Commerzbank, the second biggest lender in Germany, said in a report that its net profits for the third-quarter rose to 225 million euros which is three times higher than analysts’ estimates.
Retail and corporate units’ earnings of the bank went up as bad loans costs were seen falling. The profits that Commerzbank logged were way higher compared to the 192 million euros that the analysts expected.
Last Thursday, the bank specified that its calculated capital ratio in the most severe new bank rules form went up and touched 9.6% when the third quarter concluded. This surpassed the minimum requirement of 7% by the year 2019.
Mittlestandbank, one of the units of Commerzbank supplying to medium-sized companies in Germany, predicted a raise in its quarterly earnings by 4% as the huge drop in loan loss provisions made up for the lazy demand.
As for the retail banking unit of the bank, it saw that its net profit to triple.
In investment banking on the other hand, there was an improvement in trading revenues as well as in operating earnings which benefited from the high instability in currency markets and interest rates which drove client demand.
The disturbed asset portfolio of Commerzbank went down to 88 billion euros which represents a drop by 4%. This is an indication that the revamp of the lender is on track.