Germany’s Commerzbank warned on Thursday that it “no longer expects to achieve its target of slightly higher group income compared with the previous year.”
The bank also reported 294 million euros ($325 million) in net profit for Q3 2019, a 34.86 percent increase year-on-year from Q3 2018’s EUR 218 million.
The bank cited global economic uncertainty, trade conflicts, the European Central Bank’s (ECB) monetary easing policy, and anticipated higher taxes in Q4 2019 as the reasons behind the warning.
Commerzbank also reported a 2 percent year-on-year increase in revenue to EUR 2.18 billion, up from EUR 2.14 billion in Q3 2018.
“In the third quarter we achieved a good result. This is based on higher revenues, reduced costs and a low risk result,” said Stephan Engels, chief financial officer of Commerzbank.
“We continue to grow our customer and asset base, thus tackling undiminished margin pressure. Looking forward, we substantially invest in the Bank’s digitalization and further cost reduction,” he added.
Commerzbank is Germany’s second-largest listed bank and is partly owned by the government.