Commerzbank Q3 profits fail to match expectations

8 November 2010

German financial giant Commerzbank has revealed that it made a profit during the third quarter of 2010, but admitted that earnings from its investment banking and eastern European operations dropped.

The company's net profit of €113 million ($158 million) fell short of many analysts' expectations, but Commerzbank insisted that its improving outlook and the shedding of bad loan provisions should result in a better performance in 2011.

"In the coming year, loan loss provisions and costs should decline further," said chief financial officer Eric Strutz. "We are sailing into the next year with a tailwind and assume that the operating profit for 2011 will be higher than that seen in 2010."

The German economy has emerged from the global downturn at a faster rate than many of its European neighbours and its increasing strength contributed to Commerzbank's turnaround of last year's €1.06 billion loss.

Last month, American firm JP Morgan revealed that its own profits rose by 23 per cent in the third quarter.

By Claire Archer

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