3 May 2016 Press Release
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Commerzbank: Net profit of €163 m in first quarter of 2016
● Operating profit of €273 m for Group in first quarter (Q1 2015: €670 m) burdened by difficult market environment
● Good risk profile: low loan loss provisions of €148 m – NPL ratio for non-performing loans very low at 1.5% – further run-down of non-strategic portfolios of €1.0 bn
● Operating expenses stable at €1,893 m (Q1 2015: €1,957 m)
● Capital ratio CET 1 unchanged at 12.0% as of end of March 2016 (end of December 2015: 12.0%), dividend accrual of 5 cents per share already reflected
● Engels: “In view of difficult market conditions and the increasingly challenging interest rate environment, the Bank achieved a reasonable operating profit in the first quarter. The Bank’s risk profile is good and with its CET 1 capital ratio at 12.0 per cent, it continues to hold a solid midrange position among European peers.”
In a difficult market environment, Commerzbank generated an operating profit of €273 million in the first quarter of 2016 (Q1 2015: €670 million) and a net profit of €163 million (Q1 2015: € 338 million). Revenues before loan loss provisions declined to €2,314 million (Q1 2015: €2,785 million), reflecting a further deterioration in the interest rate environment and a slowing client activity within difficult markets. The loan loss provisions decreased again in the first quarter of 2016 to €148 million (Q1 2015: €158 million). The low level is a result of the high quality of the loan book, the stable condition of the German economy, and the continued run-down of non-strategic portfolios. The operating expenses in the first quarter were at €1,893 million (Q1 2015: €1,957 million). This already includes the entire European Bank Levy of €143 million expected for 2016 as well as the Polish banking tax of €13 million for two months. Strategic investments in digitilization as well as regulatory and compliance enhancements were compensated in full by consistent efficiency measures. The capital ratio CET 1 remained unchanged at 12.0% and, as in the same quarter of the previous year, reflects a dividend accrual of 5 cents per share.
The pre-tax profit after three months amounted to €273 million (Q1 2015: €604 million). On the whole, the first quarter of 2016 saw a net profit of €163 million (Q1 2015: €338 million). “In view of difficult market conditions and the increasingly challenging interest rate environment, the Bank achieved a reasonable operating profit in the first quarter,” said Stephan Engels, Chief Financial Officer of Commerzbank. Engels added: “The Bank’s risk profile is good and with its CET 1 capital ratio at 12.0 per cent, it continues to hold a solid midrange position among European peers.”
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