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Commerzbank May Report First-Quarter Profit After Trading Income Rebounded

Commerzbank AG, Germany’s second- largest bank, may say it returned to a profit following six consecutive quarterly losses as trading rebounded.

Net income in the first three months of 2010 probably totaled 479 million euros ($620 million), compared with a loss of 864 million euros in the year-earlier period, according to the median estimate of 10 analysts surveyed by Bloomberg.

“We expect a strong performance in the Corporates & Markets segment driven by an excellent trading result,” Andreas Plaesier, an analyst at M.M. Warburg & Co., wrote in a research report dated April 29. He has a “sell” rating on the shares.

Chief Financial Officer Eric Strutz said in a Bloomberg News interview in March that the lender expected to post a pretax profit in the first quarter. The Frankfurt-based bank had a “good” quarter, helped by fixed income, foreign exchange trading and equity derivatives, he said at the time.

Following are the analysts’ median estimates for Commerzbank’s first-quarter earnings and year-earlier reported results. The numbers are in millions of euros. The bank is scheduled to report earnings tomorrow before the German stock market opens.

                              Q1 2010       Q1 2009    Number of
                             Estimate      Reported    Estimates

Net interest income
before risk provisions          1,862        1,692            9
Loan-loss provisions              750          844            9
Net commission income             975          850            9
Trading profit/loss               713         -527            9
Net investment income              20          386            8
Operating expenses              2,200        2,081            9
Pretax profit/loss                637         -884            9
Net income/loss                   479         -864           10

Companies surveyed: Merck Finck, Kepler, Equinet, M.M. Warburg, Citigroup, Helvea, LBBW, DZ Bank, Bankhaus Metzler, Keefe, Bruyette & Woods. One participant wasn’t identified.

To contact the reporter on this story: Jann Bettinga in Frankfurt at jbettinga@bloomberg.net

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