The profits of Commerzbank, the second largest bank in Germany, doubled during the first quarter of this year, thanks to the sharp rise in interest rates in the largest European economy.
And the Commerzbank Group announced, on Wednesday, that it had achieved a net profit of 580 million euros ($630 million), compared to 298 million euros ($322.6 million) in the same period a year earlier.
Regarding the group’s performance, Commerzbank CEO Manfred Knoff said in a statement on Wednesday that the beginning of 2023 was “very good,” noting the continuation of good results due to the high interest rates in the European Union.
The bank stated in its statement that it has benefited from the high interest rate environment, as the European Central Bank has increased interest rates in recent months to combat inflation.
And at the beginning of this month, the European Central Bank raised interest rates by 25 basis points, to reach the level of 3.75 percent, in line with expectations, in the seventh consecutive increase since last year, with the aim of controlling inflation.
This was the first time that the ECB eased the rate hike.
On May 10, economic data showed that the harmonized consumer price index in Germany slowed to 7.6 percent on an annual basis in April, compared to 7.8 percent in March, according to data from the German Federal Statistical Office.
The monthly Harmonized CPI also slowed sharply to 0.6%, compared to a rise of 1.1% in March.
The Harmonized Consumer Price Index measures inflation data in the same way as the European Union.
Commerzbank Group stated that first-quarter revenue fell to just under 2.7 billion euros (2.9 billion dollars), compared to 2.8 billion euros (about 3 billion dollars) a year earlier.
2023-05-17 10:27:34
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