Commerzbank Posts Higher Q4 Profit

Germany's Commerzbank AG CRZBY reported a rise in its fourth-quarter net profit. Commerzbank's quarterly net profit surged to EUR77 million ($87.12 million), versus a year-ago profit of EUR64 million. Analysts were expecting a profit of EUR58.5 million. Its revenue dropped to EUR2.19 billion from EUR2.23 billion. Operating profit climbed to 98 million euros from 90 million euros. Loan-loss provisions slipped to 308 million euros from 451 million euros. "In 2014 we strengthened our capital base and further reduced risks. In our run-down segment we were able to significantly lower the portfolios and the risk-weighted assets. In addition we have increased our common regulatory equity capital by approximately EUR 900 million and improved the corresponding core equity ratio to 9.5%. Last year we were also able to significantly improve the leverage ratio to 3.7%. We have now also set ourselves a target for this for the end of 2016: we intend to increase the ratio with full application of Basel 3 to approximately 4%," said Stephan Engels, Chief Financial Officer of Commerzbank. Commerzbank shares declined 1.02% to close at $12.66 yesterday.