FRANKFURT (Reuters) – Germany’s Commerzbank said on Wednesday that net profit more than tripled in the third quarter, better than expected and helped by higher interest rates.
Net profit of 684 million euros ($730.72 million) in the quarter compares with a profit of 195 million euros a year earlier. Analysts had on average expected profit of 611 million euros, according to a consensus forecast published by Commerzbank.
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.
On Wednesday, management 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 euros in that year.
“With our refined strategy, we are strengthening our position as a decisive player in the German banking market,” Chief Executive Officer Manfred Knof said.
($1 = 0.9361 euros)
(Reporting by Tom Sims and Frank Siebelt; Editing by Maria Sheahan)
