Germany's second-biggest lender Commerzbank on Wednesday said net profit almost doubled in the first quarter, thanks to "a tailwind" from higher interest rates. The group said it made a bottom-line profit of €580 million, compared with €298 million over the same period a year earlier. "We had a very good start to 2023," CEO Manfred Knof said in a statement. "The interest rate development continues to give us a tailwind, and the fee business has delivered a good result," he said. Like other lenders in Europe, Commerzbank has benefited from a higher interest rate environment as the European Central Bank has raised borrowing costs at an unprecedented rate in recent months to combat inflation. Inflation in Germany, Europe's biggest economy, eased to 7.2 per cent in April after peaking at 8.8 per cent last October. Commerzbank said quarterly revenues fell slightly to just under €2.7 billion, from €2.8 billion a year earlier. The lender said the dip was partly due to charges set aside to cover legal costs at its Polish unit mBank. Commerzbank embarked on a major turnaround in recent years, focussed on winning new customers, digitisation and reducing its workforce. The bank has...
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