Market doubts Commerzbank shakeup will boost prospects

 
Tim Wallace
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GERMAN lender Commerzbank swung back to profits in the three months to September, with commission income growing, according to figures published yesterday.

The bank made a profit of €78m (£62.2m) in the quarter, compared to a loss of €687m a year earlier.

Commerzbank said it will invest €2bn by 2016 to refocus on areas like the private customers business and the SME unit.

But the bank’s long-term growth strategy was branded “flawed” by disappointed analysts.

“Commerzbank hopes to grow its way to efficiency (targeting flat costs but a big drop in the cost-income ratio) which you cannot do in the current environment; therefore it will fail,” said Berenberg’s Nick Anderson.