Commerzbank swings back into the black after cutting its costs
GERMAN lender Commerzbank swung back to a profit in 2013, the bank said yesterday, after successfully trimming costs.
Profits came in at €78m (£64m) in the year, compared with a loss of €47m in 2012.
However, chief executive Martin Blessing turned down his bonus, saying the results were not strong enough yet.
Income for the year dipped six per cent to €9.3bn while expenses fell three per cent to €6.8bn.
The results were also improved by a lack of loss-making sales – 2012’s numbers included a loss of €268m on asset disposals.
Nonetheless, the bank spent €493m on restructuring in 2013, up from €43m in 2012.
The figures gave Commerzbank an operating return on equity of 9.5 per cent and a Basel III core tier one capital ratio of nine per cent, one year ahead of target.
“We have attained a solid operating profit in both the group and the core bank, also seeing important successes in the implementation of our strategic agenda,” said Blessing.
“We have repaid in full the silent participations of the German government and Allianz, and further strengthened the capital base of the bank.”