By Tom Sims and Frank Siebelt
FRANKFURT (Reuters) -Germany’s Commerzbank said on Wednesday that its net profit nearly doubled in the first quarter in a better-than-expected result helped by higher interest rates.
The bank said it sees “upside potential” in net interest income this year, and raised its forecast to 7 billion euros ($7.7 billion) from 6.5 billion.
The bank’s shares opened 3.6% lower, with the bank saying its outlook depended on the fate of its mBank unit in Poland and assumed mild recession.
Net profit rose to 580 million euros from 298 million a year earlier, topping the 481 million expected by analysts in a consensus forecast published by Commerzbank.
One of Germany’s best-known banks, Commerzbank is in the middle of a major overhaul, cutting thousands of workers and hundreds of branches to save costs and lift profits.
Many banks have reported increases in first-quarter revenue and profit helped by higher interest rates.
Last year, Commerzbank booked a second consecutive year of profit, and the bank rejoined the prestigious DAX index of blue-chip companies.
The bank is still partially owned by the government following a bailout during the financial crisis more than a decade ago, and analysts have said that it is vulnerable to soaring inflation, a slower economy and potential soured loans.
“Commerzbank is in good shape. Our transformation is making good progress and is increasingly paying off,” said Chief Executive Officer Manfred Knof.
($1 = 0.9084 euros)
(Reporting by Tom Sims and Frank Siebelt; editing by Tom Hogue and Jason Neely)
