By Ed Frankl
Commerzbank AG said Thursday that its fourth-quarter profit beat expectations, after revenue surged on higher interest income.
Germany’s second-largest lender said net profit in the three months to the end of December was 472 million euros ($504.5 million), up from EUR421 million in the same period of last year.
Total revenue, its top-line figure, jumped 13% on year to EUR2.36 billion.
The results compare with company-compiled consensus of net profit of EUR374 million on revenue of EUR2.48 billion.
The Frankfurt-based bank said its net interest income rose 51% to EUR1.96 billion, based on higher interest rates.
The company also said it would launch a buyback of EUR122 million, subject to approval from the European Central Bank.
On Wednesday, it declared a dividend for the year of 20 European cents per share as part of a capital-return payout ratio of 30% of 2022 net profits.
Commerzbank guided for 2023’s net profit to be above 2022’s, with NII above EUR6.5 billion and boosting its payout ratio to 50%.
Write to Ed Frankl at edward.frankl@wsj.com
Credit: marketwatch.com