Commerzbank reveals lower Q2 profit but expects annual gains

(MENAFN) Germany's Commerzbank announced a decline in its profits for the second quarter of 2024, reporting a 5% drop to 538 million euros. This decrease is attributed primarily to a reduction in net interest income, which has impacted the bank's financial performance during this period. Despite this decline, the bank's performance for the first half of the year has shown a notable improvement compared to the previous year, due to stronger profits recorded in the first quarter.

Experts had predicted a drop in profits of this scale, aligning with the bank's reported results. However, Commerzbank's overall profitability for the first six months of the year remains positive, with double-digit percentage increases compared to the same period last year. This strong performance in the earlier part of the year has led the bank's CEO, Manfred Knof, to maintain a positive outlook, expecting a rise in profits by the end of the year.

In addition to its profit forecasts, Commerzbank is leveraging its solid financial position to initiate a share buyback program. The bank has sought approval for a €600 million share repurchase from the European Central Bank and the German Finance Agency. This move reflects the bank's confidence in its financial stability and its strategic intent to return value to shareholders amidst its evolving profit landscape. 

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