Shares of Commerzbank have experienced a decline, reversing earlier gains, following the bank’s decision to raise its full-year guidance for revenue and profit to levels that are in line with consensus views.
At 1049 GMT, shares traded at EUR10.01, representing a 3.9% decrease from previous levels. Earlier in the day, shares had risen as much as 6.7%.
Commerzbank, a German bank, announced on Wednesday that it now expects a full-year net profit of 2.2 billion euros ($2.35 billion), surpassing its previous guidance which anticipated a result above the EUR1.4 billion reported last year. Furthermore, the bank forecasts an increase in revenue to EUR10.6 billion.
Additionally, Commerzbank’s net interest income is projected to exceed EUR8.1 billion, up from at least EUR7.8 billion as previously estimated.
According to consensus provided by the bank, analysts were anticipating a net profit of EUR2.23 billion and revenue of EUR10.625 billion for this year.
During the third quarter, the bank achieved a net profit of EUR684 million, a significant improvement from the EUR195 million recorded during the same period last year. Commerzbank attributes its increased profitability in part to its continued commitment to strict cost discipline during the economic slowdown.
Furthermore, the bank reported revenue of EUR2.8 billion, up from EUR1.9 billion, driven by robust customer business and favorable interest rates.