbank, Germany's second biggest bank, said Friday that its profits quadrupled in 2015, highlighting a remarkable comeback from the brink of disaster during the financial crisis.

In a rare upbeat announcement amid the current gloom gripping the European banking sector, Commerzbank also said it would resume dividend payments as it expects to see further profit growth this year.

Investors welcomed the strong 2015 showing by the lender which posted a net profit of 1.06 billion euros ($1.2 billion), compared with 266 million euros the year before.

"All's well that ends well," said Robert Halver, analyst at Baader Bank.

"The results published today are good. You get the feeling that the bank really tackled its problems head-on," he told AFP.

Frankfurt-based Commerzbank was severely hit by the financial crisis, having to be rescued by the state in 2009, and the government still holds a 15-percent stake in the bank.

It has since laid off thousands of staff and slashed costs, resulting in a turnaround.

"2015 has shown that our strategy is right and that the implementation has been successful," boasted chief executive Martin Blessing.

"For the first time in five years we have attained a net profit of more than one billion euros and have seen further significant strengthening of our capital base," Blessing said.

The profits were slightly bigger than analysts had expected and sent Commerzbank shares soaring on the Frankfurt stock exchange.

Commerzbank shares were the biggest gainers on the blue-chip DAX 30 index, jumping 18 percent to 7.54 in closing trade.

Commerzbank said in a statement that revenues totalled 9.8 billion euros last year, an increase of 11 percent year-on-year, and underlying or operating profit tripled to 1.9 billion euros.

The group said investment in its retail or high-street banking business was paying off, with underlying profits in that division doubling last year.

The retail banking division, vastly expanded by the acquisition of rival Dresdner Bank in 2008-2009, had long weighed on Commerzbank's profitability.

Commerzbank said it slashed loan risk provisions last year to 696 million euros from 1.14 billion euros in 2014, a move welcomed by analysts.

"The main surprises are the improvement in capital ratios and the reduction of risky loans," said Equinet analyst Philipp Haessler.

Commerzbank also said it had now closed an external structure, also known as "bad bank", created in 2012 to isolate the healthy part of the bank from high-risk assets, which it said had now been unwound for the most part.

On the back of the jump in profits, the management board will propose a dividend per share of 0.20 euros for 2015, the first payout since 2008.

Looking ahead, Commerzbank said that "2016 will be a challenging year due to the geopolitical and macroeconomic environment."

Commerzbank said it expected a "moderate increase in loan loss provisions. From today's perspective we expect a slight increase in net profit in comparison with this year's result."

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today big profit at commerzbank marks comeback from brink Arab Today, arab today big profit at commerzbank marks comeback from brink

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday