The company's net profit of â¬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 â¬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