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Market doubts Commerzbank shakeup will boost prospects
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.