By Ed Frankl
Commerzbank AG /zigman2/quotes/207286669/delayed XE:CBK -1.59% said Wednesday that it beat expectations for second-quarter profit and revenue on customer demand and rising interest rates, as it drives forward with a cost-cutting program.
Net profit in the three months to the end of June was 470 million euros ($477.9 million), swinging from a loss of EUR527 million for the same period last year, Germany’s second-largest lender said.
Total revenue grew 30% to EUR2.42 billion thanks to strong customer business and rising interest rates, it said.
Results beat expectations of EUR370 million in net profit and EUR2.28 billion in revenue, according to analysts’ consensus provided by the company.
Driven by significant interest-rate hikes in Poland and the rise in long-term interest rates in Germany, net interest income rose 26% to EUR1.48 billion, the Frankfurt-based bank said.
Commerzbank said it continued with its cost-cutting program, slicing 16% in the second quarter, despite growing inflationary pressures.
It confirmed its profit outlook for the year, though based on assumptions that the economic environment won’t significantly worsen through gas shortages.
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