FRANKFURT (Reuters) – Commerzbank reported third-quarter net profit on Wednesday that more than tripled and beat expectations, driven by higher interest rates.
The German bank posted a net profit of 684 million euros for the quarter, compared to 195 million euros a year earlier. Analysts on average expected a profit of 611 million euros, according to a consensus compiled by the bank.
Commerzbank, one of Germany’s best-known banks and partially owned by the government after a bailout more than a decade ago, has spent much of the past three years restructuring, reducing its workforce and network in order to restore its profits.
On Wednesday, management presented an update to its strategy, saying it would reduce its cost-to-income ratio to 55% by 2027 and target a net profit of around 3.4 billion euros in the same year.
“With our refined strategy, we are strengthening our position as a decisive player in the German banking market,” said CEO Manfred Knof.
(Reporting Tom Sims and Frank Siebelt, Stéphanie Hamel, editing by Kate Entringer)
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