Net profit of Commerzbank in the financial year 2019 dropped to 644 million euros (699 million U.S. dollars), down by around a quarter from 862 million euros in 2018, the German banking institute announced on Thursday.
The decline in profits had also been caused by a reserve of 101 million euros that had been set aside for planned job cuts, Commerzbank noted. Around 2,300 job cuts worldwide had already been announced in September last year.
The bank’s operating profit remained “stable” at 1.26 billion euros, according to the fiscal year report of Commerzbank.
“We ended the financial year 2019 with a better operating profit than expected. Together with the strong capital ratio, this provides us with a good starting position for 2020,” said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank.
“Thanks to healthy client business”, revenues in 2019 went up to 8.64 billion euros from 8.57 billion euros in 2018, according to Commerzbank.
Commerzbank reported that customer business “remained healthy growing” on the basis of growth in customers and assets. The bank would have gained about 473,000 net private and corporate customers in Germany.
Commerzbank intended to continue its growth strategy in 2020 and expected adjusted earnings to be at least on a par with 2019.