CAPTION: Germany's Commerzbank sees 12% profit growth in fourth quarter. (picture alliance/SVEN SIMON/Malte Ossowski)
Profits are up at Germany's Commerzbank, with a rise in revenue in the fourth quarter, according to results published.
The German lending major's fourth-quarter consolidated profit grew 12.1% to €472 million ($505.1 million) from last year's €421 million.
Pre-tax profit stood at €488 million, which is significantly higher than prior year's €115 million.
For the final three-month period of the year, the company reported total revenue growth of 12.7% to €2.36 billion, compared to €2.10 billion in the same period in the prior year.
Net interest income climbed 50.7% to €1.96 billion from €1.30 billion last year.
The Frankfurt-headquartered bank said it intends to distribute 30% of its net profit after deduction of AT1 coupon payments by planning a dividend of 20 cents per share and by applying for a share buyback programme of €122 million.
Moving forward, for the fiscal 2023, Commerzbank expects a net result well above 2022 and targets a pay-out ratio of 50% of the consolidated profit.
The lender also anticipates a further increase in net interest income to well above €6.5 billion with clear additional upside potential. Net commission income is expected to remain stable.
Meanwhile, the company is aiming for a further reduction in total costs to €6.3 billion.
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