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FRANKFURT (Reuters) -Germany’s Commerzbank (DE:CBKG) on Thursday swung to a better-than-expected third-quarter net profit and forecast a profit for the full year, defying analysts predictions for a 2021 loss.
The quarterly results were supported by a decrease in provisions set aside to cushion the fallout from the pandemic, as well as lower costs.
Commerzbank’s net profit of 403 million euros ($467 million) in the third quarter compares with a loss of 60 million euros a year earlier. Analysts had expected a profit of 253 million euros.
Germany’s No. 2 lender is trying to turn over a new leaf under new Chief Executive Manfred Knof. It is carrying out a 2 billion euro restructuring involving hundreds of branch closures and 10,000 job cuts to get back on a path to profit.
“Despite the restructuring expenses, we are anticipating a positive net result for the full year,” Knof said.
Before Thursday, analysts expected the bank to post a loss of more than 100 million euros for 2021 and only return to profit next year. The bank posted a steep loss of 2.9 billion euros in 2020 due to restructuring costs.
It has been a rocky few years for Commerzbank. Merger talks with Deutsche Bank (DE:DBKGn) failed and it was ejected from the premier DAX index of German blue-chips. Last year, a major investor, Cerberus, launched a campaign for change that prompted a shuffle in top leadership and the plans for steep job cuts.
Commerzbank, which is still partially owned by the state after a bailout during the financial crisis more than a decade ago, has lost about 2 billion euros from 2009 through last year.
($1 = 0.8633 euros)
