Commerzbank considerably increased the net profit in the 2014 financial year, further reducing risks and significantly improving the relevant capital ratios.
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The operating profit was improved by 40% to EUR 1 billion (2013: EUR 0.7 billion). The revenues before loan loss provisions declined, above all due to the portfolio run-down in the Non-Core Assets (NCA) segment, to EUR 9.1 billion (2013: EUR 9.3 billion).
The loan loss provisions were lowered considerably to EUR 1.1 billion (2013: EUR 1.7 billion), which is testimony to the high quality of the credit portfolio. Despite additional investment and higher regulatory costs, the operating expenses were maintained at a virtually stable level of EUR 6.9 billion (2013: EUR 6.8 billion) thanks to active cost management.
The net profit improved to EUR 602 million (2013: EUR 81 million); this figure includes restructuring expenses of EUR 61 million (2013: EUR 493 million).
In the fourth quarter of 2014 the net profit increased to EUR 77 million, following on from EUR 64 million in the same quarter of the previous year. Among the contributors to the increase were lower loan loss provisions of EUR 308 million (Q4 2013: EUR 451 million).
The Core Bank attained a stable operating profit of EUR 1.8 billion (2013: EUR 1.8 billion) in the 2014 financial year. The operating return on equity in the Core Bank was 9.2%. The. Without these the operating revenues of the Core Bank would have increased despite the ongoing low interest rate environment. The loan loss provisions in the Core Bank were reduced significantly, by 26.3% to EUR 490 million (2013: EUR 665 million).
The operating expenses in the Core Bank were EUR 6.6 billion and thus, as a result of additional investment and higher regulatory costs, increased slightly, by 2.6%, year-on-year (2013: EUR 6.4 billion).
The credit volume was again increased in this period. In comparison with the previous year the Private Customers and Mittelstandsbank segments increased their credit volumes by 3% and 8%, respectively. Thus, the credit volumes in these segments increased more sharply than in the market in general. ■