Commerzbank confirms 2019 objectives as first quarter profits tumble

(Frankfurt) AFP: Germany’s second-largest lender Commerzbank said yesterday it was sticking to a full-year forecasts for 2019 even as profits halved in the first quarter, after merger talks with rival Deutsche Bank fell through.

Net profits were down 54.2 percent year-on-year, at 120 million euros (US$134 million), the group said in a statement, adding that a signficantly higher tax bill was largely to blame.

Operating, or underlying profit was down 5.6 percent at 244 million euros, on revenues down almost three percent at 2.2 billion. Growth in the bank’s net interest income as it acquired more customers and assets nevertheless allowed it to absorb the higher costs from new EU regulations known as Mifid II, introduced last year.

Executives from both Commerzbank and Deutsche Bank walked away from merger talks late last month, saying the business case for a tie-up was not strong enough.