Commerzbank, fending off UniCredit advances, reports better than expected Q3 profit
Adds quote, forecasts; paragraphs 5,6
FRANKFURT, Nov 6 (Reuters) -Germany's Commerzbank CBKG.DE, fending off a possible takeover by Italy's UniCredit, said on Wednesday net profit fell 6.2% in the third quarter, better than analysts expected but dragged down by a fall in interest income and a rise in risk provisions.
Nevertheless, the bank raised its outlook for net interest income and commission income for the full year.
The figures are the first since Italy's No. 2 bank disclosed it snapped up a hefty stake in Commerzbank and began pressing for a possible tie-up. Commerzbank, which is Germany's No. 2 bank, has meanwhile been honing its defence as it seeks to stay independent.
Net profit of 642 million euros ($690.28 million) in the quarter compares with a profit of 684 million a year earlier. Analysts had expected profit of 529 million euros on average, an October consensus forecast published by Commerzbank showed.
"This shows that our growth initiatives are increasingly paying off, thanks to the very consistent implementation of our strategy," Chief Executive Bettina Orlopp said.
The bank raised its 2024 forecast for net interest income to 8.2 billion euros, up from a previous projection of 8.1 billion. Commission income is now seen rising more than 5%, better than an earlier forecast of 4%.
($1=0.9301 euros)
Commerzbank shares surge https://reut.rs/40FuSf0
UniCredit outperforms https://reut.rs/3Yzre3U
Reporting by Tom Sims and Oliver Hirt; Editing by Rachel More and Clarence Fernandez
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
