Commerzbank is returning to profitability

In the midst of the renovation, Commerzbank is returning to profitability and is now also promising black numbers for the year as a whole. Lower overall costs and significantly less burdens from bad loans ensured that the Frankfurt money house earned 403 million euros in the summer. A year ago, there was a loss of 60 million euros on the books. "After good progress in the third quarter, we are confident that we will achieve or exceed our key targets for 2021," said Commerzbank boss Manfred Knof. Now, despite the renovation costs, a net profit is to be achieved for the year as a whole. The operative business is also developing well, said Knof. "Our transformation is on schedule." The Commerzbank figures are further evidence that the European banking industry has mastered the Corona crisis well so far. The massive loan defaults feared in the previous year have not yet materialized. The European rivals Societe Generale from France and ING from the Netherlands also exceeded analysts' expectations with their quarterly figures. For the year as a whole, Commerzbank not only announced a net profit, but also earnings above those of the previous year and, as before, a positive operating result. In the third quarter, however, earnings without special effects fell by 3.7 percent to just over two billion euros. In view of the persistently low interest rate environment, net interest income fell by 8.5 percent, but net commission income rose by 9.5 percent. In the private customer business in Germany, net interest income rose by over two percent. It was also noticeable that Commerzbank is now demanding penalty interest from customers with a credit balance of 50,000 euros or more. The bank also had significantly fewer burdens from bad loans: Risk provisions shrank to 22 million euros from 272 million euros a year earlier. "The business development so far this year makes us optimistic," said Knof. The institute was still in the red in the second quarter. The reasons were expenses for the restructuring of the group as well as write-offs due to the failed outsourcing of securities processing to the major British bank HSBC. Knof wants to put the institute on the road to success with a horse course. Hundreds of branches will be closed, around 10,000 jobs - every third in Germany - will be lost. Entire departments are closed or outsourced. According to Commerzbank, more than half of the job cuts have already been regulated in a socially acceptable manner. However, the bank is threatened by the deadlocked collective bargaining for the private banks: The Verdi union announced a nationwide strike at Commerzbank for next Wednesday.