Frankfurt am Main: In the 2014 financial year, Commerzbank considerably increased the net profit further reducing risks and significantly improving the relevant capital ratios.
The operating profit was improved by 40% to EUR 1.0 billion (2013: EUR 0.7 billion). In the fourth quarter of 2014 the net profit increased to EUR 77 million, following on from EUR 64 million in the same quarter of the previous year. Among the contributors to the increase were lower loan loss provisions of EUR 308 million (Q4 2013: EUR 451 million).
The revenues before loan loss provisions declined, above all due to the portfolio run-down in the Non-Core Assets (NCA) segment, to EUR 9.1 billion (2013: EUR 9.3 billion). The loan loss provisions were lowered considerably to EUR 1.1 billion (2013: EUR 1.7 billion), which is testimony to the high quality of the credit portfolio. Despite additional investment and higher regulatory costs, the operating expenses were maintained at a virtually stable level of EUR 6.9 billion (2013: EUR 6.8 billion) thanks to active cost management. The net profit improved to EUR 602 million (2013: EUR 81 million); this figure includes restructuring expenses of EUR 61 million (2013: EUR 493 million).
Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank AG, said, “We have increased the operating profit to more than EUR 1 billion in 2014 and significantly improved our capital base through our own efforts. In a challenging environment we have posted further growth, have awarded more loans and increased market share. The measures in our strategic agenda have been well received by customers.”
Blessing added: ”The satisfaction of our customers has risen considerably in the past two years. In the Private Customers segment we have acquired more than 530,000 new customers in this period, and at Mittelstandsbank our position as the market leader in the financing of German foreign trade has been extended. Our investment bank Corporates & Markets has expanded its international business. In the Central & Eastern Europe segment we were able to acquire 558,000 new customers thanks to our Polish subsidiary mBank.”
