Commerzbank AG Reports Q1 Metrics: Fixed Income, Currencies Fuel Profits

Commerzbank's key drivers behind higher profits YoY were Fixed Income Currencies, and Equity Markets Commodities.

Commerzbank AG reported its Q1 2015 operating metrics, having secured a good start to the 2015 calendar year across its corporates and markets, according to a Commerzbank statement.

In particular, the banking giant saw revenues before loan loss provisions at $3.1 billion (€2.8 billion) during Q1 2015, a jump of 23% YoY from Q1 2014. In addition, operating expenses came in at just $2.1 billion (€1.9 billion), including a European bank levy of $187.7 million (€167 million).

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Commerzbank yielded a particularly strong net profit in Q1 2015, reporting $412.3 million (€366 million), soaring 83% from $225.3 million (€200 million) in Q1 2014.

Metrics Breakdown

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Commerzbank identified some key drivers that helped fuel larger profits YoY, pointing to Fixed Income & Currencies (FIC), as well as Equity Markets & Commodities (EMC). In particular, FIC drove YoY revenues to the tune of 45% to $220.8 million (€196 million), attributed to staunch volatility in foreign exchange (FX) markets and augmented bond trading.

Q1 2015 also saw the fallout of the Swiss National Bank (SNB) decision to abolish its currency floor with the Euro, which convulsed currency markets worldwide via heightened volatility.

Moreover, the EMC realm also helped kick off a solid start to the year in Q1 2015, showing a robust 14% YoY growth. The momentum was not relegated to one consolidated area however, as investment solutions across all asset classes, helped drive profits in Q1 2015.

According to Martin Blessing, Chief Executive Officer of Commerzbank, in a recent statement on the metrics, “We have made a successful start into 2015. We are performing well in all the operating segments and thanks to greater activity on the part of our customers have considerably improved the revenues.”

“We have more than doubled the result in the first quarter – and this despite the charges from the European bank levy and a valuation adjustment on the HETA exposure. We are planning for a dividend for the financial year 2015 and are accruing quarterly. However, we have to wait, whether it will be enough at the end of the year,” he added.

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