Commerzbank seeks dividend return, affirms annual outlook as Q2 profit collapses By Reuters
FRANKFURT (Reuters) – Germany's Commerzbank ( ETR: ) said on Wednesday it planned a 600 million euro ($654.48 million) dividend refund after reporting an expected drop in second-quarter net profit and confirming its outlook for the full year.
Commerzbank, one of Germany's best-known banks and partially owned by the state after a bailout more than a decade ago, spent much of the past year on a major restructuring, cutting its staff and branch network to restore profitability.
The borrower's net income (NII) fell in the second quarter, contributing to a 4.8% decline in profit that was in line with analysts' expectations.
Commerzbank reported a net profit of 538 million euros in the reported quarter, compared to a profit of 565 million euros last year. Analysts, on average, were expecting a profit of 539 million euros, according to the July consensus forecast published by the German lender.
The bank has sought approval from its regulators for the first phase of the share buyback plan, and said it plans to file for the second phase with its third-quarter results later this year.
“The first half of the year was the best in 15 years,” said CEO Manfred Knof.
($1 = 0.9168 euro)
