Commerzbank's Q3 Profit Declines Amid Takeover Talks

FRANKFURT (Reuters) – Germany's Commerzbank (ETR:CBKG), fending off a possible takeover by Italy's UniCredit, reported a net profit fall of 6.2% in the third quarter. Despite this decline, the results exceeded analysts' expectations, primarily impacted by decreased interest income and increased risk provisions.

Nevertheless, Commerzbank raised its forecast for net interest income and commission income for the full year.

These figures are the first since UniCredit disclosed purchasing a substantial stake in Commerzbank and initiated discussions for a potential merger. Commerzbank, Germany's No. 2 bank, is reinforcing its defenses to maintain independence.

The bank reported a net profit of 642 million euros ($690.28 million) for the quarter, a decrease from 684 million euros the previous year. Analysts had forecasted an average profit of 529 million euros, according to an October consensus released by Commerzbank.

Chief Executive Bettina Orlopp stated, "This shows that our growth initiatives are increasingly paying off, thanks to the very consistent implementation of our strategy."

The bank upgraded its 2024 forecast for net interest income to 8.2 billion euros, an increase from a prior expectation of 8.1 billion. It also projects commission income to rise more than 5%, exceeding an earlier prediction of 4%.

> Note: $1 = 0.9301 euros