The banks’ private customers unit saw earnings slump 49% to EUR70 million as revenue fell and provisions rose. The corporates and markets division reported a nine fold jump in operating profit to EUR271 million as the market environment improved and customer activity increased.
Pre-tax loss in the first quarter stood at EUR24 million, which included the restructuring expenses. This compares with a profit of EUR542 million in the prior year.
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Operating profit dropped to EUR469 million from EUR576 million last year, mainly due to deterioration in interest rate environment.
Revenues before loan loss provisions totaled EUR2.46 billion, compared with EUR2.58 billion a year before. Net interest income declined to EUR1.36 billion from EUR1.69 billion last year.
Net commission income was EUR847 million, down from EUR864 million reported last year. Meanwhile, net trading income climbed to EUR317 million from EUR164 million in the preceding year.
Operating expenses were EUR1.72 billion, compared to EUR1.79 billion in the prior year. Provisions for loan losses increased to EUR267 million from EUR 212 million a year ago.
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By GlobalDataCommerzbank chairman of the board of managing directors, Martin Blessing, said: "Furthermore, we have begun to implement the planned investments in the future of the Bank. The clear focus this year lies on the implementation of the strategic agenda."
"The positive effects from this should increasingly become visible from the coming year onwards. Initial initiatives are already bearing fruit – in particular in the Private Customers business," Blessing said.
