Commerzbank warns that it will be more difficult to increase its profit this year, an important objective for the financial group. The German bank, which was once again on its own after the merger talks with Deutsche Bank, had lower revenues in the past quarter. Moreover, the prospects of continuing lower interest rates make it more difficult for the bank to step up the results.

Turnover fell by 2 percent in the second quarter to 2.1 billion euros. The bank has seen the revenues shrink for four consecutive quarters. The branch for business customers in particular, the most important pillar of the company, had a hard time. This nullified the growth of private customers, according to Commerzbank.

The net profit amounted to 271 million euros. That meant a slight decrease compared to a year earlier, but more than what experts in general expected. The opposite applied to the operating result that turned out to be lower than anticipated, partly due to an appeal that Commerzbank took for bad loans.

Martin Zielke from Commerzbank pointed out the challenges in the sector in an explanation. This will require further investments from the bank. “That is exactly what we are testing and evaluating in the current strategy process,” said the CEO. In the fall, the bank, which knows that being a major shareholder in the German state, wants to explain its new strategy.

There are limited growth opportunities for Commerzbank, which was previously linked to an acquisition by ING. In addition to fierce competition, the bank faces low interest rates. Interest rate hikes also seem farther away than ever. The ongoing interest rate pressure is putting results from more banks and financial institutions under pressure.

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