Shares in Commerzbank AG
CBK,
rose sharply on Thursday after the company posted expectations-beating fourth-quarter net profit and said it would rise further in 2023.
At 0825 GMT, shares were up 6.2% to EUR10.94.
Germany’s second-largest bank reported net profit in the three months to the end of December of 472 million euros ($504.5 million), beating company-compiled consensus of EUR374 million, driven by revenue that was boosted by higher interest rates.
The company said it expects net interest income to be well above EUR6.5 billion in 2023, from EUR6.46 billion in 2022, alongside a further reduction in total costs to EUR6.3 billion from EUR6.49 billion.
The Frankfurt-based company also targeted this year’s net profit well above 2022’s, and to increase its payout ratio to 50% of net profit after 30% in 2022, in line with its capital-return policy.
The bank’s net interest income guidance in particular points to further upside to consensus, according to RBC Capital Markets analyst Anke Reingen.
Write to Ed Frankl at edward.frankl@wsj.com
Credit: marketwatch.com