The German lender reduced its shipping portfolio by 20% from EUR 20bn ($27bn) in the third quarter of 2012 to EUR 16bn at the end of September and is within reach of the EUR 14bn target it had expected to hit by the end of 2016.
Commerzbank made a lower loan loss provision of EUR 243m for its Non Core Asset (NCA) segment, a bundle of assets which includes shipping and property that the bank plans to divest in time.
However the provision for shipping alone was EUR 170m in the third quarter up from EUR 110m in the preceeding quarter and EUR 160m in the third leg of 2012.
The NCA segment's operating loss for the third quarter was EUR 272m, up by 43% on a loss of EUR 477 in the same period a year ago and a 30% improvement on the EUR 387m operating loss seen in the second quarter.
Commerzbank, which yesterday confirmed its top shipping man would leave the company to take the helm at Erck Rickmers next year, said its overall restructuring efforts were paying off.
“We have already achieved very much with our strategic agenda: We have increased the capital ratios, lowered costs, considerably reduced risks and non-strategic portfolios, and successfully launched our growth initiatives,” said Martin Blessing, chairman of the board.
“Thus we have further enhanced the stability of the Bank.”
Commerzbank booked net income of EUR 77m for the three months to 30 September, up by EUR 10m on the same period of 2012.
However operating profit more than halved to EUR 103m from EUR 208m in the third quarter of last year as it made higher loan loss provisions and had a weaker trading result.
Revenues before loan loss provisions dipped to EUR 2.28bn from EUR 2.37bn.
