Steve Dinneen
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AFTER losing more than €1bn in the third quarter last year, Commerzbank has limped back into the black this time around, posting net profit of €113m – well below most analysts estimates.

But despite disappointing expectations, there are positives among the rubble. Commerzbank avoided posting another loss – as in the case of rival Deutsche Bank. But more importantly, it is in a good position moving forward as the German economy continues to gain pace.

Much of Commerzbank’s problems stemmed from losses on commercial mortgages. These losses should ease as fewer clients run into financial difficulties.

It’s troublesome integration of loss-making Dresdner Bank last year has also put pressure on income, with operating profit at the unit dropping 40 per cent in the quarter. This should ease in the coming months.

With the bank’s stock down more than four per cent this may seem a good time to buy but, with speculation mounting that it may post a fourth-quarter loss, it may fall further before it mounts a recovery.