German banking giant Commerzbank
saw its best net result in more than 10 years, as its customer business
continued to see robust performance. The current high interest rate environment
also contributed significantly to these figures.
Operating profit for the first
quarter of the year surged to €1.08 billion, up from €875 million for the same
period last year, while net profit reached €747 million, up from €580 million.
Total revenue came in at €2.7 billion up from €2.6 billion on last year.
Net interest income rose to €2.1
billion from €1.9 billion on Q1 of last year. Net commission income was
relatively unchanged on last year at €920 million, up from €915 million.
Costs over the same period fell,
down to €1.6 billion from 2023's €1.7 billion.
Commerzbank raised its net
interest income outlook for the rest of the year to approximately €8.1 billion,
with a 4% growth target for net commission.
Usually, when central banks hike
interest rates, banks benefit by being able to charge their consumers higher
interest rates on their loans and mortgages. They also have the potential to
earn more by investing their own capital at higher rates.
Although this also means that
they have to pay savers more lucrative rates, the increase is usually a small
amount compared with the amount earned on mortgages and their own investments.